UNITED STATES SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C.
20549
Form 10-K
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended
December 31,
2010
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or
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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For the transition period
from to .
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Commission File Number
333-21873
FIRST INDUSTRIAL,
L.P.
(Exact name of Registrant as
specified in its Charter)
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Delaware
(State or other jurisdiction
of
incorporation or organization)
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36-3924586
(I.R.S. Employer
Identification No.)
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311 S. Wacker Drive,
Suite 3900,
Chicago, Illinois
(Address of principal
executive offices)
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60606
(Zip Code)
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(312) 344-4300
(Registrants telephone
number, including area code)
Securities registered pursuant to Section 12(b) of the
Act:
None
Securities registered pursuant to Section 12(g) of the
Act:
None
Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes o No þ
Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or 15(d) of the Securities
Exchange Act of
1934. Yes o No þ
Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any,
every Interactive Data File required to be submitted and posted
pursuant to Rule 405 of
Regulation S-T
(§ 232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant
was required to submit and post such
files). Yes o No o
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been
subject to such filing requirements for the past
90 days. Yes þ No o
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of
Regulation S-K
is not contained herein, and will not be contained, to the best
of registrants knowledge, in definitive proxy or
information statements incorporated by reference in
Part III of this
Form 10-K
or any amendment to this
Form 10-K. þ
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company. See the definitions of
large accelerated filer, accelerated
filer and smaller reporting company in
Rule 12b-2
of the Exchange Act. (Check One):
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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(Do not check if a smaller reporting company)
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Indicate by check mark whether the registrant is a shell company
(as defined in
Rule 12b-2
of the Exchange
Act). Yes o No þ
FIRST
INDUSTRIAL, L.P.
TABLE OF
CONTENTS
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This report contains certain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934 (the
Exchange Act). We intend such forward-looking
statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 and are including this statement
for purposes of complying with those safe harbor provisions.
Forward-looking statements, which are based on certain
assumptions and describe our future plans, strategies and
expectations, are generally identifiable by use of the words
believe, expect, intend,
anticipate, estimate,
project, seek, target,
potential, focus, may,
should, or similar expressions. Our ability to
predict results or the actual effect of future plans or
strategies is inherently uncertain. Factors which could have a
materially adverse effect on our operations and future prospects
include, but are not limited to: changes in national,
international, regional and local economic conditions generally
and real estate markets specifically; changes in
legislation/regulation (including changes to laws governing the
taxation of real estate investment trusts) and actions of
regulatory authorities (including the Internal Revenue Service);
our ability to qualify and maintain our status as a real estate
investment trust; the availability and attractiveness of
financing (including both public and private capital) to us and
to our potential counterparties; the availability and
attractiveness of terms of additional debt repurchases; interest
rates; our credit agency ratings; our ability to comply with
applicable financial covenants; competition; changes in supply
and demand for industrial properties (including land, the supply
and demand for which is inherently more volatile than other
types of industrial property) in the Companys current and
proposed market areas; difficulties in consummating acquisitions
and dispositions; risks related to our investments in properties
through joint ventures; environmental liabilities; slippages in
development or
lease-up
schedules; tenant creditworthiness;
higher-than-expected
costs; changes in asset valuations and related impairment
charges; changes in general accounting principles, policies and
guidelines applicable to real estate investment trusts;
international business risks and those additional factors
described in Item 1A, Risk Factors and in our
other filings with the Securities and Exchange Commission (the
SEC). We caution you not to place undue reliance on
forward looking statements, which reflect our analysis only and
speak only as of the date of this report or the dates indicated
in the statements. We assume no obligation to update or
supplement forward-looking statements. Unless the context
otherwise requires, the term Operating Partnership
refers to First Industrial, L.P. and the terms we,
us, and our refer to First Industrial,
L.P. and its controlled subsidiaries. Effective
September 1, 2009, our taxable real estate investment trust
subsidiary, First Industrial Investment, Inc. (the old
TRS) merged into First Industrial Investment II, LLC
(FI LLC), which is wholly owned by the Operating
Partnership. Immediately thereafter, certain assets and
liabilities of FI LLC were contributed to a new subsidiary, FR
Investment Properties, LLC (FRIP). FRIP is 1% owned
by FI LLC and 99% owned by a new taxable real estate investment
trust subsidiary, First Industrial Investment Properties, Inc.
(the new TRS, which, collectively with the old TRS
and certain wholly owned taxable real estate investment trust
subsidiaries of FI LLC, will be referred to as the
TRSs), which is wholly owned by FI LLC (see
Note 11 to the Consolidated Financial Statements).
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PART I
THE
COMPANY
General
First Industrial, L.P. (the Operating Partnership)
was organized as a limited partnership in the state of Delaware
on November 23, 1993. The sole general partner is First
Industrial Realty Trust, Inc. (the Company) which
owns common units in the Operating Partnership
(Units) representing an approximate 92.8% ownership
interest at December 31, 2010. The Company also owns a
preferred general partnership interest in the Operating
Partnership represented by preferred units (Preferred
Units) with an aggregate liquidation priority of
$275.0 million. The Company is a real estate investment
trust (REIT) as defined in the Internal Revenue Code
of 1986 (the Code). The Companys operations
are conducted primarily through the Operating Partnership. The
limited partners of the Operating Partnership owned, in the
aggregate, approximately a 7.2% interest in the Operating
Partnership at December 31, 2010.
The Operating Partnership is the sole member of several limited
liability companies (the L.L.C.s) and the sole
stockholder of the TRS, (together with the Operating Partnership
and the L.L.C.s, the Consolidated Operating
Partnership), the operating data of which is consolidated
with that of the Operating Partnership as presented herein. We
also hold at least a 99% limited partnership interest in First
Industrial Financing Partnership, L.P. (the Financing
Partnership), First Industrial Securities, L.P. (the
Securities Partnership), First Industrial Mortgage
Partnership, (the Mortgage Partnership), L.P. First
Industrial Pennsylvania, L.P. (the Pennsylvania
Partnership), First Industrial Harrisburg, L.P. (the
Harrisburg Partnership), First Industrial
Indianapolis, L.P. (the Indianapolis Partnership),
TK-SV, LTD., and FI Development Services L.P. and wholly owned
L.L.C.s (together, the Other Real Estate
Partnerships). The Other Real Estate Partnerships
operating data is presented herein on a combined basis, separate
from that of the Consolidated Operating Partnership. The general
partners of the Other Real Estate Partnerships are separate
corporations, each with at least a .01% general partnership
interest in the Other Real Estate Partnerships for which it acts
as a general partner. Each general partner of the Other Real
Estate Partnerships is a wholly-owned subsidiary of the Company.
The Operating Partnership or the new TRS, through separate
wholly-owned limited liability companies of which it is the sole
member, also owns noncontrolling equity interests in, and
provides services to, two joint ventures (the 2003 Net
Lease Joint Venture and the 2007 Europe Joint
Venture). During 2010, we provided various services to,
and ultimately disposed of our equity interests in, five joint
ventures (the 2005 Development/Repositioning Joint
Venture, the 2005 Core Joint Venture, the
2006 Net Lease Co-Investment Program, the 2006
Land/Development Joint Venture and the 2007 Canada
Joint Venture; together with the 2003 Net Lease Joint
Venture and the 2007 Europe Joint Venture, the Joint
Ventures). The Joint Ventures are accounted for under the
equity method of accounting. Accordingly, the operating data of
our Joint Ventures is not consolidated with that of the
Consolidated Operating Partnership as presented herein. On
May 25, 2010, we sold our interest in the 2006 Net Lease
Co-Investment Program to our joint venture partner. On
August 5, 2010, we sold our interests in the 2005
Development/Repositioning Joint Venture, the 2005 Core Joint
Venture, the 2006 Land/Development Joint Venture and the 2007
Canada Joint Venture to our joint venture partner. The 2007
Europe Joint Venture does not own any properties. See
Note 6 to the Consolidated Financial Statements for more
information on the Joint Ventures.
The Other Real Estate Partnerships and the Joint Ventures are
accounted for under the equity method of accounting. The
operating data of the Other Real Estate Partnerships and the
Joint Ventures are not consolidated with that of the
Consolidated Operating Partnership as presented herein.
As of December 31, 2010, we owned 705 in-service industrial
properties, containing an aggregate of approximately
60.8 million square feet of gross leasable area
(GLA). On a combined basis, as of December 31,
2010, the Other Real Estate Partnerships owned 69 in-service
industrial properties, containing an aggregate of approximately
7.8 million square feet of GLA. Of the 69 industrial
properties owned by the
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Other Real Estate Partnerships at December 31, 2010, 21 are
held by the Financing Partnership, 17 are held by the
Pennsylvania Partnership, nine are held by the Securities
Partnership, nine are held by the Mortgage Partnership, seven
are held by the Harrisburg Partnership, four are held by the
Indianapolis Partnership, one is held by TK-SV, LTD. and one is
held by FI Development Services, L.P. Beginning January 1,
2009, our in-service portfolio includes all properties other
than developed, redeveloped and acquired properties that have
not yet reached stabilized occupancy (generally defined as
properties that are 75% leased). Properties which are at least
75% occupied at acquisition are placed in-service. Acquired
properties less than 75% occupied are placed in-service upon the
earlier of reaching 90% occupancy or one year from the
acquisition date. Development properties are placed in-service
upon the earlier of reaching 90% occupancy or one year from the
date construction is completed. Redevelopments (generally
projects which require capital expenditures exceeding 25% of
basis) are placed in-service upon the earlier of reaching 90%
occupancy or one year from the completion of renovation
construction.
We utilize an operating approach which combines the
effectiveness of decentralized, locally based property
management, acquisition, sales and development functions with
the cost efficiencies of centralized acquisition, sales and
development support, capital markets expertise, asset management
and fiscal control systems. At February 23, 2011, we had
183 employees.
We maintain a website at www.firstindustrial.com. Information on
this website shall not constitute part of this
Form 10-K.
Copies of our annual report on
Form 10-K,
quarterly reports on
Form 10-Q,
current reports on
Form 8-K
and amendments to such reports are available without charge on
our website as soon as reasonably practicable after such reports
are filed with or furnished to the SEC. In addition, our
Corporate Governance Guidelines, Code of Business Conduct and
Ethics, Audit Committee Charter, Compensation Committee Charter,
Nominating/Corporate Governance Committee Charter, along with
supplemental financial and operating information prepared by us,
are all available without charge on our website or upon request
to us. Amendments to, or waivers from, our Code of Business
Conduct and Ethics that apply to our executive officers or
directors will also be posted to our website. We also post or
otherwise make available on our website from time to time other
information that may be of interest to our investors. Please
direct requests as follows:
First Industrial Realty Trust, Inc.
311 S. Wacker, Suite 3900
Chicago, IL 60606
Attention: Investor Relations
Business
Objectives and Growth Plans
Our fundamental business objective is to maximize the total
return to our partners through per unit distributions and
increases in the value of our properties and operations. Our
long-term business growth plans include the following elements:
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Internal Growth. We seek to grow internally by
(i) increasing revenues by renewing or re-leasing spaces
subject to expiring leases at higher rental levels;
(ii) increasing occupancy levels at properties where
vacancies exist and maintaining occupancy elsewhere;
(iii) controlling and minimizing property operating and
general and administrative expenses; and (iv) renovating
existing properties.
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External Growth. We seek to grow externally
through (i) additional joint venture investments;
(ii) the development of industrial properties;
(iii) the acquisition of portfolios of industrial
properties, industrial property businesses or individual
properties which meet our investment parameters and target
markets; and (iv) the expansion of our properties.
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Our ability to pursue our long-term growth plans is affected by
market conditions and our financial condition and operating
capabilities.
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Business
Strategies
We utilize the following seven strategies in connection with the
operation of our business:
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Organization Strategy. We implement our
decentralized property operations strategy through the
deployment of experienced regional management teams and local
property managers. We provide acquisition, development and
financing assistance, asset management oversight and financial
reporting functions from our headquarters in Chicago, Illinois
to support our regional operations. We believe the size of our
portfolio enables us to realize operating efficiencies by
spreading overhead among many properties and by negotiating
purchasing discounts.
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Market Strategy. Our market strategy is to
concentrate on the top industrial real estate markets in the
United States and select industrial real estate markets in
Canada. These markets have one or more of the following
characteristics: (i) strong industrial real estate
fundamentals, including improving industrial demand
expectations; (ii) a history of industry diversity and
outlook for economic growth; and (iii) sufficient size to
provide opportunity for ample transaction volume.
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Leasing and Marketing Strategy. We have
an operational management strategy designed to enhance tenant
satisfaction and portfolio performance. We pursue an active
leasing strategy, which includes broadly marketing available
space, seeking to renew existing leases at higher rents per
square foot and seeking leases which provide for the
pass-through of property-related expenses to the tenant. We also
have local and national marketing programs which focus on the
business and real estate brokerage communities and national
tenants.
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Acquisition/Development Strategy. Our
acquisition/development strategy is to invest in properties and
other assets with higher yield potential in the top industrial
real estate markets in the United States and select industrial
real estate markets in Canada.
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Financing Strategy. To finance acquisitions,
developments and debt maturities, as market conditions permit,
we utilize a portion of proceeds from property sales, proceeds
from mortgage financings, line of credit borrowings under our
unsecured credit facility, consisting of a $200.0 million
term loan and a $200.0 million revolving line of credit
(the Unsecured Credit Facility), and proceeds from
the issuance, when and as warranted, of additional equity
securities. We also continually evaluate joint venture
arrangements as another source of capital. As of
February 23, 2011, we had approximately $12.3 million
available for additional borrowings under our Unsecured Credit
Facility.
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Disposition Strategy. We continuously evaluate
local market conditions and property-related factors in all of
our markets for purposes of identifying assets suitable for
disposition. In conjunction with the amendment of our Unsecured
Credit Facility, management identified a pool of real estate
assets (the Non-Strategic Assets) that it intends to
market and sell. At December 31, 2010, the Non-Strategic
Assets consisted of 175 industrial properties comprising
approximately 15.0 million square feet of GLA and land
parcels comprising approximately 635 gross acres, of which
174 industrial properties comprising 14.7 million square
feet of GLA and all of the land parcels were classified as held
for sale.
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Liquidity Strategy. We plan to enhance our
liquidity through a combination of capital retention, mortgage
and equity financings, asset sales and certain debt repayments:
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Capital Retention We plan to retain capital
by maintaining a distribution policy that makes per unit
distributions equivalent to the per share distributions the
Company is required to make to meet its minimum distribution
requirements as a REIT. The Operating Partnership did not make
distributions in 2010 and may not make distributions in 2011
depending on the Companys taxable income. If, to maintain
its REIT status, the Company is required to pay common stock
dividends with respect to 2011, the Company may elect to do so
by distributing a combination of cash and common shares and the
Operating Partnership would make corresponding distributions in
cash and common units.
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Mortgage Financing During the year ended
December 31, 2010, we originated $82.5 million in
mortgage financings with maturities ranging from February 2015
to October 2020 and interest rates ranging from 5.00% to 7.40%
(see Note 7 to the Consolidated Financial Statements). We
believe
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these mortgage financings comply with all covenants contained in
our Unsecured Credit Facility and the indentures governing our
senior unsecured notes, including coverage ratios and total
indebtedness, total unsecured indebtedness and total secured
indebtedness limitations. We continue to engage various lenders
regarding the origination of additional mortgage financings and
the terms and conditions thereof. To the extent additional
mortgage financing is originated, we expect to use proceeds
received to pay down our other debt. No assurances can be made
that additional mortgage financing will be obtained.
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Equity Financing During the year ended
December 31, 2010, the Company issued 875,402 shares
of its common stock, generating $6.0 million in net
proceeds, under the direct stock purchase component of the
Companys Dividend Reinvestment and Direct Stock Purchase
Plan (DRIP). Additionally, the Company issued
5,469,767 shares of its common stock, generating
$43.9 million in net proceeds, under the Companys
at-the-market
equity offering program (ATM) (see Note 8 to
the Consolidated Financial Statements). These proceeds were
contributed to us in exchange for an equivalent number of Units
and are reflected in our financial statements as a general
partner contribution. On December 31, 2010, the Company
concluded the ATM as a result of the expiration of the
distribution agreements with the sales agents. The Company may
opportunistically access the equity markets again, subject to
contractual restrictions, including through a new ATM, and may
continue to issue shares under the direct stock purchase
component of the DRIP. To the extent additional equity offerings
occur, we expect at least a portion of the proceeds received
will be used to reduce our indebtedness. No assurances can be
made that additional equity offerings will occur on favorable
terms or at all.
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Asset Sales During the year ended
December 31, 2010, we sold 10 industrial properties and
several land parcels for gross proceeds of $66.8 million
(see Note 4 to the Consolidated Financial Statements). We
are in various stages of discussions with third parties for the
sale of additional properties and plan to continue to
selectively market other properties for sale throughout 2011. At
December 31, 2010, Non-Strategic Assets include 175
industrial properties comprising approximately 15.0 million
square feet of GLA and land parcels comprising approximately
635 gross acres which are classified as held for sale
(except one industrial property comprising approximately
0.3 million square feet of GLA). We expect to use at least
a portion of sales proceeds to reduce our indebtedness. If we
are unable to sell properties on an advantageous basis, this may
impair our liquidity and our ability to meet our financial
covenants.
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Debt Reduction During the year ended
December 31, 2010, we paid off $264.8 million of our
senior unsecured notes, we paid off and retired two secured
mortgages maturing in September 2024 and December 2010 in the
aggregate amount of $14.6 million and we made net
repayments of $79.1 million on our Unsecured Credit
Facility (see Note 7 to the Consolidated Financial
Statements). We may from time to time repay additional amounts
of our outstanding debt. Any repayments would depend upon
prevailing market conditions, our liquidity requirements,
contractual restrictions and other factors we consider
important. Future repayments may materially impact our
liquidity, future tax liability and results of operations.
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Although we believe we will be successful in meeting our
liquidity needs and maintaining compliance with other debt
covenants through a combination of capital retention, mortgage
and equity financings, asset sales and debt reduction, if we
were to be unsuccessful in executing one or more of the
strategies outlined above, our financial condition and operating
results could be materially adversely affected.
Recent
Developments
During 2010, we acquired three industrial properties for a total
investment of approximately $22.4 million. We also sold 10
industrial properties and several parcels of land for an
aggregate gross sales price of $66.8 million (see
Note 4 to the Consolidated Financial Statements). At
December 31, 2010, we owned 705 in-service industrial
properties containing approximately 60.8 million square
feet of GLA.
On May 25, 2010, we sold our interest in the 2006 Net Lease
Co-Investment Program to our joint venture partner and on
August 5, 2010, we sold our interest in the 2005
Development/Repositioning Joint Venture, the
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2005 Core Joint Venture, the 2006 Land/Development Joint Venture
and the 2007 Canada Joint Venture to our joint venture partner
(see Note 6 to the Consolidated Financial Statements).
During 2010, we repurchased and retired $264.8 million of
our senior unsecured notes and recognized a loss on early debt
retirement of $4.1 million (see Note 7 to the
Consolidated Financial Statements).
During 2010, we obtained $82.5 million in mortgage
financings at a weighted average interest rate of 6.16%, with
maturities ranging between February 2015 and October 2020. Also,
we paid off and retired $14.6 million in mortgage loans
payable (see Note 7 to the Consolidated Financial
Statements).
Effective October 22, 2010, we amended our Unsecured Credit
Facility to provide for a $200.0 million term loan and a
$200.0 million revolving line of credit. The Unsecured
Credit Facility matures on September 28, 2012. On
October 22, 2010, we repaid $99.1 million in
connection with the decrease in the Unsecured Credit
Facilitys capacity to $400.0 million from
$500.0 million as part of the amendment. For the term
borrowing, the Unsecured Credit Facility requires interest only
payments through March 29, 2012 at LIBOR plus
325 basis points or at a base rate plus 225 basis
points, at our election. The term borrowing requires quarterly
principal pay-downs of $10.0 million beginning
March 30, 2012 until maturity on September 28, 2012.
For the revolving borrowings, the Unsecured Credit Facility
provides for interest only payments at LIBOR plus 275 basis
points or at a base rate plus 175 basis points, at our
election. Additionally, certain financial covenants were changed
in connection with the amendment, including the fixed charge
coverage ratio, which decreased to 1.2 times from 1.5 times.
Also, the calculation of Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA), as defined
in the Unsecured Credit Facility and used in the fixed charge
coverage ratio, no longer includes economic gains or losses from
property sales.
The following shows the material changes to the financial
covenants:
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Amended
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Amended
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Agreement
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Agreement
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through
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beginning
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Previous
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September 30,
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October 1,
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Agreement
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2011
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2011
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Fixed Charge Coverage Ratio
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³1.50
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³1.20
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³1.20
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Consolidated Leverage Ratio
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£60.0
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%
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£65.0
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%
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£60.0
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%
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Ratio of Value of Unencumbered Assets to Outstanding
Consolidated Senior Unsecured Debt
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³1.60
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³1.30
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³1.60
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Value of Unencumbered Assets
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n/a
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³$1.3
billion
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³$1.3
billion
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Property Operating Income Ratio on Unencumbered Assets
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n/a
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³1.30
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³1.45
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Indebtedness Subject to Encumbrance
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n/a
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£40.0
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%
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£40.0
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%
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Total Unencumbered Assets to Unsecured Indebtedness
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n/a
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³150.0
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%
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³150.0
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%
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Commencing October 1, 2011, certain covenants, including
the consolidated leverage ratio, the ratio of value of
unencumbered assets to outstanding consolidated senior unsecured
debt and the property operating income ratio on unencumbered
assets become more restrictive. The Company has various
liquidity strategies, such as selling additional industrial
properties or land parcels and issuing additional equity, that
it may employ in order to ensure compliance with the covenants.
However, no assurances can be made that the sales of assets and
additional equity issuances will occur on favorable terms or at
all.
In conjunction with the amendment of our Unsecured Credit
Facility, during the third quarter of 2010 management reassessed
the holding period of the Non-Strategic Assets, which, at
September 30, 2010, consisted of 177 industrial properties
comprising approximately 15.2 million square of GLA and
land parcels comprising approximately 664 gross acres. As a
result of this reassessment, we determined that 120 of the
industrial properties comprising approximately 10.0 million
square feet of GLA and land parcels comprising approximately
445 gross acres were impaired, and as such, we recorded an
aggregate non-cash impairment charge of approximately
$156.7 million during the third quarter.
At December 31, 2010, the Non-Strategic Assets consisted of
175 industrial properties comprising approximately
15.0 million square of GLA and land parcels comprising
approximately 635 gross acres. The Non-Strategic Assets
(except one industrial property comprising 0.3 million
square feet of GLA) were
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classified as held for sale as of December 31, 2010. During
the three months ended December 31, 2010, we recorded an
additional non-cash impairment charge of $20.3 million
relating to the Non-Strategic Assets. The additional charge is
primarily comprised of estimated closing costs for 110 of the
174 industrial properties comprising approximately
9.9 million square feet of GLA and land parcels comprising
approximately 391 gross acres classified as held for sale,
as well as additional impairment related to certain industrial
properties and land parcels within the Non-Strategic Assets due
to a change in our estimates of fair value based upon recent
market information, including receipt of third party purchase
offers.
Additionally, during the first quarter of 2010 we recorded an
impairment charge in the amount of $9.2 million related to
a property comprised of 0.3 million square feet of GLA
located in Grand Rapids, Michigan in connection with the
negotiation of a new lease. See Note 4 to the Consolidated
Financial Statements for more information on impairment.
During the year ended December 31, 2010, the Company issued
875,402 shares of its common stock, generating
approximately $6.0 million in net proceeds, under the
direct stock purchase component of the DRIP. Additionally, the
Company issued 5,469,767 shares of the Companys
common stock, generating $43.9 million in net proceeds,
under the ATM. These proceeds were contributed to us in exchange
for an equivalent number of Units (see Note 8 to the
Consolidated Financial Statements).
We committed to a plan to reduce organizational and overhead
costs in October 2008 and have subsequently modified that plan
with the goal of further reducing these costs. On June 21,
2010, we committed to additional modifications to the plan
consisting of further organizational and overhead cost
reductions. For the year ended December 31, 2010, we
recorded as restructuring costs a pre-tax charge of
$1.9 million to provide for employee severance and benefits
($0.5 million), costs associated with the termination of
certain office leases ($0.7 million) and other costs
($0.7 million) associated with implementing the
restructuring plan (see Note 12 to the Consolidated
Financial Statements).
Future
Property Acquisitions, Developments and Property Sales
We have acquisition and development programs through which we
seek to identify portfolio and individual industrial property
acquisitions and developments.
We also sell properties based on market conditions and property
related factors. As a result, we are currently engaged in
negotiations relating to the possible sale of certain industrial
properties in our portfolio.
When evaluating potential industrial property acquisitions and
developments, as well as potential industrial property sales, we
will consider such factors as: (i) the geographic area and
type of property; (ii) the location, construction quality,
condition and design of the property; (iii) the potential
for capital appreciation of the property; (iv) our ability
to improve the propertys performance through renovation;
(v) the terms of tenant leases, including the potential for
rent increases; (vi) the potential for economic growth and
the tax and regulatory environment of the area in which the
property is located; (vii) the potential for expansion of
the physical layout of the property
and/or the
number of sites; (viii) the occupancy and demand by tenants
for properties of a similar type in the vicinity; and
(ix) competition from existing properties and the potential
for the construction of new properties in the area.
INDUSTRY
Industrial properties are typically used for the design,
assembly, packaging, storage and distribution of goods
and/or the
provision of services. As a result, the demand for industrial
space in the United States is related to the level of economic
output. Historically, occupancy rates for industrial property in
the United States have been higher than office property. We
believe that the higher occupancy rate in the industrial
property sector is a result of the
construction-on-demand
nature of, and the comparatively short development time required
for, industrial property. For the five years ended
December 31, 2010, the national occupancy rate for
industrial properties in the United States has ranged from 85.4%
*to 90.3%*, with an occupancy rate of 85.7%* at
December 31, 2010.
* Source: CBRE Econometric Advisors
9
Risk
Factors
Our operations involve various risks that could adversely affect
our financial condition, results of operations, cash flow,
ability to pay distributions on our Units and the market value
of our Units. These risks, among others contained in the
Operating Partnerships other filings with the SEC, include:
Disruptions
in the financial markets could affect our ability to obtain
financing and may negatively impact our liquidity, financial
condition and operating results.
The capital and credit markets in the United States and other
countries have experienced significant price volatility,
dislocations and liquidity disruptions, which have caused market
prices of many securities and the spreads on prospective debt
financings to fluctuate substantially. These circumstances have
materially impacted liquidity in the financial markets, making
terms for certain financings less attractive, and in some cases
have resulted in the unavailability of financing. A majority of
our existing indebtedness was sold through capital markets
transactions. We anticipate that the capital markets could be a
source of refinancing of our existing indebtedness in the
future, including our 4.625% Exchangeable Notes due on
September 15, 2011 in the aggregate amount of
$128.9 million as of December 31, 2010. This source of
refinancing may not be available if capital market volatility
and disruption continues, which could have a material adverse
effect on our liquidity. Furthermore, we could potentially lose
access to our current available liquidity under our Unsecured
Credit Facility if one or more participating lenders default on
their commitments. While the ultimate outcome of these market
conditions cannot be predicted, they may have a material adverse
effect on our liquidity and financial condition if our ability
to borrow money under our Unsecured Credit Facility or to issue
additional debt or equity securities to finance future
acquisitions, developments and redevelopments and Joint Venture
activities were to be impaired.
In addition, capital and credit market price volatility could
make the valuation of our properties more difficult. There may
be significant uncertainty in the valuation, or in the stability
of the value, of our properties that could result in a
substantial decrease in the value of our properties. As a
result, we may not be able to recover the carrying amount of our
properties, which may require us to recognize an impairment loss
in earnings.
Real
estate investments value fluctuates depending on
conditions in the general economy and the real estate business.
These conditions may limit the Consolidated Operating
Partnerships revenues and available cash.
The factors that affect the value of our real estate and the
revenues we derive from our properties include, among other
things:
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general economic conditions;
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local, regional, national and international economic conditions
and other events and occurrences that affect the markets in
which we own properties;
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local conditions such as oversupply or a reduction in demand in
an area;
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the attractiveness of the properties to tenants;
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tenant defaults;
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zoning or other regulatory restrictions;
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competition from other available real estate;
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our ability to provide adequate maintenance and
insurance; and
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increased operating costs, including insurance premiums and real
estate taxes.
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10
These factors may be amplified in light of the disruption of the
global credit markets. Our investments in real estate assets are
concentrated in the industrial sector, and the demand for
industrial space in the United States is related to the
level of economic output. Accordingly, reduced economic output
may lead to lower occupancy rates for our properties. In
addition, if any of our tenants experiences a downturn in its
business that weakens its financial condition, delays lease
commencement, fails to make rental payments when due, becomes
insolvent or declares bankruptcy, the result could be a
termination of the tenants lease, which could adversely
affect our cash flow from operations.
Many
real estate costs are fixed, even if income from properties
decreases.
Our financial results depend on leasing space to tenants on
terms favorable to us. Our income and funds available for
distribution to our unitholders will decrease if a significant
number of our tenants cannot pay their rent or we are unable to
lease properties on favorable terms. In addition, if a tenant
does not pay its rent, we may not be able to enforce our rights
as landlord without delays and we may incur substantial legal
costs. Costs associated with real estate investment, such as
real estate taxes and maintenance costs, generally are not
reduced when circumstances cause a reduction in income from the
investment.
The
Consolidated Operating Partnership may be unable to sell
properties when appropriate because real estate investments are
not as liquid as certain other types of assets.
Real estate investments generally cannot be sold quickly and,
therefore, will tend to limit our ability to adjust our property
portfolio promptly in response to changes in economic or other
conditions. The inability to respond promptly to changes in the
performance of our property portfolio could adversely affect our
financial condition and ability to service debt and make
distributions to our unitholders. In addition, like other
companies qualifying as REITs under the Code, the Company must
comply with the safe harbor rules relating to the number of
properties disposed of in a year, their tax basis and the cost
of improvements made to the properties, or meet other tests
which enable a REIT to avoid punitive taxation on the sale of
assets. Thus, our ability at any time to sell assets may be
restricted.
The
Consolidated Operating Partnership may be unable to sell
properties on advantageous terms.
We have sold to third parties a significant number of properties
in recent years and, as part of our business, we intend to
continue to sell properties to third parties. Our ability to
sell properties on advantageous terms depends on factors beyond
our control, including competition from other sellers and the
availability of attractive financing for potential buyers of our
properties. If we are unable to sell properties on favorable
terms or redeploy the proceeds of property sales in accordance
with our business strategy, then our financial condition,
results of operations, cash flow and ability to pay
distributions on, and the market value of, our Units could be
adversely affected.
The
Consolidated Operating Partnership may be unable to complete
development and re-development projects on advantageous
terms.
As part of our business, we develop new and re-develop existing
properties when and as conditions warrant. In addition, we have
sold to third parties or sold to our Joint Ventures a
significant number of development and re-development properties
in recent years, and we intend to continue to sell such
properties to third parties or to sell or contribute such
properties to our Joint Ventures as opportunities arise. The
real estate development and re-development business involves
significant risks that could adversely affect our financial
condition, results of operations, cash flow and ability to pay
distributions on, and the market value of, our Units, which
include:
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we may not be able to obtain financing for development projects
on favorable terms and complete construction on schedule or
within budget, resulting in increased debt service expense and
construction costs and delays in leasing the properties and
generating cash flow;
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we may not be able to obtain, or may experience delays in
obtaining, all necessary zoning, land-use, building, occupancy
and other governmental permits and authorizations;
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the properties may perform below anticipated levels, producing
cash flow below budgeted amounts and limiting our ability to
sell such properties to third parties or to sell such properties
to our Joint Ventures.
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The
Consolidated Operating Partnership may be unable to renew leases
or find other lessees.
We are subject to the risks that, upon expiration, leases may
not be renewed, the space subject to such leases may not be
relet or the terms of renewal or reletting, including the cost
of required renovations, may be less favorable than expiring
lease terms. If we were unable to promptly renew a significant
number of expiring leases or to promptly relet the space covered
by such leases, or if the rental rates upon renewal or reletting
were significantly lower than the current rates, our financial
condition, results of operation, cash flow and ability to pay
distributions on, and the market value of, our Units could be
adversely affected. As of December 31, 2010, leases with
respect to approximately 7.6 million, 8.4 million and
8.0 million square feet of GLA, representing 15%, 17% and
16% of GLA, expire in 2011, 2012 and 2013, respectively.
The
Consolidated Operating Partnership may be unable to acquire
properties on advantageous terms or acquisitions may not perform
as the Consolidated Operating Partnership expects.
We acquire and intend to continue to acquire primarily
industrial properties. The acquisition of properties entails
various risks, including the risks that our investments may not
perform as expected and that our cost estimates for bringing an
acquired property up to market standards may prove inaccurate.
Further, we face significant competition for attractive
investment opportunities from other well-capitalized real estate
investors, including both publicly-traded REITs and private
investors. This competition increases as investments in real
estate become attractive relative to other forms of investment.
As a result of competition, we may be unable to acquire
additional properties as we desire or the purchase price may be
elevated. In addition, we expect to finance future acquisitions
through a combination of borrowings under the Unsecured Credit
Facility, proceeds from equity or debt offerings and debt
originations by the Consolidated Operating Partnership and
proceeds from property sales, which may not be available and
which could adversely affect our cash flow. Any of the above
risks could adversely affect our financial condition, results of
operations, cash flow and ability to pay distributions on, and
the market value of, our Units.
The
Company might fail to qualify or remain qualified as a
REIT.
The Company intends to operate so as to qualify as a REIT under
the Code. Although the Company believes that it is organized and
will operate in a manner so as to qualify as a REIT,
qualification as a REIT involves the satisfaction of numerous
requirements, some of which must be met on a recurring basis.
These requirements are established under highly technical and
complex Code provisions of which there are only limited judicial
or administrative interpretations and involve the determination
of various factual matters and circumstances not entirely within
our control.
If the Company were to fail to qualify as a REIT in any taxable
year, it would be subject to federal income tax, including any
applicable alternative minimum tax, on its taxable income at
corporate rates. This could result in a discontinuation or
substantial reduction in dividends to stockholders and in cash
to pay interest and principal on debt securities that we issue.
Unless entitled to relief under certain statutory provisions,
the Company would be disqualified from electing treatment as a
REIT for the four taxable years following the year during which
it failed to qualify as a REIT.
Certain
property transfers may generate prohibited transaction income,
resulting in a penalty tax on the gain attributable to the
transaction.
As part of our business, we sell properties to third parties as
opportunities arise. Under the Code, a 100% penalty tax could be
assessed on the gain resulting from sales of properties that are
deemed to be prohibited transactions. The question of what
constitutes a prohibited transaction is based on the facts and
circumstances surrounding each transaction. The Internal Revenue
Service (IRS) could contend that certain sales of
properties by us are prohibited transactions. While we do not
believe that the IRS would prevail in such a
12
dispute, if the matter were successfully argued by the IRS, the
100% penalty tax could be assessed against the profits from
these transactions. In addition, any income from a prohibited
transaction may adversely affect the Companys ability to
satisfy the income tests for qualification as a REIT.
The
REIT distribution requirements may limit the Companys
ability to retain capital and require the Company to turn to
external financing sources.
The Company could, in certain instances, have taxable income
without sufficient cash to enable us to meet the distribution
requirements of the REIT provisions of the Code. In that
situation, we could be required to borrow funds or sell
properties on adverse terms in order to meet those distribution
requirements. In addition, because the Company must distribute
to its stockholders at least 90% of the Companys REIT
taxable income each year, the Companys ability to
accumulate capital may be limited. Thus, to provide capital
resources for our ongoing business, and to satisfy our debt
repayment obligations and other liquidity needs, the Company may
be more dependent on outside sources of financing, such as debt
financing or issuances of additional capital stock, which may or
may not be available on favorable terms. Additional debt
financings may substantially increase our leverage and
additional equity offerings may result in substantial dilution
of unitholders interests.
Debt
financing, the degree of leverage and rising interest rates
could reduce the Consolidated Operating Partnerships cash
flow.
Where possible, we intend to continue to use leverage to
increase the rate of return on our investments and to allow us
to make more investments than we otherwise could. Our use of
leverage presents an additional element of risk in the event
that the cash flow from our properties is insufficient to meet
both debt payment obligations and the distribution requirements
of the REIT provisions of the Code. In addition, rising interest
rates would reduce our cash flow by increasing the amount of
interest due on our floating rate debt and on our fixed rate
debt as it matures and is refinanced.
Failure
to comply with covenants in our debt agreements could adversely
affect our financial condition.
The terms of our agreements governing our Unsecured Credit
Facility and other indebtedness require that we comply with a
number of financial and other covenants, such as maintaining
debt service coverage and leverage ratios and maintaining
insurance coverage. Complying with such covenants may limit our
operational flexibility. Our failure to comply with these
covenants could cause a default under the applicable debt
agreement even if we have satisfied our payment obligations.
Consistent with our prior practice, we will, in the future,
continue to interpret and certify our performance under these
covenants in a good faith manner that we deem reasonable and
appropriate. However, these financial covenants are complex and
there can be no assurance that these provisions would not be
interpreted by the noteholders or lenders in a manner that could
impose and cause us to incur material costs. We anticipate that
we will be able to operate in compliance with our financial
covenants in 2011. Our ability to meet our financial covenants
may be adversely affected if economic and credit market
conditions limit our ability to reduce our debt levels
consistent with, or result in net operating income below, our
current expectations. Under our Unsecured Credit Facility, an
event of default can also occur if the lenders, in their good
faith judgment, determine that a material adverse change has
occurred which could prevent timely repayment or materially
impair our ability to perform our obligations under the loan
agreement.
Upon the occurrence of an event of default, we would be subject
to higher finance costs and fees, and the lenders under our
Unsecured Credit Facility will not be required to lend any
additional amounts to us. In addition, our outstanding senior
unsecured notes as well as all outstanding borrowings under the
Unsecured Credit Facility, together with accrued and unpaid
interest and fees, could be accelerated and declared to be
immediately due and payable. Furthermore, our Unsecured Credit
Facility and the indentures governing our senior unsecured notes
contain certain cross-default provisions, which are triggered in
the event that our other material indebtedness is in default.
These cross-default provisions may require us to repay or
restructure the Unsecured Credit Facility and the senior
unsecured notes or other debt that is in default, which could
adversely affect our financial condition, results of operations,
cash flow and ability to pay dividends on, and the market
13
price of, our stock. If repayment of any of our borrowings is
accelerated, we cannot provide assurance that we will have
sufficient assets to repay such indebtedness or that we would be
able to borrow sufficient funds to refinance such indebtedness.
Even if we are able to obtain new financing, it may not be on
commercially reasonable terms, or terms that are acceptable to
us.
Cross-collateralization
of mortgage loans could result in foreclosure on substantially
all of the Consolidated Operating Partnerships properties
if the Consolidated Operating Partnership is unable to service
its indebtedness.
We intend to obtain additional mortgage debt financing in the
future if it is available to us. These mortgages may be issued
on a recourse, non-recourse or cross-collateralized basis.
Cross-collateralization makes all of the subject properties
available to the lender in order to satisfy our debt. Holders of
indebtedness that is so secured will have a claim against these
properties. To the extent indebtedness is cross-collateralized,
lenders may seek to foreclose upon properties that are not the
primary collateral for their loan, which may, in turn, result in
acceleration of other indebtedness secured by properties.
Foreclosure of properties would result in a loss of income and
asset value to us, making it difficult for us to meet both debt
payment obligations and the distribution requirements of the
REIT provisions of the Code. At December 31, 2010, 19 of
our mortgage loans payable were cross-collateralized, totaling
$138.4 million, inclusive of three mortgage loans payable
held by the Other Real Estate Partnerships (see Note 7 to
the Consolidated Financial Statements).
The
Consolidated Operating Partnership may have to make lump-sum
payments on its existing indebtedness.
We are required to make the following lump-sum or
balloon payments under the terms of some of our
indebtedness, including:
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$35.0 million aggregate principal amount of
7.750% Notes due 2032 (the 2032 Notes)
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$190.0 million aggregate principal amount of
7.600% Notes due 2028 (the 2028 Notes)
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$13.6 million aggregate principal amount of
7.150% Notes due 2027 (the 2027 Notes)
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$117.8 million aggregate principal amount of
5.950% Notes due 2017 (the 2017 II Notes)
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$87.3 million aggregate principal amount of
7.500% Notes due 2017 (the 2017 Notes)
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$160.2 million aggregate principal amount of
5.750% Notes due 2016 (the 2016 Notes)
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$91.9 million aggregate principal amount of
6.420% Notes due 2014 (the 2014 Notes);
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$61.8 million aggregate principal amount of
6.875% Notes due 2012 (the 2012 Notes);
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$128.9 million aggregate principal amount of
4.625% Notes due 2011 (the 2011 Exchangeable
Notes)
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$379.1 million in mortgage loans payable, in the aggregate,
due between March 2011 and October 2020 on certain of our
mortgage loans payable.
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a $400.0 million Unsecured Credit Facility under which we
may borrow to finance the acquisition of additional properties
and for other corporate purposes, including working capital.
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The Unsecured Credit Facility provides for a $200.0 million
term loan and a $200.0 million revolving line of credit.
The term borrowing requires quarterly principal pay-downs of
$10.0 million beginning March 30, 2012 until maturity
on September 28, 2012. The revolving borrowings provide for
the repayment of principal in a lump-sum or balloon
payment at maturity on September 28, 2012. As of
December 31, 2010, $376.2 million was outstanding
under the Unsecured Credit Facility at a weighted average
interest rate of 3.376%.
Our ability to make required payments of principal on
outstanding indebtedness, whether at maturity or otherwise, may
depend on our ability either to refinance the applicable
indebtedness or to sell properties. We
14
have no commitments to refinance the 2011 Exchangeable Notes,
the 2012 Notes, the 2014 Notes, the 2016 Notes, the 2017 Notes,
the 2017 II Notes, the 2027 Notes, the 2028 Notes, the 2032
Notes, the Unsecured Credit Facility or the mortgage loans (see
Subsequent Events). Our existing mortgage loan obligations are
secured by our properties and therefore such obligations will
permit the lender to foreclose on those properties in the event
of a default.
There
is no limitation on debt in the Consolidated Operating
Partnerships organizational documents.
As of December 31, 2010, our ratio of debt to our total
market capitalization was 64.6%. We compute that percentage by
calculating our total consolidated debt as a percentage of the
aggregate market value of all outstanding shares of the
Companys common stock, assuming the exchange of all of our
limited partnership units for the Companys common stock,
plus the aggregate stated value of all outstanding shares of
preferred stock and total consolidated debt. Our organizational
documents do not contain any limitation on the amount or
percentage of indebtedness we may incur. Accordingly, we could
become more highly leveraged, resulting in an increase in debt
service that could adversely affect our ability to make expected
distributions to unitholders and in an increased risk of default
on our obligations.
Rising
interest rates on the Consolidated Operating Partnerships
Unsecured Credit Facility could decrease the Consolidated
Operating Partnerships available cash.
Our Unsecured Credit Facility bears interest at a floating rate.
As of December 31, 2010, our Unsecured Credit Facility had
an outstanding balance of $376.2 million at a weighted
average interest rate of 3.376%. Our Unsecured Credit Facility
presently bears interest at LIBOR plus 325 basis points or
at a base rate plus 225 basis points, at our election for
the $200.0 million term borrowing, and for the
$200.0 million revolving borrowings, at LIBOR plus
275 basis points or at a base rate plus 175 basis
points, at our election. Based on the outstanding balance on our
Unsecured Credit Facility as of December 31, 2010, a 10%
increase in interest rates would increase interest expense by
$1.3 million on an annual basis. Increases in the interest
rate payable on balances outstanding under our Unsecured Credit
Facility would decrease our cash available for distribution to
unitholders.
The
Consolidated Operating Partnerships mortgages may impact
its ability to sell encumbered properties on advantageous terms
or at all.
As part of our plan to enhance liquidity and pay down our debt,
we have originated numerous mortgage financings and we are in
active discussions with various lenders regarding the
origination of additional mortgage financings. Certain of our
mortgages contain, and it is anticipated that some future
mortgages will contain, substantial prepayment premiums which we
would have to pay upon the sale of a property, thereby reducing
the net proceeds to us from the sale of any such property. As a
result, our willingness to sell certain properties and the price
at which we may desire to sell a property may be impacted by the
terms of any mortgage financing encumbering a property. If we
are unable to sell properties on favorable terms or redeploy the
proceeds of property sales in accordance with our business
strategy, then our financial condition, results of operations,
cash flow and ability to pay dividends on, and the market price
of, our common stock could be adversely affected.
Adverse
market and economic conditions could cause us to recognize
additional impairment charges.
We regularly review our real estate assets for impairment
indicators, such as a decline in a propertys occupancy
rate. If we determine that indicators of impairment are present,
we review the properties affected by these indicators to
determine whether an impairment charge is required. We use
considerable judgment in making determinations about
impairments, from analyzing whether there are indicators of
impairment to the assumptions used in calculating the fair value
of the investment. Accordingly, our subjective estimates and
evaluations may not be accurate, and such estimates and
evaluations are subject to change or revision.
Ongoing adverse market and economic conditions and market
volatility will likely continue to make it difficult to value
the real estate assets owned by us as well as the value of our
interests in unconsolidated joint
15
ventures. There may be significant uncertainty in the valuation,
or in the stability of the cash flows, discount rates and other
factors related to such assets due to the adverse market and
economic conditions that could result in a substantial decrease
in their value. We may be required to recognize additional asset
impairment charges in the future, which could materially and
adversely affect our business, financial condition and results
of operations.
Earnings
and cash dividends, asset value and market interest rates affect
the price of the Companys common stock.
As a REIT, the market value of the Companys common stock,
in general, is based primarily upon the markets perception
of the Companys growth potential and its current and
potential future earnings and cash dividends. The market value
of the Companys common stock is based secondarily upon the
market value of the Companys underlying real estate
assets. For this reason, shares of the Companys common
stock may trade at prices that are higher or lower than the
Companys net asset value per share. To the extent that the
Company retains operating cash flow for investment purposes,
working capital reserves, or other purposes, these retained
funds, while increasing the value of the Companys
underlying assets, may not correspondingly increase the market
price of the Companys common stock. The Companys
failure to meet the markets expectations with regard to
future earnings and cash dividends likely would adversely affect
the market price of the Companys common stock. Further,
the distribution yield on the common stock (as a percentage of
the price of the common stock) relative to market interest rates
may also influence the price of the Companys common stock.
An increase in market interest rates might lead prospective
purchasers of the Companys common stock to expect a higher
distribution yield, which would adversely affect the market
price of the Companys common stock.
The
Consolidated Operating Partnership may incur unanticipated costs
and liabilities due to environmental problems.
Under various federal, state and local laws, ordinances and
regulations, an owner or operator of real estate may be liable
for the costs of
clean-up of
certain conditions relating to the presence of hazardous or
toxic materials on, in or emanating from a property, and any
related damages to natural resources. Environmental laws often
impose liability without regard to whether the owner or operator
knew of, or was responsible for, the presence of hazardous or
toxic materials. The presence of such materials, or the failure
to address those conditions properly, may adversely affect the
ability to rent or sell the property or to borrow using the
property as collateral. Persons who dispose of or arrange for
the disposal or treatment of hazardous or toxic materials may
also be liable for the costs of
clean-up of
such materials, or for related natural resource damages, at or
from an off-site disposal or treatment facility, whether or not
the facility is owned or operated by those persons. No assurance
can be given that existing environmental assessments with
respect to any of our properties reveal all environmental
liabilities, that any prior owner or operator of any of the
properties did not create any material environmental condition
not known to us or that a material environmental condition does
not otherwise exist as to any of our properties. In addition,
changes to existing environmental regulation to address, among
other things, climate change, could increase the scope of our
potential liabilities.
The
Consolidated Operating Partnerships insurance coverage
does not include all potential losses.
We currently carry comprehensive insurance coverage including
property, boiler & machinery, liability, fire, flood,
terrorism, earthquake, extended coverage and rental loss as
appropriate for the markets where each of our properties and
their business operations are located. The insurance coverage
contains policy specifications and insured limits customarily
carried for similar properties and business activities. We
believe our properties are adequately insured. However, there
are certain losses, including losses from earthquakes,
hurricanes, floods, pollution, acts of war, acts of terrorism or
riots, that are not generally insured against or that are not
generally fully insured against because it is not deemed to be
economically feasible or prudent to do so. If an uninsured loss
or a loss in excess of insured limits occurs with respect to one
or more of our properties, we could experience a significant
loss of capital invested and potential revenues from these
properties, and could potentially remain obligated under any
recourse debt associated with the property.
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The
Consolidated Operating Partnership is subject to risks and
liabilities in connection with its investments in properties
through Joint Ventures.
As of December 31, 2010, the 2003 Net Lease Joint Venture
owned approximately 4.9 million square feet of properties.
Our net investment in this Joint Venture was $2.5 million
at December 31, 2010. Our organizational documents do not
limit the amount of available funds that we may invest in Joint
Ventures and we intend to continue to develop and acquire
properties through Joint Ventures with other persons or entities
when warranted by the circumstances. Joint venture investments,
in general, involve certain risks, including:
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joint venturers may share certain approval rights over major
decisions;
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joint venturers might fail to fund their share of any required
capital commitments;
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joint venturers might have economic or other business interests
or goals that are inconsistent with our business interests or
goals that would affect our ability to operate the property;
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|
joint venturers may have the power to act contrary to our
instructions, requests, policies or objectives, including our
current policy with respect to maintaining the Companys
qualification as a real estate investment trust;
|
|
|
|
the joint venture agreements often restrict the transfer of a
members or joint venturers interest or
buy-sell or may otherwise restrict our ability to
sell the interest when we desire or on advantageous terms;
|
|
|
|
disputes between us and our joint venturers may result in
litigation or arbitration that would increase our expenses and
prevent our officers and directors from focusing their time and
effort on our business and subject the properties owned by the
applicable joint venture to additional risk; and
|
|
|
|
we may in certain circumstances be liable for the actions of our
joint venturers.
|
The occurrence of one or more of the events described above
could adversely affect the Companys financial condition,
results of operations, cash flow and ability to pay dividends
on, and the market price of, its common stock.
In addition, joint venture investments in real estate involve
all of the risks related to the ownership, acquisition,
development, sale and financing of real estate discussed in the
risk factors above. To the extent the Companys investments
in Joint Ventures are adversely affected by such risks, the
Companys financial condition, results of operations, cash
flow and ability to pay dividends on, and the market price of,
its common stock could be adversely affected.
We are
subject to risks associated with our international
operations.
As of December 31, 2010, we owned three industrial
properties and several land parcels located in Canada. Our
international operations will be subject to risks inherent in
doing business abroad, including:
|
|
|
|
|
exposure to the economic fluctuations in the locations in which
we invest;
|
|
|
|
difficulties and costs associated with complying with a wide
variety of complex laws, treaties and regulations;
|
|
|
|
revisions in tax treaties or other laws and regulations,
including those governing the taxation of our international
revenues;
|
|
|
|
obstacles to the repatriation of earnings and funds;
|
|
|
|
currency exchange rate fluctuations between the United States
dollar and foreign currencies;
|
|
|
|
restrictions on the transfer of funds; and
|
|
|
|
national, regional and local political uncertainty.
|
17
When we acquire properties located outside of the United States,
we may face risks associated with a lack of market knowledge or
understanding of the local economy, forging new business
relationships in the area and unfamiliarity with local
government and permitting procedures. We work to mitigate such
risks through extensive diligence and research and associations
with experienced partners; however, there can be no guarantee
that all such risks will be eliminated.
Adverse
changes in our credit ratings could negatively affect our
liquidity and business operations.
The credit ratings of the Operating Partnerships senior
unsecured notes and the Companys preferred stock are based
on the Companys operating performance, liquidity and
leverage ratios, overall financial position and other factors
employed by the credit rating agencies in their rating analyses.
Our credit ratings can affect the availability, terms and
pricing of any indebtedness that we may incur going forward.
There can be no assurance that we will be able to maintain any
credit rating, and in the event any credit rating is downgraded,
we could incur higher borrowing costs or be unable to access
certain capital markets at all.
|
|
Item 1B.
|
Unresolved
SEC Comments
|
None.
General
At December 31, 2010, the Company owned 774 in-service
industrial properties (705 of which were owned by the
Consolidated Operating Partnership and 69 of which were owned by
the Other Real Estate Partnerships) containing an aggregate of
approximately 68.6 million square feet of GLA
(60.8 million square feet of which comprised the properties
owned by the Consolidated Operating Partnership and
7.8 million square feet of which comprised the properties
owned by the Other Real Estate Partnerships) in 28 states
in the United States and one province in Canada, with a diverse
base of approximately 1,800 tenants engaged in a wide variety of
businesses, including manufacturing, retail, wholesale trade,
distribution and professional services. The average annual
rental per square foot on a portfolio basis, calculated at
December 31, 2010, was $4.36. The properties are generally
located in business parks that have convenient access to
interstate highways
and/or rail
and air transportation. The weighted average age of our
properties on a combined basis as of December 31, 2010 was
approximately 20 years. We maintain insurance on our
properties that we believe is adequate.
We classify our properties into five industrial categories:
light industrial, bulk warehouse, R&D/flex, regional
warehouse and manufacturing. While some properties may have
characteristics which fall under more than one property type, we
have used what we believe is the most dominant characteristic to
categorize the property.
The following describes, generally, the different industrial
categories:
|
|
|
|
|
Light industrial properties are of less than 100,000 square
feet, have a ceiling height of
16-21 feet,
are comprised of 5% 50% of office space, contain
less than 50% of manufacturing space and have a land use ratio
of 4:1. The land use ratio is the ratio of the total property
area to the area occupied by the building.
|
|
|
|
Bulk warehouse buildings are of more than 100,000 square
feet, have a ceiling height of at least 22 feet, are
comprised of 5% 15% of office space, contain less
than 25% of manufacturing space and have a land use ratio of 2:1.
|
|
|
|
R&D/flex buildings are of less than 100,000 square
feet, have a ceiling height of less than 16 feet, are
comprised of 50% or more of office space, contain less than 25%
of manufacturing space and have a land use ratio of 4:1.
|
18
|
|
|
|
|
Regional warehouses are of less than 100,000 square feet,
have a ceiling height of at least 22 feet, are comprised of
5% 15% of office space, contain less than 25% of
manufacturing space and have a land use ratio of 2:1.
|
|
|
|
Manufacturing properties are a diverse category of buildings
that have a ceiling height of 10 18 feet, are
comprised of 5% 15% of office space, contain at
least 50% of manufacturing space and have a land use ratio of
4:1.
|
The following tables summarize certain information as of
December 31, 2010, with respect to the in-service
properties owned by the Consolidated Operating Partnership, each
of which is wholly-owned.
Consolidated
Operating Partnership
In-Service Property Summary Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Light Industrial
|
|
|
R&D/Flex
|
|
|
Bulk Warehouse
|
|
|
Regional Warehouse
|
|
|
Manufacturing
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
Metropolitan Area
|
|
GLA
|
|
|
Properties
|
|
|
GLA
|
|
|
Properties
|
|
|
GLA
|
|
|
Properties
|
|
|
GLA
|
|
|
Properties
|
|
|
GLA
|
|
|
Properties
|
|
|
Atlanta, GA
|
|
|
666,544
|
|
|
|
11
|
|
|
|
140,538
|
|
|
|
3
|
|
|
|
3,319,270
|
|
|
|
12
|
|
|
|
295,918
|
|
|
|
4
|
|
|
|
662,000
|
|
|
|
3
|
|
Baltimore, MD
|
|
|
615,752
|
|
|
|
11
|
|
|
|
115,985
|
|
|
|
4
|
|
|
|
683,135
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
171,000
|
|
|
|
1
|
|
Central PA
|
|
|
146,990
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
2,741,350
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chicago, IL
|
|
|
744,116
|
|
|
|
13
|
|
|
|
248,090
|
|
|
|
4
|
|
|
|
2,339,612
|
|
|
|
13
|
|
|
|
172,851
|
|
|
|
4
|
|
|
|
421,000
|
|
|
|
2
|
|
Cincinnati, OH
|
|
|
893,839
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
1,103,830
|
|
|
|
4
|
|
|
|
51,070
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
Cleveland, OH
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,317,799
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbus, OH
|
|
|
217,612
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
2,666,547
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dallas, TX
|
|
|
2,201,172
|
|
|
|
40
|
|
|
|
511,075
|
|
|
|
19
|
|
|
|
2,250,000
|
|
|
|
17
|
|
|
|
626,873
|
|
|
|
9
|
|
|
|
128,478
|
|
|
|
1
|
|
Denver, CO
|
|
|
1,276,308
|
|
|
|
23
|
|
|
|
1,053,097
|
|
|
|
24
|
|
|
|
290,098
|
|
|
|
2
|
|
|
|
343,516
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
Detroit, MI
|
|
|
2,080,159
|
|
|
|
80
|
|
|
|
464,026
|
|
|
|
15
|
|
|
|
470,745
|
|
|
|
5
|
|
|
|
759,851
|
|
|
|
18
|
|
|
|
116,250
|
|
|
|
1
|
|
Houston, TX
|
|
|
337,547
|
|
|
|
7
|
|
|
|
132,997
|
|
|
|
6
|
|
|
|
2,041,527
|
|
|
|
12
|
|
|
|
446,318
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
Indianapolis, IN
|
|
|
860,781
|
|
|
|
17
|
|
|
|
25,000
|
|
|
|
2
|
|
|
|
1,406,542
|
|
|
|
7
|
|
|
|
162,710
|
|
|
|
4
|
|
|
|
71,600
|
|
|
|
2
|
|
Inland Empire, CA
|
|
|
66,934
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
759,495
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles, CA
|
|
|
514,193
|
|
|
|
12
|
|
|
|
184,064
|
|
|
|
2
|
|
|
|
749,008
|
|
|
|
5
|
|
|
|
199,555
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
Miami, FL
|
|
|
88,820
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
142,804
|
|
|
|
1
|
|
|
|
281,626
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
Milwaukee, WI
|
|
|
431,508
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
1,626,409
|
|
|
|
6
|
|
|
|
90,089
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
Minneapolis/St. Paul, MN
|
|
|
1,216,670
|
|
|
|
13
|
|
|
|
172,862
|
|
|
|
2
|
|
|
|
2,250,076
|
|
|
|
11
|
|
|
|
323,805
|
|
|
|
4
|
|
|
|
231,202
|
|
|
|
3
|
|
N. New Jersey
|
|
|
659,849
|
|
|
|
11
|
|
|
|
289,967
|
|
|
|
6
|
|
|
|
329,593
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nashville, TN
|
|
|
205,205
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
1,555,112
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
109,058
|
|
|
|
1
|
|
Philadelphia, PA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
110,422
|
|
|
|
1
|
|
|
|
21,512
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
Phoenix, AZ
|
|
|
38,560
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
710,403
|
|
|
|
5
|
|
|
|
354,327
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
S. New Jersey
|
|
|
627,680
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
281,100
|
|
|
|
2
|
|
|
|
158,867
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
Salt Lake City, UT
|
|
|
583,301
|
|
|
|
34
|
|
|
|
146,937
|
|
|
|
6
|
|
|
|
279,179
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Diego, CA
|
|
|
213,446
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
108,701
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
Seattle, WA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
258,126
|
|
|
|
2
|
|
|
|
132,195
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
St. Louis, MO
|
|
|
823,655
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
1,368,095
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tampa, FL
|
|
|
234,679
|
|
|
|
7
|
|
|
|
543,742
|
|
|
|
24
|
|
|
|
209,500
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Toronto, ON
|
|
|
57,540
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
559,773
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other(a)
|
|
|
597,547
|
|
|
|
5
|
|
|
|
40,000
|
|
|
|
1
|
|
|
|
1,651,456
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
425,017
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
16,400,407
|
|
|
|
338
|
|
|
|
4,068,380
|
|
|
|
118
|
|
|
|
33,471,006
|
|
|
|
155
|
|
|
|
4,529,784
|
|
|
|
78
|
|
|
|
2,335,605
|
|
|
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
(a) |
|
Properties are located in Abilene, TX, Wichita, KS, Grand
Rapids, MI, Orlando, FL, Horn Lake, MS, Shreveport, LA, Kansas
City, MO, San Antonio, TX, Birmingham, AL, Omaha, NE,
Jefferson County, KY, Greenville, KY and Sumner, IA. |
Consolidated
Operating Partnership
In-Service Property Summary Totals
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
GLA as a%
|
|
|
Encumbrances
|
|
|
|
|
|
|
Number of
|
|
|
Occupancy at
|
|
|
of Total
|
|
|
at 12/31/10
|
|
Metropolitan Area
|
|
GLA
|
|
|
Properties
|
|
|
12/31/10
|
|
|
Portfolio
|
|
|
($ in 000s)(b)
|
|
|
Atlanta, GA
|
|
|
5,084,270
|
|
|
|
33
|
|
|
|
72
|
%
|
|
|
8.4
|
%
|
|
$
|
28,783
|
|
Baltimore, MD
|
|
|
1,585,872
|
|
|
|
20
|
|
|
|
85
|
%
|
|
|
2.6
|
%
|
|
|
7,880
|
|
Central PA
|
|
|
2,888,340
|
|
|
|
6
|
|
|
|
79
|
%
|
|
|
4.7
|
%
|
|
|
|
|
Chicago, IL
|
|
|
3,925,669
|
|
|
|
36
|
|
|
|
84
|
%
|
|
|
6.5
|
%
|
|
|
33,567
|
|
Cincinnati, OH
|
|
|
2,048,739
|
|
|
|
15
|
|
|
|
79
|
%
|
|
|
3.4
|
%
|
|
|
4,986
|
|
Cleveland, OH
|
|
|
1,317,799
|
|
|
|
7
|
|
|
|
99
|
%
|
|
|
2.2
|
%
|
|
|
12,030
|
|
Columbus, OH
|
|
|
2,884,159
|
|
|
|
10
|
|
|
|
81
|
%
|
|
|
4.7
|
%
|
|
|
|
|
Dallas, TX
|
|
|
5,717,598
|
|
|
|
86
|
|
|
|
82
|
%
|
|
|
9.4
|
%
|
|
|
32,058
|
|
Denver, CO
|
|
|
2,963,019
|
|
|
|
54
|
|
|
|
80
|
%
|
|
|
4.9
|
%
|
|
|
27,670
|
|
Detroit, MI
|
|
|
3,891,031
|
|
|
|
119
|
|
|
|
91
|
%
|
|
|
6.4
|
%
|
|
|
|
|
Houston, TX
|
|
|
2,958,389
|
|
|
|
31
|
|
|
|
94
|
%
|
|
|
4.9
|
%
|
|
|
25,291
|
|
Indianapolis, IN
|
|
|
2,526,633
|
|
|
|
32
|
|
|
|
85
|
%
|
|
|
4.2
|
%
|
|
|
8,131
|
|
Inland Empire, CA
|
|
|
826,429
|
|
|
|
4
|
|
|
|
61
|
%
|
|
|
1.4
|
%
|
|
|
|
|
Los Angeles, CA
|
|
|
1,646,820
|
|
|
|
22
|
|
|
|
76
|
%
|
|
|
2.7
|
%
|
|
|
31,984
|
|
Miami, FL
|
|
|
513,250
|
|
|
|
8
|
|
|
|
51
|
%
|
|
|
0.8
|
%
|
|
|
|
|
Milwaukee, WI
|
|
|
2,148,006
|
|
|
|
16
|
|
|
|
90
|
%
|
|
|
3.5
|
%
|
|
|
32,383
|
|
Minneapolis/St. Paul, MN
|
|
|
4,194,615
|
|
|
|
33
|
|
|
|
85
|
%
|
|
|
6.9
|
%
|
|
|
46,189
|
|
N. New Jersey
|
|
|
1,279,409
|
|
|
|
19
|
|
|
|
85
|
%
|
|
|
2.1
|
%
|
|
|
25,791
|
|
Nashville, TN
|
|
|
1,869,375
|
|
|
|
9
|
|
|
|
96
|
%
|
|
|
3.1
|
%
|
|
|
6,088
|
|
Philadelphia, PA
|
|
|
131,934
|
|
|
|
2
|
|
|
|
100
|
%
|
|
|
0.2
|
%
|
|
|
3,579
|
|
Phoenix, AZ
|
|
|
1,103,290
|
|
|
|
11
|
|
|
|
77
|
%
|
|
|
1.8
|
%
|
|
|
14,313
|
|
S. New Jersey
|
|
|
1,067,647
|
|
|
|
9
|
|
|
|
88
|
%
|
|
|
1.8
|
%
|
|
|
11,079
|
|
Salt Lake City, UT
|
|
|
1,009,417
|
|
|
|
41
|
|
|
|
94
|
%
|
|
|
1.7
|
%
|
|
|
10,560
|
|
San Diego, CA
|
|
|
322,147
|
|
|
|
11
|
|
|
|
90
|
%
|
|
|
0.5
|
%
|
|
|
9,754
|
|
Seattle, WA
|
|
|
390,321
|
|
|
|
4
|
|
|
|
83
|
%
|
|
|
0.6
|
%
|
|
|
6,022
|
|
St. Louis, MO
|
|
|
2,191,750
|
|
|
|
15
|
|
|
|
96
|
%
|
|
|
3.6
|
%
|
|
|
36,569
|
|
Tampa, FL
|
|
|
987,921
|
|
|
|
32
|
|
|
|
79
|
%
|
|
|
1.6
|
%
|
|
|
9,708
|
|
Toronto, ON
|
|
|
617,313
|
|
|
|
3
|
|
|
|
100
|
%
|
|
|
1.0
|
%
|
|
|
|
|
Other(a)
|
|
|
2,714,020
|
|
|
|
17
|
|
|
|
93
|
%
|
|
|
4.4
|
%
|
|
|
7,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total or Average
|
|
|
60,805,182
|
|
|
|
705
|
|
|
|
84
|
%
|
|
|
100
|
%
|
|
$
|
431,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
|
Properties are located in Abilene, TX, Wichita, KS, Grand
Rapids, MI, Orlando, FL, Horn Lake, MS, Shreveport, LA, Kansas
City, MO, San Antonio, TX, Birmingham, AL, Omaha, NE,
Jefferson County, KY, Greenville, KY and Sumner, IA. |
|
(b) |
|
Certain properties are pledged as collateral under our secured
financings at December 31, 2010 (see Note 7 to the
Consolidated Financial Statements). For purposes of this table,
the total principal balance of a |
20
|
|
|
|
|
secured financing that is collateralized by a pool of properties
is allocated among the properties in the pool based on each
propertys investment balance. In addition to the amounts
included in the table, we also have $0.7 million of
indebtedness which is secured by a letter of credit. |
Property
Acquisition Activity
During 2010, we acquired three industrial properties for an
aggregate purchase price of approximately $22.4 million.
The acquired industrial properties have the following
characteristics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
|
Occupancy
|
|
Metropolitan Area
|
|
Properties
|
|
|
GLA
|
|
|
Property Type
|
|
at 12/31/10
|
|
|
Houston, TX
|
|
|
1
|
|
|
|
48,140
|
|
|
|
Light Industrial
|
|
|
|
100%
|
|
Minneapolis/St. Paul, MN
|
|
|
1
|
|
|
|
285,000
|
|
|
|
Bulk Warehouse
|
|
|
|
100%
|
|
Seattle, WA
|
|
|
1
|
|
|
|
157,515
|
|
|
|
Bulk Warehouse
|
|
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
3
|
|
|
|
490,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
Sales
During 2010, we sold 10 industrial properties totaling
approximately 1.0 million square feet of GLA and several
land parcels. Total gross sales proceeds approximated
$66.8 million. The 10 industrial properties sold have the
following characteristics:
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
Metropolitan Area
|
|
Properties
|
|
|
GLA
|
|
|
Property Type
|
|
Atlanta, GA
|
|
|
1
|
|
|
|
185,950
|
|
|
Manufacturing
|
Baltimore, MD
|
|
|
1
|
|
|
|
80,000
|
|
|
Light Industrial
|
Dallas, TX
|
|
|
3
|
|
|
|
370,933
|
|
|
Lt. Industrial/Bulk/Regional Warehouse
|
Detroit, MI
|
|
|
1
|
|
|
|
39,379
|
|
|
Light Industrial
|
Indianapolis, IN
|
|
|
1
|
|
|
|
13,200
|
|
|
R & D/Flex
|
Inland Empire, CA
|
|
|
1
|
|
|
|
47,075
|
|
|
Bulk Warehouse
|
Minneapolis, MN
|
|
|
1
|
|
|
|
132,000
|
|
|
Bulk Warehouse
|
St. Louis, MO
|
|
|
1
|
|
|
|
115,200
|
|
|
Bulk Warehouse
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
10
|
|
|
|
983,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
Acquisitions and Sales Subsequent to Year End
From January 1, 2011 to February 23, 2011, we sold
four industrial properties comprising approximately
0.3 million square feet of GLA. Gross proceeds from the
sale of the four industrial properties were approximately
$3.9 million. There were no industrial properties acquired
during this period.
Tenant
and Lease Information
We have a diverse base of approximately 1,800 tenants engaged in
a wide variety of businesses including manufacturing, retail,
wholesale trade, distribution and professional services. Most
leases have an initial term of between three and six years and
provide for periodic rent increases that are either fixed or
based on changes in the Consumer Price Index. Industrial tenants
typically have net or
semi-net
leases and pay as additional rent their percentage of the
propertys operating costs, including the costs of common
area maintenance, property taxes and insurance. As of
December 31, 2010, approximately 84% of the GLA of our
in-service properties was leased, and no single tenant or group
of related tenants accounted for more than 2.4% of the
Consolidated Operating Partnerships and Other Real Estate
Partnerships combined rent revenues, nor did any single
tenant or group of related tenants occupy more than 2.0% of the
Consolidated Operating Partnerships and Other Real Estate
Partnerships combined total GLA of our in-service
properties as of December 31, 2010.
21
Lease
Expirations(1)
The following table shows scheduled lease expirations for all
leases for our in service properties as of December 31,
2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Percentage of
|
|
|
Annual Base Rent
|
|
|
Percentage of Total
|
|
|
|
Leases
|
|
|
GLA
|
|
|
GLA
|
|
|
Under Expiring
|
|
|
Annual Base Rent
|
|
Year of Expiration(1)
|
|
Expiring
|
|
|
Expiring(2)
|
|
|
Expiring(2)
|
|
|
Leases
|
|
|
Expiring
|
|
|
|
(In thousands)
|
|
|
2011
|
|
|
466
|
|
|
|
7,561,867
|
|
|
|
15
|
%
|
|
$
|
36,810
|
|
|
|
17
|
%
|
2012
|
|
|
388
|
|
|
|
8,384,413
|
|
|
|
17
|
%
|
|
|
38,285
|
|
|
|
17
|
%
|
2013
|
|
|
375
|
|
|
|
8,043,692
|
|
|
|
16
|
%
|
|
|
36,118
|
|
|
|
16
|
%
|
2014
|
|
|
203
|
|
|
|
6,845,334
|
|
|
|
14
|
%
|
|
|
28,509
|
|
|
|
13
|
%
|
2015
|
|
|
188
|
|
|
|
5,004,770
|
|
|
|
10
|
%
|
|
|
21,401
|
|
|
|
10
|
%
|
2016
|
|
|
101
|
|
|
|
4,231,537
|
|
|
|
8
|
%
|
|
|
15,881
|
|
|
|
7
|
%
|
2017
|
|
|
41
|
|
|
|
2,238,415
|
|
|
|
4
|
%
|
|
|
10,256
|
|
|
|
5
|
%
|
2018
|
|
|
26
|
|
|
|
1,725,389
|
|
|
|
3
|
%
|
|
|
7,493
|
|
|
|
3
|
%
|
2019
|
|
|
15
|
|
|
|
961,589
|
|
|
|
2
|
%
|
|
|
5,309
|
|
|
|
2
|
%
|
2020
|
|
|
18
|
|
|
|
2,541,747
|
|
|
|
5
|
%
|
|
|
8,402
|
|
|
|
4
|
%
|
Thereafter
|
|
|
23
|
|
|
|
2,906,125
|
|
|
|
6
|
%
|
|
|
11,263
|
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,844
|
|
|
|
50,444,878
|
|
|
|
100
|
%
|
|
$
|
219,727
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Includes leases that expire on or after January 1, 2011 and
assumes tenants do not exercise existing renewal, termination or
purchase options. |
|
(2) |
|
Does not include existing vacancies of 10,360,304 aggregate
square feet. |
|
(3) |
|
Annualized base rent is calculated as monthly base rent (cash
basis) per the terms of the lease, as of December 31, 2010,
multiplied by 12. If free rent is granted, then the first
positive rent value is used. Leases denominated in foreign
currencies are translated using the currency exchange rate at
December 31, 2010. |
|
|
Item 3.
|
Legal
Proceedings
|
We are involved in legal proceedings arising in the ordinary
course of business. All such proceedings, taken together, are
not expected to have a material impact on our results of
operations, financial position or liquidity.
None.
PART II
|
|
Item 5.
|
Market
for Registrants Partners Capital, Related Partner
Matters and Issuer Purchases of Equity Securities
|
There is no established public trading market for the general
partner and limited partner Units. As of February 23, 2010,
there were 180 holders of record of general partner and limited
partner Units.
We did not pay or declare distributions during the years ended
December 31, 2010 or 2009. Our ability to make
distributions depends on a number of factors, including our net
cash provided by operating activities, capital commitments and
debt repayment schedules. Holders of general partner and limited
partner Units are entitled to receive distributions when, as and
if declared by the Board of Directors of the Company, our
general partner, after the priority distributions required under
our partnership agreement have been made with
22
respect to Preferred Units out of any funds legally available
for that purpose. For 2011, we intend to make per Unit
distributions equivalent to the per share distributions the
Company is required to make to meet its minimum distribution
requirements as a REIT.
During 2010, the Operating Partnership did not issue any Units.
Subject to certain
lock-up
periods, holders of limited partner Units of the Operating
Partnership can redeem their Units by providing written
notification to the General Partner of the Operating
Partnership. Unless the General Partner provides notice of a
redemption restriction to the holder, redemption must be made
within seven business days after receipt of the holders
notice. The redemption can be effectuated, as determined by the
General Partner, either by exchanging the Units for shares of
common stock of the REIT on a
one-for-one
basis, subject to adjustment, or by paying cash equal to the
fair market value of such shares. Prior requests for redemption
have generally been fulfilled with shares of common stock of the
REIT, and we intend to continue this practice. If each Unit of
the Operating Partnership were redeemed as of December 31,
2010, we could satisfy our redemption obligations by making an
aggregate cash payment of approximately $47.0 million or by
issuing 5,363,151 shares of REIT common stock.
|
|
Item 6.
|
Selected
Financial Data
|
The following sets forth selected financial and operating data
for the Consolidated Operating Partnership on a historical
consolidated basis. The following data should be read in
conjunction with the Consolidated Financial Statements and Notes
thereto and Managements Discussion and Analysis of
Financial Condition and Results of Operations included elsewhere
in this
Form 10-K.
The historical statements of operations for the years ended
December 31, 2010, 2009, 2008, 2007 and 2006 include our
results of operations as derived from our audited financial
statements, adjusted for discontinued operations. The results of
operations of properties sold are presented in discontinued
operations if such properties met both of the following
criteria: (a) the operations and cash flows of the property
have been (or will be) eliminated from our ongoing operations as
a result of the disposition and (b) we will not have any
significant involvement in the operations of the property after
the disposal transaction. The historical balance sheet data and
other data as of December 31, 2010, 2009, 2008, 2007 and
2006 include our balances as derived from our audited financial
statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
12/31/10
|
|
|
12/31/09
|
|
|
12/31/08
|
|
|
12/31/07
|
|
|
12/31/06
|
|
|
|
(In thousands, except per unit and property data)
|
|
|
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
$
|
252,856
|
|
|
$
|
315,558
|
|
|
$
|
410,206
|
|
|
$
|
272,926
|
|
|
$
|
213,146
|
|
Loss from Continuing Operations
|
|
|
(88,749
|
)
|
|
|
(17,212
|
)
|
|
|
(107,077
|
)
|
|
|
(70,390
|
)
|
|
|
(69,167
|
)
|
Loss from Continuing Operations Available to Unitholders and
Participating Securities
|
|
|
(108,235
|
)
|
|
|
(36,558
|
)
|
|
|
(118,226
|
)
|
|
|
(88,930
|
)
|
|
|
(87,187
|
)
|
Net (Loss) Income Available to Unitholders and Participating
Securities
|
|
$
|
(241,184
|
)
|
|
$
|
(15,189
|
)
|
|
$
|
24,110
|
|
|
$
|
149,001
|
|
|
$
|
103,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Earnings Per Weighted Average Units
Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Continuing Operations Available to Unitholders
|
|
$
|
(1.58
|
)
|
|
$
|
(0.67
|
)
|
|
$
|
(2.39
|
)
|
|
$
|
(1.76
|
)
|
|
$
|
(1.72
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Unitholders
|
|
$
|
(3.53
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
0.44
|
|
|
$
|
2.89
|
|
|
$
|
2.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions Per Unit
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
2.41
|
|
|
$
|
2.85
|
|
|
$
|
2.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Weighted Average Number of Units Outstanding
|
|
|
68,327
|
|
|
|
54,261
|
|
|
|
49,456
|
|
|
|
50,597
|
|
|
|
50,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data (End of Period):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate, Before Accumulated Depreciation
|
|
$
|
2,331,596
|
|
|
$
|
2,965,091
|
|
|
$
|
3,014,530
|
|
|
$
|
2,913,267
|
|
|
$
|
2,826,588
|
|
Total Assets
|
|
|
2,711,786
|
|
|
|
3,200,410
|
|
|
|
3,240,800
|
|
|
|
3,300,998
|
|
|
|
3,235,182
|
|
Indebtedness (Inclusive of Indebtedness Held for Sale)
|
|
|
1,688,005
|
|
|
|
1,966,167
|
|
|
|
2,032,635
|
|
|
|
1,940,747
|
|
|
|
1,827,155
|
|
Partners Capital
|
|
|
901,303
|
|
|
|
1,083,291
|
|
|
|
999,636
|
|
|
|
1,087,981
|
|
|
|
1,190,979
|
|
Other Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From Operating Activities
|
|
$
|
48,342
|
|
|
$
|
139,616
|
|
|
$
|
63,424
|
|
|
$
|
106,005
|
|
|
$
|
66,898
|
|
Cash Flow From Investing Activities
|
|
|
45,531
|
|
|
|
37,554
|
|
|
|
14,556
|
|
|
|
113,844
|
|
|
|
119,866
|
|
Cash Flow From Financing Activities
|
|
|
(252,673
|
)
|
|
|
1,257
|
|
|
|
(79,754
|
)
|
|
|
(230,277
|
)
|
|
|
(178,451
|
)
|
23
|
|
Item 7.
|
Managements
Discussion and Analysis of Financial Condition and Results of
Operations
|
The following discussion should be read in conjunction with
Selected Financial Data and the Consolidated
Financial Statements and Notes thereto appearing elsewhere in
this
Form 10-K.
In addition, the following discussion contains certain
forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and
Section 21E of the Exchange Act. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995 and are
including this statement for purposes of complying with those
safe harbor provisions. Forward-looking statements, which are
based on certain assumptions and describe our future plans,
strategies and expectations, are generally identifiable by use
of the words believe, expect,
intend, anticipate,
estimate, project, seek,
target, potential, focus,
may, should, or similar expressions. Our
ability to predict results or the actual effect of future plans
or strategies is inherently uncertain. Factors which could have
a materially adverse effect on our operations and future
prospects include, but are not limited to: changes in national,
international, regional and local economic conditions generally
and real estate markets specifically; changes in
legislation/regulation (including changes to laws governing the
taxation of REITs) and actions of regulatory authorities
(including the IRS); our ability to qualify and maintain our
status as a REIT; the availability and attractiveness of
financing (including both public and private capital) to us and
to our potential counterparties; the availability and
attractiveness of terms of additional debt repurchases; interest
rates; our credit agency ratings; our ability to comply with
applicable financial covenants; competition; changes in supply
and demand for industrial properties (including land, the supply
and demand for which is inherently more volatile than other
types of industrial property) in the Companys current and
proposed market areas; difficulties in consummating acquisitions
and dispositions; risks related to our investments in properties
through joint ventures; environmental liabilities; slippages in
development or
lease-up
schedules; tenant creditworthiness;
higher-than-expected
costs; changes in asset valuations and related impairment
charges; changes in general accounting principles, policies and
guidelines applicable to real estate investment trusts;
international business risks and those additional factors
described in Item 1A, Risk Factors and in our
other filings with the SEC. We caution you not to place undue
reliance on forward looking statements, which reflect our
analysis only and speak only as of the date of this report or
the dates indicated in the statements. We assume no obligation
to update or supplement forward-looking statements.
First Industrial, L.P. (the Operating Partnership)
was organized as a limited partnership in the state of Delaware
on November 23, 1993. The sole general partner is First
Industrial Realty Trust, Inc. (the Company) which
owns common units in the Operating Partnership
(Units) representing an approximate 92.8% ownership
interest at December 31, 2010. The Company also owns a
preferred general partnership interest in the Operating
Partnership (Preferred Units) with an aggregate
liquidation priority of $275.0 million at December 31,
2010. The Company is a real estate investment trust
(REIT) as defined in the Code. The Companys
operations are conducted primarily through the Operating
Partnership. The limited partners of the Operating Partnership
own, in the aggregate, approximately a 7.2% interest in the
Operating Partnership at December 31, 2010.
The Operating Partnership is the sole stockholder of First
Industrial Investment, Inc., a taxable REIT subsidiary (the
TRS), and the Operating Partnership or the TRS is
the sole member of several limited liability companies (the
L.L.C.s, and, together with the Operating
Partnership and the TRS, the Consolidated Operating
Partnership), the operating data of which is consolidated
with that of the Operating Partnership. We hold at least a 99%
limited partnership interest in First Industrial Financing
Partnership, L.P. (the Financing Partnership), First
Industrial Securities, L.P. (the Securities
Partnership), First Industrial Mortgage Partnership, L.P.
(the Mortgage Partnership), First Industrial
Pennsylvania, L.P. (the Pennsylvania Partnership),
First Industrial Harrisburg, L.P. (the Harrisburg
Partnership), First Industrial Indianapolis, L.P. (the
Indianapolis Partnership), TK-SV, LTD., and FI
Development Services, L.P. and wholly owned L.L.C.s (together,
the Other Real Estate Partnerships). The Other Real
Estate Partnerships operating data is presented on a
combined basis, separate from that of the Consolidated Operating
Partnership.
The Operating Partnership or the new TRS, through separate
wholly-owned limited liability companies of which it is the sole
member, also owns noncontrolling equity interests in and
provides services to two joint
24
ventures (the 2003 Net Lease Joint Venture and the 2007 Europe
Joint Venture). During 2010, we also owned noncontrolling equity
interests in, and ultimately disposed of our equity interestes
in, five joint ventures (the 2005 Development/Repositioning
Joint Venture, the 2005 Core Joint Venture, the 2006 Net Lease
Co-Investment Program, the 2006 Land/Development Joint Venture
and the 2007 Canada Joint Venture). On May 25, 2010, we
sold our interest in the 2006 Net Lease Co-Investment Program to
our joint venture partner. On August 5, 2010, we sold our
interest in the 2005 Development/Repositioning Joint Venture,
the 2005 Core Joint Venture, the 2006 Land/Development Joint
Venture and the 2007 Canada Joint Venture to our joint venture
partner. The 2007 Europe Joint Venture does not own any
properties. See Note 6 to the Consolidated Financial
Statements for more information on the Joint Ventures.
The general partners of the Other Real Estate Partnerships are
separate corporations, each with at least a .01% general
partnership interest in the Other Real Estate Partnerships for
which it acts as a general partner. Each general partner of the
Other Real Estate Partnerships is a wholly-owned subsidiary of
the Company.
Our financial statements report the L.L.C.s and the TRS on a
consolidated basis and the Other Real Estate Partnerships and
the Joint Ventures are accounted for under the equity method of
accounting. Profits, losses and distributions of the Operating
Partnership, the L.L.C.s and the Other Real Estate Partnerships
are allocated to the general partner and the limited partners,
or members, as applicable, in accordance with the provisions
contained in the partnership agreements or operating agreements,
as applicable, of the Operating Partnership, the L.L.C.s and the
Other Real Estate Partnerships.
As of December 31, 2010, we owned 705 in-service industrial
properties, containing an aggregate of approximately
60.8 million square feet of GLA. On a combined basis, as of
December 31, 2010, the Other Real Estate Partnerships owned
69 in-service industrial properties, containing an aggregate of
approximately 7.8 million square feet of GLA. Of the 69
industrial properties owned by the Other Real Estate
Partnerships at December 31, 2010, 21 are held by the
Financing Partnership, 17 are held by the Pennsylvania
Partnership, nine are held by the Securities Partnership, nine
are held by the Mortgage Partnership, seven are held by the
Harrisburg Partnership, four are held by the Indianapolis
Partnership, one is held by TK-SV, LTD and one is held by FI
Development Services, L.P.
We believe our financial condition and results of operations
are, primarily, a function of our performance in four key areas:
leasing of industrial properties, acquisition and development of
additional industrial properties, disposition of industrial
properties and debt reduction and access to external capital.
We generate revenue primarily from rental income and tenant
recoveries from long-term (generally three to six years)
operating leases of our industrial properties. Such revenue is
offset by certain property specific operating expenses, such as
real estate taxes, repairs and maintenance, property management,
utilities and insurance expenses, along with certain other costs
and expenses, such as depreciation and amortization costs and
general and administrative and interest expenses. Our revenue
growth is dependent, in part, on our ability to
(i) increase rental income, through increasing either or
both occupancy rates and rental rates at our properties,
(ii) maximize tenant recoveries and (iii) minimize
operating and certain other expenses. Revenues generated from
rental income and tenant recoveries are a significant source of
funds, in addition to income generated from gains/losses on the
sale of our properties (as discussed below), for our liquidity.
The leasing of property, in general, and occupancy rates, rental
rates, operating expenses and certain non-operating expenses, in
particular, are impacted, variously, by property specific,
market specific, general economic and other conditions, many of
which are beyond our control. The leasing of property also
entails various risks, including the risk of tenant default. If
we were unable to maintain or increase occupancy rates and
rental rates at our properties or to maintain tenant recoveries
and operating and certain other expenses consistent with
historical levels and proportions, our revenue would decline.
Further, if a significant number of our tenants were unable to
pay rent (including tenant recoveries) or if we were unable to
rent our properties on favorable terms, our financial condition,
results of operations, cash flow and the Companys ability
to pay dividends on, and the market price of, the Companys
common stock would be adversely affected.
Our revenue growth is also dependent, in part, on our ability to
acquire existing, and acquire and develop new, additional
industrial properties on favorable terms. The Consolidated
Operating Partnership seeks to identify opportunities to acquire
existing industrial properties on favorable terms, and, when
conditions permit,
25
also seeks to identify opportunities to acquire and develop new
industrial properties on favorable terms. Existing properties,
as they are acquired, and acquired and developed properties, as
they are leased, generate revenue from rental income, tenant
recoveries and fees, income from which, as discussed above, is a
source of funds for our distributions. The acquisition and
development of properties is impacted, variously, by property
specific, market specific, general economic and other
conditions, many of which are beyond our control. The
acquisition and development of properties also entails various
risks, including the risk that our investments may not perform
as expected. For example, acquired existing and acquired and
developed new properties may not sustain
and/or
achieve anticipated occupancy and rental rate levels. With
respect to acquired and developed new properties, we may not be
able to complete construction on schedule or within budget,
resulting in increased debt service expense and construction
costs and delays in leasing the properties. Also, we face
significant competition for attractive acquisition and
development opportunities from other well-capitalized real
estate investors, including both publicly-traded REITs and
private investors. Further, as discussed below, we may not be
able to finance the acquisition and development opportunities we
identify. If we were unable to acquire and develop sufficient
additional properties on favorable terms or if such investments
did not perform as expected, our revenue growth would be limited
and our financial condition, results of operations, cash flow
and the Companys ability to pay dividends on, and the
market price of, the Companys common stock would be
adversely affected.
We also generate income from the sale of our properties
(including existing buildings, buildings which we have developed
or re-developed on a merchant basis and land). The gain/loss on,
and fees from, the sale of such properties are included in our
income and can be a significant source of funds, in addition to
revenues generated from rental income and tenant recoveries, for
our operations. Currently, a significant portion of our proceeds
from sales are being used to repay outstanding debt. Market
conditions permitting, however, a significant portion of our
proceeds from such sales may also be used to fund the
acquisition of existing, and the acquisition and development of
new, industrial properties. The sale of properties is impacted,
variously, by property specific, market specific, general
economic and other conditions, many of which are beyond our
control. The sale of properties also entails various risks,
including competition from other sellers and the availability of
attractive financing for potential buyers of our properties.
Further, our ability to sell properties is limited by safe
harbor rules applying to REITs under the Code which relate to
the number of properties that may be disposed of in a year,
their tax bases and the cost of improvements made to the
properties, along with other tests which enable a REIT to avoid
punitive taxation on the sale of assets. If we were unable to
sell properties on favorable terms, our income growth would be
limited and our financial condition, results of operations, cash
flow and the Companys ability to pay dividends on, and the
market price of, the Companys common stock would be
adversely affected.
We utilize a portion of the net sales proceeds from property
sales, borrowings under our Unsecured Credit Facility, and
proceeds from the issuance, when and as warranted, of additional
debt and equity securities to refinance debt and finance future
acquisitions and developments. Access to external capital on
favorable terms plays a key role in our financial condition and
results of operations, as it impacts our cost of capital and our
ability and cost to refinance existing indebtedness as it
matures and to fund acquisitions and developments or through the
issuance, when and as warranted, of additional equity
securities. Our ability to access external capital on favorable
terms is dependent on various factors, including general market
conditions, interest rates, credit ratings on our capital stock
and debt, the markets perception of our growth potential,
our current and potential future earnings and cash distributions
and the market price of the Companys capital stock. If we
were unable to access external capital on favorable terms, our
financial condition, results of operations, cash flow and the
Companys ability to pay dividends on, and the market price
of, the Companys common stock would be adversely affected.
CRITICAL
ACCOUNTING POLICIES
Our significant accounting policies are described in more detail
in Note 3 to the Consolidated Financial Statements. We
believe the following critical accounting policies relate to the
more significant judgments and estimates used in the preparation
of our consolidated financial statements.
26
|
|
|
|
|
We maintain an allowance for doubtful accounts which is based on
estimates of potential losses which could result from the
inability of our tenants to satisfy outstanding billings with
us. The allowance for doubtful accounts is an estimate based on
our assessment of the creditworthiness of our tenants.
|
|
|
|
We review our properties on a periodic basis for possible
impairment and provide a provision if impairments are
determined. We utilize the guidelines established under the
Financial Accounting Standards Boards (the
FASB) guidance for accounting for the impairment of
long lived assets to determine if impairment conditions exist.
We review the expected undiscounted cash flows of each property
to determine if there are any indications of impairment. If the
expected undiscounted cash flows of a particular property are
less than the net book basis of the property, we will recognize
an impairment charge equal to the amount of carrying value of
the property that exceeds the fair value of the property. Fair
value is determined by discounting the future expected cash
flows of the property. The preparation of the undiscounted cash
flows and the calculation of fair value involve subjective
assumptions such as estimated occupancy, rental rates, ultimate
residual value and hold period. The discount rate used to
present value the cash flows for determining fair value is also
subjective.
|
|
|
|
Properties are classified as held for sale when all criteria
within the FASB guidance relating to the disposal of long lived
assets are met for such properties. When properties are
classified as held for sale, we cease depreciating the
properties and estimate the values of such properties and
measure them at the lower of depreciated cost or fair value,
less costs to dispose. If circumstances arise that were
previously considered unlikely, and, as a result, we decide not
to sell a property previously classified as held for sale, we
will reclassify such property as held and used. We estimate the
value of such property and measure it at the lower of its
carrying amount (adjusted for any depreciation and amortization
expense that would have been recognized had the property been
continuously classified as held and used) or fair value at the
date of the subsequent decision not to sell. Fair value is
determined by deducting from the estimated sales price of the
property the estimated costs to close the sale.
|
|
|
|
We analyze our investments in Joint Ventures to determine
whether the joint ventures should be accounted for under the
equity method of accounting or consolidated into our financial
statements based on standards set forth under the FASBs
guidance relating to the consolidation of variable interest
entities. Based on the guidance set forth in these
pronouncements, we do not consolidate any of our joint venture
investments because either the joint venture has been determined
to be a variable interest entity but we are not the primary
beneficiary or the joint venture has been determined not to be a
variable interest entity and we lack control of the joint
venture. Our assessment of whether we are the primary
beneficiary of a variable interest entity involves the
consideration of various factors including the form of our
ownership interest, our representation on the entitys
governing body, the size of our investment and future cash flows
of the entity.
|
|
|
|
On a periodic basis, we assess whether there are any indicators
that the value of our investments in Joint Ventures may be
impaired. An investment is impaired only if our estimate of the
value of the investment is less than the carrying value of the
investment, and such decline in value is deemed to be other than
temporary. To the extent impairment has occurred, the loss shall
be measured as the excess of the carrying amount of the
investment over the fair value of the investment. Our estimates
of fair value for each investment are based on a number of
subjective assumptions that are subject to economic and market
uncertainties including, among others, demand for space, market
rental rates and operating costs, the discount rate used to
value the cash flows of the properties and the discount rate
used to value the Joint Ventures debt.
|
|
|
|
We capitalize (direct and certain indirect) costs incurred in
developing, renovating, acquiring and rehabilitating real estate
assets as part of the investment basis. Costs incurred in making
certain other improvements are also capitalized. During the land
development and construction periods, we capitalize interest
costs, real estate taxes and certain general and administrative
costs of the personnel performing development, renovations or
rehabilitation up to the time the property is substantially
complete. The
|
27
|
|
|
|
|
determination and calculation of certain costs requires
estimates by us. Amounts included in capitalized costs are
included in the investment basis of real estate assets.
|
|
|
|
|
|
We are engaged in the acquisition of individual properties as
well as multi-property portfolios. We are required to allocate
purchase price between land, building, tenant improvements,
leasing commissions, in-place leases, tenant relationships and
above and below market leases. Above-market and below-market
lease values for acquired properties are recorded based on the
present value (using a discount rate which reflects the risks
associated with the leases acquired) of the difference between
(i) the contractual amounts to be paid pursuant to each
in-place lease and (ii) our estimate of fair market lease
rents for each corresponding in-place lease. Acquired above and
below market leases are amortized over the remaining
non-cancelable terms of the respective leases as an adjustment
to rental income. In-place lease and tenant relationship values
for acquired properties are recorded based on our evaluation of
the specific characteristics of each tenants lease and our
overall relationship with the respective tenant. The value
allocated to in-place lease intangible assets is amortized to
depreciation and amortization expense over the remaining lease
term of the respective lease. The value allocated to tenant
relationships is amortized to depreciation and amortization
expense over the expected term of the relationship, which
includes an estimate of the probability of lease renewal and its
estimated term. We also must allocate purchase price on
multi-property portfolios to individual properties. The
allocation of purchase price is based on our assessment of
various characteristics of the markets where the property is
located and the expected cash flows of the property.
|
|
|
|
In the preparation of our consolidated financial statements,
significant management judgment is required to estimate our
current and deferred income tax liabilities, and the
Companys compliance with REIT qualification requirements.
Our estimates are based on our interpretation of tax laws. These
estimates may have an impact on the income tax expense
recognized. Adjustments may be required by a change in
assessment of our deferred income tax assets and liabilities,
changes due to audit adjustments by federal and state tax
authorities, the Companys inability to qualify as a REIT,
and changes in tax laws. Adjustments required in any given
period are included within the income tax provision.
|
|
|
|
In assessing the need for a valuation allowance against our
deferred tax assets, we estimate future taxable income,
considering the feasibility of ongoing tax planning strategies
and the realizability of tax loss carryforwards. In the event we
were to determine that we would not be able to realize all or a
portion of our deferred tax assets in the future, we would
reduce such amounts through a charge to income in the period in
which that determination is made. Conversely, if we were to
determine that we would be able to realize our deferred tax
assets in the future in excess of the net carrying amounts, we
would decrease the recorded valuation allowance through an
increase to income in the period in which that determination is
made.
|
RESULTS
OF OPERATIONS
Comparison
of Year Ended December 31, 2010 to Year Ended
December 31, 2009
Our net loss available to unitholders was $241.2 million
and $15.2 million for the years ended December 31,
2010 and 2009, respectively. Basic and diluted net loss
available to unitholders was $3.53 per unit for the year ended
December 31, 2010 and $0.28 per unit for the year ended
December 31, 2009.
The tables below summarize our revenues, property and
construction expenses and depreciation and other amortization by
various categories for the years ended December 31, 2010
and December 31, 2009. Same store properties are properties
owned prior to January 1, 2009 and held as an operating
property through December 31, 2010 and developments and
redevelopments that were placed in service prior to
January 1, 2009 or were substantially completed for the
12 months prior to January 1, 2009. Properties which
are at least 75% occupied at acquisition are placed in service.
All other properties are placed in service as they reach the
earlier of a) stabilized occupancy (generally defined as
90% occupied), or b) one year subsequent to acquisition or
development completion. Acquired properties are properties that
were acquired subsequent to December 31,
28
2008 and held as an operating property through December 31,
2010. Sold properties are properties that were sold subsequent
to December 31, 2008. (Re)Developments and land are land
parcels and developments and redevelopments that were not:
a) substantially complete 12 months prior to
January 1, 2009 or b) stabilized prior to
January 1, 2009. Other revenues are derived from the
operations of our maintenance company, fees earned from our
Joint Ventures and other miscellaneous revenues. Construction
revenues and expenses represent revenues earned and expenses
incurred in connection with the old TRS acting as general
contractor or development manager to construct industrial
properties, including industrial properties for the 2006
Development/Repositioning Joint Venture and also include
revenues and expenses related to the development and sale of
properties built for third parties. Other expenses are derived
from the operations of our maintenance company and other
miscellaneous regional expenses.
Our future financial condition and results of operations,
including rental revenues, may be impacted by the future
acquisition and sale of properties. Our future revenues and
expenses may vary materially from historical rates.
For the years ended December 31, 2010 and December 31,
2009, the occupancy rates of our same store properties were
82.2% and 82.4%, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
$ Change
|
|
|
% Change
|
|
|
|
($ in 000s)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Properties
|
|
$
|
285,514
|
|
|
$
|
290,690
|
|
|
$
|
(5,176
|
)
|
|
|
(1.8
|
)%
|
Acquired Properties
|
|
|
1,133
|
|
|
|
|
|
|
|
1,133
|
|
|
|
|
|
Sold Properties
|
|
|
1,275
|
|
|
|
9,431
|
|
|
|
(8,156
|
)
|
|
|
(86.5
|
)%
|
(Re)Developments and Land, Not Included Above
|
|
|
9,360
|
|
|
|
4,897
|
|
|
|
4,463
|
|
|
|
91.1
|
%
|
Other
|
|
|
8,785
|
|
|
|
17,558
|
|
|
|
(8,773
|
)
|
|
|
(50.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
306,067
|
|
|
$
|
322,576
|
|
|
$
|
(16,509
|
)
|
|
|
(5.1
|
)%
|
Discontinued Operations
|
|
|
(54,080
|
)
|
|
|
(61,975
|
)
|
|
|
7,895
|
|
|
|
(12.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Revenues
|
|
$
|
251,987
|
|
|
$
|
260,601
|
|
|
$
|
(8,614
|
)
|
|
|
(3.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Revenues
|
|
|
869
|
|
|
|
54,957
|
|
|
|
(54,088
|
)
|
|
|
(98.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
$
|
252,856
|
|
|
$
|
315,558
|
|
|
$
|
(62,702
|
)
|
|
|
(19.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from same store properties decreased $5.2 million
due primarily to a decrease in rental rates and a decrease in
occupancy. Revenues from acquired properties increased
$1.1 million due to the three industrial properties
acquired subsequent to December 31, 2008 totaling
approximately 0.5 million square feet of GLA. Revenues from
sold properties decreased $8.2 million due to the 22
industrial properties and one leased land parcel sold subsequent
to December 31, 2008 totaling approximately
2.8 million square feet of GLA. Revenues from
(re)developments and land increased $4.5 million primarily
due to an increase in occupancy. Other revenues decreased
$8.8 million due primarily to a decrease in fees earned
from our Joint Ventures. Construction revenues decreased
$54.1 million primarily due to the substantial completion
prior to
29
December 31, 2009 of certain development projects for which
we were acting in the capacity of development manager.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
$ Change
|
|
|
% Change
|
|
|
|
($ in 000s)
|
|
|
PROPERTY AND CONSTRUCTION EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Properties
|
|
$
|
92,017
|
|
|
$
|
94,328
|
|
|
$
|
(2,311
|
)
|
|
|
(2.4
|
)%
|
Acquired Properties
|
|
|
200
|
|
|
|
|
|
|
|
200
|
|
|
|
|
|
Sold Properties
|
|
|
544
|
|
|
|
2,731
|
|
|
|
(2,187
|
)
|
|
|
(80.1
|
)%
|
(Re) Developments and Land, Not Included Above
|
|
|
2,952
|
|
|
|
3,086
|
|
|
|
(134
|
)
|
|
|
(4.3
|
)%
|
Other
|
|
|
12,733
|
|
|
|
14,229
|
|
|
|
(1,496
|
)
|
|
|
(10.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
108,446
|
|
|
$
|
114,374
|
|
|
$
|
(5,928
|
)
|
|
|
(5.2
|
)%
|
Discontinued Operations
|
|
|
(23,303
|
)
|
|
|
(26,285
|
)
|
|
|
2,982
|
|
|
|
(11.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Expenses
|
|
$
|
85,143
|
|
|
$
|
88,089
|
|
|
$
|
(2,946
|
)
|
|
|
(3.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Expenses
|
|
|
507
|
|
|
|
52,720
|
|
|
|
(52,213
|
)
|
|
|
(99.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Property and Construction Expenses
|
|
$
|
85,650
|
|
|
$
|
140,809
|
|
|
$
|
(55,159
|
)
|
|
|
(39.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property expenses include real estate taxes, repairs and
maintenance, property management, utilities, insurance and other
property related expenses. Property expenses from same store
properties decreased $2.3 million due primarily to a
decrease in bad debt expense. Property expenses from acquired
properties increased $0.2 million due to properties
acquired subsequent to December 31, 2008. Property expenses
from sold properties decreased $2.2 million due to
properties sold subsequent to December 31, 2008. Property
expenses from (re)developments and land remained relatively
unchanged. The $1.5 million decrease in other expense is
primarily attributable to a decrease in compensation.
Construction expenses decreased $52.2 million primarily due
to the substantial completion prior to December 31, 2009 of
certain development projects for which we were acting in the
capacity of development manager.
General and administrative expense decreased $11.1 million,
or 29.5%, due primarily to a decrease in compensation resulting
from the reduction in employee headcount occurring during 2009
and 2010, a decrease in rent expense resulting from office
closings in 2009 and 2010 and a decrease in legal and
professional services, partially offset by an increase in
lawsuit settlements.
We committed to a plan to reduce organizational and overhead
costs in October 2008 and have subsequently modified that plan
with the goal of further reducing these costs. For the year
ended December 31, 2010, we recognized $1.9 million in
restructuring charges to provide for employee severance and
benefits ($0.5 million), costs associated with the
termination of certain office leases ($0.7 million) and
other costs ($0.7 million) associated with implementing our
restructuring plan. Due to the timing of certain related
expenses, we expect to record a total of approximately
$1.5 million of additional restructuring charges in
subsequent quarters. We also anticipate a continued reduction of
general and administrative expense in 2011 compared to 2010 as a
result of the employee terminations and office closings that
were part of our restructuring plan in 2010.
For the year ended December 31, 2009, we recorded as
restructuring costs a pre-tax charge of $7.8 million to
provide for employee severance and benefits ($5.2 million),
costs associated with the termination of certain office leases
($1.9 million) and other costs ($0.7 million)
associated with implementing the restructuring plan.
Due to the expected amendment to our Unsecured Credit Facility
in 2010 we reassessed the holding period for our Non-Strategic
Assets. As a result of the reassessment, we recorded an
impairment loss in the amount of $156.7 million during the
third quarter of 2010 on 120 industrial properties comprising
approximately 10.0 million square feet of GLA and land
parcels comprising approximately 445 gross acres. During
the fourth quarter of 2010, we recorded an additional impairment
loss to certain Non-Strategic Assets in the amount of
$20.3 million. The additional charge is primarily comprised
of estimated closing costs on 110 industrial properties
comprising 9.9 million square feet of GLA and land parcels
comprising
30
approximately 391 gross acres classified as held for sale,
as well as additional impairment related to certain industrial
properties and land parcels due to a change in our estimates of
fair value based upon recent market information, including
receipt of third party purchase offers. For the year ended
December 31, 2010, $152.1 million of the impairment
loss is included in discontinued operations because our
Non-Strategic Assets (except one industrial property comprising
approximately 0.3 million square feet of GLA) are
classified as held for sale at December 31, 2010. In
addition, in connection with the negotiation of a new lease, we
recorded an impairment loss in the amount of $9.2 million
on one property in Grand Rapids, Michigan during the first
quarter of 2010 (see Note 4 to the Consolidated Financial
Statements). Additional impairments may be necessary in the
future in the event that market conditions continue to
deteriorate and impact the factors used to estimate fair value
or in the event that we change our intent to hold a property.
As a result of adverse conditions in the credit and real estate
markets, we determined in the third quarter of 2009 that an
impairment loss in the amount of $6.9 million should be
recorded on one property in the Inland Empire market
($1.3 million of this impairment loss is included in
discontinued operations for the year ended December 31,
2009 because one building of the two-building property is
classified as held for sale at December 31, 2010).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
$ Change
|
|
|
% Change
|
|
|
|
($ in 000s)
|
|
|
DEPRECIATION AND OTHER AMORTIZATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Properties
|
|
$
|
113,298
|
|
|
$
|
123,734
|
|
|
$
|
(10,436
|
)
|
|
|
(8.4
|
)%
|
Acquired Properties
|
|
|
603
|
|
|
|
|
|
|
|
603
|
|
|
|
|
|
Sold Properties
|
|
|
559
|
|
|
|
4,199
|
|
|
|
(3,640
|
)
|
|
|
(86.7
|
)%
|
(Re) Developments and Land, Not Included Above
|
|
|
4,553
|
|
|
|
3,786
|
|
|
|
767
|
|
|
|
20.3
|
%
|
Corporate Furniture, Fixtures and Equipment
|
|
|
1,975
|
|
|
|
2,192
|
|
|
|
(217
|
)
|
|
|
(9.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
120,988
|
|
|
$
|
133,911
|
|
|
$
|
(12,923
|
)
|
|
|
(9.7
|
)%
|
Discontinued Operations
|
|
|
(22,076
|
)
|
|
|
(31,692
|
)
|
|
|
9,616
|
|
|
|
(30.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Depreciation and Other Amortization
|
|
$
|
98,912
|
|
|
$
|
102,219
|
|
|
$
|
(3,307
|
)
|
|
|
(3.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and other amortization for same store properties
decreased $10.4 million primarily due to accelerated
depreciation and amortization taken during the year ended
December 31, 2009, attributable to certain tenants who
terminated their lease early as well the cessation of
depreciation and amortization of the Non-Strategic Assets that
qualified for held for sale classification during the fourth
quarter of 2010. Depreciation and other amortization from
acquired properties increased $0.6 million due to
properties acquired subsequent to December 31, 2008.
Depreciation and other amortization from sold properties
decreased $3.6 million due to properties sold subsequent to
December 31, 2008. Depreciation and other amortization for
(re)developments and land and other increased $0.8 million
due primarily to an increase in the substantial completion of
developments. Corporate furniture, fixtures and equipment
decreased $0.2 million primarily due to accelerated
depreciation on furniture, fixtures and equipment taken in 2009
related to the termination of certain office leases.
Interest income increased $1.3 million, or 42.8%, primarily
due to an increase in the weighted average mortgage loans
receivable balance outstanding for the year ended
December 31, 2010 as compared to the year ended
December 31, 2009.
Interest expense, inclusive of $0.1 million and
$0.5 million of interest expense included in discontinued
operations for the years ended December 31, 2010 and 2009,
respectively, decreased $11.8 million, or 10.3%, primarily
due to a decrease in the weighted average debt balance
outstanding for the year ended December 31, 2010
($1,823.4 million), as compared to the year ended
December 31, 2009 ($2,042.0 million), offset by an
increase in the weighted average interest rate for the year
ended December 31, 2010 (5.65%), as compared to the year
ended December 31, 2009 (5.63%) and by a decrease in
capitalized interest for the year ended December 31, 2010
due to a decrease in development activities.
31
Amortization of deferred financing costs increased
$0.3 million, or 11.2%, due primarily to an increase in
costs related to the amendment of our Unsecured Credit Facility
in October 2010 and the origination of mortgage financings
during 2010 and 2009, partially offset by the expensing of
capitalized loan fees as a result of the repurchase and
retirement of certain of our senior unsecured notes. The net
unamortized deferred financing fees related to the prior line of
credit are amortized over the remaining amortization period,
except for $0.2 million of unamortized deferred financing
costs that were expensed as a result of the decrease in the
capacity of the Unsecured Credit Facility, which is included in
(Loss) Gain From Early Retirement of Debt for the year ended
December 31, 2010.
In October 2008, we entered into an interest rate swap agreement
(the Series F Agreement) to mitigate our
exposure to floating interest rates related to the coupon reset
of the Companys Series F Preferred Stock. The
Series F Agreement has a notional value of
$50.0 million and is effective from April 1, 2009
through October 1, 2013. The Series F Agreement fixes
the 30-year
U.S. Treasury rate at 5.2175%. We recorded
$1.1 million in mark to market loss, inclusive of reset
payments, which is included in
Mark-to-Market
(Loss) Gain on Interest Rate Protection Agreements for the year
ended December 31, 2010, as compared to $2.7 million
in mark to market gain, inclusive of reset payments, for the
year ended December 31, 2009. Additionally included in
Mark-to-Market
Gain on Interest Rate Protection Agreements for the year ended
December 31, 2009 is $1.0 million related to two
forward starting swaps. In January 2008, we entered into two
forward starting swaps each with a notional value of
$59.8 million, which fixed the interest rate on forecasted
debt offerings. We designated both swaps as cash flow hedges.
The rates on the forecasted debt issuances underlying the swaps
locked on March 20, 2009 (the Forward Starting
Agreement 1) and on April 6, 2009 (the Forward
Starting Agreement 2), and as such, the swaps ceased to
qualify for hedge accounting. The change in value of Forward
Starting Agreement 1 and Forward Starting Agreement 2 from the
respective day the interest rate on the underlying debt locked
until settlement was $1.0 million and is included in
Mark-to-Market
Gain on Interest Rate Protection Agreements for the year ended
December 31, 2009.
For the year ended December 31, 2010, we recognized a net
loss from early retirement of debt of $4.3 million due
primarily to the redemption of our 2011 Notes. For the year
ended December 31, 2009, we recognized a $34.6 million
gain from early retirement of debt due to the partial repurchase
of certain series of our senior unsecured notes.
Equity in income of Other Real Estate Partnerships decreased
$15.0 million, or 81.1%, primarily due to an increase in
interest expense and a decrease in gain on sale of real estate
for the Other Real Estate Partnerships for the year ended
December 31, 2010.
The Gain on Sale of Joint Venture Interests of
$11.2 million for the year ended December 31, 2010
relates to the sale of our 10% equity interests in each of the
2005 Development/Repositioning Joint Venture, the 2005 Core
Joint Venture, the 2006 Land/Development Joint Venture and the
2007 Canada Joint Venture to our joint venture partner on
August 5, 2010. Additionally, the gain includes
approximately $2.7 million of proceeds related to the
separate sales of three industrial properties by the Joint
Ventures during August and October 2010 for which, in accordance
with the sale agreement, we were entitled to a final
distribution.
For the year ended December 31, 2010, Equity in Income of
Joint Ventures was $0.7 million, as compared to Equity in
Loss of Joint Ventures of $6.5 million for the year ended
December 31, 2009. The variance of $7.2 million is due
primarily to impairment losses of $5.6 million we recorded
during the year ended December 31, 2009 related to the 2006
Net Lease Co-Investment Program as a result of adverse
conditions in the credit and real estate markets and also due to
the gain on sale of our 15% interest in the 2006 Net Lease
Co-Investment Program which occurred during the year ended
December 31, 2010, partially offset by a decrease in our
pro rata share of gain on sale of real estate and earn outs on
property sales from the 2005 Development/Repositioning Joint
Venture and a decrease in our pro rata share of income from the
2005 Core Joint Venture during the year ended December 31,
2010, as compared to the year ended December 31, 2009.
For the year ended December 31, 2010, we recorded an income
tax provision of $3.3 million, as compared to an income tax
benefit of $23.2 million for the year ended
December 31, 2009. The variance of $26.5 million is
due primarily to a loss carryback generated from the tax
liquidation of the old TRS for the
32
year ended December 31, 2009 as well as an increase in
state taxes related to an unfavorable court decision on business
loss carryforwards in the State of Michigan for the year ended
December 31, 2010.
The following table summarizes certain information regarding the
industrial properties included in discontinued operations for
the years ended December 31, 2010 and December 31,
2009.
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
($ in 000s)
|
|
|
Total Revenues
|
|
$
|
54,080
|
|
|
$
|
61,975
|
|
Property Expenses
|
|
|
(23,303
|
)
|
|
|
(26,285
|
)
|
Impairment Loss
|
|
|
(152,115
|
)
|
|
|
(1,317
|
)
|
Depreciation and Amortization
|
|
|
(22,076
|
)
|
|
|
(31,692
|
)
|
Interest Expense
|
|
|
(64
|
)
|
|
|
(502
|
)
|
Gain on Sale of Real Estate
|
|
|
10,529
|
|
|
|
21,014
|
|
Provision for Income Taxes
|
|
|
|
|
|
|
(1,824
|
)
|
|
|
|
|
|
|
|
|
|
Income from Discontinued Operations
|
|
$
|
(132,949
|
)
|
|
$
|
21,369
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations for the year ended
December 31, 2010 reflects the results of operations and
gain on sale of real estate relating to 10 industrial properties
and one land parcel that generated ground rental revenue that
were sold during the year ended December 31, 2010 and the
results of operations of 174 industrial properties that were
identified as held for sale at December 31, 2010.
Income from discontinued operations for the year ended
December 31, 2009 reflects the results of operations and
gain on sale of real estate relating to 12 industrial properties
that were sold during the year ended December 31, 2009, the
results of operations of 10 industrial properties and one land
parcel that generated ground rental revenue that were sold
during the year ended December 31, 2010 and the results of
operations of the 174 industrial properties identified as held
for sale at December 31, 2010.
The $0.9 million gain on sale of real estate for the year
ended December 31, 2010 resulted from the sale of several
land parcels that do not meet the criteria established for
inclusion in discontinued operations. The $0.3 million gain
on sale of real estate for the year ended December 31, 2009
resulted from the sale of several land parcels that do not meet
the criteria for inclusion in discontinued operations.
Comparison
of Year Ended December 31, 2009 to Year Ended
December 31, 2008
Our net (loss) income available to unitholders was
$(15.2) million and $24.1 million for the years ended
December 31, 2009 and 2008, respectively. Basic and diluted
net (loss) income available to unitholders were $(0.28) per unit
for the year ended December 31, 2009 and $0.44 per unit for
the year ended December 31, 2008.
The tables below summarize our revenues, property and
construction expenses and depreciation and other amortization by
various categories for the years ended December 31, 2009
and December 31, 2008. Same store properties are properties
owned prior to January 1, 2008 and held as an operating
property through December 31, 2009 and developments and
redevelopments that were placed in service prior to
January 1, 2008 or were substantially completed for the
12 months prior to January 1, 2008. Properties which
are at least 75% occupied at acquisition are placed in service.
All other properties are placed in service as they reach the
earlier of a) stabilized occupancy (generally defined as
90% occupied), or b) one year subsequent to acquisition or
development completion. Acquired properties are properties that
were acquired subsequent to December 31, 2007 and held as
an operating property through December 31, 2009. Sold
properties are properties that were sold subsequent to
December 31, 2007. (Re)Developments and land are land
parcels and developments and redevelopments that were not:
a) substantially complete 12 months prior to
January 1, 2008 or b) stabilized prior to
January 1, 2008. Other revenues are derived from the
operations of our maintenance company, fees earned from our
Joint Ventures and other miscellaneous revenues. Construction
revenues and expenses represent revenues earned and expenses
incurred in connection with the old TRS acting as general
contractor or development manager to construct industrial
properties, including industrial properties for the 2006
33
Development/Repositioning Joint Venture, and also include
revenues and expenses related to the development of properties
for third parties. Other expenses are derived from the
operations of our maintenance company and other miscellaneous
regional expenses.
Our future financial condition and results of operations,
including rental revenues, may be impacted by the future
acquisition and sale of properties. Our future revenues and
expenses may vary materially from historical rates.
For the years ended December 31, 2009 and December 31,
2008, the occupancy rates of our same store properties were
82.8% and 87.8%, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
2008
|
|
|
$ Change
|
|
|
% Change
|
|
|
|
($ in 000s)
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Properties
|
|
$
|
257,319
|
|
|
$
|
274,673
|
|
|
$
|
(17,354
|
)
|
|
|
(6.3
|
)%
|
Acquired Properties
|
|
|
23,587
|
|
|
|
13,635
|
|
|
|
9,952
|
|
|
|
73.0
|
%
|
Sold Properties
|
|
|
5,139
|
|
|
|
31,198
|
|
|
|
(26,059
|
)
|
|
|
(83.5
|
)%
|
(Re)Developments and Land, Not Included Above
|
|
|
18,974
|
|
|
|
11,405
|
|
|
|
7,569
|
|
|
|
66.4
|
%
|
Other
|
|
|
17,557
|
|
|
|
28,875
|
|
|
|
(11,318
|
)
|
|
|
(39.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
322,576
|
|
|
$
|
359,786
|
|
|
$
|
(37,210
|
)
|
|
|
(10.3
|
)%
|
Discontinued Operations
|
|
|
(61,975
|
)
|
|
|
(96,879
|
)
|
|
|
34,904
|
|
|
|
(36.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Revenues
|
|
$
|
260,601
|
|
|
$
|
262,907
|
|
|
$
|
(2,306
|
)
|
|
|
(0.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Revenues
|
|
|
54,957
|
|
|
|
147,299
|
|
|
|
(92,342
|
)
|
|
|
(62.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
$
|
315,558
|
|
|
$
|
410,206
|
|
|
$
|
(94,648
|
)
|
|
|
(23.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from same store properties decreased $17.4 million
due primarily to a decrease in occupancy and a decrease in
tenant recoveries due to a decrease in property expenses.
Revenues from acquired properties increased $10.0 million
due to the 24 industrial properties acquired subsequent to
December 31, 2007 totaling approximately 3.0 million
square feet of GLA, as well as acquisitions of land parcels in
September and October 2008 for which we receive ground rents.
Revenues from sold properties decreased $26.1 million due
to the 101 industrial properties sold subsequent to
December 31, 2007 totaling approximately 9.2 million
square feet of GLA. Revenues from (re)developments and land
increased $7.6 million primarily due to an increase in
occupancy. Other revenues decreased $11.3 million due
primarily to a decrease in development fees earned from our
Joint Ventures and a decrease in fees earned related to us
assigning our interest in certain purchase contracts to third
parties for consideration. Construction revenues decreased
$92.3 million primarily due to the substantial completion
of certain development projects for which we were acting in the
capacity of
34
development manager, offset by a development project that
commenced in August 2008 for which we are acting in the capacity
of development manager
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
2008
|
|
|
$ Change
|
|
|
% Change
|
|
|
|
($ in 000s)
|
|
|
PROPERTY AND CONSTRUCTION EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Properties
|
|
$
|
85,731
|
|
|
$
|
90,652
|
|
|
$
|
(4,921
|
)
|
|
|
(5.4
|
)%
|
Acquired Properties
|
|
|
5,851
|
|
|
|
2,868
|
|
|
|
2,983
|
|
|
|
104.0
|
%
|
Sold Properties
|
|
|
1,438
|
|
|
|
10,032
|
|
|
|
(8,594
|
)
|
|
|
(85.7
|
)%
|
(Re) Developments and Land, Not Included Above
|
|
|
7,125
|
|
|
|
5,844
|
|
|
|
1,281
|
|
|
|
21.9
|
%
|
Other
|
|
|
14,229
|
|
|
|
10,421
|
|
|
|
3,808
|
|
|
|
36.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
114,374
|
|
|
$
|
119,817
|
|
|
$
|
(5,443
|
)
|
|
|
(4.5
|
)%
|
Discontinued Operations
|
|
|
(26,285
|
)
|
|
|
(37,477
|
)
|
|
|
11,192
|
|
|
|
(29.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Expenses
|
|
$
|
88,089
|
|
|
$
|
82,340
|
|
|
$
|
5,749
|
|
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction Expenses
|
|
|
52,720
|
|
|
|
139,539
|
|
|
|
(86,819
|
)
|
|
|
(62.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Property and Construction Expenses
|
|
$
|
140,809
|
|
|
$
|
221,879
|
|
|
$
|
(81,070
|
)
|
|
|
(36.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property expenses include real estate taxes, repairs and
maintenance, property management, utilities, insurance and other
property related expenses. Property expenses from same store
properties decreased $4.9 million due primarily to a
decrease in real estate tax expense and repairs and maintenance
expense. Property expenses from acquired properties increased
$3.0 million due to properties acquired subsequent to
December 31, 2007. Property expenses from sold properties
decreased $8.6 million due to properties sold subsequent to
December 31, 2007. Property expenses from (re)developments
and land increased $1.3 million due to an increase in the
substantial completion of developments. Expenses are no longer
capitalized to the basis of a property once the development is
substantially complete. The $3.8 million increase in other
expense is primarily attributable to an increase in incentive
compensation. Construction expenses decreased $86.8 million
primarily due to the substantial completion of certain
development projects for which we were acting in the capacity of
development manager, offset by a development project that
commenced in August 2008 for which we are acting in the capacity
of development manager.
General and administrative expense decreased $46.5 million,
or 55.3%, due primarily to a decrease in compensation resulting
from the reduction in employee headcount occurring in 2008 and
during 2009 as well as a decrease in professional services,
marketing, travel and entertainment expenses and costs
associated with the pursuit of acquisitions of real estate that
were abandoned.
We committed to a plan to reduce organizational and overhead
costs in October 2008. On February 25 and September 25,
2009, we committed to additional modifications to the plan
consisting of further organizational and overhead cost
reductions. For the year ended December 31, 2009, we
recorded as restructuring costs a pre-tax charge of
$7.8 million to provide for employee severance and benefits
($5.2 million), costs associated with the termination of
certain office leases ($1.9 million) and other costs
($0.7 million) associated with implementing the
restructuring plan.
For the year ended December 31, 2008, we incurred
$26.7 million in restructuring charges related to employee
severance and benefits ($24.8 million), costs associated
with the termination of certain office leases
($1.2 million) and contract cancellation and other costs
($0.7 million) related to our restructuring plan to reduce
overhead costs.
As a result of adverse conditions in the credit and real estate
markets, we determined in the third quarter of 2009 that an
impairment loss in the amount of $6.9 million should be
recorded on one property in the Inland Empire market
($1.3 million of this impairment loss is included in
discontinued operations for the year ended December 31,
2009 because one building of the two-building property is
classified as held for sale at
35
December 31, 2010). Additional impairments may be necessary
in the future in the event that market conditions continue to
deteriorate and impact the factors used to estimate fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
2008
|
|
|
$ Change
|
|
|
% Change
|
|
|
|
($ in 000s)
|
|
|
DEPRECIATION AND OTHER AMORTIZATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store Properties
|
|
$
|
107,950
|
|
|
$
|
121,292
|
|
|
$
|
(13,342
|
)
|
|
|
(11.0
|
)%
|
Acquired Properties
|
|
|
12,227
|
|
|
|
10,279
|
|
|
|
1,948
|
|
|
|
19.0
|
%
|
Sold Properties
|
|
|
1,926
|
|
|
|
9,586
|
|
|
|
(7,660
|
)
|
|
|
(79.9
|
)%
|
(Re) Developments and Land, Not Included Above
|
|
|
9,616
|
|
|
|
6,444
|
|
|
|
3,172
|
|
|
|
49.2
|
%
|
Corporate Furniture, Fixtures and Equipment
|
|
|
2,192
|
|
|
|
2,257
|
|
|
|
(65
|
)
|
|
|
(2.9
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
133,911
|
|
|
$
|
149,858
|
|
|
$
|
(15,947
|
)
|
|
|
(10.6
|
)%
|
Discontinued Operations
|
|
|
(31,692
|
)
|
|
|
(47,787
|
)
|
|
|
16,095
|
|
|
|
(33.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Depreciation and Other Amortization
|
|
$
|
102,219
|
|
|
$
|
102,071
|
|
|
$
|
148
|
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and other amortization for same store properties
decreased $13.3 million due primarily to accelerated
depreciation and amortization taken during the year ended
December 31, 2008 attributable to certain tenants who
terminated their lease early. Depreciation and other
amortization from acquired properties increased
$1.9 million due to properties acquired subsequent to
December 31, 2007. Depreciation and other amortization from
sold properties decreased $7.7 million due to properties
sold subsequent to December 31, 2007. Depreciation and
other amortization for (re)developments and land and other
increased $3.2 million due primarily to an increase in the
substantial completion of developments.
Interest income decreased $0.4 million, or 10.7%, due
primarily to a decrease in the weighted average interest rate
earned on our cash accounts during the year ended
December 31, 2009, as compared to the year ended
December 31, 2008, partially offset by an increase in the
weighted average mortgage loans receivable balance outstanding
for the year ended December 31, 2009.
Interest expense, inclusive of $0.5 million and
$0.5 million of interest expense included in discontinued
operations for the years ended December 31, 2009 and 2008,
respectively, increased $1.6 million, or 1.5%, primarily
due to an increase in the weighted average debt balance
outstanding for the year ended December 31, 2009
($2,042.0 million), as compared to the year ended
December 31, 2008 ($2,026.5 million) and a decrease in
capitalized interest for the year ended December 31, 2009
due to a decrease in development activities, partially offset by
a decrease in the weighted average interest rate for the year
ended December 31, 2009 (5.63%), as compared to the year
ended December 31, 2008 (5.97%)
Amortization of deferred financing costs increased
$0.2 million, or 5.9%, due primarily to loan fees related
to $307.6 million in mortgage loan payables we obtained
during the year ended December 31, 2009, partially offset
by the write-off of loan fees related to the repurchase and
retirement of certain of our senior unsecured notes.
In October 2008, we entered into the Series F Agreement to
mitigate our exposure to floating interest rates related to the
coupon reset of the Companys Series F Preferred
Stock. The Series F Agreement has a notional value of
$50.0 million and is effective from April 1, 2009
through October 1, 2013. The Series F Agreement fixes
the 30-year
U.S. Treasury rate at 5.2175%. We recorded
$3.2 million in mark to market gain, offset by
$0.5 million payments, which is included in
Mark-to-Market
Gain (Loss) on Interest Rate Protection Agreements for the year
ended December 31, 2009. We recorded $3.1 million in
mark to market loss which is included in
Mark-to-Market
Gain (Loss) on Interest Rate Protection Agreements for the year
ended December 31, 2008.
In January 2008, we entered into two forward starting swaps each
with a notional value of $59.8 million, which fixed the
interest rate on forecasted debt offerings. We designated
Forward Starting Agreement 1 and Forward Starting Agreement 2 as
cash flow hedges. The rates on Starting Agreement 1 and Forward
Starting
36
Agreement 2 locked on March 20, 2009 and on April 6,
2009, respectively, and as such, the swaps ceased to qualify for
hedge accounting. The change in value of Forward Starting
Agreement 1 and Forward Starting Agreement 2 from the respective
day the interest rate on the underlying debt locked until
settlement is $1.0 million and is included in
Mark-to-Market
Gain on Interest Rate Protection Agreements for the year ended
December 31, 2009.
For the years ended December 31, 2009 and 2008, we
recognized a net gain from early retirement of debt of
$34.6 million and $2.7 million, respectively, due to
the partial repurchase of certain series of our senior unsecured
notes.
Equity in income of Other Real Estate Partnerships decreased
$31.2 million, or 62.8%, primarily due to a decrease in
gain on sale of real estate by the Other Real Estate
Partnerships.
Equity in loss of Joint Ventures decreased approximately
$26.7 million, or 80.5%, due primarily to a decrease in
impairment loss during the year ended December 31, 2009 as
compared to the year ended December 31, 2008. During 2008,
we recorded impairment losses of $25.8 million,
$10.1 million, $3.2 million, $2.2 million and
$1.2 million related to the 2005 Development/Repositioning
Joint Venture, 2006 Land/Development Joint Venture, the 2005
Core Joint Venture, the 2006 Net Lease Co-Investment Program and
the 2003 Net Lease Joint Venture, respectively. During 2009, we
recorded impairment losses of $5.6 million and
$1.6 million related to the 2006 Net Lease Co-Investment
Program and the 2003 Net Lease Joint Venture, respectively. The
decrease in impairment loss recorded is offset by a decrease in
our pro rata share of gain on sale of real estate and earn outs
on property sales from the 2005 Core Joint Venture and from the
2005 Development/Repositioning Joint Venture during the year
ended December 31, 2009 as compared to the year ended
December 31, 2008.
The income tax benefit (included in continuing operations,
discontinued operations and gain on sale) increased
$18.9 million, or 440.8%, due primarily to a loss carryback
generated from the tax liquidation of the old TRS and a decrease
in state income taxes due to the reversal of prior tax expense
related to a favorable court decision on business loss
carryforwards in the State of Michigan.
The following table summarizes certain information regarding the
industrial properties included in discontinued operations for
the years ended December 31, 2009 and December 31,
2008.
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
2008
|
|
|
|
($ in 000s)
|
|
|
Total Revenues
|
|
$
|
61,975
|
|
|
$
|
96,879
|
|
Property Expenses
|
|
|
(26,285
|
)
|
|
|
(37,477
|
)
|
Impairment Loss
|
|
|
(1,317
|
)
|
|
|
|
|
Depreciation and Amortization
|
|
|
(31,692
|
)
|
|
|
(47,787
|
)
|
Interest Expense
|
|
|
(502
|
)
|
|
|
(497
|
)
|
Gain on Sale of Real Estate
|
|
|
21,014
|
|
|
|
136,384
|
|
Provision for Income Taxes
|
|
|
(1,824
|
)
|
|
|
(5,166
|
)
|
|
|
|
|
|
|
|
|
|
Income from Discontinued Operations
|
|
$
|
21,369
|
|
|
$
|
142,336
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations for the year ended
December 31, 2009 reflects the results of operations and
gain on sale of real estate relating to 12 industrial properties
that were sold during the year ended December 31, 2009, the
results of operations of 10 industrial properties that were sold
during the year ended December 31, 2010 and the results of
operations of the 174 industrial properties identified as held
for sale at December 31, 2010.
Income from discontinued operations for the year ended
December 31, 2008 reflects the results of operations and
gain on sale of real estate relating to 88 industrial properties
that were sold during the year ended December 31, 2008, the
results of operations of 12 industrial properties that were sold
during the year ended December 31, 2009, the results of
operations of 10 industrial properties that were sold during the
year
37
ended December 31, 2010 and the results of operations of
the 174 industrial properties identified as held for sale at
December 31, 2010.
The $0.3 million gain on sale of real estate for the year
ended December 31, 2009 resulted from the sale of several
land parcels that do not meet the criteria for inclusion in
discontinued operations. The $12.1 million gain on sale of
real estate for the year ended December 31, 2008 resulted
from the sale of one industrial property and several land
parcels that do not meet the criteria for inclusion in
discontinued operations.
LIQUIDITY
AND CAPITAL RESOURCES
At December 31, 2010, our cash and cash equivalents was
approximately $22.5 million. We also had $22.6 million
available for additional borrowings under our Unsecured Credit
Facility.
We have considered our short-term (one year or less) liquidity
needs and the adequacy of our estimated cash flow from
operations and other expected liquidity sources to meet these
needs. Our 2011 Exchangeable Notes, in the aggregate principal
amount of $128.9 million, are due on September 15,
2011. We expect to satisfy the payment obligations on the 2011
Exchangeable Notes with proceeds from property dispositions, the
issuance of additional secured debt and the issuance of common
equity, subject to market conditions (see Subsequent Events).
With the exception of the 2011 Exchangeable Notes, we believe
that our principal short-term liquidity needs are to fund normal
recurring expenses, property acquisitions, developments,
renovations, expansions and other nonrecurring capital
improvements, debt service requirements, mortgage financing
maturities and the minimum distributions required to maintain
the Companys REIT qualification under the Code. We
anticipate that these needs will be met with cash flows provided
by operating and investing activities, including the disposition
of select assets. In addition, we plan to retain capital by
making per Unit distributions equivalent to the per share
distributions the Company is required to make to meet its
minimum distribution requirements as a REIT. We did not pay
distributions in 2010 and may not pay distributions in 2011
depending on the Companys taxable income. If the Company
is required to pay common stock dividends in 2011, we may elect
to make distributions through some combination of cash, common
Units,
and/or the
Companys common shares.
We expect to meet long-term (greater than one year) liquidity
requirements such as property acquisitions, developments,
scheduled debt maturities, major renovations, expansions and
other nonrecurring capital improvements through the disposition
of select assets, the long-term unsecured and secured
indebtedness and the issuance of additional Units and preferred
Units, subject to market conditions.
We also have financed the development or acquisition of
additional properties through borrowings under our Unsecured
Credit Facility and may finance the development or acquisition
of additional properties through such borrowings, to the extent
capacity is available, in the future At December 31, 2010,
borrowings under our Unsecured Credit Facility bore interest at
a weighted average interest rate of 3.376%. Our Unsecured Credit
Facility of is comprised of a $200.0 million term loan and
a $200.0 million revolving facility. The interest rate on
the term loan is LIBOR plus 325 basis points or a base rate
plus 225 basis points, at our election. The revolving
facility currently bears interest at a floating rate of LIBOR
plus 275 basis points or a base rate plus 175 basis
points, at our election. As of February 23, 2011, we had
approximately $12.3 million available for additional
borrowings under our Unsecured Credit Facility. Our Unsecured
Credit Facility contains certain financial covenants including
limitations on incurrence of debt and debt service coverage. Our
access to borrowings may be limited if it fails to meet any of
these covenants. We believe that we were in compliance with our
financial covenants as of December 31, 2010, and we
anticipate that we will be able to operate in compliance with
our financial covenants throughout 2011.
Our senior unsecured notes have been assigned credit ratings
from Standard & Poors, Moodys and Fitch
Ratings of BB-/Ba3/BB-, respectively. In the event of a
downgrade, we believe we would continue to have access to
sufficient capital; however, our cost of borrowing would
increase and our ability to access certain financial markets may
be limited.
38
Year
Ended December 31, 2010
Net cash provided by operating activities of $48.3 million
for the year ended December 31, 2010 was comprised
primarily of the non-cash adjustments of approximately
$297.4 million and operating distributions received in
excess of equity in income of Joint Ventures of
$2.3 million, offset by a net loss of approximately
$221.5 million, net change in operating assets and
liabilities of approximately $23.1 million and amortization
of premiums and discounts associated with senior unsecured notes
of approximately $6.8 million. The adjustments for the
non-cash items of approximately $297.4 million are
primarily comprised of depreciation and amortization of
approximately $132.9 million, the impairment of real estate
of $186.2 million, the loss on the early retirement of debt
of approximately $4.3 million, the mark to market loss
related to the Series F Agreement of approximately
$1.1 million and the provision for bad debt of
approximately $1.8 million, offset by the gain on sale of
real estate of approximately $11.4 million, the gain on
sale of our Joint Venture interests of $11.2 million and
the effect of the straight-lining of rental income of
approximately $6.3 million.
Net cash provided by investing activities of approximately
$45.5 million for the year ended December 31, 2010 was
comprised primarily of distributions from the Other Real Estate
Partnerships, net proceeds from the sale of real estate,
distributions and sales proceeds from our Joint Venture
interests and the repayments on our mortgage note receivables,
offset by investments in and advances to the Other Real Estate
Partnerships, the acquisition of real estate, capital
expenditures related to the improvement of existing real estate,
payments related to leasing activities, contributions to, and
investments in, our Joint Ventures and an increase in mortgage
payable escrows.
We invested approximately $0.8 million in, and received
total distributions of approximately $14.6 million
(including sale proceeds of approximately $5.0 million from
the sales of our joint venture interests to our joint venture
partner) from, our Joint Ventures. As of December 31, 2010,
our industrial real estate Joint Ventures owned nine industrial
properties comprising approximately 4.9 million square feet
of GLA.
During the year ended December 31, 2010, we sold 10
industrial properties comprising approximately 1.0 million
square feet of GLA and several land parcels. Proceeds from the
sales of the 10 industrial properties and several land parcels,
net of closing costs, were approximately $64.3 million. We
are in various stages of discussions with third parties for the
sale of additional properties and plan to continue to
selectively market other properties for sale throughout 2011. We
expect to use at least a portion of sale proceeds to pay down
additional debt. If we are unable to sell properties on an
advantageous basis, this may impair our liquidity and our
ability to meet our financial covenants.
During the year ended December 31, 2010, we acquired three
industrial properties comprising approximately 0.5 million
square feet of GLA, including one industrial property purchased
from the 2005 Development/Repositioning Joint Venture. The
purchase price of these acquisitions totaled approximately
$22.4 million, excluding costs incurred in conjunction with
the acquisition of the industrial properties.
Net cash used in financing activities of approximately
$252.7 million for the year ended December 31, 2010
was comprised primarily of net repayments on our Unsecured
Credit Facility, repurchases of and repayments on our unsecured
notes and mortgage loans payable, preferred general partnership
unit distributions, other costs associated with the early
retirement of debt, payments of debt issuance costs, the
repurchase and retirement of restricted units, payments on the
interest rate swap agreement and costs associated with the
Companys DRIP and the Companys ATM, offset by
proceeds from the new mortgage financings and proceeds from the
issuance of common stock.
During the year ended December 31, 2010, we received
proceeds from the origination of $82.5 million in mortgage
financings. We continue to engage various lenders regarding the
origination of additional mortgage financings and the terms and
conditions thereof. To the extent additional mortgage financing
is originated, we expect to use proceeds received to pay down
our other debt. No assurances can be made that additional
mortgage financing will be obtained.
During the year ended December 31, 2010, we redeemed
and/or
repurchased $264.8 million of our unsecured notes at an
aggregate purchase price of $265.9 million. We may from
time to time repay additional amounts of our outstanding debt.
Any repayments would depend upon prevailing market conditions,
our
39
liquidity requirements, contractual restrictions and other
factors we consider important. Future repayments may materially
impact our liquidity, taxable income and results of operations.
During the year ended December 31, 2010, the Company issued
6,345,169 shares of its common stock under the direct stock
purchase component of the Companys DRIP and the
Companys ATM, resulting in net proceeds of approximately
$50.1 million. On December 31, 2010, we concluded the
ATM as a result of the expiration of the of distribution
agreements with our sales agents. These proceeds were
contributed to us in exchange for an equivalent number of Units.
We may opportunistically access the equity markets again,
including through a new ATM, subject to contractual
restrictions, and may continue to issue shares under the direct
stock purchase component of the DRIP. To the extent additional
equity offerings occur, we expect to use at least a portion of
the proceeds received to reduce our indebtedness.
Contractual
Obligations and Commitments
The following table lists our contractual obligations and
commitments as of December 31, 2010 (In thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments Due by Period
|
|
|
|
|
|
|
Less Than
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1 Year
|
|
|
1-3 Years
|
|
|
3-5 Years
|
|
|
Over 5 Years
|
|
|
Operating and Ground Leases(1)
|
|
$
|
33,162
|
|
|
$
|
1,795
|
|
|
$
|
2,348
|
|
|
$
|
1,668
|
|
|
$
|
27,351
|
|
Long-term Debt
|
|
|
1,694,579
|
|
|
|
141,207
|
|
|
|
470,366
|
|
|
|
256,255
|
|
|
|
826,751
|
|
Interest Expense on Long Term Debt(1)(2)
|
|
|
663,393
|
|
|
|
85,570
|
|
|
|
152,063
|
|
|
|
126,359
|
|
|
|
299,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,391,134
|
|
|
$
|
228,572
|
|
|
$
|
624,777
|
|
|
$
|
384,282
|
|
|
$
|
1,153,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Not on balance sheet. |
|
(2) |
|
Does not include interest expense on our Unsecured Credit
Facility. |
Off-Balance
Sheet Arrangements
Letters of credit are issued in most cases as pledges to
governmental entities for development purposes. At
December 31, 2010, we have $1.5 million in outstanding
letters of credit, none of which are reflected as liabilities on
our balance sheet. We have no other off-balance sheet
arrangements, as defined in Item 303 of
Regulation S-K,
other than those disclosed on the Contractual Obligations and
Commitments table above, that have or are reasonably likely to
have a current or future effect on our financial condition,
results of operation or liquidity and capital resources.
Environmental
We paid approximately $0.5 million and $1.9 million in
2010 and 2009, respectively, related to environmental
expenditures. We estimate 2011 expenditures of approximately
$1.0 million. We estimate that the aggregate expenditures
which need to be expended in 2011 and beyond with regard to
currently identified environmental issues will not exceed
approximately $3.2 million.
Inflation
For the last several years, inflation has not had a significant
impact on us because of the relatively low inflation rates in
our markets of operation. Most of our leases require the tenants
to pay their share of operating expenses, including common area
maintenance, real estate taxes and insurance, thereby reducing
our exposure to increases in costs and operating expenses
resulting from inflation. In addition, many of the outstanding
leases expire within six years which may enable us to replace
existing leases with new leases at higher base rentals if rents
of existing leases are below the then-existing market rate.
40
Market
Risk
The following discussion about our risk-management activities
includes forward-looking statements that involve
risk and uncertainties. Actual results could differ materially
from those projected in the forward- looking statements. Our
business subjects us to market risk from interest rates, and to
a much lesser extent, foreign currency fluctuations.
Interest
Rate Risk
This analysis presents the hypothetical gain or loss in
earnings, cash flows or fair value of the financial instruments
and derivative instruments which are held by us at
December 31, 2010 that are sensitive to changes in the
interest rates. While this analysis may have some use as a
benchmark, it should not be viewed as a forecast.
In the normal course of business, we also face risks that are
either non-financial or non-quantifiable. Such risks principally
include credit risk and legal risk and are not represented in
the following analysis.
At December 31, 2010, $1,311.8 million (77.7% of total
debt at December 31, 2010) of our debt was fixed rate
debt and $376.2 million (22.3% of total debt at
December 31, 2010) of our debt was variable rate debt.
Currently, we do not enter into financial instruments for
trading or other speculative purposes.
For fixed rate debt, changes in interest rates generally affect
the fair value of the debt, but not our earnings or cash flows.
Conversely, for variable rate debt, changes in the base interest
rate used to calculate the all-in interest rate generally do not
impact the fair value of the debt, but would affect our future
earnings and cash flows. The interest rate risk and changes in
fair market value of fixed rate debt generally do not have a
significant impact on us until we are required to refinance such
debt. See Note 7 to the Consolidated Financial Statements
for a discussion of the maturity dates of our various fixed rate
debt.
Based upon the amount of variable rate debt outstanding at
December 31, 2010, a 10% increase or decrease in the
interest rate on our variable rate debt would decrease or
increase, respectively, future net income and cash flows by
approximately $1.3 million per year. The foregoing
calculation assumes an instantaneous increase or decrease in the
rates applicable to the amount of borrowings outstanding under
our Unsecured Credit Facility at December 31, 2010. Changes
in LIBOR could result in a greater than 10% increase to such
rates. In addition, the calculation does not account for our
option to elect the lower of two different interest rates under
our borrowings or other possible actions, such as prepayment,
that we might take in response to any rate increase. A 10%
increase in interest rates would decrease the fair value of the
fixed rate debt at December 31, 2010 by approximately
$40.8 million to $1,297.7 million. A 10% decrease in
interest rates would increase the fair value of the fixed rate
debt at December 31, 2010 by approximately
$43.8 million to $1,382.3 million.
The use of derivative financial instruments allows us to manage
risks of increases in interest rates with respect to the effect
these fluctuations would have on our earnings and cash flows. As
of December 31, 2010, we had one outstanding derivative
with a notional amount of $50.0 million which mitigates our
exposure to floating interest rates related to the reset rate of
the Companys Series F Preferred Stock (see
Note 15 to the Consolidated Financial Statements).
Foreign
Currency Exchange Rate Risk
Owning, operating and developing industrial property outside of
the United States exposes the Company to the possibility of
volatile movements in foreign exchange rates. Changes in foreign
currencies can affect the operating results of international
operations reported in U.S. dollars and the value of the
foreign assets reported in U.S. dollars. The economic
impact of foreign exchange rate movements is complex because
such changes are often linked to variability in real growth,
inflation, interest rates, governmental actions and other
factors. At December 31, 2010, we owned several land
parcels for which the U.S. dollar was not the functional
currency. These land parcels are located in Ontario, Canada and
use the Canadian dollar as their functional currency.
41
Subsequent
Events
From January 1, 2011 to February 23, 2011, we sold
four industrial properties comprising approximately
0.3 million square feet of GLA. Gross proceeds from the
sale of the four industrial properties were approximately
$3.9 million. There were no industrial properties acquired
during this period.
On February 10, 2011, we prepaid and retired our secured
mortgage debt maturing in September 2012 in the amount of
$14.5 million, excluding a prepayment fee of
$0.1 million.
On February 18, 2011, we entered into a loan commitment
with a major life insurance company lender for mortgage loans,
aggregating to $178.3 million. The closings of the mortgage
loans are subject to lender due diligence and there can be no
assurance that the mortgage loans will close or, if closed, will
generate the anticipated proceeds. The mortgage loans are
expected to be cross-collateralized by 32 industrial properties,
have a term of seven years and bear interest at 4.45%.
Related
Party Transactions
We periodically engage in transactions for which CB Richard
Ellis, Inc. acts as a broker. A relative of Michael W. Brennan,
the former President and Chief Executive Officer and a former
director of the Company, is an employee of CB Richard Ellis,
Inc. For the year ended December 31, 2008, this relative
received approximately $0.1 million in brokerage
commissions or other fees for transactions with the Company and
the Joint Ventures.
|
|
Item 7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
Response to this item is included in Item 7
Managements Discussion and Analysis of Financial
Condition and Results of Operations above.
|
|
Item 8.
|
Financial
Statements and Supplementary Data
|
See Index to Financial Statements and Financial Statement
Schedule included in Item 15.
|
|
Item 9.
|
Changes
in and Disagreements with Accountants on Accounting and
Financial Disclosure
|
None.
|
|
Item 9A.
|
Controls
and Procedures
|
Evaluation
of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed
to ensure that information required to be disclosed in our
periodic reports pursuant to the Exchange Act is recorded,
processed, summarized and reported within the time periods
specified in the SECs rules and forms, and that such
information is accumulated and communicated to our management,
including our principal executive officer and principal
financial officer, as appropriate, to allow timely decisions
regarding required financial disclosure.
We carried out an evaluation, under the supervision and with the
participation of our management, including the principal
executive officer and principal financial officer, of the
effectiveness of the design and operation of our disclosure
controls and procedures pursuant to Exchange Act
Rule 13a-15(b)
as of the end of the period covered by this report. Based upon
this evaluation, our principal executive officer and principal
financial officer concluded that our disclosure controls and
procedures were effective as of the end of the period covered by
this report.
Managements
Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining
adequate internal control over financial reporting. Our internal
control over financial reporting is a process designed to
provide reasonable assurance
42
regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in
accordance with generally accepted accounting principles.
Our management has assessed the effectiveness of our internal
control over financial reporting as of December 31, 2010.
In making its assessment of internal control over financial
reporting, management used the criteria described in the
Internal Control-Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission.
Our management has concluded that, as of December 31, 2010,
our internal control over financial reporting was effective.
The effectiveness of our internal control over financial
reporting as of December 31, 2010 has been audited by
PricewaterhouseCoopers LLP, an independent registered public
accounting firm, as stated in their report which appears herein
within Item 15. See Report of Independent Registered Public
Accounting Firm.
Changes
in Internal Control Over Financial Reporting
There has been no change in our internal control over financial
reporting that occurred during the fourth quarter of 2010 that
has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.
|
|
Item 9B.
|
Other
Information
|
In July 2010, the FASB issued a new accounting standard that
requires enhanced disclosures about financing receivables,
including the allowance for credit losses, credit quality and
impaired loans. This standard is effective for fiscal years
ending after December 15, 2010. We adopted the standard in
the fourth quarter 2010 and it did not have a material impact to
our financial statements.
In June 2009, the FASB issued new guidance which revises and
updates previously issued guidance related to variable interest
entities. This new guidance, which became effective
January 1, 2010, revises the previous guidance by
eliminating the exemption for qualifying special purpose
entities, by establishing a new approach for determining who
should consolidate a variable-interest entity and by changing
when it is necessary to reassess who should consolidate a
variable- interest entity. We adopted this new guidance on
January 1, 2010. However, the adoption of this guidance did
not impact our financial position or results of operations.
PART III
|
|
Item 10,
11, 12, 13 and 14.
|
Directors,
Executive Officers and Corporate Governance, Executive
Compensation, Security Ownership of Certain Beneficial Owners
and Management and Related Stockholder Matters, Certain
Relationships and Related Transactions and Director Independence
and Principal Accountant Fees and Services
|
The Operating Partnership has no directors or executive
officers; instead it is managed by its sole general partner, the
Company. The information with respect to the sole general
partner of the Operating Partnership required by Item 10,
Item 11, Item 12, Item 13 and Item 14 is
hereby incorporated or furnished, solely to the extent required
by such item, from the Companys definitive proxy
statement, which is expected to be filed with the SEC no later
than 120 days after the end of the Companys fiscal
year. Information from the Companys definitive proxy
statement shall not be deemed to be filed or
soliciting material, or subject to liability for
purposes of Section 18 of the Exchange Act to the maximum
extent permitted under the Exchange Act.
43
PART IV
|
|
Item 15.
|
Exhibits
and Financial Statement Schedules
|
(a) Financial Statements, Financial Statement Schedule and
Exhibits (1 & 2) See Index to Financial Statements and
Financial Statement Schedule.
(3) Exhibits:
|
|
|
Exhibit
|
|
|
No.
|
|
Description
|
|
3.1
|
|
Eleventh Amended and Restated Partnership Agreement of First
Industrial, L.P. dated August 21, 2006 (the LP
Agreement) of the Company, filed August 22, 2006,
File
No. 1-13102)
(incorporated by reference to Exhibit 10.2 of the
Form 8-K
|
4.1
|
|
Indenture, dated as of May 13, 1997, between First
Industrial, L.P. and First Trust National Association, as
Trustee (incorporated by reference to Exhibit 4.1 of the
Form 10-Q
of the Company for the fiscal quarter ended March 31, 1997,
as amended by
Form 10-Q/A
No. 1 of the Company filed May 30, 1997, File
No. 1-13102)
|
4.2
|
|
Supplemental Indenture No. 1, dated as of May 13,
1997, between First Industrial, L.P. and First
Trust National Association as Trustee relating to
$100 million of 7.15% Notes due 2027 (incorporated by
reference to Exhibit 4.2 of the
Form 10-Q
of the Company for the fiscal quarter ended March 31, 1997,
as amended by
Form 10-Q/A
No. 1 of the Company filed May 30, 1997, File
No. 1-13102)
|
4.3
|
|
Supplemental Indenture No. 3 dated October 28, 1997
between First Industrial, L.P. and First Trust National
Association providing for the issuance of Medium-Term Notes due
Nine Months or more from Date of Issue (incorporated by
reference to Exhibit 4.1 of
Form 8-K
of the Operating Partnership, dated November 3, 1997, as
filed November 3, 1997, File
No. 333-21873)
|
4.4
|
|
7.50% Medium-Term Note due 2017 in principal amount of
$100 million issued by First Industrial, L.P. (incorporated
by reference to Exhibit 4.19 of the Companys Annual
Report on
Form 10-K
for the year ended December 31, 1997, File
No. 1-13102)
|
4.5
|
|
Trust Agreement, dated as of May 16, 1997, between
First Industrial, L.P. and First Bank National Association, as
Trustee (incorporated by reference to Exhibit 4.5 of the
Form 10-QT
of the Operating Partnership for the fiscal quarter ended
March 31, 1997, File
No. 333-21873)
|
4.6
|
|
7.60% Notes due 2028 in principal amount of
$200 million issued by First Industrial, L.P. (incorporated
by reference to Exhibit 4.2 of the
Form 8-K
of the Operating Partnership dated July 15, 1998, File
No. 333-21873)
|
4.7
|
|
Supplemental Indenture No. 5, dated as of July 14,
1998, between First Industrial, L.P. and U.S. Bank
Trust National Association, relating to First Industrial,
L.P.s 7.60% Notes due July 15, 2028
(incorporated by reference to Exhibit 4.1 of the
Form 8-K
of the Operating Partnership dated July 15, 1998, File
No. 333-21873)
|
4.8
|
|
Supplemental Indenture No. 7 dated as of April 15,
2002, between First Industrial, L.P. and U.S. Bank National
Association, relating to First Industrial, L.P.s
6.875% Notes due 2012 and 7.75% Notes due 2032
(incorporated by reference to Exhibit 4.1 of the Operating
Partnerships
Form 8-K,
dated April 4, 2002, File
No. 333-21873)
|
4.9
|
|
Form of 6.875% Notes due in 2012 in the principal amount of
$200 million issued by First Industrial, L.P. and
7.75% Notes due in 2032 in the principal amount of
$50 million issued by First Industrial L.P. (incorporated
by reference to Exhibit 4.2 of the Operating
Partnerships
Form 8-K
dated April 4, 2002, File
No. 333-21873)
|
4.10
|
|
Form of 7.75% Notes due 2032 in the principal amount of
$50 million issued by First Industrial, L.P. (incorporated
by reference to Exhibit 4.3 of the Operating
Partnerships
Form 8-K,
dated April 4, 2002, File
No. 333-21873)
|
4.11
|
|
Supplemental Indenture No. 8, dated as of May 17,
relating to 6.42% Senior Notes due June 1, 2014, by
and between First Industrial, L.P. and U.S. Bank National
Association (incorporated by reference to Exhibit 4.1 of
the
Form 8-K
of the Operating Partnership, dated May 27, 2004, File
No. 333-21873)
|
44
|
|
|
Exhibit
|
|
|
No.
|
|
Description
|
|
4.12
|
|
Supplemental Indenture No. 10, dated as of January 10,
2006, relating to 5.75% Senior Notes due 2016, by and
between the Operating Partnership and U.S. Bank National
Association (incorporated by reference to Exhibit 4.1 of
the
Form 8-K
of the Company, filed January 11, 2006, File
No. 1-13102)
|
4.13
|
|
Indenture dated as of September 25, 2006 among First
Industrial, L.P., as issuer, the Company, as guarantor, and U.S.
Bank National Association, as trustee (incorporated by reference
to Exhibit 4.1 of the current report on
Form 8-K
of the Operating Partnership, dated September 25, 2006,
File
No. 333-21873)
|
4.14
|
|
Form of 4.625% Exchangeable Senior Note due 2011 (incorporated
by reference to Exhibit 4.2 of the current report on
Form 8-K
of the Operating Partnership, dated September 25, 2006,
File
No. 333-21873)
|
4.15
|
|
Registration Rights Agreement dated September 25, 2006
among the Company, First Industrial, L.P. and the Initial
Purchasers named therein (incorporated by reference to
Exhibit 10.1 of the current report on
Form 8-K
of the Operating Partnership, dated September 25, 2006,
File
No. 333-21873)
|
4.16
|
|
Supplemental Indenture No. 11, dated as of May 7,
2007, relating to 5.95% Senior Notes due 2017, by and
between First Industrial, L.P. and U.S. Bank National
Association (incorporated by reference to Exhibit 4.1 of
the
Form 8-K
of the Company, filed May 5, 2007, File
No. 1-13102)
|
10.1
|
|
Sales Agreement by and among the Company, First Industrial, L.P.
and Cantor Fitzgerald & Co. dated September 16,
2004 (incorporated by reference to Exhibit 1.1 of the
Form 8-K
of the Operating Partnership, dated September 16, 2004,
File
No. 333-21873)
|
10.2
|
|
Distribution Agreement among the Company, First Industrial, L.P.
and J.P. Morgan Securities Inc. dated May 4, 2010
(incorporated by reference to Exhibit 10.1 of the
Form 8-K
of the Company filed May 4, 2010, File
No. 1-13102)
|
10.3
|
|
Sixth Amended and Restated Unsecured Revolving Credit and Term
Loan Agreement dated as of October 22, 2010 among the
Operating Partnership, the Company, JP Morgan Chase Bank, N.A.
and the other lenders thereunder (incorporated by reference to
Exhibit 10.1 of the
Form 8-K
of the Company filed October 25, 2010, File
No. 1-13102)
|
21.1
|
|
Subsidiaries of the Registrant (incorporated by reference to
Exhibit 21.1 of the Companys Annual Report on
Form 10-K
for the year ended December 31, 2010, File
No. 1-13102)
|
23*
|
|
Consent of PricewaterhouseCoopers LLP
|
31.1*
|
|
Certification of Principal Executive Officer of First Industrial
Realty Trust, Inc., registrants sole general partner,
pursuant to
Rule 13a-14(a)
under the Securities Exchange Act of 1934, as amended
|
31.2*
|
|
Certification of Principal Financial Officer of First Industrial
Realty Trust, Inc., registrants sole general partner,
pursuant to
Rule 13a-14(a)
under the Securities Exchange Act of 1934, as amended
|
32**
|
|
Certification of the Principal Executive Officer and Principal
Financial Officer pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
|
|
|
|
* |
|
Filed herewith. |
|
** |
|
Furnished herewith. |
45
EXHIBIT INDEX
|
|
|
Exhibit
|
|
|
No.
|
|
Description
|
|
3.1
|
|
Eleventh Amended and Restated Partnership Agreement of First
Industrial, L.P. dated August 21, 2006 (the LP
Agreement) (incorporated by reference to Exhibit 10.2
of the
Form 8-K
of the Company, filed August 22, 2006, File
No. 1-13102)
|
4.1
|
|
Indenture, dated as of May 13, 1997, between First
Industrial, L.P. and First Trust National Association, as
Trustee (incorporated by reference to Exhibit 4.1 of the
Form 10-Q
of the Company for the fiscal quarter ended March 31, 1997,
as amended by
Form 10-Q/A
No. 1 of the Company filed May 30, 1997, File
No. 1-13102)
|
4.2
|
|
Supplemental Indenture No. 1, dated as of May 13,
1997, between First Industrial, L.P. and First
Trust National Association as Trustee relating to
$100 million of 7.15% Notes due 2027 (incorporated by
reference to Exhibit 4.2 of the
Form 10-Q
of the Company for the fiscal quarter ended March 31, 1997,
as amended by
Form 10-Q/A
No. 1 of the Company filed May 30, 1997, File
No. 1-13102)
|
4.3
|
|
Supplemental Indenture No. 2, dated as of May 22,
1997, between First Industrial, L.P. and First
Trust National Association as Trustee relating to
$100 million of
73/8% Notes
due 2011 (incorporated by reference to Exhibit 4.4 of the
Form 10-QT
of the Operating Partnership for the fiscal quarter ended
March 31, 1997, File
No. 333-21873)
|
4.4
|
|
Supplemental Indenture No. 3 dated October 28, 1997
between First Industrial, L.P. and First Trust National
Association providing for the issuance of Medium-Term Notes due
Nine Months or more from Date of Issue (incorporated by
reference to Exhibit 4.1 of
Form 8-K
of the Operating Partnership, dated November 3, 1997, as
filed November 3, 1997, File
No. 333-21873)
|
4.5
|
|
7.50% Medium-Term Note due 2017 in principal amount of
$100 million issued by First Industrial, L.P. (incorporated
by reference to Exhibit 4.19 of the Companys Annual
Report on
Form 10-K
for the year ended December 31, 1997, File
No. 1-13102)
|
4.6
|
|
Trust Agreement, dated as of May 16, 1997, between
First Industrial, L.P. and First Bank National Association, as
Trustee (incorporated by reference to Exhibit 4.5 of the
Form 10-QT
of the Operating Partnership for the fiscal quarter ended
March 31, 1997, File
No. 333-21873)
|
4.7
|
|
7.60% Notes due 2028 in principal amount of
$200 million issued by First Industrial, L.P. (incorporated
by reference to Exhibit 4.2 of the
Form 8-K
of the Operating Partnership dated July 15, 1998, File
No. 333-21873)
|
4.8
|
|
Supplemental Indenture No. 5, dated as of July 14,
1998, between First Industrial, L.P. and U.S. Bank
Trust National Association, relating to First Industrial,
L.P.s 7.60% Notes due July 15, 2028
(incorporated by reference to Exhibit 4.1 of the
Form 8-K
of the Operating Partnership dated July 15, 1998, File
No. 333-21873)
|
4.9
|
|
7.375% Note due 2011 in principal amount of
$200 million issued by First Industrial, L.P. (incorporated
by reference to Exhibit 4.15 of the Operating
Partnerships Annual Report on
Form 10-K
for the year ended December 31, 2000, File
No. 333-21873)
|
4.10
|
|
Supplemental Indenture No. 6, dated as of March 19,
2001, between First Industrial, L.P. and U.S. Bank
Trust National Association, relating to First Industrial,
L.P.s 7.375% Notes due March 15,
2011(incorporated by reference to Exhibit 4.16 of the
Operating Partnerships Annual Report on
Form 10-K
for the year ended December 31, 2000, File
No. 333-21873)
|
4.11
|
|
Registration Rights Agreement, dated as of March 19, 2001,
among First Industrial, L.P. and Credit Suisse First Boston
Corporation, Chase Securities, Inc., Merrill Lynch, Pierce,
Fenner & Smith Incorporated, Salomon Smith Barney,
Inc., Banc of America Securities LLC, Banc One Capital Markets,
Inc. and UBS Warburg LLC (incorporated by reference to
Exhibit 4.17 of the Operating Partnerships Annual
Report on
Form 10-K
for the year ended December 31, 2000, File
No. 333-21873)
|
4.12
|
|
Supplemental Indenture No. 7 dated as of April 15,
2002, between First Industrial, L.P. and U.S. Bank National
Association, relating to First Industrial, L.P.s
6.875% Notes due 2012 and 7.75% Notes due 2032
(incorporated by reference to Exhibit 4.1 of the Operating
Partnerships
Form 8-K,
dated April 4, 2002, File
No. 333-21873)
|
4.13
|
|
Form of 6.875% Notes due in 2012 in the principal amount of
$200 million issued by First Industrial, L.P. and
7.75% Notes due in 2032 in the principal amount of
$50 million issued by First Industrial L.P. (incorporated
by reference to Exhibit 4.2 of the Operating
Partnerships
Form 8-K
dated April 4, 2002, File
No. 333-21873)
|
46
|
|
|
Exhibit
|
|
|
No.
|
|
Description
|
|
4.14
|
|
Form of 7.75% Notes due 2032 in the principal amount of
$50 million issued by First Industrial, L.P. (incorporated
by reference to Exhibit 4.3 of the Operating
Partnerships
Form 8-K,
dated April 4, 2002, File
No. 333-21873)
|
4.15
|
|
Supplemental Indenture No. 8, dated as of May 17,
relating to 6.42% Senior Notes due June 1, 2014, by
and between First Industrial, L.P. and U.S. Bank National
Association (incorporated by reference to Exhibit 4.1 of
the
Form 8-K
of the Operating Partnership, dated May 27, 2004, File
No. 333-21873)
|
4.16
|
|
Supplemental Indenture No. 9, dated as of June 14,
2004, relating to 5.25% Senior Notes due 2009, by and
between the Operating Partnership and U.S. Bank National
Association (incorporated by reference to Exhibit 4.1 of
the
Form 8-K
of the Operating Partnership, dated June 17, 2004, File
No. 333-21873)
|
4.17
|
|
Supplemental Indenture No. 10, dated as of January 10,
2006, relating to 5.75% Senior Notes due 2016, by and
between the Operating Partnership and U.S. Bank National
Association (incorporated by reference to Exhibit 4.1 of
the
Form 8-K
of the Company, filed January 11, 2006, File
No. 1-13102)
|
4.18
|
|
Indenture dated as of September 25, 2006 among First
Industrial, L.P., as issuer, the Company, as guarantor, and U.S.
Bank National Association, as trustee (incorporated by reference
to Exhibit 4.1 of the current report on
Form 8-K
of the Operating Partnership, dated September 25, 2006,
File
No. 333-21873)
|
4.19
|
|
Form of 4.625% Exchangeable Senior Note due 2011 (incorporated
by reference to Exhibit 4.2 of the current report on
Form 8-K
of the Operating Partnership, dated September 25, 2006,
File
No. 333-21873)
|
4.20
|
|
Registration Rights Agreement dated September 25, 2006
among the Company, First Industrial, L.P. and the Initial
Purchasers named therein (incorporated by reference to
Exhibit 10.1 of the current report on
Form 8-K
of the Operating Partnership, dated September 25, 2006,
File
No. 333-21873)
|
4.21
|
|
Supplemental Indenture No. 11, dated as of May 7,
2007, relating to 5.95% Senior Notes due 2017, by and
between First Industrial, L.P. and U.S. Bank National
Association (incorporated by reference to Exhibit 4.1 of
the
Form 8-K
of the Company, filed May 5, 2007, File
No. 1-13102)
|
10.1
|
|
Sales Agreement by and among the Company, First Industrial, L.P.
and Cantor Fitzgerald & Co. dated September 16,
2004 (incorporated by reference to Exhibit 1.1 of the
Form 8-K
of the Operating Partnership, dated September 16, 2004,
File
No. 333-21873)
|
10.2
|
|
Fifth Amended and Restated Unsecured Revolving Credit Agreement,
dated as of September 28, 2007, among First Industrial,
L.P., First Industrial Realty Trust, Inc., JP Morgan Chase Bank,
NA and certain other banks (incorporated by reference to
Exhibit 10.1 of the
Form 8-K
of the Company filed October 1, 2007, File
No. 1-13102)
|
10.3
|
|
First Amendment, dated as of August 18, 2008, to the Fifth
Amended and Restated Unsecured Revolving Credit Agreement dated
as of September 28, 2007 among the Operating Partnership,
the Company, JPMorgan Chase Bank, N.A. and the other lenders
thereunder (incorporated by reference to Exhibit 10.1 of
the
Form 8-K
of the Company filed August 20, 2008, File
No. 1-13102)
|
21.1
|
|
Subsidiaries of the Registrant (incorporated by reference to
Exhibit 21.1 of the Companys Annual Report on
Form 10-K
for the year ended December 31, 2010, File
No. 1-13102)
|
23*
|
|
Consent of PricewaterhouseCoopers LLP
|
31.1*
|
|
Certification of Principal Executive Officer of First Industrial
Realty Trust, Inc., registrants sole general partner,
pursuant to
Rule 13a-14(a)
under the Securities Exchange Act of 1934, as amended
|
31.2*
|
|
Certification of Principal Financial Officer of First Industrial
Realty Trust, Inc., registrants sole general partner,
pursuant to
Rule 13a-14(a)
under the Securities Exchange Act of 1934, as amended
|
32**
|
|
Certification of the Principal Executive Officer and Principal
Financial Officer pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
|
|
|
|
* |
|
Filed herewith. |
|
** |
|
Furnished herewith. |
47
FIRST
INDUSTRIAL, L.P.
INDEX TO
FINANCIAL STATEMENTS
|
|
|
|
|
|
|
Page
|
|
FINANCIAL STATEMENTS
|
|
|
|
|
|
|
|
49
|
|
|
|
|
50
|
|
|
|
|
51
|
|
|
|
|
52
|
|
|
|
|
53
|
|
|
|
|
54
|
|
|
|
|
55
|
|
FIRST
INDUSTRIAL, L.P.
FINANCIAL
STATEMENT SCHEDULE
|
|
|
|
|
|
|
Page
|
|
FINANCIAL STATEMENT SCHEDULE
|
|
|
|
|
|
|
|
S-1
|
|
48
Report of
Independent Registered Public Accounting Firm
To the Partners of
First Industrial, L.P.:
In our opinion, the consolidated financial statements in the
index appearing under Item 15(a)(1) present fairly, in all
material respects, the financial position of First Industrial,
L.P. and its subsidiaries (the Consolidated Operating
Partnership) at December 31, 2010 and 2009, and the
results of their operations and their cash flows for each of the
three years in the period ended December 31, 2010 in
conformity with accounting principles generally accepted in the
United States of America. In addition, in our opinion, the
financial statement schedule listed in the index appearing under
Item 15(a)(2) presents fairly, in all material respects,
the information set forth therein when read in conjunction with
the related consolidated financial statements. Also in our
opinion, the Consolidated Operating Partnership maintained, in
all material respects, effective internal control over financial
reporting as of December 31, 2010, based on criteria
established in Internal Control Integrated
Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The
Consolidated Operating Partnerships management is
responsible for these financial statements and financial
statement schedule, for maintaining effective internal control
over financial reporting and for its assessment of the
effectiveness of internal control over financial reporting,
included in Managements Report on Internal Control Over
Financial Reporting appearing under Item 9A. Our
responsibility is to express opinions on these financial
statements, on the financial statement schedule, and on the
Consolidated Operating Partnerships internal control over
financial reporting based on our integrated audits. We conducted
our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are
free of material misstatement and whether effective internal
control over financial reporting was maintained in all material
respects. Our audits of the financial statements included
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement
presentation. Our audit of internal control over financial
reporting included obtaining an understanding of internal
control over financial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the
assessed risk. Our audits also included performing such other
procedures as we considered necessary in the circumstances. We
believe that our audits provide a reasonable basis for our
opinions.
A companys internal control over financial reporting is a
process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with
generally accepted accounting principles. A companys
internal control over financial reporting includes those
policies and procedures that (i) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the
company; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of
management and directors of the company; and (iii) provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the
financial statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
/s/ PricewaterhouseCoopers LLP
Chicago, Illinois
February 23, 2011
49
FIRST
INDUSTRIAL, L.P.
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
|
(Dollars in thousands except Unit data)
|
|
|
ASSETS
|
Assets:
|
|
|
|
|
|
|
|
|
Investment in Real Estate:
|
|
|
|
|
|
|
|
|
Land
|
|
$
|
485,790
|
|
|
$
|
661,945
|
|
Buildings and Improvements
|
|
|
1,843,134
|
|
|
|
2,279,814
|
|
Construction in Progress
|
|
|
2,672
|
|
|
|
23,332
|
|
Less: Accumulated Depreciation
|
|
|
(443,912
|
)
|
|
|
(521,021
|
)
|
|
|
|
|
|
|
|
|
|
Net Investment in Real Estate
|
|
|
1,887,684
|
|
|
|
2,444,070
|
|
|
|
|
|
|
|
|
|
|
Real Estate and Other Assets Held for Sale, Net of Accumulated
Depreciation and Amortization of $148,407 and $1,752 at
December 31, 2010 and December 31, 2009, respectively
|
|
|
344,353
|
|
|
|
29,154
|
|
Investments in and Advances to Other Real Estate Partnerships
|
|
|
252,541
|
|
|
|
307,806
|
|
Cash and Cash Equivalents
|
|
|
22,484
|
|
|
|
181,147
|
|
Restricted Cash
|
|
|
105
|
|
|
|
90
|
|
Tenant Accounts Receivable, Net
|
|
|
2,602
|
|
|
|
1,818
|
|
Investments in Joint Ventures
|
|
|
2,451
|
|
|
|
8,788
|
|
Deferred Rent Receivable, Net
|
|
|
32,383
|
|
|
|
33,561
|
|
Deferred Financing Costs, Net
|
|
|
14,492
|
|
|
|
14,659
|
|
Deferred Leasing Intangibles, Net
|
|
|
33,639
|
|
|
|
51,796
|
|
Prepaid Expenses and Other Assets, Net
|
|
|
119,052
|
|
|
|
127,521
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
2,711,786
|
|
|
$
|
3,200,410
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND PARTNERS CAPITAL
|
Liabilities:
|
|
|
|
|
|
|
|
|
Mortgage and Other Loans Payable, Net
|
|
$
|
431,284
|
|
|
$
|
370,809
|
|
Senior Unsecured Debt, Net
|
|
|
879,529
|
|
|
|
1,140,114
|
|
Unsecured Credit Facility
|
|
|
376,184
|
|
|
|
455,244
|
|
Mortgage Loan Payable on Real Estate Held for Sale, Net,
Inclusive of $6 of Accrued Interest at December 31, 2010
|
|
|
1,014
|
|
|
|
|
|
Accounts Payable, Accrued Expenses and Other Liabilities, Net
|
|
|
79,949
|
|
|
|
106,128
|
|
Deferred Leasing Intangibles, Net
|
|
|
16,145
|
|
|
|
21,871
|
|
Rents Received in Advance and Security Deposits
|
|
|
24,469
|
|
|
|
22,953
|
|
Leasing Intangibles Held for Sale, Net of Accumulated
Amortization of $2,642 and $0 at December 31, 2010 and
December 31, 2009, respectively
|
|
|
1,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
1,810,483
|
|
|
|
2,117,119
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
Partners Capital:
|
|
|
|
|
|
|
|
|
General Partner Preferred Units (1,550 units issued and
outstanding at December 31, 2010 and December 31,
2009, respectively), with a liquidation preference of $275,000,
respectively
|
|
|
266,211
|
|
|
|
266,211
|
|
General Partner Units (68,841,296 and 61,845,214 units
issued and outstanding at December 31, 2010 and
December 31, 2009, respectively)
|
|
|
558,496
|
|
|
|
724,852
|
|
Limited Partners Units (5,363,151 and 5,390,737 units
issued and outstanding at December 31, 2010 and
December 31, 2009, respectively)
|
|
|
93,100
|
|
|
|
112,214
|
|
Accumulated Other Comprehensive Loss
|
|
|
(16,504
|
)
|
|
|
(19,986
|
)
|
|
|
|
|
|
|
|
|
|
Total Partners Capital
|
|
|
901,303
|
|
|
|
1,083,291
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Partners Capital
|
|
$
|
2,711,786
|
|
|
$
|
3,200,410
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated
financial statements.
50
FIRST
INDUSTRIAL, L.P.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
|
(In thousands except per unit data)
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental Income
|
|
$
|
188,492
|
|
|
$
|
191,583
|
|
|
$
|
181,911
|
|
Tenant Recoveries and Other Income
|
|
|
63,495
|
|
|
|
69,018
|
|
|
|
80,996
|
|
Construction Revenues
|
|
|
869
|
|
|
|
54,957
|
|
|
|
147,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
|
252,856
|
|
|
|
315,558
|
|
|
|
410,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Property Expenses
|
|
|
85,143
|
|
|
|
88,089
|
|
|
|
82,340
|
|
General and Administrative
|
|
|
26,492
|
|
|
|
37,567
|
|
|
|
84,105
|
|
Restructuring Costs
|
|
|
1,858
|
|
|
|
7,806
|
|
|
|
26,711
|
|
Impairment of Real Estate
|
|
|
34,045
|
|
|
|
5,617
|
|
|
|
|
|
Depreciation and Other Amortization
|
|
|
98,912
|
|
|
|
102,219
|
|
|
|
102,071
|
|
Construction Expenses
|
|
|
507
|
|
|
|
52,720
|
|
|
|
139,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expenses
|
|
|
246,957
|
|
|
|
294,018
|
|
|
|
434,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
4,426
|
|
|
|
3,100
|
|
|
|
3,471
|
|
Interest Expense
|
|
|
(102,889
|
)
|
|
|
(114,284
|
)
|
|
|
(112,642
|
)
|
Amortization of Deferred Financing Costs
|
|
|
(3,342
|
)
|
|
|
(3,006
|
)
|
|
|
(2,840
|
)
|
Mark-to-Market
(Loss) Gain on Interest Rate Protection Agreements
|
|
|
(1,107
|
)
|
|
|
3,667
|
|
|
|
(3,073
|
)
|
(Loss) Gain From Early Retirement of Debt
|
|
|
(4,304
|
)
|
|
|
34,562
|
|
|
|
2,749
|
|
Foreign Currency Exchange Loss, Net
|
|
|
(190
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Income (Expense)
|
|
|
(107,406
|
)
|
|
|
(75,961
|
)
|
|
|
(112,335
|
)
|
Loss from Continuing Operations Before Equity in Income of Other
Real Estate Partnerships, Equity in Income (Loss) of Joint
Ventures and Income Tax (Provision) Benefit
|
|
|
(101,507
|
)
|
|
|
(54,421
|
)
|
|
|
(136,895
|
)
|
Equity in Income of Other Real Estate Partnerships
|
|
|
3,494
|
|
|
|
18,516
|
|
|
|
49,759
|
|
Gain on Sale of Joint Venture Interests
|
|
|
11,226
|
|
|
|
|
|
|
|
|
|
Equity in Income (Loss) of Joint Ventures
|
|
|
675
|
|
|
|
(6,470
|
)
|
|
|
(33,178
|
)
|
Income Tax (Provision) Benefit
|
|
|
(2,963
|
)
|
|
|
25,163
|
|
|
|
13,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Continuing Operations
|
|
|
(89,075
|
)
|
|
|
(17,212
|
)
|
|
|
(107,077
|
)
|
(Loss) Income from Discontinued Operations (Including Gain on
Sale of Real Estate of $10,529, $21,014, and $136,384 for the
Years Ended December 31, 2010, 2009 and 2008, respectively)
|
|
|
(132,949
|
)
|
|
|
23,193
|
|
|
|
147,502
|
|
Provision for Income Taxes Allocable to Discontinued Operations
(Including $0, $1,462, and $3,732 allocable to Gain on Sale of
Real Estate for the Years Ended December 31, 2010, 2009 and
2008, respectively)
|
|
|
|
|
|
|
(1,824
|
)
|
|
|
(5,166
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income Before Gain on Sale of Real Estate
|
|
|
(222,024
|
)
|
|
|
4,157
|
|
|
|
35,259
|
|
Gain on Sale of Real Estate
|
|
|
859
|
|
|
|
313
|
|
|
|
12,061
|
|
Provision for Income Taxes Allocable to Gain on Sale of Real
Estate
|
|
|
(342
|
)
|
|
|
(143
|
)
|
|
|
(3,782
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
|
|
|
(221,507
|
)
|
|
|
4,327
|
|
|
|
43,538
|
|
Less: Preferred Unit Distributions
|
|
|
(19,677
|
)
|
|
|
(19,516
|
)
|
|
|
(19,428
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Unitholders and Participating
Securities
|
|
$
|
(241,184
|
)
|
|
$
|
(15,189
|
)
|
|
$
|
24,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Earnings Per Unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Continuing Operations Available to Unitholders
|
|
$
|
(1.58
|
)
|
|
$
|
(0.67
|
)
|
|
$
|
(2.39
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from Discontinued Operations Available to
Unitholders
|
|
$
|
(1.95
|
)
|
|
$
|
0.39
|
|
|
$
|
2.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Unitholders
|
|
$
|
(3.53
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions Per Unit
|
|
$
|
0.00
|
|
|
$
|
0.00
|
|
|
$
|
2.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Units Outstanding
|
|
|
68,327
|
|
|
|
54,261
|
|
|
|
49,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Unitholders Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
General Partners
|
|
$
|
(222,386
|
)
|
|
$
|
(13,642
|
)
|
|
$
|
21,120
|
|
Limited Partners
|
|
|
(18,798
|
)
|
|
|
(1,547
|
)
|
|
|
2,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Unitholders and Participating
Securities
|
|
$
|
(241,184
|
)
|
|
$
|
(15,189
|
)
|
|
$
|
24,110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated
financial statements.
51
FIRST
INDUSTRIAL, L.P.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
|
(Dollars in thousands)
|
|
|
Net (Loss) Income
|
|
$
|
(221,507
|
)
|
|
$
|
4,327
|
|
|
$
|
43,538
|
|
Mark-to-Market
of Interest Rate Protection Agreements, Net of Income Tax
(Provision) Benefit of $(414), $(450) and $610 for the years
ended December 31, 2010, 2009 and 2008, respectively
|
|
|
990
|
|
|
|
(383
|
)
|
|
|
(8,676
|
)
|
Amortization of Interest Rate Protection Agreements
|
|
|
2,108
|
|
|
|
796
|
|
|
|
(792
|
)
|
Write-off of Unamortized Settlement Amounts of Interest Rate
Protection Agreements
|
|
|
(182
|
)
|
|
|
523
|
|
|
|
831
|
|
Foreign Currency Translation Adjustment, Net of Tax Benefit
(Provision) of $299, $(2,817) and $3,498 for the years ended
December 31, 2010, 2009 and 2008, respectively
|
|
|
566
|
|
|
|
1,486
|
|
|
|
(2,748
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (Loss) Income
|
|
$
|
(218,025
|
)
|
|
$
|
6,749
|
|
|
$
|
32,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated
financial statements.
52
FIRST
INDUSTRIAL, L.P.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
Partner
|
|
|
General
|
|
|
Limited
|
|
|
Other
|
|
|
|
|
|
|
Preferred
|
|
|
Partner
|
|
|
Partner
|
|
|
Comprehensive
|
|
|
|
|
|
|
Units
|
|
|
Units
|
|
|
Units
|
|
|
Loss
|
|
|
Total
|
|
|
Balance as of December 31, 2007
|
|
$
|
266,211
|
|
|
$
|
684,606
|
|
|
$
|
148,187
|
|
|
$
|
(11,023
|
)
|
|
$
|
1,087,981
|
|
Issuance of Common Stock, Net of Issuance Costs
|
|
|
|
|
|
|
(147
|
)
|
|
|
|
|
|
|
|
|
|
|
(147
|
)
|
Stock Based Compensation Activity
|
|
|
|
|
|
|
20,959
|
|
|
|
|
|
|
|
|
|
|
|
20,959
|
|
Conversion of Units to Common Stock
|
|
|
|
|
|
|
14,581
|
|
|
|
(14,581
|
)
|
|
|
|
|
|
|
|
|
Preferred Dividends
|
|
|
(19,428
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,428
|
)
|
Distributions
|
|
|
|
|
|
|
(106,864
|
)
|
|
|
(15,018
|
)
|
|
|
|
|
|
|
(121,882
|
)
|
Other Comprehensive Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
19,428
|
|
|
|
21,120
|
|
|
|
2,990
|
|
|
|
|
|
|
|
43,538
|
|
Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,385
|
)
|
|
|
(11,385
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2008
|
|
$
|
266,211
|
|
|
$
|
634,255
|
|
|
$
|
121,578
|
|
|
$
|
(22,408
|
)
|
|
$
|
999,636
|
|
Issuance of Common Stock, Net of Issuance Costs
|
|
|
|
|
|
|
83,795
|
|
|
|
|
|
|
|
|
|
|
|
83,795
|
|
Stock Based Compensation Activity
|
|
|
|
|
|
|
12,660
|
|
|
|
|
|
|
|
|
|
|
|
12,660
|
|
Conversion of Units to Common Stock
|
|
|
|
|
|
|
7,817
|
|
|
|
(7,817
|
)
|
|
|
|
|
|
|
|
|
Repurchase of Equity Component of Exchangeable Note
|
|
|
|
|
|
|
(33
|
)
|
|
|
|
|
|
|
|
|
|
|
(33
|
)
|
Preferred Dividends
|
|
|
(19,516
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,516
|
)
|
Other Comprehensive Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
|
19,516
|
|
|
|
(13,642
|
)
|
|
|
(1,547
|
)
|
|
|
|
|
|
|
4,327
|
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,422
|
|
|
|
2,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2009
|
|
$
|
266,211
|
|
|
$
|
724,852
|
|
|
$
|
112,214
|
|
|
$
|
(19,986
|
)
|
|
$
|
1,083,291
|
|
Issuance of Common Stock, Net of Issuance Costs
|
|
|
|
|
|
|
49,973
|
|
|
|
|
|
|
|
|
|
|
|
49,973
|
|
Stock Based Compensation Activity
|
|
|
|
|
|
|
5,741
|
|
|
|
|
|
|
|
|
|
|
|
5,741
|
|
Conversion of Units to Common Stock
|
|
|
|
|
|
|
316
|
|
|
|
(316
|
)
|
|
|
|
|
|
|
|
|
Preferred Dividends
|
|
|
(19,677
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(19,677
|
)
|
Other Comprehensive Loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
|
19,677
|
|
|
|
(222,386
|
)
|
|
|
(18,798
|
)
|
|
|
|
|
|
|
(221,507
|
)
|
Other Comprehensive Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,482
|
|
|
|
3,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Other Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(218,025
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2010
|
|
$
|
266,211
|
|
|
$
|
558,496
|
|
|
$
|
93,100
|
|
|
$
|
(16,504
|
)
|
|
$
|
901,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated
financial statements.
53
FIRST
INDUSTRIAL, LP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
|
(Dollars in thousands)
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
|
|
$
|
(221,507
|
)
|
|
$
|
4,327
|
|
|
$
|
43,538
|
|
Adjustments to Reconcile Net (Loss) Income to Net Cash Provided
by Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
92,290
|
|
|
|
100,145
|
|
|
|
101,671
|
|
Amortization of Deferred Financing Costs
|
|
|
3,342
|
|
|
|
3,006
|
|
|
|
2,840
|
|
Other Amortization
|
|
|
37,320
|
|
|
|
48,804
|
|
|
|
67,494
|
|
Impairment of Real Estate
|
|
|
186,160
|
|
|
|
6,934
|
|
|
|
|
|
Provision for Bad Debt
|
|
|
1,787
|
|
|
|
3,178
|
|
|
|
3,092
|
|
Mark-to-Market
Loss (Gain) on Interest Rate Protection Agreements
|
|
|
1,107
|
|
|
|
(3,667
|
)
|
|
|
3,073
|
|
Operating Distributions Received in Excess of Equity in (Income)
Loss of Joint Ventures
|
|
|
2,357
|
|
|
|
8,789
|
|
|
|
34,698
|
|
Gain on Sale of Real Estate
|
|
|
(11,388
|
)
|
|
|
(21,327
|
)
|
|
|
(148,445
|
)
|
Loss (Gain) on Early Retirement of Debt
|
|
|
4,304
|
|
|
|
(34,562
|
)
|
|
|
(2,749
|
)
|
Gain on Sale of Joint Venture Interests
|
|
|
(11,226
|
)
|
|
|
|
|
|
|
|
|
Equity in Income of Other Real Estate Partnerships
|
|
|
(3,494
|
)
|
|
|
(18,516
|
)
|
|
|
(49,759
|
)
|
Distributions from Investment in Other Real Estate Partnerships
|
|
|
3,494
|
|
|
|
18,516
|
|
|
|
49,759
|
|
Decrease in Developments for Sale Costs
|
|
|
|
|
|
|
812
|
|
|
|
1,527
|
|
(Increase) Decrease in Tenant Accounts Receivable, Prepaid
Expenses and Other Assets, Net
|
|
|
(1,526
|
)
|
|
|
51,559
|
|
|
|
(14,717
|
)
|
Increase in Deferred Rent Receivable
|
|
|
(6,300
|
)
|
|
|
(7,104
|
)
|
|
|
(6,606
|
)
|
Decrease in Accounts Payable, Accrued Expenses, Other
Liabilities, Rents Received in Advance and Security Deposits
|
|
|
(21,523
|
)
|
|
|
(18,709
|
)
|
|
|
(25,296
|
)
|
Payments of Premiums and Discounts Associated with Senior
Unsecured Debt
|
|
|
(6,840
|
)
|
|
|
(2,576
|
)
|
|
|
|
|
(Increase) Decrease in Restricted Cash
|
|
|
(15
|
)
|
|
|
7
|
|
|
|
90
|
|
Cash Book Overdraft.
|
|
|
|
|
|
|
|
|
|
|
3,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
|
|
|
48,342
|
|
|
|
139,616
|
|
|
|
63,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of and Additions to Investment in Real Estate and Lease
Costs
|
|
|
(85,757
|
)
|
|
|
(68,855
|
)
|
|
|
(528,026
|
)
|
Net Proceeds from Sales of Investments in Real Estate
|
|
|
64,256
|
|
|
|
65,689
|
|
|
|
407,654
|
|
Investments in and Advances to Other Real Estate Partnerships
|
|
|
(149,773
|
)
|
|
|
(105,095
|
)
|
|
|
(40,928
|
)
|
Distributions from Other Real Estate Partnerships in Excess of
Equity in Income
|
|
|
205,038
|
|
|
|
140,073
|
|
|
|
104,977
|
|
Contributions to and Investments in Joint Ventures
|
|
|
(777
|
)
|
|
|
(3,742
|
)
|
|
|
(17,327
|
)
|
Distributions and Sales Proceeds from Joint Venture Interests
|
|
|
11,519
|
|
|
|
6,333
|
|
|
|
20,985
|
|
Funding of Notes Receivable
|
|
|
|
|
|
|
|
|
|
|
(10,325
|
)
|
Repayment of Notes Receivable
|
|
|
1,460
|
|
|
|
3,151
|
|
|
|
52,842
|
|
Increase in Lender Escrows
|
|
|
(435
|
)
|
|
|
|
|
|
|
|
|
Decrease in Restricted Cash
|
|
|
|
|
|
|
|
|
|
|
24,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Investing Activities
|
|
|
45,531
|
|
|
|
37,554
|
|
|
|
14,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Offering Costs
|
|
|
(4,228
|
)
|
|
|
(7,624
|
)
|
|
|
(400
|
)
|
Unit Contributions
|
|
|
50,087
|
|
|
|
84,465
|
|
|
|
174
|
|
Unit Distributions
|
|
|
|
|
|
|
(12,614
|
)
|
|
|
(145,347
|
)
|
Repurchase and Retirement of Restricted Units
|
|
|
(298
|
)
|
|
|
(739
|
)
|
|
|
(4,847
|
)
|
Preferred Unit Distributions
|
|
|
(19,677
|
)
|
|
|
(20,296
|
)
|
|
|
(19,428
|
)
|
Repayments on Mortgage Loans Payable
|
|
|
(20,393
|
)
|
|
|
(13,462
|
)
|
|
|
(3,271
|
)
|
Proceeds from Origination of Mortgage Loans Payable
|
|
|
82,495
|
|
|
|
307,567
|
|
|
|
|
|
Settlement of Interest Rate Protection Agreements
|
|
|
|
|
|
|
(7,491
|
)
|
|
|
|
|
Payments on Interest Rate Swap Agreement
|
|
|
(450
|
)
|
|
|
(320
|
)
|
|
|
|
|
Repayments on Senior Unsecured Debt
|
|
|
(259,018
|
)
|
|
|
(336,196
|
)
|
|
|
(32,525
|
)
|
Proceeds from Unsecured Credit Facility
|
|
|
69,097
|
|
|
|
180,000
|
|
|
|
550,920
|
|
Repayments on Unsecured Credit Facility
|
|
|
(149,280
|
)
|
|
|
(172,000
|
)
|
|
|
(425,030
|
)
|
Repurchase of Equity Component Exchangeable Notes
|
|
|
|
|
|
|
(33
|
)
|
|
|
|
|
Costs Associated with the Early Retirement of Debt
|
|
|
(1,008
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash (Used in) Provided by Financing Activities
|
|
|
(252,673
|
)
|
|
|
1,257
|
|
|
|
(79,754
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
|
137
|
|
|
|
76
|
|
|
|
(278
|
)
|
Net (Decrease) Increase in Cash and Cash Equivalents
|
|
|
(158,800
|
)
|
|
|
178,427
|
|
|
|
(1,774
|
)
|
Cash and Cash Equivalents, Beginning of Period
|
|
|
181,147
|
|
|
|
2,644
|
|
|
|
4,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End of Period
|
|
$
|
22,484
|
|
|
$
|
181,147
|
|
|
$
|
2,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated
financial statements.
54
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per Unit and Unit data)
|
|
1.
|
Organization
and Formation of Partnership
|
First Industrial, L.P. (the Operating Partnership)
was organized as a limited partnership in the state of Delaware
on November 23, 1993. The sole general partner is First
Industrial Realty Trust, Inc. (the Company) which
owns common units in the Operating Partnership
(Units) representing an approximate 92.8% and 92.0%
common ownership interest at December 31, 2010 and 2009,
respectively. The Company also owns a preferred general
partnership interest in the Operating Partnership represented by
preferred Units (Preferred Units) with an aggregate
liquidation priority of $275,000 at December 31, 2010. The
Company is a real estate investment trust (REIT) as
defined in the Internal Revenue Code of 1986 (the
Code). The Companys operations are conducted
primarily through the Operating Partnership. The limited
partners of the Operating Partnership owned, in the aggregate,
approximately a 7.2% and 8.0% interest in the Operating
Partnership at December 31, 2010 and 2009, respectively.
Unless the context otherwise requires, the term the
Operating Partnership refers to First Industrial,
L.P. and the terms we, us, and
our refer to First Industrial, L.P. and its
controlled subsidiaries. Effective September 1, 2009, our
taxable REIT subsidiary, First Industrial Investment, Inc. (the
old TRS) merged into First Industrial Investment II,
LLC (FI LLC), which is wholly owned by the Operating
Partnership. Immediately thereafter, certain assets and
liabilities of FI LLC were contributed to a new subsidiary, FR
Investment Properties, LLC (FRIP). FRIP is 1% owned
by FI LLC and 99% owned by a new taxable REIT subsidiary, First
Industrial Investment Properties, Inc. (the new TRS,
which, collectively with the old TRS and certain wholly owned
taxable real estate investment trust subsidiaries of FI LLC,
will be referred to as the TRSs), which is wholly
owned by FI LLC (see Note 11).
We are the sole member of several limited liability companies,
including FI LLC (the L.L.C.s). The Operating
Partnership, the L.L.C.s, FRIP and the new TRS are referred to
as the Consolidated Operating Partnership. The
operating data of the L.L.C.s, FRIP and the new TRS are
consolidated with that of the Operating Partnership as presented
herein. The Operating Partnership also holds at least a 99%
limited partnership interest in First Industrial Financing
Partnership, L.P. (the Financing Partnership), First
Industrial Securities, L.P. (the Securities
Partnership), First Industrial Mortgage Partnership, L.P,
(the Mortgage Partnership), First Industrial
Pennsylvania, L.P. (the Pennsylvania Partnership),
First Industrial Harrisburg, L.P. (the Harrisburg
Partnership), First Industrial Indianapolis, L.P. (the
Indianapolis Partnership), TK-SV, LTD. and FI
Development Services, L.P. (together, the Other Real
Estate Partnerships).
We also own noncontrolling equity interests in, and provide
various services to, two joint ventures (the 2003 Net
Lease Joint Venture and the 2007 Europe Joint
Venture). During 2010, we also owned noncontrolling equity
interests in, and ultimately disposed our equity interests in,
five joint ventures (the 2005 Development/Repositioning
Joint Venture, the 2005 Core Joint Venture,
the 2006 Net Lease Co-Investment Program, the
2006 Land/Development Joint Venture, and the
2007 Canada Joint Venture; together with the 2003
Net Lease Joint Venture and the 2007 Europe Joint Venture, the
Joint Ventures). The Joint Ventures are accounted
for under the equity method of accounting. Accordingly, the
operating data of our Joint Ventures is not consolidated with
that of the Consolidated Operating Partnership as presented
herein. On May 25, 2010, we sold our interest in the 2006
Net Lease Co-Investment Program to our joint venture partner. On
August 5, 2010, we sold our interest in the 2005
Development/Repositioning Joint Venture, the 2005 Core Joint
Venture, the 2006 Land/Development Joint Venture and the 2007
Canada Joint Venture to our joint venture partner. The 2007
Europe Joint Venture does not own any properties. See
Note 6 for more information on the Joint Ventures.
The general partners of the Other Real Estate Partnerships are
separate corporations, each with at least a .01% general
partnership interest in the Other Real Estate Partnership for
which it acts as a general partner. Each general partner of the
Other Real Estate Partnerships is a wholly-owned subsidiary of
the Company.
As of December 31, 2010, we owned 706 industrial properties
containing an aggregate of approximately 60.8 million
square feet of gross leasable area (GLA). On a
combined basis, as of December 31, 2010, the
55
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Other Real Estate Partnerships owned 69 industrial properties,
containing an aggregate of approximately 7.8 million square
feet of GLA.
Profits, losses and distributions of us, the L.L.C.s and Other
Real Estate Partnerships are allocated to the general partner
and the limited partners, or the members, as applicable, in
accordance with the provisions contained within the partnership
agreements or ownership agreements, as applicable, of us, the
L.L.C.s and the Other Real Estate Partnerships.
Any references to the number of buildings and square footage in
the financial statement footnotes are unaudited.
Our consolidated financial statements at December 31, 2010
and 2009 and for each of the years ended December 31, 2010,
2009 and 2008 include the accounts and operating results of the
Operating Partnership, the L.L.C.s, FRIP and the new TRS on a
consolidated basis. Such financial statements present our
limited partnership interests in each of the Other Real Estate
Partnerships and our minority equity interests in our Joint
Ventures under the equity method of accounting. All intercompany
transactions have been eliminated in consolidation.
|
|
3.
|
Summary
of Significant Accounting Policies
|
In order to conform with generally accepted accounting
principles, we are required in preparation of our financial
statements to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities as of December 31, 2010
and 2009, and the reported amounts of revenues and expenses for
each of the years ended December 31, 2010, 2009 and 2008.
Actual results could differ from those estimates.
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
maturity of these investments. At December 31, 2010,
approximately $1,000 is subject to a compensating balance
arrangement. The related balance, however, is not subject to any
withdrawal restrictions.
Restricted
Cash
At December 31, 2010 and 2009, restricted cash primarily
includes cash held in escrow in connection with mortgage debt
requirements. The carrying amount approximates fair value due to
the short term maturity of these investments.
Investment
in Real Estate and Depreciation
Investment in Real Estate is carried at cost. We review our
properties on a periodic basis for impairment and provide a
provision if impairments are found. To determine if an
impairment may exist, we review our properties and identify
those that have had either an event of change or event of
circumstances warranting further assessment of recoverability
(such as a decrease in occupancy). If further assessment of
recoverability is needed, we estimate the future net cash flows
expected to result from the use of the property and its eventual
disposition, on an individual property basis. If the sum of the
expected future net cash flows (undiscounted and without
interest charges) is less than the carrying amount of the
property on an individual property basis, we will recognize an
impairment loss based upon the estimated fair value of such
property. For properties we consider held for sale, we cease
depreciating the properties and value the properties at the
lower of depreciated cost or fair value, less costs to dispose.
If circumstances arise that were previously considered
56
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
unlikely, and, as a result, we decide not to sell a property
previously classified as held for sale, we will reclassify such
property as held and used. Such property is measured at the
lower of its carrying amount (adjusted for any depreciation and
amortization expense that would have been recognized had the
property been continuously classified as held and used) or fair
value at the date of the subsequent decision not to sell. To
calculate the fair value of properties held for sale, we deduct
from the estimated sales price of the property the estimated
costs to close the sale. We classify properties as held for sale
when all criteria within the Financial Accounting Standards
Boards (the FASB) guidance on the impairment
or disposal of long-lived assets are met.
Interest costs, real estate taxes, compensation costs of
development personnel and other directly related costs incurred
during construction periods are capitalized and depreciated
commencing with the date the property is substantially
completed. Upon substantial completion, we reclassify
construction in progress to building, tenant improvements and
leasing commissions. Such costs begin to be capitalized to the
development projects from the point we are undergoing necessary
activities to get the development ready for its intended use and
ceases when the development projects are substantially completed
and held available for occupancy. Depreciation expense is
computed using the straight-line method based on the following
useful lives:
|
|
|
|
|
|
|
Years
|
|
Buildings and Improvements
|
|
|
8 to 50
|
|
Land Improvements
|
|
|
3 to 20
|
|
Furniture, Fixtures and Equipment
|
|
|
5 to 10
|
|
Construction expenditures for tenant improvements, leasehold
improvements and leasing commissions (inclusive of compensation
costs of personnel attributable to leasing) are capitalized and
amortized over the terms of each specific lease. Capitalized
compensation costs of personnel attributable to leasing relate
to time directly attributable to originating leases with
independent third parties that result directly from and are
essential to originating those leases and would not have been
incurred had these leasing transactions not occurred. Repairs
and maintenance are charged to expense when incurred.
Expenditures for improvements are capitalized.
We account for all acquisitions entered into subsequent to
June 30, 2001 in accordance with the FASBs guidance
on business combinations. Upon acquisition of a property, we
allocate the purchase price of the property based upon the fair
value of the assets acquired and liabilities assumed, which
generally consists of land, buildings, tenant improvements,
leasing commissions and intangible assets including in-place
leases, above market and below market leases and tenant
relationships. We allocate the purchase price to the fair value
of the tangible assets of an acquired property by valuing the
property as if it were vacant. 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 that
are considered bargain renewal options. The above market lease
values are amortized as a reduction of rental revenue over the
remaining term of the respective leases, and the below market
lease values are amortized as an increase to base rental revenue
over the remaining initial terms plus the terms of any below
market fixed rate renewal options that are considered bargain
renewal options of the respective leases.
The purchase price is further allocated to in-place lease values
and tenant relationships based on our evaluation of the specific
characteristics of each tenants lease and our overall
relationship with the respective tenant. The value of in-place
lease intangibles and tenant relationships, which are included
as components of Deferred Leasing Intangibles, Net (see below),
are amortized over the remaining lease term (and expected
renewal periods of the respective lease for tenant
relationships) as adjustments to depreciation and other
amortization expense. If a tenant terminates its lease early,
the unamortized portion of the tenant
57
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
improvements, leasing commissions, above and below market
leases, the in-place lease value and tenant relationships is
immediately written off.
Deferred Leasing Intangibles, exclusive of Deferred Leasing
Intangibles held for sale, included in our total assets consist
of the following:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
In-Place Leases
|
|
$
|
41,006
|
|
|
$
|
61,338
|
|
Less: Accumulated Amortization
|
|
|
(22,579
|
)
|
|
|
(29,069
|
)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
18,427
|
|
|
$
|
32,269
|
|
|
|
|
|
|
|
|
|
|
Above Market Leases
|
|
$
|
3,905
|
|
|
$
|
4,999
|
|
Less: Accumulated Amortization
|
|
|
(1,240
|
)
|
|
|
(1,546
|
)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,665
|
|
|
$
|
3,453
|
|
|
|
|
|
|
|
|
|
|
Tenant Relationships
|
|
$
|
20,107
|
|
|
$
|
23,197
|
|
Less: Accumulated Amortization
|
|
|
(7,560
|
)
|
|
|
(7,123
|
)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,547
|
|
|
$
|
16,074
|
|
|
|
|
|
|
|
|
|
|
Total Deferred Leasing Intangibles, Net
|
|
$
|
33,639
|
|
|
$
|
51,796
|
|
|
|
|
|
|
|
|
|
|
Deferred Leasing Intangibles, exclusive of Deferred Leasing
Intangibles held for sale, included in our total liabilities
consist of the following:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Below Market Leases
|
|
$
|
25,497
|
|
|
$
|
34,090
|
|
Less: Accumulated Amortization
|
|
|
(9,352
|
)
|
|
|
(12,219
|
)
|
|
|
|
|
|
|
|
|
|
Total Deferred Leasing Intangibles, Net
|
|
$
|
16,145
|
|
|
$
|
21,871
|
|
|
|
|
|
|
|
|
|
|
Amortization expense related to in-place leases and tenant
relationships of deferred leasing intangibles, exclusive of
in-place leases and tenant relationships held for sale, was
$11,510, $13,013, and $16,898, for the years ended
December 31, 2010, 2009, and 2008, respectively. Rental
revenues increased by $2,265, $3,322, and $4,701 related to net
amortization of above/(below) market leases, exclusive of
above/(below) market leases held for sale, for the years ended
December 31, 2010, 2009, and 2008, respectively. We will
recognize net amortization expense related to the deferred
leasing intangibles over the next five years, for properties
owned as of December 31, 2010 and not classified as held
for sale, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Net Increase
|
|
|
Estimated Net Amortization
|
|
to Rental Revenues
|
|
|
of In-Place Leases and
|
|
Related to Above
|
|
|
Tenant Relationships
|
|
and Below Market Leases
|
|
2011
|
|
$
|
6,357
|
|
|
$
|
1,689
|
|
2012
|
|
$
|
5,067
|
|
|
$
|
1,206
|
|
2013
|
|
$
|
4,174
|
|
|
$
|
961
|
|
2014
|
|
$
|
3,294
|
|
|
$
|
863
|
|
2015
|
|
$
|
2,559
|
|
|
$
|
868
|
|
58
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Construction
Revenues and Expenses
Construction revenues and expenses represent revenues earned and
expenses incurred in connection with the TRSs acting as a
general contractor or development manager to construct
industrial properties, including industrial properties for the
2006 Development/Repositioning Joint Venture, and also include
revenues and expenses related to the development of properties
for third parties. We use the
percentage-of-completion
contract method to recognize revenue. Using this method,
revenues are recorded based on estimates of the percentage of
completion of individual contracts. The percentage of completion
estimates are based on a comparison of the contract expenditures
incurred to the estimated final costs. Changes in job
performance, job conditions and estimated profitability may
result in revisions to costs and income and are recognized in
the period in which the revisions are determined.
Foreign
Currency Transactions and Translation
At December 31, 2010, we owned several land parcels located
in Toronto, Canada for which the functional currency was
determined to be the Canadian dollar. The assets and liabilities
of these land parcels are translated to U.S. dollars from
the Canadian dollar based on the current exchange rate
prevailing at each balance sheet date. The income statement
accounts of the land parcels are translated using the average
exchange rates for the period. The resulting translation
adjustments are included in Accumulated Other Comprehensive
Income. For the years ended December 31, 2010 and 2009, we
recorded $267 and $4,303 in foreign currency translation gain,
respectively, offset by $299 and $(2,817) of income tax benefit
(provision), respectively.
Deferred
Financing Costs
Deferred financing costs include fees and costs incurred to
obtain long-term financing. These fees and costs are being
amortized over the terms of the respective loans. Accumulated
amortization of deferred financing costs was $16,410 and $17,423
at December 31, 2010 and 2009, respectively. Unamortized
deferred financing costs are written-off when debt is retired
before the maturity date.
Investment
in and Advances to Other Real Estate Partnerships
Investment in and Advances to Other Real Estate Partnerships
represents our limited partnership interests in and advances to,
through the Operating Partnership, the Other Real Estate
Partnerships. We account for our Investment in and Advances to
Other Real Estate Partnerships under the equity method of
accounting. Under the equity method of accounting, our share of
earnings or losses of the Other Real Estate Partnerships is
reflected in income as earned and contributions or distributions
increase or decrease, respectively, our Investment in and
Advances to Other Real Estate Partnerships as paid or received,
respectively.
On a periodic basis, we assess whether there are any indicators
that the value of our Investment in and Advances to Other Real
Estate Partnerships may be impaired in accordance with guidance
from the Accounting Principles Board (APB). An
investment is impaired only if our estimate of the value of the
investment is less than the carrying value of the investment,
and such decline in value is deemed to be other than temporary.
To the extent impairment has occurred, the loss shall be
measured as the excess of the carrying amount of the investment
over the fair value of the investment. Our estimates of fair
value for each investment are based on a number of subjective
assumptions that are subject to economic and market
uncertainties including, among others, demand for space, market
rental rates and operating costs and the discount rate used to
value the cash flows of the properties. As these factors are
difficult to predict and are subject to future events that may
alter our assumptions, our fair values estimated by management
in the impairment analyses may not be realized.
59
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Investments
in Joint Ventures
Investments in Joint Ventures represent our limited partnership
interests in our Joint Ventures. We account for our Investments
in Joint Ventures under the equity method of accounting, as we
do not have a majority voting interest, operational control or
financial control. Control is determined using accounting
standards related to the consolidation of joint ventures and
variable interest entities. In June 2009, the FASB issued
amended guidance related to the consolidation of
variable-interest entities. These amendments require an
enterprise to qualitatively assess the determination of the
primary beneficiary of a variable interest entity
(VIE) based on whether the entity (1) has the
power to direct matters that most significantly impact the
activities of the VIE, and (2) has the obligation to absorb
losses or the right to receive benefits of the VIE that could
potentially be significant to the VIE. Additionally, they
require an ongoing reconsideration of the primary beneficiary
and provide a framework for the events that trigger a
reassessment of whether an entity is a VIE.
Under the equity method of accounting, our share of earnings or
losses of our Joint Ventures is reflected in income as earned
and contributions or distributions increase or decrease our
Investments in Joint Ventures as paid or received, respectively.
Differences between our carrying value of our investments in
Joint Ventures and our underlying equity of such Joint Ventures
are amortized over the respective lives of the underlying
assets, as applicable.
On a periodic basis, we assess whether there are any indicators
that the value of our Investments in Joint Ventures may be
impaired. An investment is impaired only if our estimate of the
fair value of the investment is less than the carrying value of
the investment, and such decline in fair value is deemed to be
other than temporary. To the extent impairment has occurred, the
loss shall be measured as the excess of the carrying amount of
the investment over the fair value of the investment. Our
estimates of fair value for each investment are based on a
number of subjective assumptions that are subject to economic
and market uncertainties including, among others, demand for
space, market rental rates and operating costs, the discount
rate used to value the cash flows of the properties and the
discount rate used to value the Joint Ventures debt. As
these factors are difficult to predict and are subject to future
events that may alter our assumptions, our fair values estimated
in the impairment analyses may not be realized.
Limited
Partners Units
Limited partner Units are reported within Partners Capital
in the balance sheet as of December 31, 2010 and 2009
because they are not redeemable for cash or other assets
(a) at a fixed or determinable date, (b) at the option
of the Unitholder or (c) upon the occurrence of an event
that is not solely within the control of the Operating
Partnership. Redemption can be effectuated, as determined by the
General Partner, either by exchanging the Units for shares of
common stock of the Company on a
one-for-one
basis, subject to adjustment, or by paying cash equal to the
fair market value of such shares.
The Operating Partnership is the only significant asset of the
Company and economic, fiduciary and contractual means align the
interests of the Company and the Operating Partnership. The
Board of Directors and officers of the Company direct the
Company to act when acting in its capacity as sole general
partner of the Operating Partnership. Because of this, the
Operating Partnership is deemed to have effective control of the
form of redemption consideration. As of December 31, 2010,
all criteria were met for the Operating Partnership to control
the actions or events necessary to issue the maximum number of
the Companys common shares required to be delivered upon
redemption of all remaining Units.
Stock
Based Compensation
We account for stock based compensation using the modified
prospective application method, which requires measurement of
compensation cost for all stock-based awards at fair value on
the date of grant and recognition of compensation over the
service period for awards expected to vest.
60
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Revenue
Recognition
Rental income is recognized on a straight-line method under
which contractual rent increases are recognized evenly over the
lease term. Tenant recovery income includes payments from
tenants for real estate taxes, insurance and other property
operating expenses and is recognized as revenue in the same
period the related expenses are incurred by us.
Revenue is recognized on payments received from tenants for
early lease terminations after we determine that all the
necessary criteria have been met in accordance with the
FASBs guidance on accounting for leases.
Interest income on mortgage loans receivable is recognized based
on the accrual method unless a significant uncertainty of
collection exists. If a significant uncertainty exists, interest
income is recognized as collected.
We provide an allowance for doubtful accounts against the
portion of tenant accounts receivable which is estimated to be
uncollectible. Accounts receivable in the consolidated balance
sheets are shown net of an allowance for doubtful accounts of
$2,924 and $3,008 as of December 31, 2010 and 2009,
respectively. For accounts receivable we deem uncollectible, we
use the direct write-off method.
Gain
on Sale of Real Estate
Gain on sale of real estate is recognized using the full accrual
method, when appropriate. Gains relating to transactions which
do not meet the full accrual method of accounting are deferred
and recognized when the full accrual method of accounting
criteria are met or by using the installment or deposit methods
of profit recognition, as appropriate in the circumstances. As
the assets are sold, their costs and related accumulated
depreciation are written off with resulting gains or losses
reflected in net income or loss. Estimated future costs to be
incurred by us after completion of each sale are included in the
determination of the gain on sales.
Notes
Receivable
Notes receivable are primarily comprised of mortgage note
receivables that we have made in connection with sales of real
estate assets. The note receivables are recorded at fair value
at the time of issuance. Interest income is accrued as earned.
Notes receivable are considered past due based on the
contractual terms of the note agreement. On a quarterly basis,
we evaluate the collectability of each mortgage note receivable
based on various factors which may include payment history,
expected fair value of the collateral securing the loan,
internal and external credit information
and/or
economic trends. A loan is considered impaired when, based upon
current information and events, it is probable that we will be
unable to collect all amounts due under the existing contractual
terms. When a loan is considered impaired, the amount of the
loss accrual is calculated by comparing the carrying amount of
the note receivable to the present value of expected future cash
flows. Since the majority of our notes receivable are
collateralized by a first mortgage, the loans have risk
characteristics similar to the risks in owning commercial real
estate.
Income
Taxes
In accordance with partnership taxation, each of the partners is
responsible for reporting their share of taxable income or loss.
A benefit/provision has been made for federal income taxes in
the accompanying consolidated financial statements for
activities conducted in the TRSs, which has been accounted for
under the FASBs guidance on accounting for income taxes.
In accordance with the guidance, the total benefit/provision has
been separately allocated to income from continuing operations,
income from discontinued operations and gain on sale of real
estate.
61
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
We are subject to certain state and local income, excise and
franchise taxes. The provision for excise and franchise taxes
has been reflected in general and administrative expense in the
consolidated statements of operations and has not been
separately stated due to its insignificance. State and local
income taxes are included in the benefit/provision for income
taxes which is allocated to income from continuing operations,
income from discontinued operations and gain on sale of real
estate.
We file income tax returns in the U.S., and various states and
foreign jurisdictions. The old TRS is currently under
examination by the Internal Revenue Service (IRS)
for 2008 and for the tax year ended September 1, 2009. In
general, the statutes of limitations for income tax returns
remain open for the years 2006 through 2009.
Participating
Securities
Net income net of preferred dividends is allocated to
Unitholders and participating securities based upon their
proportionate share of weighted average Units plus weighted
average participating securities. Participating securities are
unvested share-based payment awards that contain non-forfeitable
rights to dividends or dividend equivalents. Certain restricted
stock awards and restricted unit awards granted to employees and
directors are considered participating securities as they
receive non-forfeitable dividend or dividend equivalents at the
same rate as Units. See Note 10 for further disclosure
about participating securities.
Earnings
Per Unit (EPU)
Basic net (loss) income available to Unitholders per Unit is
computed by dividing net (loss) income available to Unitholders
by the weighted average number of Units outstanding for the
period. Diluted net (loss) income available to Unitholders per
Unit is computed by dividing net (loss) income available to
Unitholders by the sum of the weighted average number of Units
outstanding and any dilutive non-participating securities for
the period. See Note 10 for further disclosure about EPU.
Derivative
Financial Instruments
Historically, we have used interest rate protection agreements
(Agreements) to fix the interest rate on anticipated
offerings of senior unsecured notes or convert floating rate
debt to fixed rate debt. Receipts or payments that result from
the settlement of Agreements used to fix the interest rate on
anticipated offerings of senior unsecured notes are amortized
over the life of the derivative or the life of the debt and
included in interest expense. Receipts or payments resulting
from Agreements used to convert floating rate debt to fixed rate
debt are recognized as a component of interest expense.
Agreements which qualify for hedge accounting are
marked-to-market
and any gain or loss is recognized in other comprehensive income
(partners capital). Any Agreements which no longer qualify
for hedge accounting are
marked-to-market
and any gain or loss is recognized in net (loss) income
available to Unitholders immediately. Amounts accumulated in
other comprehensive income during the hedge period are
reclassified to earnings in the same period during which the
forecasted transaction or hedged item affects net (loss) income.
The credit risks associated with Agreements are controlled
through the evaluation and monitoring of the creditworthiness of
the counterparty. In the event that the counterparty fails to
meet the terms of Agreements, our exposure is limited to the
current value of the interest rate differential, not the
notional amount, and our carrying value of Agreements on the
balance sheet. See Note 15 for more information on
Agreements.
Fair
Value of Financial Instruments
Financial instruments other than our derivatives (see preceding
paragraph) include tenant accounts receivable, net, mortgage
notes receivable, accounts payable, other accrued expenses,
mortgage and other loans payable, unsecured credit facility and
senior unsecured notes. The fair values of the tenant accounts
receivable, net, accounts payable and other accrued expenses
approximate their carrying or contract values. See Note 7
62
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
for the fair values of the mortgage and other loans payable,
unsecured credit facility and senior unsecured notes and see
Note 4 for the fair value of our mortgage notes receivable.
Discontinued
Operations
The FASBs guidance on financial reporting for the disposal
of long lived assets requires that the results of operations and
gains or losses on the sale of property or property held for
sale be presented in discontinued operations if both of the
following criteria are met: (a) the operations and cash
flows of the property have been (or will be) eliminated from our
ongoing operations as a result of the disposal transaction and
(b) we will not have any significant continuing involvement
in the operations of the property after the disposal
transaction. The guidance also requires prior period results of
operations for these properties to be reclassified and presented
in discontinued operations in prior consolidated statements of
operations.
Segment
Reporting
Management views the Consolidated Operating Partnership as a
single segment.
Recent
Accounting Pronouncements
In July 2010, the FASB issued a new accounting standard that
requires enhanced disclosures about financing receivables,
including the allowance for credit losses, credit quality and
impaired loans. This standard is effective for fiscal years
ending after December 15, 2010. We adopted the standard in
the fourth quarter 2010 and it did not have a material impact to
our financial statements.
In June 2009, the FASB issued new guidance which revises and
updates previously issued guidance related to variable interest
entities. This new guidance, which became effective
January 1, 2010, revises the previous guidance by
eliminating the exemption for qualifying special purpose
entities, by establishing a new approach for determining who
should consolidate a variable-interest entity and by changing
when it is necessary to reassess who should consolidate a
variable- interest entity. We adopted this new guidance on
January 1, 2010. However, the adoption of this guidance did
not impact our financial position or results of operations.
|
|
4.
|
Investment
in Real Estate
|
Acquisitions
In 2008, we acquired 23 industrial properties comprising, in the
aggregate, approximately 2.9 million square feet of GLA and
several land parcels for a total purchase price of approximately
$295,759, excluding costs incurred in conjunction with the
acquisition of properties. We also substantially completed
development of eight properties comprising approximately
4.5 million square feet of GLA at a cost of approximately
$148,236. We reclassed the costs of substantially completed
developments from construction in progress to building, tenant
improvements and leasing commissions.
In 2009, we acquired one land parcel. The purchase price of the
land parcel was approximately $208, excluding costs incurred in
conjunction with the acquisition of the land parcel. We also
substantially completed the development of two industrial
properties comprising approximately 1.1 million square feet
of GLA at a cost of approximately $41,258. We reclassed the
costs of the substantially completed developments from
construction in progress to building, tenant improvements and
leasing commissions.
In 2010, we acquired three industrial properties comprising
approximately 0.5 million square feet of GLA, including one
industrial property purchased from the 2005
Development/Repositioning Joint Venture (see Note 6). The
purchase price of these acquisitions totaled approximately
$22,408, excluding costs incurred in conjunction with the
acquisition of the industrial properties.
63
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Intangible
Assets Subject To Amortization in the Period of
Acquisition
The fair value of in-place leases, above market leases and
tenant relationships recorded due to real estate properties
acquired for the years ended December 31, 2010 and 2009 is
as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2010
|
|
2009
|
|
In-Place Leases
|
|
$
|
1,782
|
|
|
$
|
|
|
Above Market Leases
|
|
$
|
239
|
|
|
$
|
|
|
Tenant Relationships
|
|
$
|
1,881
|
|
|
$
|
|
|
The weighted average life in months of in-place leases, above
market leases and tenant relationships recorded as a result of
the real estate properties acquired for the years ended
December 31, 2010 and 2009 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2010
|
|
2009
|
|
In-Place Leases
|
|
|
100
|
|
|
|
N/A
|
|
Above Market Leases
|
|
|
88
|
|
|
|
N/A
|
|
Tenant Relationships
|
|
|
165
|
|
|
|
N/A
|
|
Sales
and Discontinued Operations
In 2008, we sold 89 industrial properties comprising
approximately 7.4 million square feet of GLA and several
land parcels. Gross proceeds from the sales of the 89 industrial
properties and several land parcels were approximately $469,508.
The gain on sale of real estate was approximately $148,445, of
which $136,384 is shown in discontinued operations. Eighty-eight
of the 89 sold industrial properties meet the criteria to be
included in discontinued operations. Therefore, the results of
operations and gain on sale of real estate for the 88 sold
industrial properties are included in discontinued operations.
The results of operations and gain on sale of real estate for
the one industrial property and several land parcels that do not
meet the criteria to be included in discontinued operations are
included in continuing operations.
In 2009, we sold 12 industrial properties comprising
approximately 1.8 million square feet of GLA and several
land parcels. Gross proceeds from the sales of the 12 industrial
properties and several land parcels were approximately $90,334.
The gain on sale of real estate was approximately $21,327, of
which $21,014 is shown in discontinued operations. The 12 sold
industrial properties meet the criteria to be included in
discontinued operations. Therefore the results of operations and
gain on sale of real estate for the 12 sold industrial
properties are included in discontinued operations. The results
of operations and gain on sale of real estate for the several
land parcels that do not meet the criteria to be included in
discontinued operations are included in continuing operations.
In 2010, we sold 10 industrial properties comprising
approximately 1.0 million square feet of GLA and several
land parcels. Gross proceeds from the sales of the 10 industrial
properties and several land parcels were approximately $66,843.
The gain on sale of real estate was approximately $11,387, of
which $10,529 is shown in discontinued operations. The 10 sold
industrial properties and one land parcel that received ground
rental revenues meet the criteria to be included in discontinued
operations. Therefore the results of operations and gain on sale
of real estate for the 10 sold industrial properties are
included in discontinued operations. The results of operations
and gain on sale of real estate for the several land parcels
that do not meet the criteria to be included in discontinued
operations are included in continuing operations.
At December 31, 2010, we had 174 industrial properties
comprising approximately 14.7 million square feet of GLA
held for sale. The results of operations of the 174 industrial
properties held for sale at
64
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
December 31, 2010 are included in discontinued operations.
There can be no assurance that such industrial properties held
for sale will be sold.
The following table discloses certain information regarding the
industrial properties included in our discontinued operations
for the years ended December 31, 2010, 2009 and 2008.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Total Revenues
|
|
$
|
54,080
|
|
|
$
|
61,975
|
|
|
$
|
96,879
|
|
Property Expenses
|
|
|
(23,303
|
)
|
|
|
(26,285
|
)
|
|
|
(37,477
|
)
|
Impairment Loss
|
|
|
(152,115
|
)
|
|
|
(1,317
|
)
|
|
|
|
|
Depreciation and Amortization
|
|
|
(22,076
|
)
|
|
|
(31,692
|
)
|
|
|
(47,787
|
)
|
Interest Expense
|
|
|
(64
|
)
|
|
|
(502
|
)
|
|
|
(497
|
)
|
Gain on Sale of Real Estate
|
|
|
10,529
|
|
|
|
21,014
|
|
|
|
136,384
|
|
Provision for Income Taxes
|
|
|
|
|
|
|
(1,824
|
)
|
|
|
(5,166
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from Discontinued Operations
|
|
$
|
(132,949
|
)
|
|
$
|
21,369
|
|
|
$
|
142,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2010 and 2009, we had notes receivables
outstanding of approximately $58,803 and $60,029 net of a
discount of $383 and $449, respectively, which is included as a
component of Prepaid Expenses and Other Assets, Net. At
December 31, 2010 and 2009, the fair values of the notes
receivables were $60,944 and $56,812, respectively. The fair
values of our notes receivables were determined by discounting
the future cash flows using the current rates at which similar
loans with similar remaining maturities would be made to other
borrowers.
Impairment
Charges
On October 22, 2010, management amended its revolving
credit facility (as amended, the Unsecured Credit
Facility). In conjunction with the amendment, management
identified a pool of real estate assets (the Non-Strategic
Assets) that it intends to market and sell. Management
evaluated whether the Non-Strategic Assets should be classified
as held for sale at September 30, 2010 but
concluded that the Non-Strategic Assets did not meet the
held for sale criteria because management did not
have the authority to sell and were not committed to a plan to
sell until October 22, 2010. At September 30, 2010,
the Non-Strategic Assets consisted of 177 industrial properties
comprising approximately 15.2 million square feet of GLA
and land parcels comprising approximately 664 gross acres.
Management reassessed the holding period for the Non-Strategic
Assets and determined that 120 of the industrial properties
comprising approximately 10.0 million square feet of GLA
and land parcels comprising approximately 445 gross acres
were impaired, and as such, the Company recorded an aggregate
impairment charge of approximately $156,659 during the third
quarter of 2010. At September 30, 2010, the valuation of
the 120 impaired industrial properties comprising approximately
10.0 million square feet of GLA and land parcels comprising
approximately 445 gross acres was determined using widely
accepted valuation techniques including internal valuations of
real estate
and/or
discounted cash flow analyses on expected cash flows.
At December 31, 2010, the Non-Strategic Assets consisted of
175 industrial properties comprising approximately
15.0 million square feet of GLA and land parcels comprising
approximately 635 gross acres. The Non-Strategic Assets
(except one industrial property comprising 0.3 million
square feet of GLA) were classified as held for sale as of
December 31, 2010. During the three months ended
December 31, 2010, we recorded an additional non-cash
impairment charge of $20,346 relating to the Non-Strategic
Assets. The additional charge is primarily comprised of
estimated closing costs for 110 of the 174 industrial properties
comprising approximately 9.9 million square feet of GLA and
land parcels comprising approximately 391 gross acres, as
well as additional impairment related to certain industrial
properties and land parcels within the Non-
65
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Strategic Assets based upon recent market information, including
receipt of third party purchase offers. The impairment charge
recognized during the three months ended December 31, 2010
for the Non-Strategic Assets (except one industrial property
comprising approximately 0.3 million square feet of GLA)
was calculated as the excess of the carrying value of the
properties and land parcels over the fair value less costs to
sell due to their classification as held for sale at
December 31, 2010. The impairment charge related to the one
industrial property comprising 0.3 million square feet of
GLA that is not classified as held for sale was calculated as
the excess of its carrying value over fair value.
Additionally, during the first quarter of 2010, we recorded an
impairment charge in the amount of $9,155 related to a certain
property comprised of 0.3 million square feet of GLA
located in Grand Rapids, Michigan in connection with the
negotiation of a new lease (Grand Rapids Property).
The non-cash impairment charge related to the Grand Rapids
Property was based upon the difference between the fair value of
the property and its carrying value. The valuation of the Grand
Rapids Property was determined based upon a discounted cash flow
analysis on expected cash flows and the income capitalization
approach considering prevailing market capitalization rates.
During 2009, we recorded an impairment charge in the amount of
$6,934 related to a certain property comprised of
0.2 million square feet of GLA located in the Inland Empire
market in California (Inland Empire Property). The
non-cash impairment charge related to the Inland Empire Property
was based upon the difference between the fair value of the
property and its carrying value. The valuation of the Inland
Empire Property was determined based upon a discounted cash flow
analysis on expected cash flows and the income capitalization
approach considering prevailing market capitalization rates.
We adopted the fair value measurement provisions as of
January 1, 2009, for the impairment of long-lived assets
recorded at fair value. The new guidance establishes a
three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. These tiers include: Level 1,
defined as observable inputs such as quoted prices in active
markets; Level 2, defined as inputs other than quoted
prices in active markets that are either directly or indirectly
observable; and Level 3, defined as unobservable inputs in
which little or no market data exists, therefore requiring an
entity to develop its own assumptions.
The following table presents information about our assets that
were measured at fair value on a non-recurring basis during the
years ended December 31, 2010 and 2009. The table indicates
the fair value hierarchy of the valuation techniques we utilized
to determine fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements on a Non-Recurring Basis Using:
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
|
|
|
|
|
|
|
|
Active Markets for
|
|
Significant Other
|
|
Unobservable
|
|
Total
|
|
|
For the Year Ended
|
|
Identical Assets
|
|
Observable Inputs
|
|
Inputs
|
|
Gains
|
Description
|
|
December 31, 2010
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
(Losses)
|
|
Long-lived Assets Held and Used
|
|
$
|
3,905
|
|
|
|
|
|
|
|
|
|
|
$
|
3,905
|
|
|
$
|
(1,326
|
)
|
Long-lived Assets Held for Sale
|
|
$
|
257,305
|
|
|
|
|
|
|
|
|
|
|
$
|
257,305
|
|
|
$
|
(184,834
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements on a Non-Recurring Basis Using:
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
|
|
|
|
|
|
|
|
Active Markets for
|
|
Significant Other
|
|
Unobservable
|
|
Total
|
|
|
For the Year Ended
|
|
Identical Assets
|
|
Observable Inputs
|
|
Inputs
|
|
Gains
|
Description
|
|
December 31, 2009
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
(Losses)
|
|
Long-lived Assets Held and Used
|
|
$
|
3,830
|
|
|
|
|
|
|
|
|
|
|
$
|
3,830
|
|
|
$
|
(6,934
|
)
|
66
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
|
|
5.
|
Investments
in and Advances to Other Real Estate Partnerships
|
The investments in and advances to Other Real Estate
Partnerships reflects the Operating Partnerships limited
partnership equity interests in the entities referred to in
Note 1 to these consolidated financial statements.
Summarized condensed financial information as derived from the
financial statements of the Other Real Estate Partnerships is
presented below:
Condensed
Combined Balance Sheets:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
ASSETS
|
Assets:
|
|
|
|
|
|
|
|
|
Investment in Real Estate, Net
|
|
$
|
221,450
|
|
|
$
|
280,796
|
|
Real Estate and Other Assets Held for Sale, Net of Accumulated
Depreciation and Amortization of $16,804 and $1,589 at
December 31, 2010 and December 31, 2009, respectively
|
|
|
47,938
|
|
|
|
8,151
|
|
Note Receivable
|
|
|
239,453
|
|
|
|
264,740
|
|
Other Assets, Net
|
|
|
51,875
|
|
|
|
69,949
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
560,716
|
|
|
$
|
623,636
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND PARTNERS CAPITAL
|
Liabilities:
|
|
|
|
|
|
|
|
|
Mortgage Loans Payable
|
|
$
|
54,771
|
|
|
$
|
32,165
|
|
Other Liabilities
|
|
|
8,547
|
|
|
|
9,515
|
|
Leasing Intangibles Held for Sale, Net of Accumulated
Amortization of $26 and $0 at December 31, 2010 and
December 31, 2009, respectively
|
|
|
7
|
|
|
|
|
|
Partners Capital
|
|
|
497,391
|
|
|
|
581,956
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Partners Capital
|
|
$
|
560,716
|
|
|
$
|
623,636
|
|
|
|
|
|
|
|
|
|
|
67
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Condensed
Combined Statements of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Total Revenues (including Interest Income)
|
|
$
|
50,630
|
|
|
$
|
46,286
|
|
|
$
|
33,747
|
|
Property Expenses
|
|
|
(9,582
|
)
|
|
|
(9,338
|
)
|
|
|
(10,766
|
)
|
Interest Expense
|
|
|
(3,213
|
)
|
|
|
(635
|
)
|
|
|
|
|
Amortization of Deferred Financing Costs
|
|
|
(131
|
)
|
|
|
(24
|
)
|
|
|
|
|
Impairment Loss
|
|
|
(1,808
|
)
|
|
|
|
|
|
|
|
|
Depreciation and Other Amortization
|
|
|
(12,605
|
)
|
|
|
(12,173
|
)
|
|
|
(13,648
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations
|
|
|
23,291
|
|
|
|
24,116
|
|
|
|
9,333
|
|
(Loss) Income from Discontinued Operations (Including Gain on
Sale of Real Estate of $563, $3,192, and $35,783 for the years
ended December 31, 2010, 2009 and 2008
|
|
|
(4,805
|
)
|
|
|
4,488
|
|
|
|
40,942
|
|
Gain (Loss) on Sale of Real Estate
|
|
|
|
|
|
|
61
|
|
|
|
(53
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
18,486
|
|
|
$
|
28,665
|
|
|
$
|
50,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.
|
Investments
in Joint Ventures and Property Management Services
|
On August 5, 2010, we sold our interests in the 2005
Development/Repositioning Joint Venture, the 2005 Core Joint
Venture, the 2006 Land/Development Joint Venture and the 2007
Canada Joint Venture to our joint venture partner generating
sale proceeds of approximately $5.0 million. In connection
with the sale, we wrote off our carrying value for the 2005
Development/Repositioning Joint Venture, the 2005 Core Joint
Venture, the 2006 Land/Development Joint Venture and the 2007
Canada Joint Venture as well as $1,625 of unrealized loss
recorded in Other Comprehensive Income (see Note 15). We
recorded an $11,226 gain related to the sale, which is included
in Gain on Sale of Joint Venture Interests. As a result of this
sale, we will no longer serve as asset manager for these
ventures. Pursuant to the sale agreement, we are entitled to
proceeds related to sales of certain assets (the Sale
Assets), if the sale of such assets was consummated by a
stated timeframe. Three of the Sale Assets closed between
August 6, 2010 and December 31, 2010. In connection
with the three sales, we earned approximately $2,700, which is
included in Gain on Sale of Joint Venture Interests for the year
ended December 31, 2010. Additionally, we are entitled to
earn leasing, development and disposition fees related to
certain assets identified at the time of sale within the sale
agreement.
During December 2007, we entered into the 2007 Europe Joint
Venture with an institutional investor to invest in, own,
develop, redevelop and operate industrial properties. We
continue to hold our 10% equity interest in the 2007 Europe
Joint Venture. As of December 31, 2010, the 2007 Europe
Joint Venture did not own any properties.
On June 11, 2010, we purchased an industrial property from
the 2005 Development/Repositioning Joint Venture for a purchase
price of $14,627.
On May 16, 2003, we entered into the 2003 Net Lease Joint
Venture with an institutional investor to invest in industrial
properties. We own a 15% equity interest in and provide property
management services to the 2003 Net Lease Joint Venture. During
the year ended December 31, 2009, we recorded an impairment
loss of $243 in Equity in Income (Loss) of Joint Ventures which
represents our proportionate share of the impairment loss
related to one industrial property owned by the 2003 Net Lease
Joint Venture. Additionally, for the year ended
December 31, 2009, we recorded an impairment loss on our
investment in the 2003 Net Lease Joint Venture of $1,315 in
Equity in Income (Loss) of Joint Ventures. For the year ended
December 31,
68
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
2008, we recorded an impairment loss on the investment in one
industrial property owned by the 2003 Net Lease Joint Venture of
$1,249 in Equity in Income (Loss) of Joint Ventures. As of
December 31, 2010, the 2003 Net Lease Joint Venture owned
nine industrial properties comprising approximately
4.9 million square feet of GLA.
On March 18, 2005, we entered into the 2005
Development/Repositioning Joint Venture with an institutional
investor to invest in, own, develop, redevelop and operate
certain industrial properties. We owned a 10% equity interest in
and provided property management, asset management, development
management, disposition, incentive and leasing management
services to the 2005 Development/Repositioning Joint Venture.
During the year ended December 31, 2008, we recorded an
impairment loss of $483 in Equity in Income (Loss) of Joint
Ventures which represents our proportionate share of impairment
loss related to two industrial properties and one land parcel
owned by the 2005 Development/Repositioning Joint Venture.
Additionally, for the year ended December 31, 2008 we
recorded an impairment loss on our investment in the 2005
Development/Repositioning Joint Venture of $25,332 in Equity in
Income (Loss) of Joint Ventures.
On September 7, 2005, we entered into the 2005 Core Joint
Venture with an institutional investor to invest in, own and
operate certain industrial properties. We owned a 10% equity
interest in and provided property management, asset management,
development management, disposition, incentive and leasing
management services to the 2005 Core Joint Venture. For the year
ended December 31, 2008, we recorded an impairment loss on
our investment in the 2005 Core Joint Venture of $3,153 in
Equity in Income (Loss) of Joint Ventures.
On March 21, 2006, we entered into the 2006 Net Lease
Co-Investment Program with an institutional investor to invest
in industrial properties. We owned a 15% equity interest in and
provided property management, asset management and leasing
management services to the 2006 Net Lease Co-Investment Program.
On September 18, 2009, we received a notice from the
counterparty in the 2006 Net Lease Co-Investment Program that
such counterparty is exercising the buy/sell provision in the
programs governing agreement to either purchase our 15%
interests in the real property assets currently owned by the
program or sell to us its interests in some or all of such
assets, along with an additional real property asset in another
program which we manage but in which we have no ownership
interest. We accepted the investors offered price. As a
result, during the year ended December 31, 2009, we
recorded an impairment loss of $1,747 in Equity in Income (Loss)
of Joint Ventures which represents our proportionate share of
the impairment loss related to one industrial property owned by
the 2006 Net Lease Co-Investment Program and an impairment loss
on our investment in the 2006 Net Lease Co-Investment Program of
$3,879. During the year ended December 31, 2008, we
recorded an impairment loss of $2,216 in Equity in Income (Loss)
of Joint Ventures which represents our proportionate share of
the impairment loss related to two industrial properties owned
by the 2006 Net Lease Co-Investment Program.
Pursuant to the buy/sell provision in the 2006 Net Lease
Co-Investment Programs governing agreement that our
counterparty exercised on May 25, 2010, we sold our 15%
interest in the real estate property assets in the 2006 Net
Lease Co-Investment Program to our counterparty and received
$4,541 in net proceeds. In connection with the sale, we wrote
off our carrying value for the 2006 Net Lease Co-Investment
Program and recorded an $852 gain, which is included in Equity
in Income (Loss) of Joint Ventures.
On July 21, 2006, we entered into the 2006 Land/Development
Joint Venture with an institutional investor to invest in land
and vertical development. We owned a 10% equity interest in and
provide property management, asset management, development
management and leasing management services to the 2006
Land/Development Joint Venture. For the year ended
December 31, 2008 we recorded an impairment loss on our
investment in the 2006 Land/Development Joint Venture of $10,105
in Equity in Income (Loss) of Joint Ventures.
69
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
The 2003 Net Lease Joint Venture is considered a variable
interest entity in accordance with the FASBs guidance on
the consolidation of variable interest entities. However, we
continue to not be the primary beneficiary for the venture. As
of December 31, 2010, our investment in the 2003 Net Lease
Joint Venture is $2,451. Our maximum exposure to loss is equal
to our investment balance of each venture as of year end plus
any future contributions we make to the ventures.
During July 2007, we entered into a management arrangement with
an institutional investor to provide property management,
leasing, acquisition, disposition and portfolio management
services for three industrial properties (the July 2007
Fund). We do not own an equity interest in the July 2007
Fund, however we are entitled to incentive payments if certain
economic thresholds related to the industrial properties are
achieved. Effective September 2, 2009, we ceased to provide
any services for two of the industrial properties in the July
2007 Fund. We received a one-time fee of approximately $866 in
the third quarter of 2009 from the termination of the management
agreement. Effective May 24, 2010, we ceased to provide any
services to the remaining industrial property in the July 2007
Fund.
At December 31, 2010 and 2009, we have receivables from the
Joint Ventures (and/or our former Joint Venture partner) and the
July 2007 Fund in the aggregate amount of $2,857 and $1,218,
respectively, which primarily relate to proceeds from the sale
of three Sale Assets and development, leasing, property
management, disposition and asset management fees due to us from
the Joint Ventures and the July 2007 Fund. These receivable
amounts are included in Prepaid Expenses and Other Assets, Net.
During the years ended December 31, 2010, 2009 and 2008, we
invested the following amounts in, as well as received
distributions from, our Joint Ventures and recognized fees from
acquisition, disposition, leasing, development, incentive,
property management and asset management services from our Joint
Ventures and the July 2007 Fund in the following amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
2010
|
|
2009
|
|
2008
|
|
Contributions
|
|
$
|
777
|
|
|
$
|
3,742
|
|
|
$
|
16,623
|
|
Distributions
|
|
$
|
14,551
|
|
|
$
|
8,652
|
|
|
$
|
22,505
|
|
Fees
|
|
$
|
4,952
|
|
|
$
|
11,174
|
|
|
$
|
19,757
|
|
70
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
The combined summarized financial information of the investments
in Joint Ventures is as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Condensed Combined Balance Sheets
|
|
|
|
|
|
|
|
|
Gross Real Estate Investment
|
|
$
|
210,567
|
|
|
$
|
1,785,713
|
|
Less: Accumulated Depreciation
|
|
|
(47,286
|
)
|
|
|
(126,685
|
)
|
|
|
|
|
|
|
|
|
|
Net Real Estate
|
|
|
163,281
|
|
|
|
1,659,028
|
|
Other Assets
|
|
|
33,351
|
|
|
|
159,659
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
196,632
|
|
|
$
|
1,818,687
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
$
|
157,431
|
|
|
$
|
1,452,339
|
|
Other Liabilities
|
|
|
10,849
|
|
|
|
70,544
|
|
Equity
|
|
|
28,352
|
|
|
|
295,804
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
$
|
196,632
|
|
|
$
|
1,818,687
|
|
|
|
|
|
|
|
|
|
|
Companys share of Equity
|
|
$
|
4,344
|
|
|
$
|
34,310
|
|
Basis Differentials(1)
|
|
|
(2,089
|
)
|
|
|
(28,507
|
)
|
|
|
|
|
|
|
|
|
|
Carrying Value of the Companys investments in Joint
Ventures
|
|
$
|
2,255
|
|
|
$
|
5,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
This amount represents the aggregate difference between our
historical cost basis and the basis reflected at the joint
venture level. Basis differentials are primarily comprised of
impairments we recorded to reduce certain of our investments in
Joint Ventures to fair value, a gain deferral related to a
property we sold to the 2003 Net Lease Joint Venture, deferred
fees and certain equity costs which are not reflected at the
joint venture level. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Condensed Combined Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
$
|
61,628
|
|
|
$
|
91,143
|
|
|
$
|
86,245
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and Other
|
|
|
28,067
|
|
|
|
42,172
|
|
|
|
36,905
|
|
Interest
|
|
|
32,461
|
|
|
|
42,194
|
|
|
|
53,053
|
|
Depreciation and Amortization
|
|
|
30,877
|
|
|
|
49,993
|
|
|
|
46,460
|
|
Impairment Loss
|
|
|
3,268
|
|
|
|
150,804
|
|
|
|
9,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Expenses
|
|
|
94,673
|
|
|
|
285,163
|
|
|
|
146,369
|
|
Income from Discontinued Operations (Including Gain on Sale of
Real Estate of $2,761, $1,177 and $34,885 for the years ended
December 31, 2010, 2009 and 2008, respectively)
|
|
|
3,725
|
|
|
|
1,846
|
|
|
|
25,114
|
|
Gain on Sale of Real Estate
|
|
|
808
|
|
|
|
8,603
|
|
|
|
17,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(28,512
|
)
|
|
$
|
(183,571
|
)
|
|
$
|
(17,918
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Companys Share of Net Income (Loss)
|
|
|
675
|
|
|
|
(1,276
|
)
|
|
|
6,661
|
|
Impairment on the Companys Investments in Joint Ventures
|
|
|
|
|
|
|
(5,194
|
)
|
|
|
(39,839
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Income (Loss) of Joint Ventures
|
|
$
|
675
|
|
|
$
|
(6,470
|
)
|
|
$
|
(33,178
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
We adopted the fair value measurement provisions as of
January 1, 2009, for the impairment of long-lived assets
recorded at fair value. The new guidance establishes a
three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. These tiers include: Level 1,
defined as observable inputs such as quoted prices in active
markets; Level 2, defined as inputs other than quoted
prices in active markets that are either directly or indirectly
observable; and Level 3, defined as unobservable inputs in
which little or no market data exists, therefore requiring an
entity to develop its own assumptions.
During the year ended December 31, 2009, we recorded $5,194
in impairment charges on our interest in the 2006 Net Lease
Co-Investment Program and the 2003 Net Lease Joint Venture. The
non-cash impairment charge related to our unconsolidated Joint
Venture investments is based upon the difference between the
fair value of our equity interest and our carrying value. The
valuation of investments is determined using widely accepted
valuation techniques including discounted cash flow analysis on
expected cash flows, the income capitalization approach
considering prevailing market capitalization rates, analysis of
recent comparable sale transactions
and/or
consideration of the amount that currently would be required to
replace the asset, as adjusted for obsolescence. In general, we
consider multiple valuation techniques when measuring the fair
value of an investment, however; in certain circumstances, a
single valuation technique may be appropriate.
The following table presents information about our impairment
charges that were measured on a fair value basis for the year
ended December 31, 2009. The table indicates the fair value
hierarchy of the valuation techniques we utilized to determine
fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2009 Using:
|
|
|
|
|
|
|
Quoted Prices in
|
|
|
|
|
|
|
|
|
|
|
Active Markets for
|
|
Significant Other
|
|
Unobservable
|
|
Total
|
|
|
December 31,
|
|
Identical Assets
|
|
Observable Inputs
|
|
Inputs
|
|
Gains
|
Description
|
|
2009
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
(Losses)
|
|
Unconsolidated Joint Venture Investments
|
|
$
|
3,910
|
|
|
|
|
|
|
|
|
|
|
|
$3,910
|
|
|
$
|
(5,194
|
)
|
72
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
The following table discloses certain information regarding our
indebtedness:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective
|
|
|
|
|
|
|
Outstanding
|
|
|
Interest
|
|
|
Interest
|
|
|
|
|
|
|
Balance at
|
|
|
Rate At
|
|
|
Rate at
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2010
|
|
|
Maturity Date
|
|
|
Mortgage and Other Loans Payable, Net*
|
|
$
|
431,284
|
|
|
$
|
370,809
|
|
|
5.00%
|
- 9.25%
|
|
|
4.93%
|
-9.25%
|
|
|
|
March 2011 -
October 2020
|
|
Unamortized Premiums*
|
|
|
(358
|
)
|
|
|
(1,025
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage and Other Loans Payable, Gross*
|
|
$
|
430,926
|
|
|
$
|
369,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Unsecured Notes, Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 Notes
|
|
$
|
159,899
|
|
|
$
|
159,843
|
|
|
5.750%
|
|
|
|
5.91%
|
|
|
|
|
01/15/16
|
|
2017 Notes
|
|
|
87,195
|
|
|
|
87,187
|
|
|
7.500%
|
|
|
|
7.52%
|
|
|
|
|
12/01/17
|
|
2027 Notes
|
|
|
13,559
|
|
|
|
13,559
|
|
|
7.150%
|
|
|
|
7.11%
|
|
|
|
|
05/15/27
|
|
2028 Notes
|
|
|
189,869
|
|
|
|
189,862
|
|
|
7.600%
|
|
|
|
8.13%
|
|
|
|
|
07/15/28
|
|
2011 Notes
|
|
|
|
|
|
|
143,447
|
|
|
7.375%
|
|
|
|
7.39%
|
|
|
|
|
03/15/11
|
|
2012 Notes
|
|
|
61,774
|
|
|
|
143,837
|
|
|
6.875%
|
|
|
|
6.85%
|
|
|
|
|
04/15/12
|
|
2032 Notes
|
|
|
34,667
|
|
|
|
34,651
|
|
|
7.750%
|
|
|
|
7.87%
|
|
|
|
|
04/15/32
|
|
2014 Notes
|
|
|
86,792
|
|
|
|
105,253
|
|
|
6.420%
|
|
|
|
6.54%
|
|
|
|
|
06/01/14
|
|
2011 Exchangeable Notes
|
|
|
128,137
|
|
|
|
144,870
|
|
|
4.625%
|
|
|
|
5.53%
|
|
|
|
|
09/15/11
|
|
2017 II Notes
|
|
|
117,637
|
|
|
|
117,605
|
|
|
5.950%
|
|
|
|
6.37%
|
|
|
|
|
05/15/17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
$
|
879,529
|
|
|
$
|
1,140,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unamortized Discounts
|
|
|
6,980
|
|
|
|
11,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Unsecured Notes, Gross
|
|
$
|
886,509
|
|
|
$
|
1,151,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured Credit Facility
|
|
$
|
376,184
|
|
|
$
|
455,244
|
|
|
3.376%
|
|
|
|
3.376%
|
|
|
|
|
09/28/12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Excludes $1,008 of Mortgage Loan Payable on Real Estate Held for
Sale and of $48 of unamortized premiums. |
Mortgage
and Other Loans Payable, Net
During year ended December 31, 2010, we obtained the
following mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
|
|
|
|
|
Carrying
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Properties
|
|
|
|
|
|
Value at
|
|
Mortgage
|
|
Loan
|
|
|
Interest
|
|
|
Origination
|
|
|
Maturity
|
|
|
Amortization
|
|
|
Collateralizing
|
|
|
|
|
|
December 31,
|
|
Financing
|
|
Principal
|
|
|
Rate
|
|
|
Date
|
|
|
Date
|
|
|
Period
|
|
|
Mortgage
|
|
|
GLA
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
I
|
|
$
|
7,780
|
|
|
|
7.40
|
%
|
|
|
January 28, 2010
|
|
|
|
February 5, 2015
|
|
|
|
25-year
|
|
|
|
1
|
|
|
|
0.1
|
|
|
$
|
8,875
|
|
II
|
|
|
7,200
|
|
|
|
7.40
|
%
|
|
|
January 28, 2010
|
|
|
|
February 5, 2015
|
|
|
|
25-year
|
|
|
|
1
|
|
|
|
0.2
|
|
|
|
7,322
|
|
III
|
|
|
4,300
|
|
|
|
7.40
|
%
|
|
|
February 17, 2010
|
|
|
|
March 5, 2015
|
|
|
|
25-year
|
|
|
|
1
|
|
|
|
0.2
|
|
|
|
6,827
|
|
IV.1
|
|
|
8,000
|
|
|
|
6.50
|
%
|
|
|
June 22, 2010
|
|
|
|
July 10, 2020
|
|
|
|
25-year
|
|
|
|
2
|
|
|
|
0.2
|
|
|
|
8,919
|
|
IV.2
|
|
|
7,800
|
|
|
|
6.50
|
%
|
|
|
June 22, 2010
|
|
|
|
July 10, 2020
|
|
|
|
25-year
|
|
|
|
2
|
|
|
|
0.2
|
|
|
|
6,945
|
|
IV.3
|
|
|
5,500
|
|
|
|
6.50
|
%
|
|
|
June 22, 2010
|
|
|
|
July 10, 2020
|
|
|
|
25-year
|
|
|
|
6
|
|
|
|
0.1
|
|
|
|
10,003
|
|
V
|
|
|
32,115
|
|
|
|
5.55
|
%
|
|
|
September 29, 2010
|
|
|
|
October 1, 2020
|
|
|
|
25-year
|
|
|
|
10
|
|
|
|
1.2
|
|
|
|
38,155
|
|
VI
|
|
|
9,800
|
|
|
|
5.00
|
%
|
|
|
October 7, 2010
|
|
|
|
November 1, 2015
|
|
|
|
25-year
|
|
|
|
2
|
|
|
|
0.2
|
|
|
|
10,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
82,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
97,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Mortgage Financings I, II and III, principal
prepayments are prohibited for 36 months after loan
origination. For Mortgage Financing IV.1 through IV.3, principal
prepayments are allowed at any payment due date. For Mortgage
Financing V, principal prepayments are prohibited for
12 months after loan origination. For Mortgage Financing
VI, principal prepayments are allowed at any time after loan
origination. Prepayment
73
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
premiums typically decrease as the loan matures and range from
1% to 5% of the loan balance (or yield maintenance amount).
On April 30, 2010, we prepaid and retired our secured
mortgage debt maturing in September 2024 in the amount of
$1,654, excluding a prepayment fee of $17, which is included in
(Loss) Gain from Early Retirement of Debt.
On December 1, 2010, we paid off and retired our secured
mortgage debt maturing in December 2010 in the amount of $12,970.
As of December 31, 2010, mortgage and other loans payable
are collateralized by, and in some instances
cross-collateralized by, industrial properties with a net
carrying value of $603,067 and one letter of credit in the
amount of $889. We believe the Operating Partnership and the
Company were in compliance with all covenants relating to
mortgage loans payable as of December 31, 2010.
Senior
Unsecured Notes, Net
During the years ended December 31, 2010 and
December 31, 2009, we repurchased and retired the following
senior unsecured notes prior to its maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Amount Repurchased
|
|
|
Purchase Price
|
|
|
|
For the
|
|
|
For the
|
|
|
For the
|
|
|
For the
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2009
|
|
|
2009 Notes
|
|
$
|
|
|
|
$
|
19,279
|
|
|
$
|
|
|
|
$
|
19,064
|
|
2011 Notes
|
|
|
143,498
|
|
|
|
56,502
|
|
|
|
147,723
|
|
|
|
52,465
|
|
2011 Exchangeable Notes
|
|
|
18,000
|
|
|
|
53,100
|
|
|
|
17,936
|
|
|
|
48,938
|
|
2012 Notes
|
|
|
82,236
|
|
|
|
55,935
|
|
|
|
82,235
|
|
|
|
48,519
|
|
2014 Notes
|
|
|
21,062
|
|
|
|
12,000
|
|
|
|
17,964
|
|
|
|
8,810
|
|
2016 Notes
|
|
|
|
|
|
|
34,821
|
|
|
|
|
|
|
|
24,511
|
|
2017 Notes
|
|
|
|
|
|
|
12,747
|
|
|
|
|
|
|
|
10,399
|
|
2017 II Notes
|
|
|
|
|
|
|
590
|
|
|
|
|
|
|
|
439
|
|
2027 Notes
|
|
|
|
|
|
|
1,500
|
|
|
|
|
|
|
|
1,078
|
|
2028 Notes
|
|
|
|
|
|
|
10,000
|
|
|
|
|
|
|
|
7,548
|
|
2032 Notes
|
|
|
|
|
|
|
15,000
|
|
|
|
|
|
|
|
11,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
264,796
|
|
|
$
|
271,474
|
|
|
$
|
265,858
|
|
|
$
|
233,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In connection with these repurchases prior to maturity, we
recognized $(4,096) and $34,562 as (loss) gain on early
retirement of debt for the years ended December 31, 2010
and December 31, 2009, respectively, which is the
difference between the repurchase price of $265,858 and
$233,084, respectively, and the principal amount retired of
$264,796 and $271,474, respectively, net of the pro rata write
off of the unamortized debt issue discount, the unamortized loan
fees, the unamortized settlement amount of the interest rate
protection agreements and the professional services fees related
to the repurchases of $1,707, $519, $(183) and $991,
respectively, and $2,052, $1,286, $523 and $0, respectively. In
addition, we allocated $33 of the purchase price for our 2011
Exchangeable Notes to the reacquisition of the 2011 Exchangeable
Notes equity component for the year ended December 31, 2009.
The indentures governing our senior unsecured notes (except for
the 2011 Exchangeable Notes) contain certain covenants,
including limitations on incurrence of debt and debt service
coverage. We believe the Operating Partnership and the Company
were in compliance with all covenants relating to senior
unsecured
74
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
notes as of December 31, 2010. However, these financial
covenants are complex and there can be no assurance that these
provisions would not be interpreted by our noteholders in a
manner that could impose and cause us to incur material costs.
Unsecured
Credit Facility
We have maintained our Unsecured Credit Facility since 1997.
Effective October 22, 2010, management amended the
revolving credit facility to provide for a $200.0 million
term loan and a $200.0 million revolving line of credit..
The Unsecured Credit Facility matures on September 28, 2012
For the term borrowing, the Unsecured Credit Facility requires
interest only payments through March 29, 2012 at LIBOR plus
325 basis points or at a base rate plus 225 basis
points, at our election. The term borrowing requires quarterly
principal pay-downs of $10,000 beginning March 30, 2012
until maturity on September 28, 2012. For the revolving
borrowings, the Unsecured Credit Facility provides for interest
only payments at LIBOR plus 275 basis points or at a base
rate plus 175 basis points, at our election. At
December 31, 2010, borrowings under the Unsecured Credit
Facility bore interest at a weighted average interest rate of
3.376%. The portion of the Unsecured Credit Facility available
in Canadian dollars is $64,400. The net unamortized deferred
financing fees related to the prior line of credit are amortized
over the extended amortization period, except for $191, which
represents the write off of unamortized deferred financing costs
associated with the decreased capacity of the agreement, which
is included in (Loss) Gain from Early Retirement of Debt.
Certain financial covenants were changed in connection with the
amendment, including the fixed charge coverage ratio, which
decreased to 1.2 times from 1.5 times. Also, the calculation of
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA), as defined in the Unsecured Credit
Facility and used in the fixed charge coverage ratio, no longer
includes economic gains or losses from property sales.
Commencing October 1, 2011, certain covenants, including
the consolidated leverage ratio, the ratio of value of
unencumbered assets to outstanding consolidated senior unsecured
debt and the property operating income ratio on unencumbered
assets become more restrictive. The Company has various
liquidity strategies, such as issuing additional equity and
selling industrial properties and land parcels, that it may
employ in order to ensure compliance with the covenants.
However, no assurances can be made that the additional equity
issuances and sales of assets will occur on favorable terms or
at all.
The following shows the material changes to the financial
covenants:
|
|
|
|
|
|
|
|
|
|
|
Amended
|
|
|
Amended
|
|
|
|
Agreement
|
|
|
Agreement
|
|
|
|
through
|
|
|
beginning
|
|
|
|
September 30,
|
|
|
October 1,
|
|
|
|
2011
|
|
|
2011
|
|
|
Consolidated Leverage Ratio
|
|
|
£65.0
|
%
|
|
|
£60.0
|
%
|
Ratio of Value of Unencumbered Assets to Outstanding
Consolidated Senior Unsecured Debt
|
|
|
³1.30
|
|
|
|
³1.60
|
|
Property Operating Income Ratio on Unencumbered Assets
|
|
|
³1.30
|
|
|
|
³1.45
|
|
75
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
The following is a schedule of the stated maturities and
scheduled principal payments of our indebtedness, inclusive of
maturities and scheduled principal payments on Real Estate Held
for Sale, exclusive of premiums and discounts, for the next five
years ending December 31 and thereafter:
|
|
|
|
|
|
|
Amount
|
|
|
2011
|
|
$
|
141,207
|
|
2012
|
|
|
462,263
|
|
2013
|
|
|
8,103
|
|
2014
|
|
|
200,384
|
|
2015
|
|
|
55,871
|
|
Thereafter
|
|
|
826,751
|
|
|
|
|
|
|
Total
|
|
$
|
1,694,579
|
|
|
|
|
|
|
During 2011, the Company has $141,207 of stated maturities and
scheduled principal repayments of which $128,900 represents the
2011 Exchangeable Notes due September 15, 2011. While no
assurances can be made, we expect to satisfy these obligations
with proceeds from property dispositions, the issuance of
additional secured debt and the issuance of common equity,
subject to market conditions (see Note 18).
Fair
Value
At December 31, 2010 and 2009, the fair value of our
indebtedness was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2010
|
|
|
December 31, 2009
|
|
|
|
Carrying
|
|
|
Fair
|
|
|
Carrying
|
|
|
Fair
|
|
|
|
Amount
|
|
|
Value
|
|
|
Amount
|
|
|
Value
|
|
|
Mortgage and Other Loans Payable, including mortgages Held for
Sale
|
|
$
|
432,292
|
|
|
$
|
486,758
|
|
|
$
|
370,809
|
|
|
$
|
375,284
|
|
Senior Unsecured Debt
|
|
|
879,529
|
|
|
|
851,771
|
|
|
|
1,140,114
|
|
|
|
960,452
|
|
Unsecured Credit Facility
|
|
|
376,184
|
|
|
|
376,184
|
|
|
|
455,244
|
|
|
|
422,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,688,005
|
|
|
$
|
1,714,713
|
|
|
$
|
1,966,167
|
|
|
$
|
1,758,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The fair values of our mortgage loans payable were determined by
discounting the future cash flows using the current rates at
which similar loans would be made to borrowers with similar
credit ratings and for the same remaining maturities. The fair
value of the senior unsecured notes was determined by quoted
market prices. The fair value of the Unsecured Credit Facility
was determined by discounting the future cash flows using
current rates at which similar loans would be made to borrowers
with similar credit ratings and for the same remaining term,
assuming no repayment until maturity.
We have issued general partnership units and limited partnership
units and preferred general partnership units. The general
partnership units resulted from capital contributions from the
Company. The limited partnership units are issued in conjunction
with the acquisition of certain properties (see discussion
below). Subject to certain
lock-up
periods, holders of limited partner Units of the Operating
Partnership can redeem their Units by providing written
notification to the General Partner of the Operating
Partnership. Unless the General Partner provides notice of a
redemption restriction to the holder, redemption must be made
within seven business days after receipt of the holders
notice. The redemption can be effectuated, as determined by the
General Partner, either by exchanging the Units for shares of
common stock of the Company on a
one-for-one
basis, subject to adjustment, or by paying cash equal to the
fair market value of such shares. Prior requests for redemption
have generally been fulfilled with shares of common stock of the
Company, and we
76
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
intend to continue this practice. If each Unit of the Operating
Partnership were redeemed as of December 31, 2010, we could
satisfy our redemption obligations by making an aggregate cash
payment of approximately $46,981 or by issuing
5,363,151 shares of the Companys common stock. The
preferred general partnership units result from preferred
capital contributions from the Company. The preferred general
partnership units had an aggregate liquidation priority of
$275,000 as of December 31, 2010 and 2009, respectively. We
are required to make all required distributions on the preferred
general partnership units prior to any distribution of cash or
assets to the holders of the Units. The consent of the holder of
the limited partnership units is required to alter such
holders rights as to allocations and distributions, to
alter or modify such holders rights with respect to
redemption, to cause the early termination of the Consolidated
Operating Partnership, or to amend the provisions of the
partnership agreement which requires such consent.
Preferred
Contributions:
On May 27, 2004, the Company issued 50,000 Depositary
Shares, each representing 1/100th of a share of the
Companys 6.236%, $.01 par value, Series F
Flexible Cumulative Redeemable Preferred Stock (the
Series F Preferred Stock), at an initial
offering price of $1,000.00 per Depositary Share for gross
proceeds of $50,000. Net of offering costs, the Company received
net proceeds of $49,075 from the issuance of the Series F
Preferred Stock which were contributed to us in exchange for
6.236% Series F Cumulative Preferred Units (the
Series F Preferred Units) and are reflected in
our financial statements as a general partner preferred unit
contribution. Dividends on the Series F Preferred Stock are
cumulative from the date of initial issuance and are payable
semi-annually in arrears for the period from the date of
original issuance through March 31, 2009 (the
Series F Initial Fixed Rate Period), commencing
on September 30, 2004, at a rate of 6.236% per annum of the
liquidation preference (the Series F Initial
Distribution Rate) (equivalent to $62.36 per Depositary
Share). The coupon rate of our Series F Preferred Stock
resets every quarter beginning March 31, 2009 at 2.375%
plus the greater of (i) the 30 year U.S. Treasury
rate, (ii) the 10 year U.S. Treasury rate or
(iii) 3-month
LIBOR. For the fourth quarter of 2010, the new coupon rate was
6.075%. Dividends on the Series F Preferred Stock are
payable semi-annually in arrears for fixed rate periods
subsequent to the Series F Initial Fixed Rate Period and
quarterly in arrears for floating rate periods. With respect to
the payment of dividends and amounts upon liquidation,
dissolution or winding up, the Series F Preferred Stock
ranks senior to payments on the Companys Common Stock and
pari passu with the Companys Series G Preferred Stock
(hereinafter defined), Series J Preferred Stock
(hereinafter defined) and Series K Preferred Stock
(hereinafter defined). On or after March 31, 2009, subject
to any conditions on redemption applicable in any fixed rate
period subsequent to the Series F Initial Fixed Rate
Period, the Series F Preferred Stock is redeemable for cash
at the option of the Company, in whole or in part, at a
redemption price equivalent to $1,000.00 per Depositary Share,
or $50,000 in the aggregate, plus dividends accrued and unpaid
to the redemption date. The Series F Preferred Stock has no
stated maturity and is not convertible into any other securities
of the Company. In October 2008, we entered into an interest
rate swap agreement to mitigate our exposure to floating
interest rates related to the forecasted reset rate of the
coupon rate of our Series F Preferred Stock. See
Note 15 for further information on the agreement.
On May 27, 2004, the Company issued 25,000 Depositary
Shares, each representing 1/100th of a share of the
Companys 7.236%, $.01 par value, Series G
Flexible Cumulative Redeemable Preferred Stock (the
Series G Preferred Stock), at an initial
offering price of $1,000.00 per Depositary Share for gross
proceeds of $25,000. Net of offering costs, the Company received
net proceeds of $24,512 from the issuance of the Series G
Preferred Stock which were contributed to us in exchange for
7.236% Series G Cumulative Preferred Units (the
Series G Preferred Units) and are reflected in
our financial statements as a general partner preferred unit
contribution. Dividends on the Series G Preferred Stock are
cumulative from the date of initial issuance and are payable
semi-annually in arrears for the period from the date of
original issuance of the Series G Preferred Stock through
March 31, 2014 (the Series G Initial Fixed Rate
Period), commencing on September 30, 2004, at a rate
of 7.236% per annum of the liquidation preference (the
Series G Initial
77
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Distribution Rate) (equivalent to $72.36 per Depositary
Share). On or after March 31, 2014, the Series G
Initial Distribution Rate is subject to reset, at the
Companys option, subject to certain conditions and
parameters, at fixed or floating rates and periods. Fixed rates
and periods will be determined through a remarketing procedure.
Floating rates during floating rate periods will equal 2.500%
(the initial credit spread), plus the greater of (i) the
3-month
LIBOR Rate, (ii) the
10-year
Treasury CMT Rate (as defined in the
Articles Supplementary), and (iii) the
30-year
Treasury CMT Rate (the adjustable rate)(as defined in the
Articles Supplementary), reset quarterly. Dividends on the
Series G Preferred Stock are payable semi-annually in
arrears for fixed rate periods subsequent to the Series G
Initial Fixed Rate Period and quarterly in arrears for floating
rate periods. With respect to the payment of dividends and
amounts upon liquidation, dissolution or winding up, the
Series G Preferred Stock ranks senior to payments on the
Companys Common Stock and pari passu with the
Companys Series F Preferred Stock, Series J
Preferred Stock (hereinafter defined) and Series K
Preferred Stock (hereinafter defined). On or after
March 31, 2014, subject to any conditions on redemption
applicable in any fixed rate period subsequent to the
Series G Initial Fixed Rate Period, the Series G
Preferred Stock is redeemable for cash at the option of the
Company, in whole or in part, at a redemption price equivalent
to $1,000.00 per Depositary Share, or $25,000 in the aggregate,
plus dividends accrued and unpaid to the redemption date. The
Series G Preferred Stock has no stated maturity and is not
convertible into any other securities of the Company.
On January 13, 2006, the Company issued 6,000,000
Depositary Shares, each representing 1/10,000th of a share
of the Companys 7.25%, $.01 par value, Series J
Cumulative Redeemable Preferred Stock (the Series J
Preferred Stock), at an initial offering price of $25.00
per Depositary Share. The net proceeds from the issuance of the
Series J Preferred Stock were contributed to us in exchange
for Series J Cumulative Preferred Units (the
Series J Preferred Units) and are reflected in
our financial statements as a general partner preferred unit
contribution. Dividends on the Series J Preferred Stock,
represented by the Depositary Shares, are cumulative from the
date of initial issuance and are payable quarterly in arrears.
However, during any period that both (i) the depositary
shares are not listed on the NYSE or AMEX, or quoted on NASDAQ,
and (ii) the Company is not subject to the reporting
requirements of the Exchange Act, but the preferred shares are
outstanding, the Company will increase the dividend on the
preferred shares to a rate of 8.25% of the liquidation
preference per year. However, if at any time both (i) the
depositary shares cease to be listed on the NYSE or the AMEX, or
quoted on NASDAQ, and (ii) the Company ceases to be subject
to the reporting requirements of the Exchange Act, but the
preferred shares are outstanding, then the preferred shares will
be redeemable, in whole but not in part at the Companys
option, within 90 days of the date upon which the
depositary shares cease to be listed and the Company ceases to
be subject to such reporting requirements, at a redemption price
equivalent to $25.00 per Depositary Share, plus all accrued and
unpaid dividends to the date of redemption. With respect to the
payment of dividends and amounts upon liquidation, dissolution
or winding up, the Series J Preferred Stock ranks senior to
payments on the Companys Common Stock and pari passu with
the Companys Series F Preferred Stock, Series G
Preferred Stock and Series K Preferred Stock (hereinafter
defined). The Series J Preferred Stock is not redeemable
prior to January 15, 2011. On or after January 15,
2011, the Series J Preferred Stock is redeemable for cash
at the option of the Company, in whole or in part, at a
redemption price equivalent to $25.00 per Depositary Share, or
$150,000 in the aggregate, plus dividends accrued and unpaid to
the redemption date. The Series J Preferred Stock has no
stated maturity and is not convertible into any other securities
of the Company.
On August 21, 2006, the Company issued 2,000,000 Depositary
Shares, each representing 1/10,000th of a share of the
Companys 7.25%, $.01 par value, Series K
Flexible Cumulative Redeemable Preferred Stock (the
Series K Preferred Stock), at an initial
offering price of $25.00 per Depositary Share. The net proceeds
from the issuance of the Series K Preferred Stock were
contributed to the Operating Partnership in exchange for
Series K Cumulative Preferred Units (the
Series K Preferred Units) and are reflected in
the Consolidated Operating Partnerships financial
statements as a general partner preferred unit contribution.
Dividends on the Series K Preferred Stock, represented by
the Depositary Shares, are cumulative from the date of initial
78
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
issuance and are payable quarterly in arrears. With respect to
the payment of dividends and amounts upon liquidation,
dissolution or winding up, the Series K Preferred Stock
ranks senior to payments on the Companys Common Stock and
pari passu with the Companys Series F Preferred
Stock, Series G Preferred Stock and Series J Preferred
Stock. The Series K Preferred Stock is not redeemable prior
to August 15, 2011. On or after August 15, 2011, the
Series K Preferred Stock is redeemable for cash at the
option of the Company, in whole or in part, at a redemption
price equivalent to $25.00 per Depositary Share, or $50,000 in
the aggregate, plus dividends accrued and unpaid to the
redemption date. The Series K Preferred Stock has no stated
maturity and is not convertible into any other securities of the
Company.
Unit
Contributions
On August 8, 2008, the Companys Dividend Reinvestment
and Direct Stock Purchase Plan (DRIP) became
effective. Under the terms of the DRIP, stockholders who
participate may reinvest all or part of their dividends in
additional shares of the Company at a discount from the market
price, at our discretion, when the shares are issued and sold
directly by us from authorized but unissued shares of the
Companys common stock. Stockholders and non-stockholders
may also purchase additional shares at a discounted price, at
our discretion, when the shares are issued and sold directly by
us from authorized but unissued shares of the Companys
common stock, by making optional cash payments, subject to
certain dollar thresholds. During the year ended
December 31, 2010, the Company issued 875,402 shares
of the Companys common stock under the direct stock
purchase component of the DRIP for approximately $5,970. During
the year ended December 31, 2009, the Company issued
3,034,120 shares under the direct stock purchase component
of the DRIP for $15,920. These proceeds were contributed to us
in exchange for Units and are reflected in our financial
statements as a general partner contribution.
On October 5, 2009, the Company sold in an underwritten
public offering 13,635,700 shares of its common stock at a
price of $5.25 per share. Gross offering proceeds from the
issuance were $71,587 in the aggregate. Proceeds to the Company,
net of underwriters discount of $3,042 and total expenses
of $765, were approximately $67,780. These proceeds were
contributed to us in exchange for Units and are reflected in our
financial statements as a general partner contribution.
On May 4, 2010, the Company entered into distribution
agreements with sales agents to sell up to
10,000,000 shares of its common stock from time to time in
at-the-market
offerings (the ATM). During the year ended
December 31, 2010, the Company issued 5,469,767 shares
of its common stock under the ATM for approximately $44,117, net
of $900 paid to the sales agent. Additionally, we paid $210 in
professional fees related to the ATM offerings. These proceeds
were contributed to us in exchange for Units and are reflected
in our financial statements as a general partner contribution.
Under the terms of the ATM, sales were made primarily in
transactions that were deemed to be
at-the-market
offerings, including sales made directly on the New York Stock
Exchange or sales made through a market maker other than on an
exchange or by privately negotiated transactions. On
December 31, 2010, we concluded the ATM as a result of the
expiration of the of distribution agreements with our sales
agents.
During the years ended December 31, 2010 and 2009, 23,567
and 50,445 shares, respectively, of common stock were
awarded to certain directors. The common stock shares had a fair
value of approximately $128 and $240, respectively, upon
issuance.
Non-Qualified
Employee Stock Options
For the year ended December 31, 2008, certain employees of
the Company exercised 6,300 non-qualified employee stock
options. Proceeds to the Company approximated $174. The gross
proceeds from the option exercises were contributed to us in
exchange for Units and are reflected in our financial statements
as a general partner contribution.
79
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Restricted
Units
During the year ended December 31, 2009, we made a grant of
1,000,000 restricted stock units to our Chief Executive Officer.
During each of the years ended December 31, 2010 and 2009,
150,000 of the restricted stock units vested. We issued General
Partner Units to the Company in the same amount.
During the years ended December 31, 2010, 2009 and 2008,
the Company awarded 573,198, 0 and 583,871 restricted shares of
common stock, respectively, as well as 0, 1,473,600 and 4,757
restricted stock units, respectively, to certain employees of
the Company and 0, 35,145 and 21,945 restricted shares of common
stock, respectively, to certain directors of the Company. We
issued General Partner Units to the Company in the same amount.
See Note 14 for further disclosure on our stock-based
compensation.
The following table is a roll-forward of the General Partnership
and Limited Partnership Units outstanding, including unvested
general partner restricted units, for the three years ended
December 31, 2010:
|
|
|
|
|
|
|
General Partnership and
|
|
|
|
Limited Partnership
|
|
|
|
Units Outstanding
|
|
|
Balance at December 31, 2007
|
|
|
50,110,844
|
|
Issuance of General Partner Units
|
|
|
6,438
|
|
Issuance of General Partner Restricted Units
|
|
|
605,816
|
|
Repurchase and Retirement of Restricted Units
|
|
|
(264,713
|
)
|
|
|
|
|
|
Balance at December 31, 2008
|
|
|
50,458,385
|
|
|
|
|
|
|
Issuance of General Partner Units
|
|
|
16,874,884
|
|
Issuance of General Partner Restricted Units
|
|
|
35,145
|
|
Repurchase and Retirement of Restricted Units
|
|
|
(132,463
|
)
|
|
|
|
|
|
Balance at December 31, 2009
|
|
|
67,235,951
|
|
|
|
|
|
|
Issuance of General Partner Units
|
|
|
6,518,736
|
|
Issuance of General Partner Restricted Units
|
|
|
573,198
|
|
Repurchase and Retirement of Restricted Units
|
|
|
(123,438
|
)
|
|
|
|
|
|
Balance at December 31, 2010
|
|
|
74,204,447
|
|
|
|
|
|
|
Distributions
The coupon rate of our Series F Preferred Stock resets
every quarter beginning March 31, 2009 at 2.375% plus the
greater of (i) the 30 year U.S. Treasury rate,
(ii) the 10 year U.S. Treasury rate or
(iii) 3-month
LIBOR. For the fourth quarter of 2010, the new coupon rate was
6.075%. See Note 15 for additional derivative information
related to the Series F Preferred Stock coupon rate reset.
The following table summarizes distributions declared for the
past three years:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended 2010
|
|
|
Year Ended 2009
|
|
|
Year Ended 2008
|
|
|
|
Distribution
|
|
|
Total
|
|
|
Distribution
|
|
|
Total
|
|
|
Distribution
|
|
|
Total
|
|
|
|
per Unit
|
|
|
Distribution
|
|
|
per Unit
|
|
|
Distribution
|
|
|
per Unit
|
|
|
Distribution
|
|
|
General Partner/Limited Partner Units
|
|
$
|
0.0000
|
|
|
$
|
|
|
|
$
|
0.0000
|
|
|
$
|
|
|
|
$
|
2.4100
|
|
|
$
|
121,882
|
|
Series F Preferred Units
|
|
$
|
6,736.1540
|
|
|
$
|
3,368
|
|
|
$
|
6,414.5700
|
|
|
$
|
3,207
|
|
|
$
|
6,236.0000
|
|
|
$
|
3,118
|
|
Series G Preferred Units
|
|
$
|
7,236.0000
|
|
|
$
|
1,809
|
|
|
$
|
7,236.0000
|
|
|
$
|
1,809
|
|
|
$
|
7,236.0000
|
|
|
$
|
1,809
|
|
Series J Preferred Units
|
|
$
|
18,125.2000
|
|
|
$
|
10,875
|
|
|
$
|
18,125.2000
|
|
|
$
|
10,875
|
|
|
$
|
18,125.2000
|
|
|
$
|
10,875
|
|
Series K Preferred Units
|
|
$
|
18,125.2000
|
|
|
$
|
3,625
|
|
|
$
|
18,125.2000
|
|
|
$
|
3,625
|
|
|
$
|
18,125.2000
|
|
|
$
|
3,625
|
|
80
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
|
|
9.
|
Supplemental
Information to Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Interest paid, net of capitalized interest
|
|
$
|
102,270
|
|
|
$
|
115,451
|
|
|
$
|
113,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized Interest
|
|
$
|
|
|
|
$
|
281
|
|
|
$
|
7,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes Paid (Refunded)
|
|
$
|
3,663
|
|
|
$
|
(54,173
|
)
|
|
$
|
2,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental schedule of noncash investing and financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution payable on general and limited partner units
|
|
$
|
|
|
|
$
|
|
|
|
$
|
12,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution payable on preferred units
|
|
$
|
452
|
|
|
$
|
452
|
|
|
$
|
1,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial property distribution from Other Real Estate
Partnerships:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in real estate and deferred leasing intangibles, net
|
|
$
|
|
|
|
$
|
1,811
|
|
|
$
|
|
|
Prepaid expenses and other assets, net
|
|
|
|
|
|
|
289
|
|
|
|
|
|
Accounts payable, accrued expenses and other liabilities, net
|
|
|
|
|
|
|
(56
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distribution
|
|
$
|
|
|
|
$
|
2,044
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange of Limited partnership units for General partnership
units:
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partnership units
|
|
$
|
(316
|
)
|
|
$
|
(7,817
|
)
|
|
$
|
(14,581
|
)
|
General partnership units
|
|
|
316
|
|
|
|
7,817
|
|
|
|
14,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In conjunction with property and land acquisitions, the
following liabilities were assumed:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(376
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage debt
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(7,852
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In conjunction with certain property sales, we provided seller
financing:
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes receivable
|
|
$
|
168
|
|
|
$
|
20,645
|
|
|
$
|
46,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write off of fully depreciated assets
|
|
$
|
(52,203
|
)
|
|
$
|
(50,423
|
)
|
|
$
|
(64,185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
81
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
|
|
10.
|
Earnings
Per Unit (EPU)
|
The computation of basic and diluted EPU is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Continuing Operations, Net of Income Tax
|
|
$
|
(89,075
|
)
|
|
$
|
(17,212
|
)
|
|
$
|
(107,077
|
)
|
Gain on Sale of Real Estate, Net of Income Tax
|
|
|
517
|
|
|
|
170
|
|
|
|
8,279
|
|
Preferred Unit Distributions
|
|
|
(19,677
|
)
|
|
|
(19,516
|
)
|
|
|
(19,428
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Continuing Operations Available to Unitholders
|
|
$
|
(108,235
|
)
|
|
$
|
(36,558
|
)
|
|
$
|
(118,226
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from Discontinued Operations, Net of Income Tax
|
|
$
|
(132,949
|
)
|
|
$
|
21,369
|
|
|
$
|
142,336
|
|
Discontinued Operations Allocable to Participating Securities
|
|
|
|
|
|
|
|
|
|
|
(2,550
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from Discontinued Operations Available to
Unitholders
|
|
$
|
(132,949
|
)
|
|
$
|
21,369
|
|
|
$
|
139,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Unitholders
|
|
$
|
(241,184
|
)
|
|
$
|
(15,189
|
)
|
|
$
|
24,110
|
|
Net Income Allocable to Participating Securities
|
|
|
|
|
|
|
|
|
|
|
(2,550
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Unitholders
|
|
$
|
(241,184
|
)
|
|
$
|
(15,189
|
)
|
|
$
|
21,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Units Basic and Diluted
|
|
|
68,326,604
|
|
|
|
54,260,979
|
|
|
|
49,456,067
|
|
Basic and Diluted EPU:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from Continuing Operations Available to Unitholders
|
|
$
|
(1.58
|
)
|
|
$
|
(0.67
|
)
|
|
$
|
(2.39
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from Discontinued Operations Available to
Unitholders
|
|
$
|
(1.95
|
)
|
|
$
|
0.39
|
|
|
$
|
2.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Unitholders
|
|
$
|
(3.53
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
0.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Participating securities include unvested restricted stock
awards and restricted unit awards outstanding that participate
in non-forfeitable distributions of the Operating Partnership.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation
|
|
|
|
|
|
Allocation
|
|
|
|
|
|
Allocation
|
|
|
|
|
|
|
of Net
|
|
|
|
|
|
of Net
|
|
|
|
|
|
of Net
|
|
|
|
|
|
|
Income
|
|
|
|
|
|
Income
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
Available to
|
|
|
|
|
|
Available to
|
|
|
|
|
|
Available to
|
|
|
|
Unvested
|
|
|
Participating
|
|
|
Unvested
|
|
|
Participating
|
|
|
Unvested
|
|
|
Participating
|
|
|
|
Awards
|
|
|
Securities For the
|
|
|
Awards
|
|
|
Securities For the
|
|
|
Awards
|
|
|
Securities For the
|
|
|
|
Outstanding
|
|
|
Year Ended
|
|
|
Outstanding
|
|
|
Year Ended
|
|
|
Outstanding
|
|
|
Year Ended
|
|
|
|
at December 31,
|
|
|
December 31,
|
|
|
at December 31,
|
|
|
December 31,
|
|
|
At December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2010
|
|
|
2009
|
|
|
2009
|
|
|
2008
|
|
|
2008
|
|
|
Participating Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted Stock Awards
|
|
|
662,092
|
|
|
|
|
|
|
|
355,645
|
|
|
|
|
|
|
|
757,041
|
|
|
|
|
|
Restricted Unit Awards
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
662,092
|
|
|
$
|
|
|
|
|
355,645
|
|
|
$
|
|
|
|
|
761,660
|
|
|
$
|
2,550
|
|
82
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Participating security holders are not obligated to share in
losses, therefore, none of the loss was allocated to
participating securities for the year ended December 31,
2010 and 2009.
The number of weighted average units diluted is the
same as the number of weighted average units basic
for the years ended December 31, 2010, 2009 and 2008 as the
effect of stock options and restricted unit awards was excluded
as its inclusion would have been antidilutive to the loss from
continuing operations available to Unitholders. The following
awards were anti-dilutive and could be dilutive in future
periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
Number of
|
|
|
Number of
|
|
|
|
Awards
|
|
|
Awards
|
|
|
Awards
|
|
|
|
Outstanding
|
|
|
Outstanding
|
|
|
Outstanding At
|
|
|
|
At December 31,
|
|
|
At December 31,
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Non-Participating Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted Unit Awards
|
|
|
1,012,800
|
|
|
|
1,218,800
|
|
|
|
|
|
Options
|
|
|
98,701
|
|
|
|
139,700
|
|
|
|
278,601
|
|
The 2011 Exchangeable Notes are convertible into common shares
of the Company at a price of $50.93 and were not included in the
computation of diluted EPU as our average stock price did not
exceed the strike price of the conversion feature.
The components of income tax (provision) benefit for the TRSs
for the years ended December 31, 2010, 2009 and 2008 are
comprised of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$
|
(887
|
)
|
|
$
|
38,703
|
|
|
$
|
5,114
|
|
State
|
|
|
(45
|
)
|
|
|
372
|
|
|
|
814
|
|
Foreign
|
|
|
(77
|
)
|
|
|
(835
|
)
|
|
|
(649
|
)
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
163
|
|
|
|
(15,816
|
)
|
|
|
(526
|
)
|
State
|
|
|
3
|
|
|
|
(557
|
)
|
|
|
(107
|
)
|
Foreign
|
|
|
(147
|
)
|
|
|
9
|
|
|
|
671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(990
|
)
|
|
$
|
21,876
|
|
|
$
|
5,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition to income tax (provision) benefit recognized by the
TRSs, $(2,315), $1,320 and $(1,028) of additional income tax
(provision) benefit, which is included in continuing operations,
was recognized by the Consolidated Operating Partnership and is
included in income tax (provision) benefit on the consolidated
statement of operations for the years ended December 31,
2010, 2009 and 2008, respectively.
On August 24, 2009, we received a private letter ruling
from the Internal Revenue Service (IRS) granting
favorable loss treatment under Sections 331 and 336 of the
Code on the tax liquidation of our old TRS. As a result, the
Consolidated Operating Partnership completed a transaction on
September 1, 2009 whereby approximately 75% of the assets
formerly held by the old TRS are now held by FI LLC (which is
wholly owned by the Operating Partnership). The remaining 25% of
the assets are now held by FRIP (which is 99% owned by the new
TRS). On November 6, 2009, legislation was signed that
allows businesses with net operating losses for 2008 or 2009 to
carry back those losses for up to five years. As a result, we
received a refund from the IRS of $40,418 in the fourth quarter
of 2009 due to the tax liquidation of the old TRS.
83
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Deferred income taxes represent the tax effect of the temporary
differences between the book and tax basis of assets and
liabilities. Deferred tax assets (liabilities) of the TRSs
include the following as of December 31, 2010 and 2009.
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
Investments in Joint Ventures
|
|
$
|
47
|
|
|
$
|
1,679
|
|
Fixed assets
|
|
|
1,010
|
|
|
|
1,074
|
|
Prepaid rent
|
|
|
71
|
|
|
|
114
|
|
Restricted stock
|
|
|
99
|
|
|
|
34
|
|
Capitalized Interest
|
|
|
626
|
|
|
|
|
|
Impairment of Real Estate
|
|
|
10,196
|
|
|
|
|
|
Federal net operating loss carrying forward
|
|
|
|
|
|
|
345
|
|
State net operating loss carrying forward
|
|
|
|
|
|
|
11
|
|
Foreign net operating loss carrying forward
|
|
|
706
|
|
|
|
77
|
|
Valuation Allowance
|
|
|
(9,301
|
)
|
|
|
(1,299
|
)
|
Other
|
|
|
569
|
|
|
|
753
|
|
|
|
|
|
|
|
|
|
|
Total deferred tax assets
|
|
$
|
4,023
|
|
|
$
|
2,788
|
|
|
|
|
|
|
|
|
|
|
Straight-line rent
|
|
|
(510
|
)
|
|
|
(507
|
)
|
Fixed assets
|
|
|
(2,544
|
)
|
|
|
(1,358
|
)
|
Other
|
|
|
|
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
Total deferred tax liabilities
|
|
$
|
(3,054
|
)
|
|
$
|
(1,868
|
)
|
|
|
|
|
|
|
|
|
|
Total net deferred tax asset
|
|
$
|
969
|
|
|
$
|
920
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2010 and 2009, the TRSs had net deferred
tax assets of $969 and $920, after valuation allowances of
$9,301 and $1,299, respectively. The increase in the valuation
allowance of $8,002 from December 31, 2009 to
December 31, 2010 is primarily related to an increase in
net deferred tax assets due to the impairment of real estate
recognized by the TRSs. As of December 31, 2009 and 2008,
the TRSs had net deferred tax assets of $920 and $17,194, after
valuation allowances of $1,299 and $19,501, respectively. The
decrease in the valuation allowance of ($18,202) from
December 31, 2008 to December 31, 2009 is primarily
related to a decrease in net deferred tax assets due to the
liquidation of the old TRS. The deferred tax assets and
liabilities of the old TRS were eliminated on September 1,
2009, as FI LLC is a nontaxable entity. We recorded valuation
allowances to offset the deferred tax assets at
December 31, 2010 and 2009 because we concluded, based on a
review of the relative weight of the available evidence, that it
was more likely than not that the TRSs will not generate
sufficient future taxable income to realize certain deferred tax
assets. We will continue to assess the need for a valuation
allowance in the future.
The TRSs have a net operating loss carryforward related to
foreign taxes of $706 at December 31, 2010. The TRSs had a
net operating loss carryforward related to federal, state and
foreign taxes of $433 and a tax credit carryforward of $684 at
December 31, 2009.
84
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
The TRSs components of income tax benefit (provision) for
the years ended December 31, 2010, 2009 and 2008 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Tax provision associated with income from operations on sold
properties which is included in discontinued operations
|
|
$
|
|
|
|
$
|
(362
|
)
|
|
$
|
(1,434
|
)
|
Tax provision associated with gains and losses on the sale of
real estate which is included in discontinued operations
|
|
|
|
|
|
|
(1,462
|
)
|
|
|
(3,732
|
)
|
Tax provision associated with gains and losses on the sale of
real estate
|
|
|
(342
|
)
|
|
|
(143
|
)
|
|
|
(3,782
|
)
|
Income tax (provision) benefit
|
|
|
(648
|
)
|
|
|
23,843
|
|
|
|
14,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (provision) benefit
|
|
$
|
(990
|
)
|
|
$
|
21,876
|
|
|
$
|
5,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The income tax benefit pertaining to income from continuing
operations and gain on sale of real estate for the TRSs differs
from the amounts computed by applying the applicable federal
statutory rate as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Tax benefit at federal rate related to continuing operations
|
|
$
|
2,497
|
|
|
$
|
8,815
|
|
|
$
|
28,625
|
|
State tax benefit, net of federal benefit
|
|
|
28
|
|
|
|
523
|
|
|
|
2,825
|
|
Non-deductible permanent items, net
|
|
|
9
|
|
|
|
(1,652
|
)
|
|
|
(1,852
|
)
|
Change in valuation allowance
|
|
|
(3,334
|
)
|
|
|
16,269
|
|
|
|
(19,501
|
)
|
Foreign taxes, net
|
|
|
(193
|
)
|
|
|
315
|
|
|
|
347
|
|
Other
|
|
|
3
|
|
|
|
(570
|
)
|
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income tax (provision) benefit
|
|
$
|
(990
|
)
|
|
$
|
23,700
|
|
|
$
|
10,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michigan
Tax Issue
As of December 31, 2008, we had paid approximately $1,400
(representing tax and interest for the years
1997-2000)
to the State of Michigan regarding business loss carryforwards
the appropriateness of which was the subject of litigation
initiated by us. On December 11, 2007, the Michigan Court
of Claims rendered a decision against us regarding the business
loss carryforwards. Also, the court ruled against us on an
alternative position involving Michigans Capital
Acquisition Deduction. We filed an appeal to the Michigan
Appeals Court in January 2008; however, as a result of the lower
courts decision, an additional approximately $800
(representing tax and interest for the year 2001) had been
accrued through June 30, 2009 for both tax and financial
statement purposes. On August 18, 2009, the Michigan
Appeals Court issued a decision in our favor on the business
loss carryforward issue. The Michigan Department of Treasury
appealed the decision to the Michigan Supreme Court on
September 29, 2009; however, we believed there was a very
low probability that the Michigan Supreme Court would accept the
case. Therefore, in September 2009 we reversed our accrual of
$800 (related to the 2001 tax year) and set up a receivable of
$1,400 for the amount paid in 2006 (related to the
1997-2000
tax years), resulting in an aggregate reversal of prior tax
expense of approximately $2,200. On April 23, 2010, the
Michigan Supreme Court reversed the decision of the Michigan
Appeals Court and reinstated the decision of the Michigan Court
of Claims. Based on the most recent ruling of the Michigan
Supreme Court, we reversed the receivable of $1,400 and paid
approximately $800, for a total of approximately $2,200 of tax
expense for the year ended December 31, 2010, which is
included in continuing operations.
85
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
We committed to a plan to reduce organizational and overhead
costs in October 2008 and have subsequently modified that plan
with the goal of further reducing these costs. During 2009 and
2010, we committed to additional modifications to the plan
consisting of further organizational and overhead cost
reductions.
For the year ended December 31, 2010, we recorded as
restructuring costs a pre-tax charge of $1,858 to provide for
employee severance and benefits ($525), costs associated with
the termination of certain office leases ($647) and other costs
($686) associated with implementing the restructuring plan.
Included in employee severance costs is $156 of non-cash costs
which represents the accelerated recognition of restricted stock
expense for certain employees for the year ended
December 31, 2010. At December 31, 2010, we had $1,574
included in Accounts Payable, Accrued Expenses and Other
Liabilities, Net related to severance obligations, remaining
lease payments and other costs incurred but not yet paid.
For the year ended December 31, 2009, we recorded as
restructuring costs a pre-tax charge of $7,806 to provide for
employee severance and benefits ($5,186), costs associated with
the termination of certain office leases ($1,867) and other
costs ($753) associated with implementing the restructuring
plan. Included in employee severance costs is $2,931 of non-cash
costs which represents the accelerated recognition of restricted
stock expense for certain employees for the year ended
December 31, 2009. At December 31, 2009, we had $2,884
included in Accounts Payable, Accrued Expenses and Other
Liabilities, Net related to severance obligations, remaining
lease payments and other costs incurred but not yet paid.
For the year ended December 31, 2008, we recorded as
restructuring costs a pre-tax charge of $26,711 to provide for
employee severance and benefits ($24,825), costs associated with
the termination of certain office leases ($1,162) and contract
cancellation and other costs ($724) associated with implementing
the restructuring plan. Included in employee severance costs is
$9,585 of non-cash costs which represents the accelerated
recognition of restricted stock for certain employees. At
December 31, 2008, the Operating Partnership had $6,695
included in Accounts Payable, Accrued Expenses and Other
Liabilities, Net related to severance obligations, remaining
lease payments and other costs incurred but not yet paid.
|
|
13.
|
Future
Rental Revenues
|
Our properties are leased to tenants under net and
semi-net
operating leases. Minimum lease payments receivable, excluding
tenant reimbursements of expenses, under non-cancelable
operating leases in effect as of December 31, 2010 are
approximately as follows:
|
|
|
|
|
2011
|
|
$
|
206,845
|
|
2012
|
|
|
174,770
|
|
2013
|
|
|
141,040
|
|
2014
|
|
|
108,581
|
|
2015
|
|
|
84,537
|
|
Thereafter
|
|
|
303,727
|
|
|
|
|
|
|
Total
|
|
$
|
1,019,500
|
|
|
|
|
|
|
|
|
14.
|
Stock
Based Compensation
|
We maintain four stock incentive plans, (the Stock
Incentive Plans) which are administered by our
Compensation Committee of the Board of Directors. There are
approximately 10.4 million shares authorized for issuance
under the Stock Incentive Plans. Only officers, certain
employees, the Companys Independent Directors and our
affiliates generally are eligible to participate in the Stock
Incentive Plans.
86
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
The Stock Incentive Plans authorize (i) the grant of stock
options that qualify as incentive stock options under
Section 422 of the Code, (ii) the grant of stock
options that do not so qualify, (iii) restricted stock/Unit
awards, (iv) performance share awards and (v) dividend
equivalent rights. The exercise price of stock options is
determined by the Compensation Committee. Special provisions
apply to awards granted under the Stock Incentive Plans in the
event of a change in control in the Consolidated Operating
Partnership. As of December 31, 2010, stock options and
restricted stock/Units covering 1.8 million shares were
outstanding and 1.0 million shares were available under the
Stock Incentive Plans. At December 31, 2010, all
outstanding stock options are vested. Stock option transactions
are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
Exercise
|
|
|
Aggregate
|
|
|
|
|
|
|
Exercise
|
|
|
Price
|
|
|
Intrinsic
|
|
|
|
Shares
|
|
|
Price
|
|
|
per Share
|
|
|
Value
|
|
|
Outstanding at December 31, 2008
|
|
|
278,601
|
|
|
$
|
31.92
|
|
|
$
|
27.25-$33.15
|
|
|
$
|
|
|
Expired or Terminated
|
|
|
(138,901
|
)
|
|
$
|
31.94
|
|
|
$
|
27.69-$33.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at December 31, 2009
|
|
|
139,700
|
|
|
$
|
31.89
|
|
|
$
|
27.25-$33.15
|
|
|
$
|
|
|
Expired or Terminated
|
|
|
(40,999
|
)
|
|
$
|
30.96
|
|
|
$
|
27.25-$33.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at December 31, 2010
|
|
|
98,701
|
|
|
$
|
32.34
|
|
|
$
|
30.53-$33.15
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table summarizes currently outstanding and
exercisable options as of December 31, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
|
|
Weighted
|
|
Weighted
|
|
|
Outstanding
|
|
Average
|
|
Average
|
|
|
and
|
|
Remaining
|
|
Exercise
|
Range of Exercise Price
|
|
Exercisable
|
|
Contractual Life
|
|
Price
|
|
$30.53-$31.05
|
|
|
31,901
|
|
|
|
0.83
|
|
|
$
|
30.69
|
|
$33.13-$33.15
|
|
|
66,800
|
|
|
|
0.26
|
|
|
$
|
33.13
|
|
In September 1994, the Board of Directors approved and we
adopted a 401(k)/Profit Sharing Plan. Under our 401(k)/Profit
Sharing Plan, all eligible employees may participate by making
voluntary contributions. We may make, but are not required to
make, matching contributions. For the years ended
December 31, 2010, 2009 and 2008, we made matching
contributions of $194, $0 and $0, respectively.
For the years ended December 31, 2010, 2009 and 2008, we
awarded 573,198, 1,473,600, and 588,628 restricted stock/unit
awards to our employees having a fair value at grant date of
$3,336, $7,406, and $18,860, respectively. We also awarded 0,
35,145, and 21,945 restricted stock/unit awards to our directors
having a fair value at grant date of $0, $149, and $603,
respectively. Restricted stock/unit awards granted to employees
generally vest over a period of three to four years and
restricted stock/unit awards granted to directors generally vest
over a period of five years. For the years ended
December 31, 2010, 2009 and 2008, we recognized $6,040,
$13,015, and $25,883 in restricted stock amortization related to
restricted stock/unit awards, of which $0, $45, and $1,519,
respectively, was capitalized in connection with development
activities. At December 31, 2010, we have $6,207 in
unearned compensation related to unvested restricted stock/unit
awards. The weighted average period that the unrecognized
compensation is expected to be incurred is 1.05 years. We
did not award options to our employees or our directors during
the years ended December 31, 2010, 2009 and 2008, and all
outstanding options are fully vested; therefore no stock-based
employee compensation expense related to options is included in
Net (Loss) Income Available to Unitholders.
87
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Restricted stock award and restricted stock unit award
transactions for the years ended December 31, 2010 and 2009
are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
Grant Date
|
|
|
|
Shares
|
|
|
Fair Value
|
|
|
Outstanding at December 31, 2008
|
|
|
761,660
|
|
|
$
|
36.00
|
|
Issued
|
|
|
1,508,745
|
|
|
$
|
5.01
|
|
Vested
|
|
|
(571,149
|
)
|
|
$
|
28.79
|
|
Forfeited
|
|
|
(124,811
|
)
|
|
$
|
7.51
|
|
|
|
|
|
|
|
|
|
|
Outstanding at December 31, 2009
|
|
|
1,574,445
|
|
|
$
|
11.17
|
|
|
|
|
|
|
|
|
|
|
Issued
|
|
|
573,198
|
|
|
$
|
5.82
|
|
Vested
|
|
|
(349,440
|
)
|
|
$
|
22.56
|
|
Forfeited
|
|
|
(123,311
|
)
|
|
$
|
7.13
|
|
|
|
|
|
|
|
|
|
|
Outstanding at December 31, 2010
|
|
|
1,674,892
|
|
|
$
|
17.77
|
|
|
|
|
|
|
|
|
|
|
During the year ended December 31, 2009, we made a grant of
1,000,000 restricted stock units to our Chief Executive Officer.
These restricted stock units had a fair value of approximately
$6,014 on the date of issuance. Of these restricted stock units,
a total of 600,000 (the Service Awards) vest in four
equal installments on the first, second, third and fourth year
anniversary of December 31, 2008, and a total of 400,000
(the Performance Awards I) vest in four installments
of up to 100,000 on the first, up to 200,000 on the second, up
to 300,000 on the third and up to 400,000 on the fourth year
anniversary of December 31, 2008, to the extent certain
market conditions are met. The market conditions are met when
certain stock price levels are achieved and maintained for
certain time periods between the award issuance date and
December 31, 2013. Both the Service Awards and Performance
Awards I require the Chief Executive Officer to be employed by
the Company at the applicable vesting dates, subject to certain
clauses in the award agreement. The Service Awards are amortized
over the four year service period. The Performance Awards I are
amortized over the service period of each installment.
During the year ended December 31, 2009, we made a grant of
473,600 restricted stock units to certain members of management
(the Performance Awards II). The Performance
Awards II had a fair value of approximately $1,392 on the
date of issuance and will vest in four installments on the
first, second, third and fourth anniversary of June 30,
2009, to the extent certain service periods and market
conditions are both met. The market conditions are met when
certain stock price levels are achieved and maintained for
certain time periods between the award issuance date and
June 30, 2014. The Performance Awards II are amortized
over the service period of each installment. In conjunction with
the issuance of the Performance Awards II, the members of
management were also granted cash awards with a fair value of
$792. The cash awards vested on June 30, 2010 and
compensation expense was recognized on a straight-line basis
over the service period. In order to receive the Performance
Awards II, the members of management are required to be employed
by the Company at the applicable vesting dates, subject to
certain clauses in the award agreements.
During the year ended December 31, 2010, certain members of
management were granted cash awards with a fair value of $688.
The cash awards vest on June 30, 2011 and compensation
expense is recognized on a straight-line basis over the service
period. In order to receive the cash awards, the members of
management are required to be employed by the Company at the
vesting date, subject to certain clauses of the award agreements.
88
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
The fair value of the Performance Awards I and the Performance
Awards II at issuance was determined using a Monte Carlo
simulation model with the following assumptions:
|
|
|
|
|
|
|
Performance Awards I
|
|
Performance Awards II
|
|
Expected dividend yield
|
|
0.0%
|
|
0.0%
|
Expected stock volatility
|
|
57.18% to 119.55%
|
|
76.29% to 162.92%
|
Risk-free interest rate
|
|
0.40% to 1.84%
|
|
0.43% to 2.38%
|
Expected life (years)
|
|
1-4
|
|
1-4
|
Fair value
|
|
$4.49
|
|
$2.94
|
Our objectives in using interest rate derivatives are to add
stability to interest expense and to manage our cash flow
volatility 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
designated as cash flow hedges involve the receipt of
variable-rate amounts from a counterparty in exchange for
fixed-rate payments over the life of the agreements without
exchange of the underlying notional amount.
In January 2008, we entered into two forward starting swaps each
with a notional value of $59,750, which fixed the interest rate
on forecasted debt offerings. We designated both swaps as cash
flow hedges. The rates on the forecasted debt issuances
underlying the swaps locked on March 20, 2009 (the
Forward Starting Agreement 1) and on April 6,
2009 (the Forward Starting Agreement 2), and as
such, the swaps ceased to qualify for hedge accounting. On
March 20, 2009, the fair value of Forward Starting
Agreement 1 was a liability of $4,442 and on April 6, 2009,
the fair value of Forward Starting Agreement 2 was a liability
of $4,023. These amounts are included in Other Comprehensive
Income (OCI) and will be amortized over five years,
which was the original life of the Forward Starting Agreement 1
and Forward Starting Agreement 2, as an increase to interest
expense. On May 8, 2009, we settled the Forward Starting
Agreement 1 and paid the counterparty $4,105 and on June 3,
2009 we settled the Forward Starting Agreement 2 and paid the
counterparty $3,386. The change in value of Forward Starting
Agreement 1 and Forward Starting Agreement 2 from the respective
day the interest rate on the underlying debt was locked until
settlement is $974 for the year ended December 31, 2009 and
is included in
Mark-to-Market
(Loss) Gain on Interest Rate Protection Agreements in the
statement of operations.
The effective portion of changes in the fair value of
derivatives designated and that qualify as cash flow hedges is
recorded in OCI and is subsequently reclassified to earnings
through interest expense over the life of the derivative or over
the life of the debt. In the next 12 months, we will
amortize approximately $2,276 into net income by increasing
interest expense for interest rate protection agreements we
settled in previous periods.
As of December 31, 2009, we also had an interest rate swap
agreement with a notional value of $50,000 which fixed the LIBOR
rate on a portion of our outstanding borrowings on our Unsecured
Credit Facility at 2.4150% (the Interest Rate Swap
Agreement). Monthly payments or receipts were treated as a
component of interest expense. We designated the Interest Rate
Swap Agreement as a cash flow hedge. The Interest Rate Swap
Agreement was highly effective through its maturity on
April 1, 2010, and, as a result, the change in the fair
value was shown in OCI.
The coupon rate of our Series F Preferred Stock resets
every quarter beginning March 31, 2009 at 2.375% plus the
greater of (i) the 30 year U.S. Treasury rate,
(ii) the 10 year U.S. Treasury rate or
(iii) 3-month
LIBOR. For the fourth quarter of 2010, the new coupon rate was
6.075% (see Note 8). In October 2008, we entered into an
interest rate swap agreement with a notional value of $50,000 to
mitigate our exposure to floating interest rates related to the
forecasted reset rate of the coupon rate of our Series F
Preferred Stock (the Series F Agreement). This
Series F Agreement fixes the
30-year
U.S. Treasury rate at 5.2175%.
89
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Accounting guidance for derivatives does not permit hedge
accounting treatment related to equity instruments and therefore
the mark to market gains or losses related to this agreement are
recorded in the statement of operations. Quarterly payments or
receipts are treated as a component of the mark to market gains
or losses. For the years ended December 31, 2010 and 2009,
we incurred settlement payments of $492 and $472, respectively,
of which $194 and $152, respectively, was outstanding at
December 31, 2010 and 2009.
The following is a summary of the terms of the forward starting
swaps and the interest rate swaps and their fair values, which
are included in Accounts Payable, Accrued Expenses and Other
Liabilities, Net on the accompanying consolidated balance sheet
as of December 31, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value As of
|
|
|
Fair Value As of
|
|
|
|
Notional
|
|
|
Fixed
|
|
|
Trade
|
|
Maturity
|
|
December 31,
|
|
|
December 31,
|
|
Hedge Product
|
|
Amount
|
|
|
Pay Rate
|
|
|
Date
|
|
Date
|
|
2010
|
|
|
2009
|
|
|
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swap Agreement
|
|
$
|
50,000
|
|
|
|
2.4150
|
%
|
|
March 2008
|
|
April 1, 2010
|
|
|
N/A
|
|
|
$
|
(267
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivatives designated as hedging instruments:
|
|
$
|
50,000
|
|
|
|
|
|
|
|
|
|
|
|
N/A
|
|
|
$
|
(267
|
)
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series F Agreement*
|
|
|
50,000
|
|
|
|
5.2175
|
%
|
|
October 2008
|
|
October 1, 2013
|
|
$
|
(523
|
)
|
|
|
93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Derivatives
|
|
$
|
100,000
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
(523
|
)
|
|
$
|
(174
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Fair value excludes quarterly settlement payment due on
Series F Agreement. As of December 31, 2010 and 2009,
the outstanding payable was $194 and $152, respectively. |
The following is a summary of the impact of the derivatives in
cash flow hedging relationships on the statement of operations
and the statement of OCI for the years ended December 31,
2010 and December 31, 2009.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
December 31,
|
Interest Rate Products
|
|
Location on Statement
|
|
2010
|
|
2009
|
|
Loss Recognized in OCI (Effective Portion)
|
|
Mark-to-Market on Interest Rate Protection Agreements (OCI)
|
|
$
|
990
|
|
|
$
|
(383
|
)
|
Amortization Reclassified from OCI into Income
|
|
Interest Expense
|
|
$
|
(2,108
|
)
|
|
$
|
(796
|
)
|
Gain Recognized in Income (Unhedged Position)
|
|
Mark-to-Market Gain on Interest Rate Protection Agreements
|
|
|
N/A
|
|
|
$
|
974
|
|
During 2010, the 2006 Land/Development Joint Venture had
interest rate protection agreements outstanding which
effectively converted floating rate debt to fixed rate debt on a
portion of its total variable debt. The hedge relationships were
considered highly effective and as such, for the year ended
December 31, 2010, we recorded $1,137 in unrealized gain,
representing our 10% share, offset by $414 of income tax
provision, which is shown in
Mark-to-Market
on Interest Rate Protection Agreements, Net of Income Tax, in
OCI. In connection with the sale of our equity interest of the
2006 Land/Development Joint Venture on August 5, 2010, we
wrote off $1,625 that was recorded in OCI related to our 10%
share of unrealized loss related to the interest rate protection
agreements. During 2009, two of the Joint Ventures had interest
rate protection agreements outstanding which effectively convert
floating rate debt to fixed rate debt on a portion of its total
variable debt. The hedge relationships were considered highly
effective and as such, for the year ended December 31,
2009, we recorded $1,060 in unrealized gain, representing our
10% share, offset by $450 of
90
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
income tax provision, which is shown in
Mark-to-Market
on Interest Rate Protection Agreements, Net of Income Tax, in
OCI.
Our agreements with our derivative counterparties contain
provisions where if we default on any of our indebtedness, then
we could also be declared in default on our derivative
obligations subject to certain thresholds.
We adopted the fair value measurement provisions as of
January 1, 2008, for financial instruments recorded at fair
value. The new guidance establishes a three-tier fair value
hierarchy, which prioritizes the inputs used in measuring fair
value. These tiers include: Level 1, defined as observable
inputs such as quoted prices in active markets; Level 2,
defined as inputs other than quoted prices in active markets
that are either directly or indirectly observable; and
Level 3, defined as unobservable inputs in which little or
no market data exists, therefore requiring an entity to develop
its own assumptions.
The following table sets forth our financial liabilities that
are accounted for at fair value on a recurring basis as of
December 31, 2010 and 2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2010 Using:
|
|
|
|
|
Quoted Prices in
|
|
|
|
|
|
|
|
|
Active Markets for
|
|
Significant Other
|
|
Unobservable
|
|
|
December 31,
|
|
Identical Assets
|
|
Observable Inputs
|
|
Inputs
|
Description
|
|
2010
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series F Agreement
|
|
$
|
(523
|
)
|
|
|
|
|
|
|
|
|
|
$
|
(523
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements at December 31, 2009 Using:
|
|
|
|
|
Quoted Prices in
|
|
|
|
|
|
|
|
|
Active Markets for
|
|
Significant Other
|
|
Unobservable
|
|
|
December 31,
|
|
Identical Assets
|
|
Observable Inputs
|
|
Inputs
|
Description
|
|
2009
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series F Agreement
|
|
$
|
93
|
|
|
|
|
|
|
|
|
|
|
$
|
93
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Swap Agreement
|
|
$
|
(267
|
)
|
|
|
|
|
|
$
|
(267
|
)
|
|
|
|
|
The valuation of the Interest Rate Swap Agreement is determined
using widely accepted valuation techniques including discounted
cash flow analysis on the expected cash flows of the instrument.
This analysis reflects the contractual terms of the agreements
including the period to maturity, and uses observable
market-based inputs, including interest rate curves and implied
volatilities. In adjusting the fair value of the interest rate
protection agreements for the effect of nonperformance risk, we
have considered the impact of netting and any applicable credit
enhancements. To comply with the provisions of fair value
measurement, we incorporated a credit valuation adjustment
(CVA) to appropriately reflect both our own
nonperformance risk and the respective counterpartys
nonperformance risk in the fair value measurements. However,
assessing significance of inputs is a matter of judgment that
should consider a variety of factors. One factor we consider is
the CVA and its materiality to the overall valuation of the
derivatives on the balance sheet and to their related changes in
fair value. We believe the inputs obtained related to our CVAs
are observable and therefore fall under Level 2 of the fair
value hierarchy. Accordingly, the liabilities related to the
Interest Rate Swap Agreement are classified as Level 2
amounts.
The valuation of the Series F Agreement utilizes the same
valuation technique as the Interest Rate Swap Agreement,
however, we consider the Series F Agreement to be
classified as Level 3 in the fair value hierarchy due to a
significant number of unobservable inputs. The Series F
Agreement swaps a fixed rate 5.2175% for floating rate payments
based on
30-year
Treasury. No market observable prices exist for long-dated
Treasuries past 30 years. Therefore, we have classified the
Series F Agreement in its entirety as a Level 3.
91
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
The following table presents a reconciliation for our
liabilities classified as Level 3 at December 31, 2010
and 2009:
|
|
|
|
|
|
|
Fair Value Measurements
|
|
|
|
Using Significant
|
|
|
|
Unobservable Inputs
|
|
|
|
(Level 3)
|
|
|
|
Derivatives
|
|
|
Beginning liability balance at December 31, 2008
|
|
$
|
(3,073
|
)
|
Total unrealized gains:
|
|
|
|
|
Mark-to-Market
on Series F Agreement
|
|
|
3,166
|
|
|
|
|
|
|
Ending asset balance at December 31, 2009
|
|
$
|
93
|
|
|
|
|
|
|
Total unrealized losses:
|
|
|
|
|
Mark-to-Market
on Series F Agreement
|
|
|
(616
|
)
|
|
|
|
|
|
Ending liability balance at December 31, 2010
|
|
$
|
(523
|
)
|
|
|
|
|
|
|
|
16.
|
Related
Party Transactions
|
We periodically engage in transactions for which CB Richard
Ellis, Inc. acts as a broker. A relative of Michael W. Brennan,
the former President and Chief Executive Officer and a former
director of the Company, is an employee of CB Richard Ellis,
Inc. For the year ended December 31, 2008, this relative
received approximately $95 in brokerage commissions or other
fees for transactions with the Consolidated Operating
Partnership and the Joint Ventures.
At December 31, 2010, we had a payable balance of $15,370
to wholly owned entities of the Company. At December 31,
2009, we have a payable balance of $27,884 to wholly owned
entities of the Company.
|
|
17.
|
Commitments
and Contingencies
|
Ten properties have leases granting the tenants options to
purchase the property. Such options are exercisable at various
times and at appraised fair market value or at a fixed purchase
price in excess of our depreciated cost of the asset. We have no
notice of any exercise of any tenant purchase option.
At December 31, 2010, we had nine letters of credit
outstanding in the aggregate amount of $1,462. These letters of
credit expire between February 2011 and November 2011.
Ground
and Operating Lease Agreements
For the years ended December 31, 2010, 2009 and 2008, we
recognized $3,047, $4,181 and $4,072 in operating and ground
lease expense.
92
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Future minimum rental payments under the terms of all
non-cancelable ground and operating leases under which we are
the lessee, offset by
sub-lease
rental payments under non-cancelable operating leases as of
December 31, 2010, are as follows:
|
|
|
|
|
2011
|
|
$
|
1,795
|
|
2012
|
|
|
1,206
|
|
2013
|
|
|
1,142
|
|
2014
|
|
|
893
|
|
2015
|
|
|
775
|
|
Thereafter
|
|
|
27,351
|
|
|
|
|
|
|
Total
|
|
$
|
33,162
|
|
|
|
|
|
|
From January 1, 2011 to February 23, 2011, we sold
four industrial properties comprising approximately
0.3 million square feet of GLA. Gross proceeds from the
sale of the four industrial properties were approximately
$3,875. There were no industrial properties acquired during this
period.
On February 10, 2011, we prepaid and retired our secured
mortgage debt maturing in September 2012 in the amount of
$14,520, excluding a prepayment fee of $73.
On February 18, 2011, we entered into a loan commitment
with a major life insurance company lender for mortgage loans,
aggregating to $178,300. The closings of the mortgage loans are
subject to lender due diligence and there can be no assurance
that the mortgage loans will close or, if closed, will generate
the anticipated proceeds. The mortgage loans are expected to be
cross-collateralized by 32 industrial properties, have a term of
seven years and bear interest at 4.45%.
|
|
19.
|
Quarterly
Financial Information (unaudited)
|
The following table summarizes our quarterly financial
information. The first, second and third fiscal quarters of 2010
and all fiscal quarters in 2009 have been revised in accordance
with guidance on accounting for discontinued operations. The
results of operations for the fourth quarter of 2010 include
$2,387 which should have been recorded as part of the impairment
charge recorded during the third quarter in 2010. Management
evaluated this impairment charge and believes it is not material
to the results of operations of either quarter.
Net income available to unitholders and basic and diluted EPU
from net income available to unitholders has not been affected.
93
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2010
|
|
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Total Revenues
|
|
$
|
65,080
|
|
|
$
|
62,721
|
|
|
$
|
61,559
|
|
|
$
|
63,496
|
|
Equity in (Loss) Income of Joint Ventures
|
|
|
(459
|
)
|
|
|
582
|
|
|
|
(398
|
)
|
|
|
950
|
|
Equity in Income (Loss) of Other Real Estate Partnerships
|
|
|
2,833
|
|
|
|
3,049
|
|
|
|
(4,144
|
)
|
|
|
1,756
|
|
Loss from Continuing Operations, Net of Income Tax
|
|
|
(15,347
|
)
|
|
|
(20,645
|
)
|
|
|
(32,201
|
)
|
|
|
(20,882
|
)
|
(Loss) Income from Discontinued Operations, Net of Income Tax
|
|
|
(4,187
|
)
|
|
|
5,545
|
|
|
|
(129,993
|
)
|
|
|
(4,314
|
)
|
Gain (Loss) on Sale of Real Estate, Net of Income Tax
|
|
|
731
|
|
|
|
|
|
|
|
(214
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
|
(18,803
|
)
|
|
|
(15,100
|
)
|
|
|
(162,408
|
)
|
|
|
(25,196
|
)
|
Preferred Unit Distributions
|
|
|
(4,960
|
)
|
|
|
(4,979
|
)
|
|
|
(4,884
|
)
|
|
|
(4,854
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Available
|
|
$
|
(23,763
|
)
|
|
$
|
(20,079
|
)
|
|
$
|
(167,292
|
)
|
|
$
|
(30,050
|
)
|
Income from Continuing Operations Allocable to Participating
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations Allocable to Participating Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Available to Unitholders
|
|
$
|
(23,763
|
)
|
|
$
|
(20,079
|
)
|
|
$
|
(167,292
|
)
|
|
$
|
(30,050
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Earnings Per Unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss From Continuing Operations Available to Unitholders
|
|
$
|
(0.29
|
)
|
|
$
|
(0.38
|
)
|
|
$
|
(0.54
|
)
|
|
$
|
(0.37
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income From Discontinued Operations
|
|
$
|
(0.06
|
)
|
|
$
|
0.08
|
|
|
$
|
(1.90
|
)
|
|
$
|
(0.06
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Available to Unitholders
|
|
$
|
(0.35
|
)
|
|
$
|
(0.29
|
)
|
|
$
|
(2.44
|
)
|
|
$
|
(0.43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Units Outstanding - Basic and Diluted
|
|
|
67,187
|
|
|
|
68,214
|
|
|
|
68,466
|
|
|
|
69,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2009
|
|
|
|
First
|
|
|
Second
|
|
|
Third
|
|
|
Fourth
|
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Total Revenues
|
|
$
|
85,619
|
|
|
$
|
82,572
|
|
|
$
|
80,569
|
|
|
$
|
66,798
|
|
Equity in Income (Loss) of Joint Ventures
|
|
|
29
|
|
|
|
1,551
|
|
|
|
(5,889
|
)
|
|
|
(2,161
|
)
|
Equity in Income of Other Real Estate Partnerships
|
|
|
4,528
|
|
|
|
3,718
|
|
|
|
6,455
|
|
|
|
3,815
|
|
(Loss) Income from Continuing Operations, Net of Income Tax
|
|
|
(15,839
|
)
|
|
|
(8,590
|
)
|
|
|
(2,212
|
)
|
|
|
9,429
|
|
Income from Discontinued Operations, Net of Income Tax
|
|
|
2,920
|
|
|
|
4,809
|
|
|
|
4,912
|
|
|
|
8,728
|
|
Gain (Loss) on Sale of Real Estate, Net of Income Tax
|
|
|
477
|
|
|
|
|
|
|
|
101
|
|
|
|
(408
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
|
|
|
(12,442
|
)
|
|
|
(3,781
|
)
|
|
|
2,801
|
|
|
|
17,749
|
|
Preferred Unit Distributions
|
|
|
(4,857
|
)
|
|
|
(4,824
|
)
|
|
|
(4,913
|
)
|
|
|
(4,922
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available
|
|
$
|
(17,299
|
)
|
|
$
|
(8,605
|
)
|
|
$
|
(2,112
|
)
|
|
$
|
12,827
|
|
Income from Continuing Operations Allocable to Participating
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(22
|
)
|
Discontinued Operations Allocable to Participating Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Unitholders
|
|
$
|
(17,299
|
)
|
|
$
|
(8,605
|
)
|
|
$
|
(2,112
|
)
|
|
$
|
12,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Earnings Per Unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income From Continuing Operations Available to Unitholders
|
|
$
|
(0.41
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income From Discontinued Operations
|
|
$
|
0.06
|
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income Available to Unitholders
|
|
$
|
(0.35
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Units Outstanding - Basic and Diluted
|
|
|
49,919
|
|
|
|
49,975
|
|
|
|
50,874
|
|
|
|
66,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20.
|
Pro Forma
Financial Information (unaudited)
|
The following Pro Forma Condensed Statement of Operations for
the year ended December 31, 2008 (the Pro Forma
Statement) is presented as if the acquisition of 18
operating industrial properties between January 1, 2008 and
December 31, 2008 had occurred at the beginning of the
year. The Pro Forma Statement does not include acquisitions
between January 1, 2008 and December 31, 2008 for
industrial properties that were vacant upon purchase, were
leased back to the sellers upon purchase or were subsequently
sold before December 31, 2008. The Pro Forma Condensed
Statement of Operations includes all necessary adjustments to
reflect the occurrence of purchases and sales of properties
during 2008 as of January 1, 2008. The Pro Forma Statement
is not necessarily indicative of what our results of operations
would have been for the year ended December 31, 2008, nor
does it purport to present our future results of operations.
95
FIRST
INDUSTRIAL, L.P.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS (Continued)
Pro Forma
Condensed Statements of Operations
|
|
|
|
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
|
2008
|
|
|
Pro Forma Revenues
|
|
$
|
415,042
|
|
Pro Forma Loss from Continuing Operations Available to
Unitholders, Net of Income Taxes
|
|
$
|
(116,026
|
)
|
Pro Forma Net Income Available to Unitholders
|
|
$
|
26,310
|
|
Per Unit Data:
|
|
|
|
|
Pro Forma Basic and Diluted Earnings Per Unit Data:
|
|
|
|
|
Loss from Continuing Operations Available to Unitholders
|
|
$
|
(2.35
|
)
|
|
|
|
|
|
Net Income Available to Unitholders
|
|
$
|
0.48
|
|
|
|
|
|
|
96
FIRST
INDUSTRIAL, LP.
SCHEDULE III:
REAL ESTATE AND ACCUMULATED DEPRECIATION
As of December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
Atlanta
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1650 Highway 155
|
|
McDonough, GA
|
|
|
|
|
|
|
788
|
|
|
|
4,544
|
|
|
|
(1,673
|
)
|
|
|
349
|
|
|
|
3,310
|
|
|
|
3,659
|
|
|
|
1,963
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1665 Dogwood Drive
|
|
Conyers, GA
|
|
|
|
|
|
|
635
|
|
|
|
3,662
|
|
|
|
580
|
|
|
|
635
|
|
|
|
4,242
|
|
|
|
4,877
|
|
|
|
1,601
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1715 Dogwood
|
|
Conyers, GA
|
|
|
|
|
|
|
288
|
|
|
|
1,675
|
|
|
|
675
|
|
|
|
215
|
|
|
|
2,423
|
|
|
|
2,638
|
|
|
|
828
|
|
|
|
1994
|
|
|
|
(l
|
)
|
11235 Harland Drive
|
|
Covington, GA
|
|
|
|
|
|
|
125
|
|
|
|
739
|
|
|
|
181
|
|
|
|
125
|
|
|
|
920
|
|
|
|
1,045
|
|
|
|
359
|
|
|
|
1994
|
|
|
|
(l
|
)
|
4051 Southmeadow Parkway
|
|
Atlanta, GA
|
|
|
|
|
|
|
726
|
|
|
|
4,130
|
|
|
|
875
|
|
|
|
726
|
|
|
|
5,005
|
|
|
|
5,731
|
|
|
|
1,897
|
|
|
|
1994
|
|
|
|
(l
|
)
|
4071 Southmeadow Parkway
|
|
Atlanta, GA
|
|
|
|
|
|
|
750
|
|
|
|
4,460
|
|
|
|
1,460
|
|
|
|
828
|
|
|
|
5,842
|
|
|
|
6,670
|
|
|
|
2,255
|
|
|
|
1994
|
|
|
|
(l
|
)
|
4081 Southmeadow Parkway
|
|
Atlanta, GA
|
|
|
|
|
|
|
1,012
|
|
|
|
5,918
|
|
|
|
1,595
|
|
|
|
1,157
|
|
|
|
7,368
|
|
|
|
8,525
|
|
|
|
2,819
|
|
|
|
1994
|
|
|
|
(l
|
)
|
5570 Tulane Dr(d)
|
|
Atlanta, GA
|
|
|
2,119
|
|
|
|
527
|
|
|
|
2,984
|
|
|
|
686
|
|
|
|
546
|
|
|
|
3,651
|
|
|
|
4,197
|
|
|
|
1,302
|
|
|
|
1996
|
|
|
|
(l
|
)
|
955 Cobb Place
|
|
Kennesaw, GA
|
|
|
3,000
|
|
|
|
780
|
|
|
|
4,420
|
|
|
|
741
|
|
|
|
804
|
|
|
|
5,137
|
|
|
|
5,941
|
|
|
|
1,837
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1256 Oakbrook Drive
|
|
Norcross, GA
|
|
|
1,265
|
|
|
|
336
|
|
|
|
1,907
|
|
|
|
262
|
|
|
|
339
|
|
|
|
2,166
|
|
|
|
2,505
|
|
|
|
540
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1265 Oakbrook Drive
|
|
Norcross, GA
|
|
|
1,264
|
|
|
|
307
|
|
|
|
1,742
|
|
|
|
454
|
|
|
|
309
|
|
|
|
2,194
|
|
|
|
2,503
|
|
|
|
684
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1280 Oakbrook Drive
|
|
Norcross, GA
|
|
|
1,230
|
|
|
|
281
|
|
|
|
1,592
|
|
|
|
306
|
|
|
|
283
|
|
|
|
1,896
|
|
|
|
2,179
|
|
|
|
495
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1300 Oakbrook Drive
|
|
Norcross, GA
|
|
|
1,728
|
|
|
|
420
|
|
|
|
2,381
|
|
|
|
260
|
|
|
|
423
|
|
|
|
2,638
|
|
|
|
3,061
|
|
|
|
611
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1325 Oakbrook Drive
|
|
Norcross, GA
|
|
|
1,363
|
|
|
|
332
|
|
|
|
1,879
|
|
|
|
204
|
|
|
|
334
|
|
|
|
2,081
|
|
|
|
2,415
|
|
|
|
508
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1351 Oakbrook Drive
|
|
Norcross, GA
|
|
|
|
|
|
|
370
|
|
|
|
2,099
|
|
|
|
(1,068
|
)
|
|
|
141
|
|
|
|
1,260
|
|
|
|
1,401
|
|
|
|
547
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1346 Oakbrook Drive
|
|
Norcross, GA
|
|
|
|
|
|
|
740
|
|
|
|
4,192
|
|
|
|
(1,588
|
)
|
|
|
338
|
|
|
|
3,006
|
|
|
|
3,344
|
|
|
|
1,130
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1412 Oakbrook Drive
|
|
Norcross, GA
|
|
|
|
|
|
|
313
|
|
|
|
1,776
|
|
|
|
(988
|
)
|
|
|
113
|
|
|
|
988
|
|
|
|
1,101
|
|
|
|
439
|
|
|
|
2001
|
|
|
|
(l
|
)
|
3060 South Park Blvd
|
|
Ellenwood, GA
|
|
|
|
|
|
|
1,600
|
|
|
|
12,464
|
|
|
|
1,315
|
|
|
|
1,604
|
|
|
|
13,775
|
|
|
|
15,379
|
|
|
|
2,991
|
|
|
|
2003
|
|
|
|
(l
|
)
|
Greenwood Industrial Park
|
|
McDonough, GA
|
|
|
4,563
|
|
|
|
1,550
|
|
|
|
|
|
|
|
7,485
|
|
|
|
1,550
|
|
|
|
7,485
|
|
|
|
9,035
|
|
|
|
1,195
|
|
|
|
2004
|
|
|
|
(l
|
)
|
46 Kent Drive
|
|
Cartersville GA
|
|
|
1,773
|
|
|
|
794
|
|
|
|
2,252
|
|
|
|
6
|
|
|
|
798
|
|
|
|
2,254
|
|
|
|
3,052
|
|
|
|
472
|
|
|
|
2005
|
|
|
|
(l
|
)
|
100 Dorris Williams
|
|
Villa Rica GA
|
|
|
1,947
|
|
|
|
401
|
|
|
|
3,754
|
|
|
|
42
|
|
|
|
406
|
|
|
|
3,791
|
|
|
|
4,197
|
|
|
|
1,208
|
|
|
|
2005
|
|
|
|
(l
|
)
|
605 Stonehill Drive
|
|
Atlanta, GA
|
|
|
1,601
|
|
|
|
485
|
|
|
|
1,979
|
|
|
|
(38
|
)
|
|
|
490
|
|
|
|
1,936
|
|
|
|
2,426
|
|
|
|
974
|
|
|
|
2005
|
|
|
|
(l
|
)
|
6514 Warren Drive
|
|
Norcross, GA
|
|
|
|
|
|
|
510
|
|
|
|
1,250
|
|
|
|
(51
|
)
|
|
|
513
|
|
|
|
1,196
|
|
|
|
1,709
|
|
|
|
226
|
|
|
|
2005
|
|
|
|
(l
|
)
|
6544 Warren Drive
|
|
Norcross, GA
|
|
|
|
|
|
|
711
|
|
|
|
2,310
|
|
|
|
(15
|
)
|
|
|
715
|
|
|
|
2,291
|
|
|
|
3,006
|
|
|
|
469
|
|
|
|
2005
|
|
|
|
(l
|
)
|
5356 E. Ponce De Leon
|
|
Stone Mountain, GA
|
|
|
2,819
|
|
|
|
604
|
|
|
|
3,888
|
|
|
|
210
|
|
|
|
610
|
|
|
|
4,092
|
|
|
|
4,702
|
|
|
|
1,209
|
|
|
|
2005
|
|
|
|
(l
|
)
|
5390 E. Ponce De Leon
|
|
Stone Mountain, GA
|
|
|
|
|
|
|
397
|
|
|
|
1,791
|
|
|
|
95
|
|
|
|
402
|
|
|
|
1,881
|
|
|
|
2,283
|
|
|
|
486
|
|
|
|
2005
|
|
|
|
(l
|
)
|
195 & 197 Collins Boulevard
|
|
Athens, GA
|
|
|
|
|
|
|
1,410
|
|
|
|
5,344
|
|
|
|
(1,838
|
)
|
|
|
953
|
|
|
|
3,963
|
|
|
|
4,916
|
|
|
|
2,160
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1755 Enterprise Drive
|
|
Buford, GA
|
|
|
1,537
|
|
|
|
712
|
|
|
|
2,118
|
|
|
|
11
|
|
|
|
716
|
|
|
|
2,125
|
|
|
|
2,841
|
|
|
|
482
|
|
|
|
2006
|
|
|
|
(l
|
)
|
4555 Atwater Court
|
|
Buford, GA
|
|
|
2,574
|
|
|
|
881
|
|
|
|
3,550
|
|
|
|
485
|
|
|
|
885
|
|
|
|
4,031
|
|
|
|
4,916
|
|
|
|
941
|
|
|
|
2006
|
|
|
|
(l
|
)
|
S-1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
80 Liberty Industrial Parkway
|
|
McDonough, GA
|
|
|
|
|
|
|
756
|
|
|
|
3,695
|
|
|
|
(1,419
|
)
|
|
|
451
|
|
|
|
2,581
|
|
|
|
3,032
|
|
|
|
609
|
|
|
|
2007
|
|
|
|
(l
|
)
|
596 Bonnie Valentine
|
|
Pendergrass, GA
|
|
|
|
|
|
|
2,580
|
|
|
|
21,730
|
|
|
|
2,414
|
|
|
|
2,594
|
|
|
|
24,130
|
|
|
|
26,724
|
|
|
|
2,439
|
|
|
|
2007
|
|
|
|
(l
|
)
|
11415 Old Roswell Road
|
|
Alpharetta, GA
|
|
|
|
|
|
|
2,403
|
|
|
|
1,912
|
|
|
|
315
|
|
|
|
2,428
|
|
|
|
2,202
|
|
|
|
4,630
|
|
|
|
313
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Baltimore
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1820 Portal
|
|
Baltimore, MD
|
|
|
|
|
|
|
884
|
|
|
|
4,891
|
|
|
|
454
|
|
|
|
899
|
|
|
|
5,330
|
|
|
|
6,229
|
|
|
|
1,684
|
|
|
|
1998
|
|
|
|
(l
|
)
|
9700 Martin Luther King Hwy
|
|
Lanham, MD
|
|
|
|
|
|
|
700
|
|
|
|
1,920
|
|
|
|
289
|
|
|
|
700
|
|
|
|
2,209
|
|
|
|
2,909
|
|
|
|
472
|
|
|
|
2003
|
|
|
|
(l
|
)
|
9730 Martin Luther King Hwy
|
|
Lanham, MD
|
|
|
|
|
|
|
500
|
|
|
|
955
|
|
|
|
518
|
|
|
|
500
|
|
|
|
1,473
|
|
|
|
1,973
|
|
|
|
482
|
|
|
|
2003
|
|
|
|
(l
|
)
|
4621 Boston Way
|
|
Lanham, MD
|
|
|
|
|
|
|
1,100
|
|
|
|
3,070
|
|
|
|
388
|
|
|
|
1,100
|
|
|
|
3,458
|
|
|
|
4,558
|
|
|
|
827
|
|
|
|
2003
|
|
|
|
(l
|
)
|
4720 Boston Way
|
|
Lanham, MD
|
|
|
|
|
|
|
1,200
|
|
|
|
2,174
|
|
|
|
300
|
|
|
|
1,200
|
|
|
|
2,474
|
|
|
|
3,674
|
|
|
|
585
|
|
|
|
2003
|
|
|
|
(l
|
)
|
22520 Randolph Drive
|
|
Dulles, VA
|
|
|
7,880
|
|
|
|
3,200
|
|
|
|
8,187
|
|
|
|
(151
|
)
|
|
|
3,208
|
|
|
|
8,028
|
|
|
|
11,236
|
|
|
|
1,564
|
|
|
|
2004
|
|
|
|
(l
|
)
|
22630 Dulles Summit Court
|
|
Dulles, VA
|
|
|
|
|
|
|
2,200
|
|
|
|
9,346
|
|
|
|
168
|
|
|
|
2,206
|
|
|
|
9,508
|
|
|
|
11,714
|
|
|
|
2,020
|
|
|
|
2004
|
|
|
|
(l
|
)
|
4201 Forbes Boulevard
|
|
Lanham, MD
|
|
|
|
|
|
|
356
|
|
|
|
1,823
|
|
|
|
337
|
|
|
|
375
|
|
|
|
2,141
|
|
|
|
2,516
|
|
|
|
474
|
|
|
|
2005
|
|
|
|
(l
|
)
|
4370-4383
Lottsford Vista Rd.
|
|
Lanham, MD
|
|
|
|
|
|
|
279
|
|
|
|
1,358
|
|
|
|
215
|
|
|
|
296
|
|
|
|
1,556
|
|
|
|
1,852
|
|
|
|
358
|
|
|
|
2005
|
|
|
|
(l
|
)
|
4400 Lottsford Vista Rd.
|
|
Lanham, MD
|
|
|
|
|
|
|
351
|
|
|
|
1,955
|
|
|
|
201
|
|
|
|
372
|
|
|
|
2,135
|
|
|
|
2,507
|
|
|
|
435
|
|
|
|
2005
|
|
|
|
(l
|
)
|
4420 Lottsford Vista Road
|
|
Lanham, MD
|
|
|
|
|
|
|
539
|
|
|
|
2,196
|
|
|
|
327
|
|
|
|
568
|
|
|
|
2,494
|
|
|
|
3,062
|
|
|
|
628
|
|
|
|
2005
|
|
|
|
(l
|
)
|
11204 McCormick Road
|
|
Hunt Valley, MD
|
|
|
|
|
|
|
1,017
|
|
|
|
3,132
|
|
|
|
67
|
|
|
|
1,038
|
|
|
|
3,178
|
|
|
|
4,216
|
|
|
|
778
|
|
|
|
2005
|
|
|
|
(l
|
)
|
11110 Pepper Road
|
|
Hunt Valley, MD
|
|
|
|
|
|
|
918
|
|
|
|
2,529
|
|
|
|
316
|
|
|
|
938
|
|
|
|
2,825
|
|
|
|
3,763
|
|
|
|
709
|
|
|
|
2005
|
|
|
|
(l
|
)
|
11100-11120
Gilroy Road
|
|
Hunt Valley, MD
|
|
|
|
|
|
|
901
|
|
|
|
1,455
|
|
|
|
57
|
|
|
|
919
|
|
|
|
1,494
|
|
|
|
2,413
|
|
|
|
501
|
|
|
|
2005
|
|
|
|
(l
|
)
|
10709 Gilroy Road
|
|
Hunt Valley, MD
|
|
|
|
|
|
|
913
|
|
|
|
2,705
|
|
|
|
64
|
|
|
|
913
|
|
|
|
2,769
|
|
|
|
3,682
|
|
|
|
918
|
|
|
|
2005
|
|
|
|
(l
|
)
|
7120-7132
Ambassador Road
|
|
Baltimore, MD
|
|
|
|
|
|
|
829
|
|
|
|
1,329
|
|
|
|
255
|
|
|
|
847
|
|
|
|
1,566
|
|
|
|
2,413
|
|
|
|
554
|
|
|
|
2005
|
|
|
|
(l
|
)
|
7142 Ambassador Road
|
|
Hunt Valley, MD
|
|
|
|
|
|
|
924
|
|
|
|
2,876
|
|
|
|
1,124
|
|
|
|
942
|
|
|
|
3,982
|
|
|
|
4,924
|
|
|
|
591
|
|
|
|
2005
|
|
|
|
(l
|
)
|
7144-7162
Ambassador Road
|
|
Baltimore, MD
|
|
|
|
|
|
|
979
|
|
|
|
1,672
|
|
|
|
187
|
|
|
|
1,000
|
|
|
|
1,838
|
|
|
|
2,838
|
|
|
|
602
|
|
|
|
2005
|
|
|
|
(l
|
)
|
7200 Rutherford Road
|
|
Baltimore, MD
|
|
|
|
|
|
|
1,032
|
|
|
|
2,150
|
|
|
|
253
|
|
|
|
1,054
|
|
|
|
2,381
|
|
|
|
3,435
|
|
|
|
527
|
|
|
|
2005
|
|
|
|
(l
|
)
|
2700 Lord Baltimore Road
|
|
Baltimore, MD
|
|
|
|
|
|
|
875
|
|
|
|
1,826
|
|
|
|
772
|
|
|
|
897
|
|
|
|
2,576
|
|
|
|
3,473
|
|
|
|
795
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1225 Bengies Road
|
|
Baltimore, MD
|
|
|
|
|
|
|
2,640
|
|
|
|
270
|
|
|
|
14,581
|
|
|
|
2,823
|
|
|
|
14,668
|
|
|
|
17,491
|
|
|
|
1,465
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Central Pennsylvania
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16522 Hunters Green Parkway
|
|
Hagerstown, MD
|
|
|
|
|
|
|
1,390
|
|
|
|
13,104
|
|
|
|
3,893
|
|
|
|
1,863
|
|
|
|
16,524
|
|
|
|
18,387
|
|
|
|
3,071
|
|
|
|
2003
|
|
|
|
(l
|
)
|
6951 Allentown Blvd
|
|
Harrisburg, PA
|
|
|
|
|
|
|
585
|
|
|
|
3,176
|
|
|
|
117
|
|
|
|
601
|
|
|
|
3,277
|
|
|
|
3,878
|
|
|
|
683
|
|
|
|
2005
|
|
|
|
(l
|
)
|
320 Museum Road
|
|
Washington, PA
|
|
|
|
|
|
|
201
|
|
|
|
1,819
|
|
|
|
(227
|
)
|
|
|
169
|
|
|
|
1,624
|
|
|
|
1,793
|
|
|
|
547
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1490 Commerce Avenue
|
|
Carlisle, PA
|
|
|
|
|
|
|
1,500
|
|
|
|
|
|
|
|
13,513
|
|
|
|
2,341
|
|
|
|
12,672
|
|
|
|
15,013
|
|
|
|
1,123
|
|
|
|
2008
|
|
|
|
(l
|
)
|
600 First Avenue
|
|
Gouldsboro, PA
|
|
|
|
|
|
|
7,022
|
|
|
|
|
|
|
|
58,132
|
|
|
|
7,019
|
|
|
|
58,135
|
|
|
|
65,154
|
|
|
|
3,432
|
|
|
|
2008
|
|
|
|
(l
|
)
|
225 Cross Farm Lane
|
|
York, PA
|
|
|
|
|
|
|
4,718
|
|
|
|
|
|
|
|
23,567
|
|
|
|
4,715
|
|
|
|
23,570
|
|
|
|
28,285
|
|
|
|
1,921
|
|
|
|
2008
|
|
|
|
(l
|
)
|
S-2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
Chicago
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3600 West Pratt Avenue
|
|
Lincolnwood, IL
|
|
|
|
|
|
|
1,050
|
|
|
|
5,767
|
|
|
|
(1,657
|
)
|
|
|
435
|
|
|
|
4,725
|
|
|
|
5,160
|
|
|
|
2,740
|
|
|
|
1994
|
|
|
|
(l
|
)
|
6750 South Sayre Avenue
|
|
Bedford Park, IL
|
|
|
|
|
|
|
224
|
|
|
|
1,309
|
|
|
|
620
|
|
|
|
224
|
|
|
|
1,929
|
|
|
|
2,153
|
|
|
|
745
|
|
|
|
1994
|
|
|
|
(l
|
)
|
585 Slawin Court
|
|
Mount Prospect, IL
|
|
|
3,059
|
|
|
|
611
|
|
|
|
3,505
|
|
|
|
1,608
|
|
|
|
516
|
|
|
|
5,208
|
|
|
|
5,724
|
|
|
|
2,217
|
|
|
|
1994
|
|
|
|
(l
|
)
|
2300 Windsor Court
|
|
Addison, IL
|
|
|
|
|
|
|
688
|
|
|
|
3,943
|
|
|
|
1,180
|
|
|
|
696
|
|
|
|
5,115
|
|
|
|
5,811
|
|
|
|
2,100
|
|
|
|
1994
|
|
|
|
(l
|
)
|
3505 Thayer Court
|
|
Aurora, IL
|
|
|
|
|
|
|
430
|
|
|
|
2,472
|
|
|
|
387
|
|
|
|
430
|
|
|
|
2,859
|
|
|
|
3,289
|
|
|
|
1,069
|
|
|
|
1994
|
|
|
|
(l
|
)
|
305-311 Era
Drive
|
|
Northbrook, IL
|
|
|
|
|
|
|
200
|
|
|
|
1,154
|
|
|
|
916
|
|
|
|
205
|
|
|
|
2,065
|
|
|
|
2,270
|
|
|
|
565
|
|
|
|
1994
|
|
|
|
(l
|
)
|
11241 Melrose Street
|
|
Franklin Park, IL
|
|
|
|
|
|
|
332
|
|
|
|
1,931
|
|
|
|
70
|
|
|
|
222
|
|
|
|
2,111
|
|
|
|
2,333
|
|
|
|
1,147
|
|
|
|
1995
|
|
|
|
(l
|
)
|
11939 S Central Avenue
|
|
Alsip, IL
|
|
|
|
|
|
|
1,208
|
|
|
|
6,843
|
|
|
|
2,296
|
|
|
|
1,305
|
|
|
|
9,042
|
|
|
|
10,347
|
|
|
|
2,839
|
|
|
|
1997
|
|
|
|
(l
|
)
|
405 East Shawmut
|
|
LaGrange, IL
|
|
|
|
|
|
|
368
|
|
|
|
2,083
|
|
|
|
(284
|
)
|
|
|
223
|
|
|
|
1,944
|
|
|
|
2,167
|
|
|
|
830
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1010-50
Sesame Street
|
|
Bensenville, IL
|
|
|
|
|
|
|
979
|
|
|
|
5,546
|
|
|
|
3,062
|
|
|
|
1,048
|
|
|
|
8,539
|
|
|
|
9,587
|
|
|
|
2,640
|
|
|
|
1997
|
|
|
|
(l
|
)
|
7501 South Pulaski
|
|
Chicago, IL
|
|
|
|
|
|
|
318
|
|
|
|
2,038
|
|
|
|
(276
|
)
|
|
|
100
|
|
|
|
1,980
|
|
|
|
2,080
|
|
|
|
1,073
|
|
|
|
1997
|
|
|
|
(l
|
)
|
2120-24
Roberts
|
|
Broadview, IL
|
|
|
|
|
|
|
220
|
|
|
|
1,248
|
|
|
|
196
|
|
|
|
231
|
|
|
|
1,433
|
|
|
|
1,664
|
|
|
|
464
|
|
|
|
1998
|
|
|
|
(l
|
)
|
800 Business Center Drive
|
|
Mount Prospect, IL
|
|
|
|
|
|
|
631
|
|
|
|
3,493
|
|
|
|
328
|
|
|
|
666
|
|
|
|
3,786
|
|
|
|
4,452
|
|
|
|
936
|
|
|
|
2000
|
|
|
|
(l
|
)
|
580 Slawin Court
|
|
Mount Prospect, IL
|
|
|
|
|
|
|
233
|
|
|
|
1,292
|
|
|
|
(216
|
)
|
|
|
156
|
|
|
|
1,153
|
|
|
|
1,309
|
|
|
|
392
|
|
|
|
2000
|
|
|
|
(l
|
)
|
1150 Feehanville Drive
|
|
Mount Prospect, IL
|
|
|
|
|
|
|
260
|
|
|
|
1,437
|
|
|
|
(743
|
)
|
|
|
75
|
|
|
|
879
|
|
|
|
954
|
|
|
|
410
|
|
|
|
2000
|
|
|
|
(l
|
)
|
19W661 101st Street
|
|
Lemont, IL
|
|
|
5,477
|
|
|
|
1,200
|
|
|
|
6,643
|
|
|
|
2,408
|
|
|
|
1,220
|
|
|
|
9,031
|
|
|
|
10,251
|
|
|
|
2,930
|
|
|
|
2001
|
|
|
|
(l
|
)
|
175 Wall Street
|
|
Glendale Heights, IL
|
|
|
1,491
|
|
|
|
427
|
|
|
|
2,363
|
|
|
|
163
|
|
|
|
433
|
|
|
|
2,520
|
|
|
|
2,953
|
|
|
|
588
|
|
|
|
2002
|
|
|
|
(l
|
)
|
800-820
Thorndale Avenue
|
|
Bensenville, IL
|
|
|
4,449
|
|
|
|
751
|
|
|
|
4,159
|
|
|
|
2,213
|
|
|
|
761
|
|
|
|
6,362
|
|
|
|
7,123
|
|
|
|
1,837
|
|
|
|
2002
|
|
|
|
(l
|
)
|
251 Airport Road
|
|
North Aurora, IL
|
|
|
|
|
|
|
983
|
|
|
|
|
|
|
|
6,783
|
|
|
|
983
|
|
|
|
6,783
|
|
|
|
7,766
|
|
|
|
1,480
|
|
|
|
2002
|
|
|
|
(l
|
)
|
1661 Feehanville Drive
|
|
Mount Prospect, IL
|
|
|
|
|
|
|
985
|
|
|
|
5,455
|
|
|
|
2,155
|
|
|
|
1,044
|
|
|
|
7,551
|
|
|
|
8,595
|
|
|
|
1,964
|
|
|
|
2004
|
|
|
|
(l
|
)
|
1850 Touhy & 1158 McCage Ave.
|
|
Elk Grove Village, IL
|
|
|
|
|
|
|
1,500
|
|
|
|
4,842
|
|
|
|
(163
|
)
|
|
|
1,514
|
|
|
|
4,665
|
|
|
|
6,179
|
|
|
|
1,003
|
|
|
|
2004
|
|
|
|
(l
|
)
|
1088-1130
Thorndale Avenue
|
|
Bensenville, IL
|
|
|
|
|
|
|
2,103
|
|
|
|
3,674
|
|
|
|
204
|
|
|
|
2,108
|
|
|
|
3,873
|
|
|
|
5,981
|
|
|
|
1,028
|
|
|
|
2005
|
|
|
|
(l
|
)
|
855-891
Busse Rd.
|
|
Bensenville, IL
|
|
|
|
|
|
|
1,597
|
|
|
|
2,767
|
|
|
|
(76
|
)
|
|
|
1,601
|
|
|
|
2,687
|
|
|
|
4,288
|
|
|
|
677
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1060-1074 W. Thorndale
Ave.
|
|
Bensenville, IL
|
|
|
|
|
|
|
1,704
|
|
|
|
2,108
|
|
|
|
352
|
|
|
|
1,709
|
|
|
|
2,455
|
|
|
|
4,164
|
|
|
|
781
|
|
|
|
2005
|
|
|
|
(l
|
)
|
400 Crossroads Pkwy
|
|
Bolingbrook, IL
|
|
|
5,747
|
|
|
|
1,178
|
|
|
|
9,453
|
|
|
|
845
|
|
|
|
1,181
|
|
|
|
10,295
|
|
|
|
11,476
|
|
|
|
2,136
|
|
|
|
2005
|
|
|
|
(l
|
)
|
7609 W. Industrial Drive
|
|
Forest Park, IL
|
|
|
|
|
|
|
1,207
|
|
|
|
2,343
|
|
|
|
174
|
|
|
|
1,213
|
|
|
|
2,511
|
|
|
|
3,724
|
|
|
|
678
|
|
|
|
2005
|
|
|
|
(l
|
)
|
7801 W. Industrial Drive
|
|
Forest Park, IL
|
|
|
|
|
|
|
1,215
|
|
|
|
3,020
|
|
|
|
(170
|
)
|
|
|
1,220
|
|
|
|
2,845
|
|
|
|
4,065
|
|
|
|
687
|
|
|
|
2005
|
|
|
|
(l
|
)
|
725 Kimberly Drive
|
|
Carol Stream, IL
|
|
|
|
|
|
|
793
|
|
|
|
1,395
|
|
|
|
182
|
|
|
|
801
|
|
|
|
1,569
|
|
|
|
2,370
|
|
|
|
313
|
|
|
|
2005
|
|
|
|
(l
|
)
|
17001 S. Vincennes
|
|
Thornton, IL
|
|
|
|
|
|
|
497
|
|
|
|
504
|
|
|
|
103
|
|
|
|
513
|
|
|
|
591
|
|
|
|
1,104
|
|
|
|
287
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1111 Davis Road
|
|
Elgin, IL
|
|
|
|
|
|
|
998
|
|
|
|
1,859
|
|
|
|
674
|
|
|
|
1,046
|
|
|
|
2,485
|
|
|
|
3,531
|
|
|
|
1,049
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2900 W. 166th Street
|
|
Markham, IL
|
|
|
|
|
|
|
1,132
|
|
|
|
4,293
|
|
|
|
723
|
|
|
|
1,134
|
|
|
|
5,014
|
|
|
|
6,148
|
|
|
|
1,139
|
|
|
|
2007
|
|
|
|
(l
|
)
|
555 W. Algonquin Rd.
|
|
Arlington Heights, IL
|
|
|
1,953
|
|
|
|
574
|
|
|
|
741
|
|
|
|
2,053
|
|
|
|
579
|
|
|
|
2,789
|
|
|
|
3,368
|
|
|
|
405
|
|
|
|
2007
|
|
|
|
(l
|
)
|
7000 W. 60th Street
|
|
Chicago, IL
|
|
|
1,061
|
|
|
|
609
|
|
|
|
932
|
|
|
|
137
|
|
|
|
667
|
|
|
|
1,011
|
|
|
|
1,678
|
|
|
|
436
|
|
|
|
2007
|
|
|
|
(l
|
)
|
9501 Nevada
|
|
Franklin Park, IL
|
|
|
7,687
|
|
|
|
2,721
|
|
|
|
5,630
|
|
|
|
514
|
|
|
|
2,737
|
|
|
|
6,128
|
|
|
|
8,865
|
|
|
|
1,027
|
|
|
|
2008
|
|
|
|
(l
|
)
|
S-3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
1501 Oakton Street
|
|
Elk Grove Village, IL
|
|
|
|
|
|
|
3,369
|
|
|
|
6,121
|
|
|
|
139
|
|
|
|
3,482
|
|
|
|
6,147
|
|
|
|
9,629
|
|
|
|
905
|
|
|
|
2008
|
|
|
|
(l
|
)
|
16500 W. 103rd Street
|
|
Woodridge, IL
|
|
|
2,643
|
|
|
|
744
|
|
|
|
2,458
|
|
|
|
151
|
|
|
|
760
|
|
|
|
2,594
|
|
|
|
3,354
|
|
|
|
377
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Cincinnati
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9900-9970
Princeton
|
|
Cincinnati, OH
|
|
|
|
|
|
|
545
|
|
|
|
3,088
|
|
|
|
1,760
|
|
|
|
566
|
|
|
|
4,827
|
|
|
|
5,393
|
|
|
|
1,920
|
|
|
|
1996
|
|
|
|
(l
|
)
|
2940 Highland Avenue
|
|
Cincinnati, OH
|
|
|
|
|
|
|
1,717
|
|
|
|
9,730
|
|
|
|
(883
|
)
|
|
|
1,126
|
|
|
|
9,438
|
|
|
|
10,564
|
|
|
|
4,194
|
|
|
|
1996
|
|
|
|
(l
|
)
|
4700-4750
Creek Road
|
|
Blue Ash, OH
|
|
|
|
|
|
|
1,080
|
|
|
|
6,118
|
|
|
|
1,112
|
|
|
|
1,109
|
|
|
|
7,201
|
|
|
|
8,310
|
|
|
|
2,401
|
|
|
|
1996
|
|
|
|
(l
|
)
|
901 Pleasant Valley Drive
|
|
Springboro, OH
|
|
|
|
|
|
|
304
|
|
|
|
1,721
|
|
|
|
(257
|
)
|
|
|
203
|
|
|
|
1,565
|
|
|
|
1,768
|
|
|
|
687
|
|
|
|
1998
|
|
|
|
(l
|
)
|
4436 Mulhauser Road
|
|
Hamilton, OH
|
|
|
|
|
|
|
630
|
|
|
|
|
|
|
|
5,076
|
|
|
|
630
|
|
|
|
5,076
|
|
|
|
5,706
|
|
|
|
1,026
|
|
|
|
2002
|
|
|
|
(l
|
)
|
4438 Mulhauser Road
|
|
Hamilton, OH
|
|
|
4,986
|
|
|
|
779
|
|
|
|
|
|
|
|
6,728
|
|
|
|
779
|
|
|
|
6,728
|
|
|
|
7,507
|
|
|
|
1,706
|
|
|
|
2002
|
|
|
|
(l
|
)
|
420 Wards Corner Road
|
|
Loveland, OH
|
|
|
|
|
|
|
600
|
|
|
|
1,083
|
|
|
|
669
|
|
|
|
606
|
|
|
|
1,746
|
|
|
|
2,352
|
|
|
|
487
|
|
|
|
2003
|
|
|
|
(l
|
)
|
422 Wards Corner Road
|
|
Loveland, OH
|
|
|
|
|
|
|
600
|
|
|
|
1,811
|
|
|
|
(179
|
)
|
|
|
575
|
|
|
|
1,657
|
|
|
|
2,232
|
|
|
|
486
|
|
|
|
2003
|
|
|
|
(l
|
)
|
4663 Dues Drive
|
|
Westchester, OH
|
|
|
|
|
|
|
858
|
|
|
|
2,273
|
|
|
|
1,173
|
|
|
|
875
|
|
|
|
3,429
|
|
|
|
4,304
|
|
|
|
1,939
|
|
|
|
2005
|
|
|
|
(l
|
)
|
9525 Glades Drive
|
|
Westchester, OH
|
|
|
|
|
|
|
347
|
|
|
|
1,323
|
|
|
|
115
|
|
|
|
355
|
|
|
|
1,430
|
|
|
|
1,785
|
|
|
|
330
|
|
|
|
2007
|
|
|
|
(l
|
)
|
9776-9876
Windisch Road
|
|
Westchester, OH
|
|
|
|
|
|
|
392
|
|
|
|
1,744
|
|
|
|
24
|
|
|
|
394
|
|
|
|
1,766
|
|
|
|
2,160
|
|
|
|
304
|
|
|
|
2007
|
|
|
|
(l
|
)
|
9810-9822
Windisch Road
|
|
Westchester, OH
|
|
|
|
|
|
|
395
|
|
|
|
2,541
|
|
|
|
16
|
|
|
|
397
|
|
|
|
2,555
|
|
|
|
2,952
|
|
|
|
305
|
|
|
|
2007
|
|
|
|
(l
|
)
|
9842-9862
Windisch Road
|
|
Westchester, OH
|
|
|
|
|
|
|
506
|
|
|
|
3,148
|
|
|
|
47
|
|
|
|
508
|
|
|
|
3,193
|
|
|
|
3,701
|
|
|
|
377
|
|
|
|
2007
|
|
|
|
(l
|
)
|
9872-9898
Windisch Road
|
|
Westchester, OH
|
|
|
|
|
|
|
546
|
|
|
|
3,039
|
|
|
|
46
|
|
|
|
548
|
|
|
|
3,083
|
|
|
|
3,631
|
|
|
|
377
|
|
|
|
2007
|
|
|
|
(l
|
)
|
9902-9922
Windisch Road
|
|
Westchester, OH
|
|
|
|
|
|
|
623
|
|
|
|
4,003
|
|
|
|
94
|
|
|
|
627
|
|
|
|
4,093
|
|
|
|
4,720
|
|
|
|
619
|
|
|
|
2007
|
|
|
|
(l
|
)
|
Cleveland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30311 Emerald Valley Pkwy.
|
|
Glenwillow, OH
|
|
|
|
|
|
|
681
|
|
|
|
11,838
|
|
|
|
928
|
|
|
|
691
|
|
|
|
12,756
|
|
|
|
13,447
|
|
|
|
2,072
|
|
|
|
2006
|
|
|
|
(l
|
)
|
30333 Emerald Valley Pkwy.
|
|
Glenwillow, OH
|
|
|
4,916
|
|
|
|
466
|
|
|
|
5,447
|
|
|
|
103
|
|
|
|
475
|
|
|
|
5,541
|
|
|
|
6,016
|
|
|
|
1,080
|
|
|
|
2006
|
|
|
|
(l
|
)
|
7800 Cochran Road
|
|
Glenwillow, OH
|
|
|
7,114
|
|
|
|
972
|
|
|
|
7,033
|
|
|
|
171
|
|
|
|
991
|
|
|
|
7,185
|
|
|
|
8,176
|
|
|
|
1,385
|
|
|
|
2006
|
|
|
|
(l
|
)
|
7900 Cochran Road
|
|
Glenwillow, OH
|
|
|
|
|
|
|
775
|
|
|
|
6,244
|
|
|
|
80
|
|
|
|
792
|
|
|
|
6,307
|
|
|
|
7,099
|
|
|
|
1,104
|
|
|
|
2006
|
|
|
|
(l
|
)
|
7905 Cochran Road
|
|
Glenwillow, OH
|
|
|
|
|
|
|
920
|
|
|
|
6,174
|
|
|
|
89
|
|
|
|
921
|
|
|
|
6,262
|
|
|
|
7,183
|
|
|
|
1,069
|
|
|
|
2006
|
|
|
|
(l
|
)
|
30600 Carter Street
|
|
Solon, OH
|
|
|
|
|
|
|
989
|
|
|
|
3,042
|
|
|
|
960
|
|
|
|
1,022
|
|
|
|
3,969
|
|
|
|
4,991
|
|
|
|
1,741
|
|
|
|
2006
|
|
|
|
(l
|
)
|
8181 Darrow Road
|
|
Twinsburg, OH
|
|
|
|
|
|
|
2,478
|
|
|
|
6,791
|
|
|
|
1,865
|
|
|
|
2,496
|
|
|
|
8,639
|
|
|
|
11,135
|
|
|
|
1,174
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Columbus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3800 Lockbourne Industrial Pkwy
|
|
Columbus, OH
|
|
|
|
|
|
|
1,045
|
|
|
|
6,421
|
|
|
|
(1,875
|
)
|
|
|
588
|
|
|
|
5,003
|
|
|
|
5,591
|
|
|
|
2,348
|
|
|
|
1996
|
|
|
|
(l
|
)
|
3880 Groveport Road
|
|
Columbus, OH
|
|
|
|
|
|
|
1,955
|
|
|
|
12,154
|
|
|
|
(1,420
|
)
|
|
|
1,610
|
|
|
|
11,079
|
|
|
|
12,689
|
|
|
|
4,369
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1819 North Walcutt Road
|
|
Columbus, OH
|
|
|
|
|
|
|
637
|
|
|
|
4,590
|
|
|
|
(690
|
)
|
|
|
454
|
|
|
|
4,083
|
|
|
|
4,537
|
|
|
|
1,487
|
|
|
|
1997
|
|
|
|
(l
|
)
|
4115 Leap Road(d)
|
|
Hillard, OH
|
|
|
|
|
|
|
756
|
|
|
|
4,297
|
|
|
|
1,511
|
|
|
|
756
|
|
|
|
5,808
|
|
|
|
6,564
|
|
|
|
1,858
|
|
|
|
1998
|
|
|
|
(l
|
)
|
3300 Lockbourne
|
|
Columbus, OH
|
|
|
|
|
|
|
708
|
|
|
|
3,920
|
|
|
|
(2,121
|
)
|
|
|
156
|
|
|
|
2,351
|
|
|
|
2,507
|
|
|
|
1,513
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1076 Pittsburgh Drive
|
|
Delaware, OH
|
|
|
|
|
|
|
2,265
|
|
|
|
4,733
|
|
|
|
(37
|
)
|
|
|
2,273
|
|
|
|
4,688
|
|
|
|
6,961
|
|
|
|
1,220
|
|
|
|
2005
|
|
|
|
(l
|
)
|
6150 Huntly Road
|
|
Columbus, OH
|
|
|
|
|
|
|
920
|
|
|
|
4,810
|
|
|
|
(689
|
)
|
|
|
791
|
|
|
|
4,250
|
|
|
|
5,041
|
|
|
|
857
|
|
|
|
2005
|
|
|
|
(l
|
)
|
4311 Janitrol Road
|
|
Columbus, OH
|
|
|
|
|
|
|
681
|
|
|
|
5,941
|
|
|
|
(3,796
|
)
|
|
|
227
|
|
|
|
2,599
|
|
|
|
2,826
|
|
|
|
915
|
|
|
|
2006
|
|
|
|
(l
|
)
|
S-4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
4600 S. Hamilton Road
|
|
Groveport, OH
|
|
|
|
|
|
|
662
|
|
|
|
4,332
|
|
|
|
1,453
|
|
|
|
675
|
|
|
|
5,772
|
|
|
|
6,447
|
|
|
|
1,033
|
|
|
|
2007
|
|
|
|
(l
|
)
|
Dallas/Fort Worth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2406-2416
Walnut Ridge
|
|
Dallas, TX
|
|
|
|
|
|
|
178
|
|
|
|
1,006
|
|
|
|
585
|
|
|
|
172
|
|
|
|
1,597
|
|
|
|
1,769
|
|
|
|
409
|
|
|
|
1997
|
|
|
|
(l
|
)
|
2401-2419
Walnut Ridge
|
|
Dallas, TX
|
|
|
|
|
|
|
148
|
|
|
|
839
|
|
|
|
299
|
|
|
|
142
|
|
|
|
1,144
|
|
|
|
1,286
|
|
|
|
287
|
|
|
|
1997
|
|
|
|
(l
|
)
|
900-906
Great Southwest Pkwy
|
|
Arlington, TX
|
|
|
|
|
|
|
237
|
|
|
|
1,342
|
|
|
|
440
|
|
|
|
270
|
|
|
|
1,749
|
|
|
|
2,019
|
|
|
|
545
|
|
|
|
1997
|
|
|
|
(l
|
)
|
3000 West Commerce
|
|
Dallas, TX
|
|
|
|
|
|
|
456
|
|
|
|
2,584
|
|
|
|
983
|
|
|
|
469
|
|
|
|
3,554
|
|
|
|
4,023
|
|
|
|
1,027
|
|
|
|
1997
|
|
|
|
(l
|
)
|
3030 Hansboro
|
|
Dallas, TX
|
|
|
|
|
|
|
266
|
|
|
|
1,510
|
|
|
|
(619
|
)
|
|
|
85
|
|
|
|
1,072
|
|
|
|
1,157
|
|
|
|
620
|
|
|
|
1997
|
|
|
|
(l
|
)
|
405-407 113th
|
|
Arlington, TX
|
|
|
|
|
|
|
181
|
|
|
|
1,026
|
|
|
|
475
|
|
|
|
185
|
|
|
|
1,497
|
|
|
|
1,682
|
|
|
|
434
|
|
|
|
1997
|
|
|
|
(l
|
)
|
816 111th Street
|
|
Arlington, TX
|
|
|
873
|
|
|
|
251
|
|
|
|
1,421
|
|
|
|
132
|
|
|
|
258
|
|
|
|
1,546
|
|
|
|
1,804
|
|
|
|
512
|
|
|
|
1997
|
|
|
|
(l
|
)
|
7427 Dogwood Park
|
|
Richland Hills, TX
|
|
|
|
|
|
|
96
|
|
|
|
532
|
|
|
|
573
|
|
|
|
102
|
|
|
|
1,099
|
|
|
|
1,201
|
|
|
|
444
|
|
|
|
1998
|
|
|
|
(l
|
)
|
7348-54
Tower Street
|
|
Richland Hills, TX
|
|
|
|
|
|
|
88
|
|
|
|
489
|
|
|
|
225
|
|
|
|
94
|
|
|
|
708
|
|
|
|
802
|
|
|
|
213
|
|
|
|
1998
|
|
|
|
(l
|
)
|
7339-41
Tower Street
|
|
Richland Hills, TX
|
|
|
|
|
|
|
98
|
|
|
|
541
|
|
|
|
169
|
|
|
|
104
|
|
|
|
704
|
|
|
|
808
|
|
|
|
192
|
|
|
|
1998
|
|
|
|
(l
|
)
|
7437-45
Tower Street
|
|
Richland Hills, TX
|
|
|
|
|
|
|
102
|
|
|
|
563
|
|
|
|
121
|
|
|
|
108
|
|
|
|
678
|
|
|
|
786
|
|
|
|
198
|
|
|
|
1998
|
|
|
|
(l
|
)
|
7331-59
Airport Freeway
|
|
Richland Hills, TX
|
|
|
|
|
|
|
354
|
|
|
|
1,958
|
|
|
|
349
|
|
|
|
372
|
|
|
|
2,289
|
|
|
|
2,661
|
|
|
|
721
|
|
|
|
1998
|
|
|
|
(l
|
)
|
7338-60
Dogwood Park
|
|
Richland Hills, TX
|
|
|
|
|
|
|
106
|
|
|
|
587
|
|
|
|
126
|
|
|
|
112
|
|
|
|
707
|
|
|
|
819
|
|
|
|
207
|
|
|
|
1998
|
|
|
|
(l
|
)
|
7450-70
Dogwood Park
|
|
Richland Hills, TX
|
|
|
|
|
|
|
106
|
|
|
|
584
|
|
|
|
157
|
|
|
|
112
|
|
|
|
735
|
|
|
|
847
|
|
|
|
228
|
|
|
|
1998
|
|
|
|
(l
|
)
|
7423-49
Airport Freeway
|
|
Richland Hills, TX
|
|
|
|
|
|
|
293
|
|
|
|
1,621
|
|
|
|
393
|
|
|
|
308
|
|
|
|
1,999
|
|
|
|
2,307
|
|
|
|
648
|
|
|
|
1998
|
|
|
|
(l
|
)
|
7400 Whitehall Street
|
|
Richland Hills, TX
|
|
|
|
|
|
|
109
|
|
|
|
603
|
|
|
|
61
|
|
|
|
115
|
|
|
|
658
|
|
|
|
773
|
|
|
|
198
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1602-1654
Terre Colony
|
|
Dallas, TX
|
|
|
1,867
|
|
|
|
458
|
|
|
|
2,596
|
|
|
|
805
|
|
|
|
468
|
|
|
|
3,391
|
|
|
|
3,859
|
|
|
|
841
|
|
|
|
2000
|
|
|
|
(l
|
)
|
2351-2355
Merritt Drive
|
|
Garland, TX
|
|
|
|
|
|
|
101
|
|
|
|
574
|
|
|
|
87
|
|
|
|
92
|
|
|
|
670
|
|
|
|
762
|
|
|
|
180
|
|
|
|
2000
|
|
|
|
(l
|
)
|
701-735
North Plano Road
|
|
Richardson, TX
|
|
|
|
|
|
|
696
|
|
|
|
3,944
|
|
|
|
(1,760
|
)
|
|
|
269
|
|
|
|
2,611
|
|
|
|
2,880
|
|
|
|
1,186
|
|
|
|
2000
|
|
|
|
(l
|
)
|
2220 Merritt Drive
|
|
Garland, TX
|
|
|
|
|
|
|
352
|
|
|
|
1,993
|
|
|
|
1,088
|
|
|
|
356
|
|
|
|
3,077
|
|
|
|
3,433
|
|
|
|
936
|
|
|
|
2000
|
|
|
|
(l
|
)
|
2010 Merritt Drive
|
|
Garland, TX
|
|
|
|
|
|
|
350
|
|
|
|
1,981
|
|
|
|
578
|
|
|
|
357
|
|
|
|
2,552
|
|
|
|
2,909
|
|
|
|
794
|
|
|
|
2000
|
|
|
|
(l
|
)
|
2363 Merritt Drive
|
|
Garland, TX
|
|
|
|
|
|
|
73
|
|
|
|
412
|
|
|
|
65
|
|
|
|
47
|
|
|
|
503
|
|
|
|
550
|
|
|
|
157
|
|
|
|
2000
|
|
|
|
(l
|
)
|
2447 Merritt Drive
|
|
Garland, TX
|
|
|
|
|
|
|
70
|
|
|
|
395
|
|
|
|
(205
|
)
|
|
|
23
|
|
|
|
237
|
|
|
|
260
|
|
|
|
119
|
|
|
|
2000
|
|
|
|
(l
|
)
|
2465-2475
Merritt Drive
|
|
Garland, TX
|
|
|
|
|
|
|
91
|
|
|
|
514
|
|
|
|
35
|
|
|
|
71
|
|
|
|
569
|
|
|
|
640
|
|
|
|
154
|
|
|
|
2000
|
|
|
|
(l
|
)
|
2485-2505
Merritt Drive
|
|
Garland, TX
|
|
|
|
|
|
|
431
|
|
|
|
2,440
|
|
|
|
848
|
|
|
|
436
|
|
|
|
3,283
|
|
|
|
3,719
|
|
|
|
778
|
|
|
|
2000
|
|
|
|
(l
|
)
|
2081 Hutton Drive Bldg 1(e)
|
|
Carrolton, TX
|
|
|
1,507
|
|
|
|
448
|
|
|
|
2,540
|
|
|
|
(272
|
)
|
|
|
295
|
|
|
|
2,421
|
|
|
|
2,716
|
|
|
|
725
|
|
|
|
2001
|
|
|
|
(l
|
)
|
2110 Hutton Drive
|
|
Carrolton, TX
|
|
|
|
|
|
|
374
|
|
|
|
2,117
|
|
|
|
(260
|
)
|
|
|
268
|
|
|
|
1,963
|
|
|
|
2,231
|
|
|
|
721
|
|
|
|
2001
|
|
|
|
(l
|
)
|
2025 McKenzie Drive
|
|
Carrolton, TX
|
|
|
1,579
|
|
|
|
437
|
|
|
|
2,478
|
|
|
|
348
|
|
|
|
442
|
|
|
|
2,821
|
|
|
|
3,263
|
|
|
|
774
|
|
|
|
2001
|
|
|
|
(l
|
)
|
2019 McKenzie Drive
|
|
Carrolton, TX
|
|
|
1,886
|
|
|
|
502
|
|
|
|
2,843
|
|
|
|
552
|
|
|
|
507
|
|
|
|
3,390
|
|
|
|
3,897
|
|
|
|
903
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1420 Valwood Parkway Bldg 1(d)
|
|
Carrolton, TX
|
|
|
|
|
|
|
460
|
|
|
|
2,608
|
|
|
|
(1,499
|
)
|
|
|
112
|
|
|
|
1,457
|
|
|
|
1,569
|
|
|
|
797
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1620 Valwood Parkway(e)
|
|
Carrolton, TX
|
|
|
|
|
|
|
1,089
|
|
|
|
6,173
|
|
|
|
(1,613
|
)
|
|
|
605
|
|
|
|
5,044
|
|
|
|
5,649
|
|
|
|
1,829
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1505 Luna Road Bldg II
|
|
Carrolton, TX
|
|
|
|
|
|
|
167
|
|
|
|
948
|
|
|
|
(425
|
)
|
|
|
78
|
|
|
|
612
|
|
|
|
690
|
|
|
|
254
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1625 West Crosby Road
|
|
Carrolton, TX
|
|
|
|
|
|
|
617
|
|
|
|
3,498
|
|
|
|
(249
|
)
|
|
|
456
|
|
|
|
3,410
|
|
|
|
3,866
|
|
|
|
1,033
|
|
|
|
2001
|
|
|
|
(l
|
)
|
S-5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
2029-2035
McKenzie Drive
|
|
Carrolton, TX
|
|
|
1,897
|
|
|
|
306
|
|
|
|
1,870
|
|
|
|
680
|
|
|
|
306
|
|
|
|
2,550
|
|
|
|
2,856
|
|
|
|
1,014
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1840 Hutton Drive(d)
|
|
Carrolton, TX
|
|
|
|
|
|
|
811
|
|
|
|
4,597
|
|
|
|
176
|
|
|
|
695
|
|
|
|
4,889
|
|
|
|
5,584
|
|
|
|
1,362
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1420 Valwood Pkwy Bldg II
|
|
Carrolton, TX
|
|
|
|
|
|
|
373
|
|
|
|
2,116
|
|
|
|
321
|
|
|
|
377
|
|
|
|
2,433
|
|
|
|
2,810
|
|
|
|
599
|
|
|
|
2001
|
|
|
|
(l
|
)
|
2015 McKenzie Drive
|
|
Carrolton, TX
|
|
|
2,106
|
|
|
|
510
|
|
|
|
2,891
|
|
|
|
395
|
|
|
|
516
|
|
|
|
3,280
|
|
|
|
3,796
|
|
|
|
843
|
|
|
|
2001
|
|
|
|
(l
|
)
|
2009 McKenzie Drive
|
|
Carrolton, TX
|
|
|
|
|
|
|
476
|
|
|
|
2,699
|
|
|
|
376
|
|
|
|
481
|
|
|
|
3,070
|
|
|
|
3,551
|
|
|
|
790
|
|
|
|
2001
|
|
|
|
(l
|
)
|
1505 Luna Road Bldg I
|
|
Carrolton, TX
|
|
|
|
|
|
|
521
|
|
|
|
2,953
|
|
|
|
(1,985
|
)
|
|
|
130
|
|
|
|
1,359
|
|
|
|
1,489
|
|
|
|
735
|
|
|
|
2001
|
|
|
|
(l
|
)
|
2104 Hutton Drive
|
|
Carrolton, TX
|
|
|
|
|
|
|
246
|
|
|
|
1,393
|
|
|
|
(424
|
)
|
|
|
140
|
|
|
|
1,075
|
|
|
|
1,215
|
|
|
|
372
|
|
|
|
2001
|
|
|
|
(l
|
)
|
900-1100
Avenue S
|
|
Grand Prairie, TX
|
|
|
2,669
|
|
|
|
623
|
|
|
|
3,528
|
|
|
|
1,365
|
|
|
|
629
|
|
|
|
4,887
|
|
|
|
5,516
|
|
|
|
1,059
|
|
|
|
2002
|
|
|
|
(l
|
)
|
Plano Crossing(f)
|
|
Plano, TX
|
|
|
7,709
|
|
|
|
1,961
|
|
|
|
11,112
|
|
|
|
819
|
|
|
|
1,981
|
|
|
|
11,911
|
|
|
|
13,892
|
|
|
|
2,648
|
|
|
|
2002
|
|
|
|
(l
|
)
|
7413A-C Dogwood Park
|
|
Richland Hills, TX
|
|
|
|
|
|
|
110
|
|
|
|
623
|
|
|
|
195
|
|
|
|
111
|
|
|
|
817
|
|
|
|
928
|
|
|
|
167
|
|
|
|
2002
|
|
|
|
(l
|
)
|
7450 Tower Street
|
|
Richland Hills, TX
|
|
|
|
|
|
|
36
|
|
|
|
204
|
|
|
|
183
|
|
|
|
36
|
|
|
|
387
|
|
|
|
423
|
|
|
|
148
|
|
|
|
2002
|
|
|
|
(l
|
)
|
7436 Tower Street
|
|
Richland Hills, TX
|
|
|
|
|
|
|
57
|
|
|
|
324
|
|
|
|
158
|
|
|
|
58
|
|
|
|
481
|
|
|
|
539
|
|
|
|
172
|
|
|
|
2002
|
|
|
|
(l
|
)
|
7426 Tower Street
|
|
Richland Hills, TX
|
|
|
|
|
|
|
76
|
|
|
|
429
|
|
|
|
239
|
|
|
|
76
|
|
|
|
668
|
|
|
|
744
|
|
|
|
103
|
|
|
|
2002
|
|
|
|
(l
|
)
|
7427-7429
Tower Street
|
|
Richland Hills, TX
|
|
|
|
|
|
|
75
|
|
|
|
427
|
|
|
|
130
|
|
|
|
76
|
|
|
|
556
|
|
|
|
632
|
|
|
|
111
|
|
|
|
2002
|
|
|
|
(l
|
)
|
2840-2842
Handley Ederville Rd
|
|
Richland Hills, TX
|
|
|
|
|
|
|
112
|
|
|
|
635
|
|
|
|
56
|
|
|
|
113
|
|
|
|
690
|
|
|
|
803
|
|
|
|
145
|
|
|
|
2002
|
|
|
|
(l
|
)
|
7451-7477
Airport Freeway
|
|
Richland Hills, TX
|
|
|
|
|
|
|
256
|
|
|
|
1,453
|
|
|
|
254
|
|
|
|
259
|
|
|
|
1,704
|
|
|
|
1,963
|
|
|
|
372
|
|
|
|
2002
|
|
|
|
(l
|
)
|
7415 Whitehall Street
|
|
Richland Hills, TX
|
|
|
|
|
|
|
372
|
|
|
|
2,107
|
|
|
|
(194
|
)
|
|
|
269
|
|
|
|
2,016
|
|
|
|
2,285
|
|
|
|
542
|
|
|
|
2002
|
|
|
|
(l
|
)
|
7450 Whitehall Street
|
|
Richland Hills, TX
|
|
|
|
|
|
|
104
|
|
|
|
591
|
|
|
|
288
|
|
|
|
105
|
|
|
|
878
|
|
|
|
983
|
|
|
|
162
|
|
|
|
2002
|
|
|
|
(l
|
)
|
300 Wesley Way
|
|
Richland Hills, TX
|
|
|
908
|
|
|
|
208
|
|
|
|
1,181
|
|
|
|
18
|
|
|
|
211
|
|
|
|
1,196
|
|
|
|
1,407
|
|
|
|
247
|
|
|
|
2002
|
|
|
|
(l
|
)
|
7451 Dogwood Park
|
|
Richland Hills, TX
|
|
|
608
|
|
|
|
133
|
|
|
|
753
|
|
|
|
29
|
|
|
|
134
|
|
|
|
781
|
|
|
|
915
|
|
|
|
165
|
|
|
|
2002
|
|
|
|
(l
|
)
|
825-827
Avenue H(d)
|
|
Arlington, TX
|
|
|
|
|
|
|
600
|
|
|
|
3,006
|
|
|
|
245
|
|
|
|
604
|
|
|
|
3,247
|
|
|
|
3,851
|
|
|
|
974
|
|
|
|
2004
|
|
|
|
(l
|
)
|
1013-31
Avenue M
|
|
Grand Prairie, TX
|
|
|
|
|
|
|
300
|
|
|
|
1,504
|
|
|
|
357
|
|
|
|
302
|
|
|
|
1,859
|
|
|
|
2,161
|
|
|
|
462
|
|
|
|
2004
|
|
|
|
(l
|
)
|
1172-84
113th Street(d)
|
|
Grand Prairie, TX
|
|
|
2,253
|
|
|
|
700
|
|
|
|
3,509
|
|
|
|
196
|
|
|
|
704
|
|
|
|
3,701
|
|
|
|
4,405
|
|
|
|
1,009
|
|
|
|
2004
|
|
|
|
(l
|
)
|
1200-16
Avenue H(d)
|
|
Arlington, TX
|
|
|
1,702
|
|
|
|
600
|
|
|
|
2,846
|
|
|
|
(132
|
)
|
|
|
604
|
|
|
|
2,710
|
|
|
|
3,314
|
|
|
|
591
|
|
|
|
2004
|
|
|
|
(l
|
)
|
1322-66 N. Carrier
Parkway(e)
|
|
Grand Prairie, TX
|
|
|
|
|
|
|
1,000
|
|
|
|
5,012
|
|
|
|
113
|
|
|
|
1,006
|
|
|
|
5,119
|
|
|
|
6,125
|
|
|
|
1,082
|
|
|
|
2004
|
|
|
|
(l
|
)
|
2401-2407
Centennial Dr
|
|
Arlington, TX
|
|
|
1,912
|
|
|
|
600
|
|
|
|
2,534
|
|
|
|
217
|
|
|
|
604
|
|
|
|
2,747
|
|
|
|
3,351
|
|
|
|
865
|
|
|
|
2004
|
|
|
|
(l
|
)
|
3111 West Commerce Street
|
|
Dallas, TX
|
|
|
|
|
|
|
1,000
|
|
|
|
3,364
|
|
|
|
95
|
|
|
|
1,011
|
|
|
|
3,448
|
|
|
|
4,459
|
|
|
|
1,047
|
|
|
|
2004
|
|
|
|
(l
|
)
|
9150 West Royal Lane
|
|
Irving, TX
|
|
|
|
|
|
|
818
|
|
|
|
3,767
|
|
|
|
(1,859
|
)
|
|
|
368
|
|
|
|
2,358
|
|
|
|
2,726
|
|
|
|
904
|
|
|
|
2005
|
|
|
|
(l
|
)
|
13800 Senlac Drive
|
|
Farmers Ranch, TX
|
|
|
|
|
|
|
823
|
|
|
|
4,042
|
|
|
|
146
|
|
|
|
825
|
|
|
|
4,186
|
|
|
|
5,011
|
|
|
|
1,025
|
|
|
|
2005
|
|
|
|
(l
|
)
|
801-831 S
Great Southwest Pkwy(g)
|
|
Grand Prairie, TX
|
|
|
|
|
|
|
2,581
|
|
|
|
16,556
|
|
|
|
(917
|
)
|
|
|
2,586
|
|
|
|
15,634
|
|
|
|
18,220
|
|
|
|
4,429
|
|
|
|
2005
|
|
|
|
(l
|
)
|
801-842
Heinz Way
|
|
Grand Prairie, TX
|
|
|
|
|
|
|
599
|
|
|
|
3,327
|
|
|
|
355
|
|
|
|
601
|
|
|
|
3,680
|
|
|
|
4,281
|
|
|
|
995
|
|
|
|
2005
|
|
|
|
(l
|
)
|
901-937
Heinz Way
|
|
Grand Prairie, TX
|
|
|
|
|
|
|
493
|
|
|
|
2,758
|
|
|
|
(14
|
)
|
|
|
481
|
|
|
|
2,756
|
|
|
|
3,237
|
|
|
|
851
|
|
|
|
2005
|
|
|
|
(l
|
)
|
3730 Wheeler Avenue
|
|
Fort Smith, AR
|
|
|
|
|
|
|
720
|
|
|
|
2,800
|
|
|
|
(658
|
)
|
|
|
566
|
|
|
|
2,296
|
|
|
|
2,862
|
|
|
|
448
|
|
|
|
2006
|
|
|
|
(l
|
)
|
3301 Century Circle
|
|
Irving, TX
|
|
|
2,582
|
|
|
|
760
|
|
|
|
3,856
|
|
|
|
204
|
|
|
|
771
|
|
|
|
4,049
|
|
|
|
4,820
|
|
|
|
500
|
|
|
|
2007
|
|
|
|
(l
|
)
|
First Garland Dist Ctr.
|
|
Garland, TX
|
|
|
|
|
|
|
1,912
|
|
|
|
|
|
|
|
15,155
|
|
|
|
1,947
|
|
|
|
15,120
|
|
|
|
17,067
|
|
|
|
1,367
|
|
|
|
2008
|
|
|
|
(l
|
)
|
S-6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
Denver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4785 Elati
|
|
Denver, CO
|
|
|
|
|
|
|
173
|
|
|
|
981
|
|
|
|
132
|
|
|
|
175
|
|
|
|
1,111
|
|
|
|
1,286
|
|
|
|
336
|
|
|
|
1997
|
|
|
|
(l
|
)
|
4770 Fox Street
|
|
Denver, CO
|
|
|
|
|
|
|
132
|
|
|
|
750
|
|
|
|
149
|
|
|
|
134
|
|
|
|
897
|
|
|
|
1,031
|
|
|
|
265
|
|
|
|
1997
|
|
|
|
(l
|
)
|
3871 Revere
|
|
Denver, CO
|
|
|
1,302
|
|
|
|
361
|
|
|
|
2,047
|
|
|
|
282
|
|
|
|
368
|
|
|
|
2,322
|
|
|
|
2,690
|
|
|
|
725
|
|
|
|
1997
|
|
|
|
(l
|
)
|
4570 Ivy Street
|
|
Denver, CO
|
|
|
1,048
|
|
|
|
219
|
|
|
|
1,239
|
|
|
|
165
|
|
|
|
220
|
|
|
|
1,403
|
|
|
|
1,623
|
|
|
|
468
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5855 Stapleton Drive North
|
|
Denver, CO
|
|
|
1,329
|
|
|
|
288
|
|
|
|
1,630
|
|
|
|
142
|
|
|
|
290
|
|
|
|
1,770
|
|
|
|
2,060
|
|
|
|
566
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5885 Stapleton Drive North
|
|
Denver, CO
|
|
|
1,870
|
|
|
|
376
|
|
|
|
2,129
|
|
|
|
392
|
|
|
|
380
|
|
|
|
2,517
|
|
|
|
2,897
|
|
|
|
860
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5977-5995
North Broadway
|
|
Denver, CO
|
|
|
|
|
|
|
268
|
|
|
|
1,518
|
|
|
|
303
|
|
|
|
271
|
|
|
|
1,818
|
|
|
|
2,089
|
|
|
|
558
|
|
|
|
1997
|
|
|
|
(l
|
)
|
2952-5978
North Broadway
|
|
Denver, CO
|
|
|
|
|
|
|
414
|
|
|
|
2,346
|
|
|
|
861
|
|
|
|
422
|
|
|
|
3,199
|
|
|
|
3,621
|
|
|
|
1,004
|
|
|
|
1997
|
|
|
|
(l
|
)
|
4721 Ironton Street
|
|
Denver, CO
|
|
|
|
|
|
|
232
|
|
|
|
1,313
|
|
|
|
24
|
|
|
|
236
|
|
|
|
1,333
|
|
|
|
1,569
|
|
|
|
449
|
|
|
|
1997
|
|
|
|
(l
|
)
|
East 47th Drive A
|
|
Denver, CO
|
|
|
|
|
|
|
441
|
|
|
|
2,689
|
|
|
|
(18
|
)
|
|
|
441
|
|
|
|
2,671
|
|
|
|
3,112
|
|
|
|
892
|
|
|
|
1997
|
|
|
|
(l
|
)
|
9500 West 49th Street A
|
|
Wheatridge, CO
|
|
|
|
|
|
|
283
|
|
|
|
1,625
|
|
|
|
7
|
|
|
|
287
|
|
|
|
1,628
|
|
|
|
1,915
|
|
|
|
570
|
|
|
|
1997
|
|
|
|
(l
|
)
|
9500 West 49th Street B
|
|
Wheatridge, CO
|
|
|
|
|
|
|
225
|
|
|
|
1,272
|
|
|
|
109
|
|
|
|
227
|
|
|
|
1,379
|
|
|
|
1,606
|
|
|
|
486
|
|
|
|
1997
|
|
|
|
(l
|
)
|
9500 West 49th Street C
|
|
Wheatridge, CO
|
|
|
|
|
|
|
600
|
|
|
|
3,409
|
|
|
|
110
|
|
|
|
601
|
|
|
|
3,518
|
|
|
|
4,119
|
|
|
|
1,146
|
|
|
|
1997
|
|
|
|
(l
|
)
|
9500 West 49th Street D
|
|
Wheatridge, CO
|
|
|
|
|
|
|
246
|
|
|
|
1,537
|
|
|
|
395
|
|
|
|
247
|
|
|
|
1,931
|
|
|
|
2,178
|
|
|
|
683
|
|
|
|
1997
|
|
|
|
(l
|
)
|
451-591 East
124th Avenue
|
|
Littleton, CO
|
|
|
|
|
|
|
383
|
|
|
|
2,145
|
|
|
|
328
|
|
|
|
383
|
|
|
|
2,473
|
|
|
|
2,856
|
|
|
|
998
|
|
|
|
1997
|
|
|
|
(l
|
)
|
608 Garrison Street
|
|
Lakewood, CO
|
|
|
|
|
|
|
265
|
|
|
|
1,501
|
|
|
|
423
|
|
|
|
269
|
|
|
|
1,920
|
|
|
|
2,189
|
|
|
|
620
|
|
|
|
1997
|
|
|
|
(l
|
)
|
610 Garrison Street
|
|
Lakewood, CO
|
|
|
|
|
|
|
264
|
|
|
|
1,494
|
|
|
|
372
|
|
|
|
265
|
|
|
|
1,865
|
|
|
|
2,130
|
|
|
|
606
|
|
|
|
1997
|
|
|
|
(l
|
)
|
15000 West 6th Avenue
|
|
Golden, CO
|
|
|
|
|
|
|
913
|
|
|
|
5,174
|
|
|
|
769
|
|
|
|
918
|
|
|
|
5,938
|
|
|
|
6,856
|
|
|
|
1,902
|
|
|
|
1997
|
|
|
|
(l
|
)
|
14998 West 6th Avenue Bldg E
|
|
Golden, CO
|
|
|
|
|
|
|
565
|
|
|
|
3,199
|
|
|
|
263
|
|
|
|
570
|
|
|
|
3,457
|
|
|
|
4,027
|
|
|
|
1,138
|
|
|
|
1997
|
|
|
|
(l
|
)
|
14998 West 6th Avenue Bldg F
|
|
Englewood, CO
|
|
|
|
|
|
|
269
|
|
|
|
1,525
|
|
|
|
73
|
|
|
|
273
|
|
|
|
1,594
|
|
|
|
1,867
|
|
|
|
516
|
|
|
|
1997
|
|
|
|
(l
|
)
|
12503 East Euclid Drive
|
|
Denver, CO
|
|
|
|
|
|
|
1,208
|
|
|
|
6,905
|
|
|
|
429
|
|
|
|
1,000
|
|
|
|
7,542
|
|
|
|
8,542
|
|
|
|
2,804
|
|
|
|
1997
|
|
|
|
(l
|
)
|
6547 South Racine Circle
|
|
Englewood, CO
|
|
|
3,003
|
|
|
|
739
|
|
|
|
4,241
|
|
|
|
402
|
|
|
|
739
|
|
|
|
4,643
|
|
|
|
5,382
|
|
|
|
1,631
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1600 South Abilene
|
|
Aurora, CO
|
|
|
|
|
|
|
465
|
|
|
|
2,633
|
|
|
|
(1,134
|
)
|
|
|
210
|
|
|
|
1,754
|
|
|
|
1,964
|
|
|
|
889
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1620 South Abilene
|
|
Aurora, CO
|
|
|
|
|
|
|
268
|
|
|
|
1,520
|
|
|
|
84
|
|
|
|
270
|
|
|
|
1,602
|
|
|
|
1,872
|
|
|
|
520
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1640 South Abilene
|
|
Aurora, CO
|
|
|
|
|
|
|
368
|
|
|
|
2,085
|
|
|
|
(158
|
)
|
|
|
307
|
|
|
|
1,988
|
|
|
|
2,295
|
|
|
|
719
|
|
|
|
1997
|
|
|
|
(l
|
)
|
13900 East Florida Ave
|
|
Aurora, CO
|
|
|
|
|
|
|
189
|
|
|
|
1,071
|
|
|
|
(439
|
)
|
|
|
81
|
|
|
|
740
|
|
|
|
821
|
|
|
|
393
|
|
|
|
1997
|
|
|
|
(l
|
)
|
11701 East 53rd Avenue
|
|
Denver, CO
|
|
|
|
|
|
|
416
|
|
|
|
2,355
|
|
|
|
326
|
|
|
|
422
|
|
|
|
2,675
|
|
|
|
3,097
|
|
|
|
921
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5401 Oswego Street
|
|
Denver, CO
|
|
|
|
|
|
|
273
|
|
|
|
1,547
|
|
|
|
197
|
|
|
|
278
|
|
|
|
1,739
|
|
|
|
2,017
|
|
|
|
580
|
|
|
|
1997
|
|
|
|
(l
|
)
|
14818 West 6th Avenue Bldg A
|
|
Golden, CO
|
|
|
|
|
|
|
468
|
|
|
|
2,799
|
|
|
|
400
|
|
|
|
468
|
|
|
|
3,199
|
|
|
|
3,667
|
|
|
|
1,141
|
|
|
|
1997
|
|
|
|
(l
|
)
|
14828 West 6th Avenue Bldg B
|
|
Golden, CO
|
|
|
|
|
|
|
503
|
|
|
|
2,942
|
|
|
|
199
|
|
|
|
503
|
|
|
|
3,141
|
|
|
|
3,644
|
|
|
|
1,028
|
|
|
|
1997
|
|
|
|
(l
|
)
|
445 Bryant Street
|
|
Denver, CO
|
|
|
6,926
|
|
|
|
1,829
|
|
|
|
10,219
|
|
|
|
2,265
|
|
|
|
1,829
|
|
|
|
12,484
|
|
|
|
14,313
|
|
|
|
3,794
|
|
|
|
1998
|
|
|
|
(l
|
)
|
3811 Joliet
|
|
Denver, CO
|
|
|
|
|
|
|
735
|
|
|
|
4,166
|
|
|
|
448
|
|
|
|
752
|
|
|
|
4,597
|
|
|
|
5,349
|
|
|
|
1,448
|
|
|
|
1998
|
|
|
|
(l
|
)
|
12055 E 49th Ave/4955 Peoria
|
|
Denver, CO
|
|
|
|
|
|
|
298
|
|
|
|
1,688
|
|
|
|
547
|
|
|
|
305
|
|
|
|
2,228
|
|
|
|
2,533
|
|
|
|
737
|
|
|
|
1998
|
|
|
|
(l
|
)
|
4940-4950
Paris
|
|
Denver, CO
|
|
|
|
|
|
|
152
|
|
|
|
861
|
|
|
|
253
|
|
|
|
156
|
|
|
|
1,110
|
|
|
|
1,266
|
|
|
|
321
|
|
|
|
1998
|
|
|
|
(l
|
)
|
S-7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
4970 Paris
|
|
Denver, CO
|
|
|
|
|
|
|
95
|
|
|
|
537
|
|
|
|
144
|
|
|
|
97
|
|
|
|
679
|
|
|
|
776
|
|
|
|
208
|
|
|
|
1998
|
|
|
|
(l
|
)
|
7367 South Revere Parkway
|
|
Englewood, CO
|
|
|
3,324
|
|
|
|
926
|
|
|
|
5,124
|
|
|
|
818
|
|
|
|
934
|
|
|
|
5,934
|
|
|
|
6,868
|
|
|
|
2,016
|
|
|
|
1998
|
|
|
|
(l
|
)
|
8200 East Park Meadows Drive(d)
|
|
Lone Tree, CO
|
|
|
|
|
|
|
1,297
|
|
|
|
7,348
|
|
|
|
903
|
|
|
|
1,304
|
|
|
|
8,244
|
|
|
|
9,548
|
|
|
|
2,245
|
|
|
|
2000
|
|
|
|
(l
|
)
|
3250 Quentin(d)
|
|
Aurora, CO
|
|
|
|
|
|
|
1,220
|
|
|
|
6,911
|
|
|
|
638
|
|
|
|
1,230
|
|
|
|
7,539
|
|
|
|
8,769
|
|
|
|
2,043
|
|
|
|
2000
|
|
|
|
(l
|
)
|
Highpoint Bus Ctr B
|
|
Littleton, CO
|
|
|
|
|
|
|
739
|
|
|
|
|
|
|
|
3,259
|
|
|
|
781
|
|
|
|
3,217
|
|
|
|
3,998
|
|
|
|
704
|
|
|
|
2000
|
|
|
|
(l
|
)
|
1130 W. 124th Ave.
|
|
Westminster, CO
|
|
|
|
|
|
|
441
|
|
|
|
|
|
|
|
3,766
|
|
|
|
441
|
|
|
|
3,766
|
|
|
|
4,207
|
|
|
|
1,223
|
|
|
|
2000
|
|
|
|
(l
|
)
|
1070 W. 124th Ave.
|
|
Westminster, CO
|
|
|
|
|
|
|
374
|
|
|
|
|
|
|
|
2,771
|
|
|
|
374
|
|
|
|
2,771
|
|
|
|
3,145
|
|
|
|
654
|
|
|
|
2000
|
|
|
|
(l
|
)
|
1020 W. 124th Ave.
|
|
Westminster, CO
|
|
|
|
|
|
|
374
|
|
|
|
|
|
|
|
2,813
|
|
|
|
374
|
|
|
|
2,813
|
|
|
|
3,187
|
|
|
|
793
|
|
|
|
2000
|
|
|
|
(l
|
)
|
Jeffco Bus Ctr Phase I
|
|
Broomfield, CO
|
|
|
|
|
|
|
312
|
|
|
|
|
|
|
|
1,403
|
|
|
|
370
|
|
|
|
1,345
|
|
|
|
1,715
|
|
|
|
337
|
|
|
|
2001
|
|
|
|
(l
|
)
|
960 W. 124th Ave
|
|
Westminster, CO
|
|
|
|
|
|
|
441
|
|
|
|
|
|
|
|
3,395
|
|
|
|
429
|
|
|
|
3,407
|
|
|
|
3,836
|
|
|
|
991
|
|
|
|
2001
|
|
|
|
(l
|
)
|
8820 W. 116th Street
|
|
Broomfield, CO
|
|
|
|
|
|
|
338
|
|
|
|
1,918
|
|
|
|
290
|
|
|
|
372
|
|
|
|
2,174
|
|
|
|
2,546
|
|
|
|
451
|
|
|
|
2003
|
|
|
|
(l
|
)
|
8835 W. 116th Street
|
|
Broomfield, CO
|
|
|
|
|
|
|
1,151
|
|
|
|
6,523
|
|
|
|
1,090
|
|
|
|
1,304
|
|
|
|
7,460
|
|
|
|
8,764
|
|
|
|
1,601
|
|
|
|
2003
|
|
|
|
(l
|
)
|
18150 E. 32nd Street
|
|
Aurora, CO
|
|
|
2,130
|
|
|
|
563
|
|
|
|
3,188
|
|
|
|
651
|
|
|
|
572
|
|
|
|
3,830
|
|
|
|
4,402
|
|
|
|
1,160
|
|
|
|
2004
|
|
|
|
(l
|
)
|
7005 E. 46th Avenue Drive
|
|
Denver, CO
|
|
|
1,462
|
|
|
|
512
|
|
|
|
2,025
|
|
|
|
60
|
|
|
|
517
|
|
|
|
2,080
|
|
|
|
2,597
|
|
|
|
410
|
|
|
|
2005
|
|
|
|
(l
|
)
|
4001 Salazar Way
|
|
Frederick, CO
|
|
|
4,254
|
|
|
|
1,271
|
|
|
|
6,508
|
|
|
|
(88
|
)
|
|
|
1,276
|
|
|
|
6,415
|
|
|
|
7,691
|
|
|
|
1,137
|
|
|
|
2006
|
|
|
|
(l
|
)
|
1690 S. Abilene
|
|
Aurora, CO
|
|
|
|
|
|
|
406
|
|
|
|
2,814
|
|
|
|
(699
|
)
|
|
|
294
|
|
|
|
2,227
|
|
|
|
2,521
|
|
|
|
570
|
|
|
|
2006
|
|
|
|
(l
|
)
|
5909-5915 N. Broadway
|
|
Denver, CO
|
|
|
1,022
|
|
|
|
495
|
|
|
|
1,268
|
|
|
|
183
|
|
|
|
500
|
|
|
|
1,446
|
|
|
|
1,946
|
|
|
|
396
|
|
|
|
2006
|
|
|
|
(l
|
)
|
555 Corporate Circle
|
|
Golden, CO
|
|
|
|
|
|
|
499
|
|
|
|
2,673
|
|
|
|
77
|
|
|
|
559
|
|
|
|
2,690
|
|
|
|
3,249
|
|
|
|
521
|
|
|
|
2006
|
|
|
|
(l
|
)
|
Detroit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
238 Executive Drive
|
|
Troy, MI
|
|
|
|
|
|
|
52
|
|
|
|
173
|
|
|
|
514
|
|
|
|
100
|
|
|
|
639
|
|
|
|
739
|
|
|
|
558
|
|
|
|
1994
|
|
|
|
(l
|
)
|
301 Executive Drive
|
|
Troy, MI
|
|
|
|
|
|
|
71
|
|
|
|
293
|
|
|
|
627
|
|
|
|
133
|
|
|
|
858
|
|
|
|
991
|
|
|
|
796
|
|
|
|
1994
|
|
|
|
(l
|
)
|
449 Executive Drive
|
|
Troy, MI
|
|
|
|
|
|
|
125
|
|
|
|
425
|
|
|
|
939
|
|
|
|
218
|
|
|
|
1,271
|
|
|
|
1,489
|
|
|
|
1,181
|
|
|
|
1994
|
|
|
|
(l
|
)
|
501 Executive Drive
|
|
Troy, MI
|
|
|
|
|
|
|
71
|
|
|
|
236
|
|
|
|
600
|
|
|
|
129
|
|
|
|
778
|
|
|
|
907
|
|
|
|
556
|
|
|
|
1994
|
|
|
|
(l
|
)
|
451 Robbins Drive
|
|
Troy, MI
|
|
|
|
|
|
|
96
|
|
|
|
448
|
|
|
|
867
|
|
|
|
192
|
|
|
|
1,219
|
|
|
|
1,411
|
|
|
|
1,098
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1095 Crooks Road
|
|
Troy, MI
|
|
|
|
|
|
|
331
|
|
|
|
1,017
|
|
|
|
2,239
|
|
|
|
360
|
|
|
|
3,227
|
|
|
|
3,587
|
|
|
|
1,882
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1416 Meijer Drive
|
|
Troy, MI
|
|
|
|
|
|
|
94
|
|
|
|
394
|
|
|
|
516
|
|
|
|
121
|
|
|
|
883
|
|
|
|
1,004
|
|
|
|
741
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1624 Meijer Drive
|
|
Troy, MI
|
|
|
|
|
|
|
236
|
|
|
|
1,406
|
|
|
|
940
|
|
|
|
373
|
|
|
|
2,209
|
|
|
|
2,582
|
|
|
|
1,754
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1972 Meijer Drive
|
|
Troy, MI
|
|
|
|
|
|
|
315
|
|
|
|
1,301
|
|
|
|
738
|
|
|
|
372
|
|
|
|
1,982
|
|
|
|
2,354
|
|
|
|
1,466
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1621 Northwood Drive
|
|
Troy, MI
|
|
|
|
|
|
|
85
|
|
|
|
351
|
|
|
|
1,014
|
|
|
|
215
|
|
|
|
1,235
|
|
|
|
1,450
|
|
|
|
1,151
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1707 Northwood Drive
|
|
Troy, MI
|
|
|
|
|
|
|
95
|
|
|
|
262
|
|
|
|
1,316
|
|
|
|
239
|
|
|
|
1,434
|
|
|
|
1,673
|
|
|
|
1,116
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1788 Northwood Drive
|
|
Troy, MI
|
|
|
|
|
|
|
50
|
|
|
|
196
|
|
|
|
483
|
|
|
|
103
|
|
|
|
626
|
|
|
|
729
|
|
|
|
558
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1821 Northwood Drive
|
|
Troy, MI
|
|
|
|
|
|
|
132
|
|
|
|
523
|
|
|
|
744
|
|
|
|
220
|
|
|
|
1,179
|
|
|
|
1,399
|
|
|
|
1,162
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1826 Northwood Drive
|
|
Troy, MI
|
|
|
|
|
|
|
55
|
|
|
|
208
|
|
|
|
472
|
|
|
|
103
|
|
|
|
632
|
|
|
|
735
|
|
|
|
547
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1864 Northwood Drive
|
|
Troy, MI
|
|
|
|
|
|
|
57
|
|
|
|
190
|
|
|
|
489
|
|
|
|
107
|
|
|
|
629
|
|
|
|
736
|
|
|
|
566
|
|
|
|
1994
|
|
|
|
(l
|
)
|
2277 Elliott Avenue
|
|
Troy, MI
|
|
|
|
|
|
|
48
|
|
|
|
188
|
|
|
|
411
|
|
|
|
16
|
|
|
|
631
|
|
|
|
647
|
|
|
|
559
|
|
|
|
1994
|
|
|
|
(l
|
)
|
S-8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
2451 Elliott Avenue
|
|
Troy, MI
|
|
|
|
|
|
|
78
|
|
|
|
319
|
|
|
|
751
|
|
|
|
164
|
|
|
|
984
|
|
|
|
1,148
|
|
|
|
909
|
|
|
|
1994
|
|
|
|
(l
|
)
|
2730 Research Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
903
|
|
|
|
4,215
|
|
|
|
1,402
|
|
|
|
903
|
|
|
|
5,617
|
|
|
|
6,520
|
|
|
|
3,691
|
|
|
|
1994
|
|
|
|
(l
|
)
|
2791 Research Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
557
|
|
|
|
2,731
|
|
|
|
719
|
|
|
|
560
|
|
|
|
3,447
|
|
|
|
4,007
|
|
|
|
2,233
|
|
|
|
1994
|
|
|
|
(l
|
)
|
2871 Research Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
324
|
|
|
|
1,487
|
|
|
|
846
|
|
|
|
327
|
|
|
|
2,330
|
|
|
|
2,657
|
|
|
|
1,518
|
|
|
|
1994
|
|
|
|
(l
|
)
|
3011 Research Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
457
|
|
|
|
2,104
|
|
|
|
687
|
|
|
|
457
|
|
|
|
2,791
|
|
|
|
3,248
|
|
|
|
1,790
|
|
|
|
1994
|
|
|
|
(l
|
)
|
2870 Technology Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
275
|
|
|
|
1,262
|
|
|
|
292
|
|
|
|
279
|
|
|
|
1,550
|
|
|
|
1,829
|
|
|
|
1,079
|
|
|
|
1994
|
|
|
|
(l
|
)
|
2900 Technology Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
214
|
|
|
|
977
|
|
|
|
613
|
|
|
|
219
|
|
|
|
1,585
|
|
|
|
1,804
|
|
|
|
1,004
|
|
|
|
1994
|
|
|
|
(l
|
)
|
2930 Technology Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
131
|
|
|
|
594
|
|
|
|
379
|
|
|
|
138
|
|
|
|
966
|
|
|
|
1,104
|
|
|
|
572
|
|
|
|
1994
|
|
|
|
(l
|
)
|
2950 Technology Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
178
|
|
|
|
819
|
|
|
|
381
|
|
|
|
185
|
|
|
|
1,193
|
|
|
|
1,378
|
|
|
|
763
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23014 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
39
|
|
|
|
203
|
|
|
|
216
|
|
|
|
56
|
|
|
|
402
|
|
|
|
458
|
|
|
|
281
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23028 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
98
|
|
|
|
507
|
|
|
|
278
|
|
|
|
125
|
|
|
|
758
|
|
|
|
883
|
|
|
|
580
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23035 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
71
|
|
|
|
355
|
|
|
|
274
|
|
|
|
93
|
|
|
|
607
|
|
|
|
700
|
|
|
|
441
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23042 Commerce Drive
|
|
Farmintgon Hills, MI
|
|
|
|
|
|
|
67
|
|
|
|
277
|
|
|
|
274
|
|
|
|
89
|
|
|
|
529
|
|
|
|
618
|
|
|
|
417
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23065 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
71
|
|
|
|
408
|
|
|
|
207
|
|
|
|
93
|
|
|
|
593
|
|
|
|
686
|
|
|
|
449
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23070 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
112
|
|
|
|
442
|
|
|
|
346
|
|
|
|
125
|
|
|
|
775
|
|
|
|
900
|
|
|
|
605
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23079 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
68
|
|
|
|
301
|
|
|
|
290
|
|
|
|
79
|
|
|
|
580
|
|
|
|
659
|
|
|
|
402
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23093 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
211
|
|
|
|
1,024
|
|
|
|
753
|
|
|
|
295
|
|
|
|
1,693
|
|
|
|
1,988
|
|
|
|
1,356
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23135 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
146
|
|
|
|
701
|
|
|
|
392
|
|
|
|
158
|
|
|
|
1,081
|
|
|
|
1,239
|
|
|
|
702
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23163 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
111
|
|
|
|
513
|
|
|
|
341
|
|
|
|
138
|
|
|
|
827
|
|
|
|
965
|
|
|
|
576
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23177 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
175
|
|
|
|
1,007
|
|
|
|
593
|
|
|
|
254
|
|
|
|
1,521
|
|
|
|
1,775
|
|
|
|
1,094
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23206 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
125
|
|
|
|
531
|
|
|
|
309
|
|
|
|
137
|
|
|
|
828
|
|
|
|
965
|
|
|
|
600
|
|
|
|
1994
|
|
|
|
(l
|
)
|
23370 Commerce Drive
|
|
Farmington Hills, MI
|
|
|
|
|
|
|
59
|
|
|
|
233
|
|
|
|
175
|
|
|
|
66
|
|
|
|
401
|
|
|
|
467
|
|
|
|
351
|
|
|
|
1994
|
|
|
|
(l
|
)
|
32450 N Avis Drive
|
|
Madison Heights, MI
|
|
|
|
|
|
|
281
|
|
|
|
1,590
|
|
|
|
529
|
|
|
|
286
|
|
|
|
2,114
|
|
|
|
2,400
|
|
|
|
685
|
|
|
|
1996
|
|
|
|
(l
|
)
|
12707 Eckles Road
|
|
Plymouth Township, MI
|
|
|
|
|
|
|
255
|
|
|
|
1,445
|
|
|
|
239
|
|
|
|
267
|
|
|
|
1,672
|
|
|
|
1,939
|
|
|
|
568
|
|
|
|
1996
|
|
|
|
(l
|
)
|
9300-9328
Harrison Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
147
|
|
|
|
834
|
|
|
|
408
|
|
|
|
154
|
|
|
|
1,235
|
|
|
|
1,389
|
|
|
|
404
|
|
|
|
1996
|
|
|
|
(l
|
)
|
9330-9358
Harrison Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
81
|
|
|
|
456
|
|
|
|
253
|
|
|
|
85
|
|
|
|
705
|
|
|
|
790
|
|
|
|
238
|
|
|
|
1996
|
|
|
|
(l
|
)
|
28420-28448
Highland Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
143
|
|
|
|
809
|
|
|
|
268
|
|
|
|
149
|
|
|
|
1,071
|
|
|
|
1,220
|
|
|
|
332
|
|
|
|
1996
|
|
|
|
(l
|
)
|
28450-28478
Highland Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
81
|
|
|
|
461
|
|
|
|
602
|
|
|
|
85
|
|
|
|
1,059
|
|
|
|
1,144
|
|
|
|
293
|
|
|
|
1996
|
|
|
|
(l
|
)
|
28421-28449
Highland Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
109
|
|
|
|
617
|
|
|
|
497
|
|
|
|
114
|
|
|
|
1,109
|
|
|
|
1,223
|
|
|
|
355
|
|
|
|
1996
|
|
|
|
(l
|
)
|
28451-28479
Highland Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
107
|
|
|
|
608
|
|
|
|
379
|
|
|
|
112
|
|
|
|
982
|
|
|
|
1,094
|
|
|
|
292
|
|
|
|
1996
|
|
|
|
(l
|
)
|
28825-28909
Highland Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
70
|
|
|
|
395
|
|
|
|
293
|
|
|
|
73
|
|
|
|
685
|
|
|
|
758
|
|
|
|
247
|
|
|
|
1996
|
|
|
|
(l
|
)
|
28933-29017
Highland Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
112
|
|
|
|
634
|
|
|
|
240
|
|
|
|
117
|
|
|
|
869
|
|
|
|
986
|
|
|
|
270
|
|
|
|
1996
|
|
|
|
(l
|
)
|
28824-28908
Highland Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
134
|
|
|
|
760
|
|
|
|
221
|
|
|
|
140
|
|
|
|
975
|
|
|
|
1,115
|
|
|
|
346
|
|
|
|
1996
|
|
|
|
(l
|
)
|
28932-29016
Highland Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
123
|
|
|
|
694
|
|
|
|
276
|
|
|
|
128
|
|
|
|
965
|
|
|
|
1,093
|
|
|
|
306
|
|
|
|
1996
|
|
|
|
(l
|
)
|
9710-9734
Harrison Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
125
|
|
|
|
706
|
|
|
|
187
|
|
|
|
130
|
|
|
|
888
|
|
|
|
1,018
|
|
|
|
294
|
|
|
|
1996
|
|
|
|
(l
|
)
|
S-9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
9740-9772
Harrison Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
132
|
|
|
|
749
|
|
|
|
226
|
|
|
|
138
|
|
|
|
969
|
|
|
|
1,107
|
|
|
|
319
|
|
|
|
1996
|
|
|
|
(l
|
)
|
9840-9868
Harrison Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
144
|
|
|
|
815
|
|
|
|
174
|
|
|
|
151
|
|
|
|
982
|
|
|
|
1,133
|
|
|
|
378
|
|
|
|
1996
|
|
|
|
(l
|
)
|
9800-9824
Harrison Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
117
|
|
|
|
664
|
|
|
|
146
|
|
|
|
123
|
|
|
|
804
|
|
|
|
927
|
|
|
|
289
|
|
|
|
1996
|
|
|
|
(l
|
)
|
29265-29285
Airport Dr
|
|
Romulus, MI
|
|
|
|
|
|
|
140
|
|
|
|
794
|
|
|
|
254
|
|
|
|
147
|
|
|
|
1,041
|
|
|
|
1,188
|
|
|
|
380
|
|
|
|
1996
|
|
|
|
(l
|
)
|
29185-29225
Airport Dr
|
|
Romulus, MI
|
|
|
|
|
|
|
140
|
|
|
|
792
|
|
|
|
328
|
|
|
|
146
|
|
|
|
1,114
|
|
|
|
1,260
|
|
|
|
407
|
|
|
|
1996
|
|
|
|
(l
|
)
|
29149-29165
Airport Dr
|
|
Romulus, MI
|
|
|
|
|
|
|
216
|
|
|
|
1,225
|
|
|
|
250
|
|
|
|
226
|
|
|
|
1,465
|
|
|
|
1,691
|
|
|
|
513
|
|
|
|
1996
|
|
|
|
(l
|
)
|
29101-29115
Airport Dr
|
|
Romulus, MI
|
|
|
|
|
|
|
130
|
|
|
|
738
|
|
|
|
261
|
|
|
|
136
|
|
|
|
993
|
|
|
|
1,129
|
|
|
|
348
|
|
|
|
1996
|
|
|
|
(l
|
)
|
29031-29045
Airport Dr
|
|
Romulus, MI
|
|
|
|
|
|
|
124
|
|
|
|
704
|
|
|
|
178
|
|
|
|
130
|
|
|
|
876
|
|
|
|
1,006
|
|
|
|
343
|
|
|
|
1996
|
|
|
|
(l
|
)
|
29050-29062
Airport Dr
|
|
Romulus, MI
|
|
|
|
|
|
|
127
|
|
|
|
718
|
|
|
|
213
|
|
|
|
133
|
|
|
|
925
|
|
|
|
1,058
|
|
|
|
297
|
|
|
|
1996
|
|
|
|
(l
|
)
|
29120-29134
Airport Dr
|
|
Romulus, MI
|
|
|
|
|
|
|
161
|
|
|
|
912
|
|
|
|
268
|
|
|
|
169
|
|
|
|
1,172
|
|
|
|
1,341
|
|
|
|
393
|
|
|
|
1996
|
|
|
|
(l
|
)
|
29200-29214
Airport Dr
|
|
Romulus, MI
|
|
|
|
|
|
|
170
|
|
|
|
963
|
|
|
|
250
|
|
|
|
178
|
|
|
|
1,205
|
|
|
|
1,383
|
|
|
|
421
|
|
|
|
1996
|
|
|
|
(l
|
)
|
9301-9339
Middlebelt Rd
|
|
Romulus, MI
|
|
|
|
|
|
|
124
|
|
|
|
703
|
|
|
|
291
|
|
|
|
130
|
|
|
|
988
|
|
|
|
1,118
|
|
|
|
330
|
|
|
|
1996
|
|
|
|
(l
|
)
|
26980 Trolley Industrial Drive
|
|
Taylor, MI
|
|
|
|
|
|
|
450
|
|
|
|
2,550
|
|
|
|
(658
|
)
|
|
|
207
|
|
|
|
2,135
|
|
|
|
2,342
|
|
|
|
1,137
|
|
|
|
1997
|
|
|
|
(l
|
)
|
32975 Capitol Avenue
|
|
Livonia, MI
|
|
|
|
|
|
|
135
|
|
|
|
748
|
|
|
|
(49
|
)
|
|
|
77
|
|
|
|
757
|
|
|
|
834
|
|
|
|
392
|
|
|
|
1998
|
|
|
|
(l
|
)
|
2725 S. Industrial Highway
|
|
Ann Arbor, MI
|
|
|
|
|
|
|
660
|
|
|
|
3,654
|
|
|
|
(1,431
|
)
|
|
|
313
|
|
|
|
2,570
|
|
|
|
2,883
|
|
|
|
1,277
|
|
|
|
1998
|
|
|
|
(l
|
)
|
32920 Capitol Avenue
|
|
Livonia, MI
|
|
|
|
|
|
|
76
|
|
|
|
422
|
|
|
|
(98
|
)
|
|
|
27
|
|
|
|
373
|
|
|
|
400
|
|
|
|
161
|
|
|
|
1998
|
|
|
|
(l
|
)
|
11923 Brookfield Avenue
|
|
Livonia, MI
|
|
|
|
|
|
|
120
|
|
|
|
665
|
|
|
|
(350
|
)
|
|
|
32
|
|
|
|
403
|
|
|
|
435
|
|
|
|
257
|
|
|
|
1998
|
|
|
|
(l
|
)
|
11965 Brookfield Avenue
|
|
Livonia, MI
|
|
|
|
|
|
|
120
|
|
|
|
665
|
|
|
|
(411
|
)
|
|
|
28
|
|
|
|
346
|
|
|
|
374
|
|
|
|
224
|
|
|
|
1998
|
|
|
|
(l
|
)
|
13405 Stark Road
|
|
Livonia, MI
|
|
|
|
|
|
|
46
|
|
|
|
254
|
|
|
|
(3
|
)
|
|
|
30
|
|
|
|
267
|
|
|
|
297
|
|
|
|
99
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1170 Chicago Road
|
|
Troy, MI
|
|
|
|
|
|
|
249
|
|
|
|
1,380
|
|
|
|
(455
|
)
|
|
|
129
|
|
|
|
1,045
|
|
|
|
1,174
|
|
|
|
501
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1200 Chicago Road
|
|
Troy, MI
|
|
|
|
|
|
|
268
|
|
|
|
1,483
|
|
|
|
284
|
|
|
|
286
|
|
|
|
1,749
|
|
|
|
2,035
|
|
|
|
542
|
|
|
|
1998
|
|
|
|
(l
|
)
|
450 Robbins Drive
|
|
Troy, MI
|
|
|
|
|
|
|
166
|
|
|
|
920
|
|
|
|
260
|
|
|
|
178
|
|
|
|
1,168
|
|
|
|
1,346
|
|
|
|
381
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1230 Chicago Road
|
|
Troy, MI
|
|
|
|
|
|
|
271
|
|
|
|
1,498
|
|
|
|
166
|
|
|
|
289
|
|
|
|
1,646
|
|
|
|
1,935
|
|
|
|
516
|
|
|
|
1998
|
|
|
|
(l
|
)
|
12886 Westmore Avenue
|
|
Livonia, MI
|
|
|
|
|
|
|
190
|
|
|
|
1,050
|
|
|
|
(413
|
)
|
|
|
86
|
|
|
|
741
|
|
|
|
827
|
|
|
|
381
|
|
|
|
1998
|
|
|
|
(l
|
)
|
12898 Westmore Avenue
|
|
Livonia, MI
|
|
|
|
|
|
|
190
|
|
|
|
1,050
|
|
|
|
(639
|
)
|
|
|
39
|
|
|
|
562
|
|
|
|
601
|
|
|
|
376
|
|
|
|
1998
|
|
|
|
(l
|
)
|
33025 Industrial Road
|
|
Livonia, MI
|
|
|
|
|
|
|
80
|
|
|
|
442
|
|
|
|
(331
|
)
|
|
|
6
|
|
|
|
185
|
|
|
|
191
|
|
|
|
160
|
|
|
|
1998
|
|
|
|
(l
|
)
|
47711 Clipper Street
|
|
Plymouth Township, MI
|
|
|
|
|
|
|
539
|
|
|
|
2,983
|
|
|
|
265
|
|
|
|
575
|
|
|
|
3,212
|
|
|
|
3,787
|
|
|
|
1,012
|
|
|
|
1998
|
|
|
|
(l
|
)
|
32975 Industrial Road
|
|
Livonia, MI
|
|
|
|
|
|
|
160
|
|
|
|
887
|
|
|
|
(231
|
)
|
|
|
92
|
|
|
|
724
|
|
|
|
816
|
|
|
|
326
|
|
|
|
1998
|
|
|
|
(l
|
)
|
32985 Industrial Road
|
|
Livonia, MI
|
|
|
|
|
|
|
137
|
|
|
|
761
|
|
|
|
(368
|
)
|
|
|
46
|
|
|
|
484
|
|
|
|
530
|
|
|
|
271
|
|
|
|
1998
|
|
|
|
(l
|
)
|
32995 Industrial Road
|
|
Livonia, MI
|
|
|
|
|
|
|
160
|
|
|
|
887
|
|
|
|
(344
|
)
|
|
|
69
|
|
|
|
634
|
|
|
|
703
|
|
|
|
328
|
|
|
|
1998
|
|
|
|
(l
|
)
|
12874 Westmore Avenue
|
|
Livonia, MI
|
|
|
|
|
|
|
137
|
|
|
|
761
|
|
|
|
(203
|
)
|
|
|
58
|
|
|
|
637
|
|
|
|
695
|
|
|
|
347
|
|
|
|
1998
|
|
|
|
(l
|
)
|
33067 Industrial Road
|
|
Livonia, MI
|
|
|
|
|
|
|
160
|
|
|
|
887
|
|
|
|
(430
|
)
|
|
|
54
|
|
|
|
563
|
|
|
|
617
|
|
|
|
319
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1775 Bellingham
|
|
Troy, MI
|
|
|
|
|
|
|
344
|
|
|
|
1,902
|
|
|
|
365
|
|
|
|
367
|
|
|
|
2,244
|
|
|
|
2,611
|
|
|
|
685
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1785 East Maple
|
|
Troy, MI
|
|
|
|
|
|
|
92
|
|
|
|
507
|
|
|
|
140
|
|
|
|
98
|
|
|
|
641
|
|
|
|
739
|
|
|
|
185
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1807 East Maple
|
|
Troy, MI
|
|
|
|
|
|
|
321
|
|
|
|
1,775
|
|
|
|
(445
|
)
|
|
|
189
|
|
|
|
1,462
|
|
|
|
1,651
|
|
|
|
638
|
|
|
|
1998
|
|
|
|
(l
|
)
|
S-10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
980 Chicago
|
|
Troy, MI
|
|
|
|
|
|
|
206
|
|
|
|
1,141
|
|
|
|
209
|
|
|
|
220
|
|
|
|
1,336
|
|
|
|
1,556
|
|
|
|
401
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1840 Enterprise Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
573
|
|
|
|
3,170
|
|
|
|
(2,280
|
)
|
|
|
49
|
|
|
|
1,414
|
|
|
|
1,463
|
|
|
|
1,069
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1885 Enterprise Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
209
|
|
|
|
1,158
|
|
|
|
146
|
|
|
|
223
|
|
|
|
1,290
|
|
|
|
1,513
|
|
|
|
412
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1935-55
Enterprise Drive
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
1,285
|
|
|
|
7,144
|
|
|
|
735
|
|
|
|
1,371
|
|
|
|
7,793
|
|
|
|
9,164
|
|
|
|
2,426
|
|
|
|
1998
|
|
|
|
(l
|
)
|
5500 Enterprise Court
|
|
Warren, MI
|
|
|
|
|
|
|
675
|
|
|
|
3,737
|
|
|
|
517
|
|
|
|
721
|
|
|
|
4,208
|
|
|
|
4,929
|
|
|
|
1,304
|
|
|
|
1998
|
|
|
|
(l
|
)
|
750 Chicago Road
|
|
Troy, MI
|
|
|
|
|
|
|
323
|
|
|
|
1,790
|
|
|
|
498
|
|
|
|
345
|
|
|
|
2,266
|
|
|
|
2,611
|
|
|
|
731
|
|
|
|
1998
|
|
|
|
(l
|
)
|
800 Chicago Road
|
|
Troy, MI
|
|
|
|
|
|
|
283
|
|
|
|
1,567
|
|
|
|
366
|
|
|
|
302
|
|
|
|
1,914
|
|
|
|
2,216
|
|
|
|
583
|
|
|
|
1998
|
|
|
|
(l
|
)
|
850 Chicago Road
|
|
Troy, MI
|
|
|
|
|
|
|
183
|
|
|
|
1,016
|
|
|
|
261
|
|
|
|
196
|
|
|
|
1,264
|
|
|
|
1,460
|
|
|
|
404
|
|
|
|
1998
|
|
|
|
(l
|
)
|
2805 S. Industrial Highway
|
|
Ann Arbor, MI
|
|
|
|
|
|
|
318
|
|
|
|
1,762
|
|
|
|
276
|
|
|
|
219
|
|
|
|
2,137
|
|
|
|
2,356
|
|
|
|
823
|
|
|
|
1998
|
|
|
|
(l
|
)
|
6833 Center Drive
|
|
Sterling Heights, MI
|
|
|
|
|
|
|
467
|
|
|
|
2,583
|
|
|
|
218
|
|
|
|
493
|
|
|
|
2,775
|
|
|
|
3,268
|
|
|
|
898
|
|
|
|
1998
|
|
|
|
(l
|
)
|
32201 North Avis Drive
|
|
Madison Heights, MI
|
|
|
|
|
|
|
345
|
|
|
|
1,911
|
|
|
|
(1,007
|
)
|
|
|
96
|
|
|
|
1,153
|
|
|
|
1,249
|
|
|
|
681
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1100 East Mandoline Road
|
|
Madison Heights, MI
|
|
|
|
|
|
|
888
|
|
|
|
4,915
|
|
|
|
(985
|
)
|
|
|
402
|
|
|
|
4,416
|
|
|
|
4,818
|
|
|
|
1,937
|
|
|
|
1998
|
|
|
|
(l
|
)
|
30081 Stephenson Highway
|
|
Madison Heights, MI
|
|
|
|
|
|
|
271
|
|
|
|
1,499
|
|
|
|
(585
|
)
|
|
|
108
|
|
|
|
1,077
|
|
|
|
1,185
|
|
|
|
576
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1120 John A. Papalas Drive(e)
|
|
Lincoln Park, MI
|
|
|
|
|
|
|
366
|
|
|
|
3,241
|
|
|
|
202
|
|
|
|
291
|
|
|
|
3,518
|
|
|
|
3,809
|
|
|
|
1,468
|
|
|
|
1998
|
|
|
|
(l
|
)
|
4872 S. Lapeer Road
|
|
Lake Orion Twsp, MI
|
|
|
|
|
|
|
1,342
|
|
|
|
5,441
|
|
|
|
526
|
|
|
|
1,412
|
|
|
|
5,897
|
|
|
|
7,309
|
|
|
|
1,809
|
|
|
|
1999
|
|
|
|
(l
|
)
|
1400 Allen Drive
|
|
Troy, MI
|
|
|
|
|
|
|
209
|
|
|
|
1,154
|
|
|
|
253
|
|
|
|
212
|
|
|
|
1,404
|
|
|
|
1,616
|
|
|
|
367
|
|
|
|
2000
|
|
|
|
(l
|
)
|
1408 Allen Drive
|
|
Troy, MI
|
|
|
|
|
|
|
151
|
|
|
|
834
|
|
|
|
133
|
|
|
|
153
|
|
|
|
965
|
|
|
|
1,118
|
|
|
|
264
|
|
|
|
2000
|
|
|
|
(l
|
)
|
1305 Stephenson Hwy
|
|
Troy, MI
|
|
|
|
|
|
|
345
|
|
|
|
1,907
|
|
|
|
255
|
|
|
|
350
|
|
|
|
2,157
|
|
|
|
2,507
|
|
|
|
533
|
|
|
|
2000
|
|
|
|
(l
|
)
|
32505 Industrial Drive
|
|
Madison Heights, MI
|
|
|
|
|
|
|
345
|
|
|
|
1,910
|
|
|
|
333
|
|
|
|
351
|
|
|
|
2,237
|
|
|
|
2,588
|
|
|
|
575
|
|
|
|
2000
|
|
|
|
(l
|
)
|
1799-1813
Northfield Drive(d)
|
|
Rochester Hills, MI
|
|
|
|
|
|
|
481
|
|
|
|
2,665
|
|
|
|
297
|
|
|
|
490
|
|
|
|
2,953
|
|
|
|
3,443
|
|
|
|
784
|
|
|
|
2000
|
|
|
|
(l
|
)
|
28435 Automation Blvd
|
|
Wixom, MI
|
|
|
|
|
|
|
621
|
|
|
|
|
|
|
|
3,736
|
|
|
|
628
|
|
|
|
3,729
|
|
|
|
4,357
|
|
|
|
608
|
|
|
|
2004
|
|
|
|
(l
|
)
|
32200 N Avis Drive
|
|
Madison Heights, MI
|
|
|
|
|
|
|
503
|
|
|
|
3,367
|
|
|
|
(1,368
|
)
|
|
|
190
|
|
|
|
2,312
|
|
|
|
2,502
|
|
|
|
684
|
|
|
|
2005
|
|
|
|
(l
|
)
|
100 Kay Industrial Drive
|
|
Rion Township, MI
|
|
|
|
|
|
|
677
|
|
|
|
2,018
|
|
|
|
682
|
|
|
|
685
|
|
|
|
2,692
|
|
|
|
3,377
|
|
|
|
925
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1849 West Maple Road
|
|
Troy, MI
|
|
|
|
|
|
|
1,688
|
|
|
|
2,790
|
|
|
|
(3,643
|
)
|
|
|
156
|
|
|
|
679
|
|
|
|
835
|
|
|
|
476
|
|
|
|
2005
|
|
|
|
(l
|
)
|
32650 Capitol Avenue
|
|
Livonia, MI
|
|
|
|
|
|
|
282
|
|
|
|
1,128
|
|
|
|
(500
|
)
|
|
|
167
|
|
|
|
743
|
|
|
|
910
|
|
|
|
148
|
|
|
|
2005
|
|
|
|
(l
|
)
|
11800 Sears Drive
|
|
Livonia, MI
|
|
|
|
|
|
|
693
|
|
|
|
1,507
|
|
|
|
1,156
|
|
|
|
466
|
|
|
|
2,890
|
|
|
|
3,356
|
|
|
|
942
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1099 Chicago Road
|
|
Troy, MI
|
|
|
|
|
|
|
1,277
|
|
|
|
1,332
|
|
|
|
(718
|
)
|
|
|
765
|
|
|
|
1,126
|
|
|
|
1,891
|
|
|
|
639
|
|
|
|
2005
|
|
|
|
(l
|
)
|
42555 Merrill Road
|
|
Sterling Heights, MI
|
|
|
|
|
|
|
1,080
|
|
|
|
2,300
|
|
|
|
3,487
|
|
|
|
1,090
|
|
|
|
5,777
|
|
|
|
6,867
|
|
|
|
1,062
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2441 N. Opdyke Road
|
|
Auburn Hills, MI
|
|
|
|
|
|
|
530
|
|
|
|
737
|
|
|
|
16
|
|
|
|
538
|
|
|
|
745
|
|
|
|
1,283
|
|
|
|
277
|
|
|
|
2006
|
|
|
|
(l
|
)
|
200 Northpointe Drive
|
|
Orion Township, MI
|
|
|
|
|
|
|
723
|
|
|
|
2,063
|
|
|
|
36
|
|
|
|
734
|
|
|
|
2,088
|
|
|
|
2,822
|
|
|
|
454
|
|
|
|
2006
|
|
|
|
(l
|
)
|
Houston
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2102-2314
Edwards Street
|
|
Houston, TX
|
|
|
|
|
|
|
348
|
|
|
|
1,973
|
|
|
|
1,698
|
|
|
|
382
|
|
|
|
3,637
|
|
|
|
4,019
|
|
|
|
1,232
|
|
|
|
1997
|
|
|
|
(l
|
)
|
3351 Rauch St
|
|
Houston, TX
|
|
|
|
|
|
|
272
|
|
|
|
1,541
|
|
|
|
560
|
|
|
|
278
|
|
|
|
2,095
|
|
|
|
2,373
|
|
|
|
581
|
|
|
|
1997
|
|
|
|
(l
|
)
|
3851 Yale St
|
|
Houston, TX
|
|
|
2,150
|
|
|
|
413
|
|
|
|
2,343
|
|
|
|
482
|
|
|
|
425
|
|
|
|
2,813
|
|
|
|
3,238
|
|
|
|
986
|
|
|
|
1997
|
|
|
|
(l
|
)
|
3337-3347
Rauch Street
|
|
Houston, TX
|
|
|
962
|
|
|
|
227
|
|
|
|
1,287
|
|
|
|
220
|
|
|
|
233
|
|
|
|
1,501
|
|
|
|
1,734
|
|
|
|
474
|
|
|
|
1997
|
|
|
|
(l
|
)
|
S-11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
8505 N Loop East
|
|
Houston, TX
|
|
|
1,738
|
|
|
|
439
|
|
|
|
2,489
|
|
|
|
662
|
|
|
|
449
|
|
|
|
3,141
|
|
|
|
3,590
|
|
|
|
961
|
|
|
|
1997
|
|
|
|
(l
|
)
|
4749-4799
Eastpark Dr
|
|
Houston, TX
|
|
|
2,554
|
|
|
|
594
|
|
|
|
3,368
|
|
|
|
1,316
|
|
|
|
611
|
|
|
|
4,667
|
|
|
|
5,278
|
|
|
|
1,465
|
|
|
|
1997
|
|
|
|
(l
|
)
|
4851 Homestead Road
|
|
Houston, TX
|
|
|
|
|
|
|
491
|
|
|
|
2,782
|
|
|
|
949
|
|
|
|
504
|
|
|
|
3,718
|
|
|
|
4,222
|
|
|
|
1,134
|
|
|
|
1997
|
|
|
|
(l
|
)
|
3365-3385
Rauch Street
|
|
Houston, TX
|
|
|
1,721
|
|
|
|
284
|
|
|
|
1,611
|
|
|
|
696
|
|
|
|
290
|
|
|
|
2,301
|
|
|
|
2,591
|
|
|
|
686
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5050 Campbell Road
|
|
Houston, TX
|
|
|
1,693
|
|
|
|
461
|
|
|
|
2,610
|
|
|
|
427
|
|
|
|
470
|
|
|
|
3,028
|
|
|
|
3,498
|
|
|
|
985
|
|
|
|
1997
|
|
|
|
(l
|
)
|
4300 Pine Timbers
|
|
Houston, TX
|
|
|
|
|
|
|
489
|
|
|
|
2,769
|
|
|
|
702
|
|
|
|
499
|
|
|
|
3,461
|
|
|
|
3,960
|
|
|
|
1,100
|
|
|
|
1997
|
|
|
|
(l
|
)
|
2500-2530
Fairway Park Drive
|
|
Houston, TX
|
|
|
3,446
|
|
|
|
766
|
|
|
|
4,342
|
|
|
|
2,013
|
|
|
|
792
|
|
|
|
6,329
|
|
|
|
7,121
|
|
|
|
1,767
|
|
|
|
1997
|
|
|
|
(l
|
)
|
6550 Longpointe
|
|
Houston, TX
|
|
|
1,394
|
|
|
|
362
|
|
|
|
2,050
|
|
|
|
469
|
|
|
|
370
|
|
|
|
2,511
|
|
|
|
2,881
|
|
|
|
803
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1815 Turning Basin Dr
|
|
Houston, TX
|
|
|
1,880
|
|
|
|
487
|
|
|
|
2,761
|
|
|
|
637
|
|
|
|
531
|
|
|
|
3,354
|
|
|
|
3,885
|
|
|
|
1,084
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1819 Turning Basin Dr
|
|
Houston, TX
|
|
|
|
|
|
|
231
|
|
|
|
1,308
|
|
|
|
414
|
|
|
|
251
|
|
|
|
1,702
|
|
|
|
1,953
|
|
|
|
509
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1805 Turning Basin Drive
|
|
Houston, TX
|
|
|
2,212
|
|
|
|
564
|
|
|
|
3,197
|
|
|
|
810
|
|
|
|
616
|
|
|
|
3,955
|
|
|
|
4,571
|
|
|
|
1,272
|
|
|
|
1997
|
|
|
|
(l
|
)
|
9835A Genard Road
|
|
Houston, TX
|
|
|
|
|
|
|
1,505
|
|
|
|
8,333
|
|
|
|
3,088
|
|
|
|
1,581
|
|
|
|
11,345
|
|
|
|
12,926
|
|
|
|
2,854
|
|
|
|
1999
|
|
|
|
(l
|
)
|
9835B Genard Road
|
|
Houston, TX
|
|
|
|
|
|
|
245
|
|
|
|
1,357
|
|
|
|
646
|
|
|
|
256
|
|
|
|
1,992
|
|
|
|
2,248
|
|
|
|
556
|
|
|
|
1999
|
|
|
|
(l
|
)
|
11505 State Highway 225
|
|
LaPorte City, TX
|
|
|
4,723
|
|
|
|
940
|
|
|
|
4,675
|
|
|
|
615
|
|
|
|
940
|
|
|
|
5,290
|
|
|
|
6,230
|
|
|
|
1,100
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1500 E. Main Street
|
|
Houston, TX
|
|
|
|
|
|
|
201
|
|
|
|
1,328
|
|
|
|
24
|
|
|
|
204
|
|
|
|
1,349
|
|
|
|
1,553
|
|
|
|
534
|
|
|
|
2005
|
|
|
|
(l
|
)
|
700 Industrial Blvd
|
|
Sugar Land, TX
|
|
|
|
|
|
|
608
|
|
|
|
3,679
|
|
|
|
365
|
|
|
|
617
|
|
|
|
4,035
|
|
|
|
4,652
|
|
|
|
632
|
|
|
|
2007
|
|
|
|
(l
|
)
|
7230-7238
Wynnwood
|
|
Houston, TX
|
|
|
|
|
|
|
254
|
|
|
|
764
|
|
|
|
66
|
|
|
|
259
|
|
|
|
825
|
|
|
|
1,084
|
|
|
|
212
|
|
|
|
2007
|
|
|
|
(l
|
)
|
7240-7248
Wynnwood
|
|
Houston, TX
|
|
|
|
|
|
|
271
|
|
|
|
726
|
|
|
|
77
|
|
|
|
276
|
|
|
|
798
|
|
|
|
1,074
|
|
|
|
213
|
|
|
|
2007
|
|
|
|
(l
|
)
|
7250-7260
Wynnwood
|
|
Houston, TX
|
|
|
|
|
|
|
200
|
|
|
|
481
|
|
|
|
35
|
|
|
|
203
|
|
|
|
513
|
|
|
|
716
|
|
|
|
121
|
|
|
|
2007
|
|
|
|
(l
|
)
|
7967 Blankenship
|
|
Houston, TX
|
|
|
|
|
|
|
307
|
|
|
|
1,166
|
|
|
|
220
|
|
|
|
307
|
|
|
|
1,386
|
|
|
|
1,693
|
|
|
|
77
|
|
|
|
2010
|
|
|
|
(l
|
)
|
6400 Long Point
|
|
Houston, TX
|
|
|
818
|
|
|
|
188
|
|
|
|
898
|
|
|
|
(6
|
)
|
|
|
188
|
|
|
|
892
|
|
|
|
1,080
|
|
|
|
212
|
|
|
|
2007
|
|
|
|
(l
|
)
|
12705 S. Kirkwood, Ste
100-150
|
|
Stafford, TX
|
|
|
|
|
|
|
154
|
|
|
|
626
|
|
|
|
(45
|
)
|
|
|
139
|
|
|
|
596
|
|
|
|
735
|
|
|
|
122
|
|
|
|
2007
|
|
|
|
(l
|
)
|
12705 S. Kirkwood, Ste
200-220
|
|
Stafford, TX
|
|
|
|
|
|
|
404
|
|
|
|
1,698
|
|
|
|
19
|
|
|
|
378
|
|
|
|
1,743
|
|
|
|
2,121
|
|
|
|
351
|
|
|
|
2007
|
|
|
|
(l
|
)
|
8850 Jameel
|
|
Houston, TX
|
|
|
|
|
|
|
171
|
|
|
|
826
|
|
|
|
63
|
|
|
|
171
|
|
|
|
889
|
|
|
|
1,060
|
|
|
|
194
|
|
|
|
2007
|
|
|
|
(l
|
)
|
8800 Jameel
|
|
Houston, TX
|
|
|
|
|
|
|
163
|
|
|
|
798
|
|
|
|
(154
|
)
|
|
|
124
|
|
|
|
683
|
|
|
|
807
|
|
|
|
145
|
|
|
|
2007
|
|
|
|
(l
|
)
|
8700 Jameel
|
|
Houston, TX
|
|
|
|
|
|
|
170
|
|
|
|
1,020
|
|
|
|
(109
|
)
|
|
|
120
|
|
|
|
961
|
|
|
|
1,081
|
|
|
|
228
|
|
|
|
2007
|
|
|
|
(l
|
)
|
8600 Jameel
|
|
Houston, TX
|
|
|
|
|
|
|
163
|
|
|
|
818
|
|
|
|
(20
|
)
|
|
|
163
|
|
|
|
798
|
|
|
|
961
|
|
|
|
137
|
|
|
|
2007
|
|
|
|
(l
|
)
|
Indianapolis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1445 Brookville Way
|
|
Indianapolis, IN
|
|
|
|
|
|
|
459
|
|
|
|
2,603
|
|
|
|
679
|
|
|
|
476
|
|
|
|
3,265
|
|
|
|
3,741
|
|
|
|
1,149
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1440 Brookville Way
|
|
Indianapolis, IN
|
|
|
|
|
|
|
665
|
|
|
|
3,770
|
|
|
|
983
|
|
|
|
685
|
|
|
|
4,733
|
|
|
|
5,418
|
|
|
|
1,889
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1240 Brookville Way
|
|
Indianapolis, IN
|
|
|
|
|
|
|
247
|
|
|
|
1,402
|
|
|
|
322
|
|
|
|
258
|
|
|
|
1,713
|
|
|
|
1,971
|
|
|
|
643
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1345 Brookville Way
|
|
Indianapolis, IN
|
|
|
|
|
|
|
586
|
|
|
|
3,321
|
|
|
|
825
|
|
|
|
601
|
|
|
|
4,131
|
|
|
|
4,732
|
|
|
|
1,577
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1350 Brookville Way
|
|
Indianapolis, IN
|
|
|
|
|
|
|
205
|
|
|
|
1,161
|
|
|
|
312
|
|
|
|
212
|
|
|
|
1,466
|
|
|
|
1,678
|
|
|
|
543
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1341 Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
131
|
|
|
|
743
|
|
|
|
202
|
|
|
|
136
|
|
|
|
940
|
|
|
|
1,076
|
|
|
|
327
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1322-1438
Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
145
|
|
|
|
822
|
|
|
|
229
|
|
|
|
152
|
|
|
|
1,044
|
|
|
|
1,196
|
|
|
|
348
|
|
|
|
1996
|
|
|
|
(l
|
)
|
S-12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
1327-1441
Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
218
|
|
|
|
1,234
|
|
|
|
330
|
|
|
|
225
|
|
|
|
1,557
|
|
|
|
1,782
|
|
|
|
557
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1304 Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
71
|
|
|
|
405
|
|
|
|
188
|
|
|
|
75
|
|
|
|
589
|
|
|
|
664
|
|
|
|
187
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1402 Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
165
|
|
|
|
934
|
|
|
|
266
|
|
|
|
171
|
|
|
|
1,194
|
|
|
|
1,365
|
|
|
|
404
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1504 Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
219
|
|
|
|
1,238
|
|
|
|
12
|
|
|
|
146
|
|
|
|
1,323
|
|
|
|
1,469
|
|
|
|
567
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1365 Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
121
|
|
|
|
688
|
|
|
|
23
|
|
|
|
91
|
|
|
|
741
|
|
|
|
832
|
|
|
|
304
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1352-1354
Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
178
|
|
|
|
1,008
|
|
|
|
170
|
|
|
|
166
|
|
|
|
1,190
|
|
|
|
1,356
|
|
|
|
425
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1335 Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
81
|
|
|
|
460
|
|
|
|
307
|
|
|
|
85
|
|
|
|
763
|
|
|
|
848
|
|
|
|
308
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1327 Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
52
|
|
|
|
295
|
|
|
|
88
|
|
|
|
55
|
|
|
|
380
|
|
|
|
435
|
|
|
|
124
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1425 Sadlier Circle E Dr
|
|
Indianapolis, IN
|
|
|
|
|
|
|
21
|
|
|
|
117
|
|
|
|
37
|
|
|
|
23
|
|
|
|
152
|
|
|
|
175
|
|
|
|
56
|
|
|
|
1996
|
|
|
|
(l
|
)
|
6951 E 30th St
|
|
Indianapolis, IN
|
|
|
|
|
|
|
256
|
|
|
|
1,449
|
|
|
|
191
|
|
|
|
265
|
|
|
|
1,631
|
|
|
|
1,896
|
|
|
|
585
|
|
|
|
1996
|
|
|
|
(l
|
)
|
6701 E 30th St
|
|
Indianapolis, IN
|
|
|
|
|
|
|
78
|
|
|
|
443
|
|
|
|
59
|
|
|
|
82
|
|
|
|
498
|
|
|
|
580
|
|
|
|
180
|
|
|
|
1996
|
|
|
|
(l
|
)
|
6737 E 30th St
|
|
Indianapolis, IN
|
|
|
|
|
|
|
385
|
|
|
|
2,181
|
|
|
|
184
|
|
|
|
398
|
|
|
|
2,352
|
|
|
|
2,750
|
|
|
|
861
|
|
|
|
1996
|
|
|
|
(l
|
)
|
6555 E 30th St
|
|
Indianapolis, IN
|
|
|
3,546
|
|
|
|
484
|
|
|
|
4,760
|
|
|
|
1,393
|
|
|
|
484
|
|
|
|
6,153
|
|
|
|
6,637
|
|
|
|
2,291
|
|
|
|
1996
|
|
|
|
(l
|
)
|
8402-8440 E
33rd St
|
|
Indianapolis, IN
|
|
|
|
|
|
|
222
|
|
|
|
1,260
|
|
|
|
534
|
|
|
|
230
|
|
|
|
1,786
|
|
|
|
2,016
|
|
|
|
642
|
|
|
|
1996
|
|
|
|
(l
|
)
|
8520-8630 E
33rd St
|
|
Indianapolis, IN
|
|
|
|
|
|
|
326
|
|
|
|
1,848
|
|
|
|
206
|
|
|
|
281
|
|
|
|
2,099
|
|
|
|
2,380
|
|
|
|
805
|
|
|
|
1996
|
|
|
|
(l
|
)
|
8710-8768 E
33rd St
|
|
Indianapolis, IN
|
|
|
|
|
|
|
175
|
|
|
|
993
|
|
|
|
533
|
|
|
|
187
|
|
|
|
1,514
|
|
|
|
1,701
|
|
|
|
537
|
|
|
|
1996
|
|
|
|
(l
|
)
|
3316-3346 N. Pagosa
Court
|
|
Indianapolis, IN
|
|
|
1,414
|
|
|
|
325
|
|
|
|
1,842
|
|
|
|
479
|
|
|
|
335
|
|
|
|
2,311
|
|
|
|
2,646
|
|
|
|
854
|
|
|
|
1996
|
|
|
|
(l
|
)
|
7901 West 21st St.
|
|
Indianapolis, IN
|
|
|
|
|
|
|
1,048
|
|
|
|
6,027
|
|
|
|
253
|
|
|
|
1,048
|
|
|
|
6,280
|
|
|
|
7,328
|
|
|
|
2,132
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1225 Brookville Way
|
|
Indianapolis, IN
|
|
|
|
|
|
|
60
|
|
|
|
|
|
|
|
462
|
|
|
|
68
|
|
|
|
454
|
|
|
|
522
|
|
|
|
173
|
|
|
|
1997
|
|
|
|
(l
|
)
|
6751 E 30th St
|
|
Indianapolis, IN
|
|
|
|
|
|
|
728
|
|
|
|
2,837
|
|
|
|
292
|
|
|
|
741
|
|
|
|
3,116
|
|
|
|
3,857
|
|
|
|
1,029
|
|
|
|
1997
|
|
|
|
(l
|
)
|
9210 E. 146th Street
|
|
Noblesville, IN
|
|
|
|
|
|
|
66
|
|
|
|
684
|
|
|
|
834
|
|
|
|
66
|
|
|
|
1,518
|
|
|
|
1,584
|
|
|
|
815
|
|
|
|
1998
|
|
|
|
(l
|
)
|
5705-97 Park
Plaza Ct.
|
|
Indianapolis, IN
|
|
|
2,163
|
|
|
|
600
|
|
|
|
2,194
|
|
|
|
456
|
|
|
|
609
|
|
|
|
2,641
|
|
|
|
3,250
|
|
|
|
655
|
|
|
|
2003
|
|
|
|
(l
|
)
|
9319-9341
Castlegate Drive
|
|
Indianapolis, IN
|
|
|
|
|
|
|
530
|
|
|
|
1,235
|
|
|
|
1,003
|
|
|
|
544
|
|
|
|
2,224
|
|
|
|
2,768
|
|
|
|
738
|
|
|
|
2003
|
|
|
|
(l
|
)
|
1133 Northwest L Street
|
|
Richmond, IN
|
|
|
1,008
|
|
|
|
201
|
|
|
|
1,358
|
|
|
|
(23
|
)
|
|
|
208
|
|
|
|
1,328
|
|
|
|
1,536
|
|
|
|
524
|
|
|
|
2006
|
|
|
|
(l
|
)
|
14425 Bergen Blvd
|
|
Noblesville, IN
|
|
|
|
|
|
|
647
|
|
|
|
|
|
|
|
3,861
|
|
|
|
743
|
|
|
|
3,765
|
|
|
|
4,508
|
|
|
|
495
|
|
|
|
2007
|
|
|
|
(l
|
)
|
Inland Empire
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3411 N. Perris Boulevard
|
|
Riverside, CA
|
|
|
|
|
|
|
8,125
|
|
|
|
7,150
|
|
|
|
(10,542
|
)
|
|
|
1,838
|
|
|
|
2,895
|
|
|
|
4,733
|
|
|
|
1,842
|
|
|
|
2007
|
|
|
|
(l
|
)
|
100 West Sinclair
|
|
Riverside, CA
|
|
|
|
|
|
|
4,894
|
|
|
|
3,481
|
|
|
|
(4,555
|
)
|
|
|
1,818
|
|
|
|
2,002
|
|
|
|
3,820
|
|
|
|
738
|
|
|
|
2007
|
|
|
|
(l
|
)
|
14050 Day Street
|
|
Moreno Valley, CA
|
|
|
|
|
|
|
2,538
|
|
|
|
2,538
|
|
|
|
291
|
|
|
|
2,565
|
|
|
|
2,801
|
|
|
|
5,366
|
|
|
|
333
|
|
|
|
2008
|
|
|
|
(l
|
)
|
12925 Marlay Avenue
|
|
Fontana, CA
|
|
|
|
|
|
|
6,072
|
|
|
|
7,891
|
|
|
|
105
|
|
|
|
6,090
|
|
|
|
7,978
|
|
|
|
14,068
|
|
|
|
1,230
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Los Angeles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1944 Vista Bella Way
|
|
Rancho Domingue, CA
|
|
|
3,422
|
|
|
|
1,746
|
|
|
|
3,148
|
|
|
|
584
|
|
|
|
1,822
|
|
|
|
3,656
|
|
|
|
5,478
|
|
|
|
891
|
|
|
|
2005
|
|
|
|
(l
|
)
|
2000 Vista Bella Way
|
|
Rancho Domingue, CA
|
|
|
1,398
|
|
|
|
817
|
|
|
|
1,673
|
|
|
|
278
|
|
|
|
853
|
|
|
|
1,915
|
|
|
|
2,768
|
|
|
|
451
|
|
|
|
2005
|
|
|
|
(l
|
)
|
2835 East Ana Street
|
|
Rancho Domingue, CA
|
|
|
2,959
|
|
|
|
1,682
|
|
|
|
2,750
|
|
|
|
82
|
|
|
|
1,772
|
|
|
|
2,742
|
|
|
|
4,514
|
|
|
|
808
|
|
|
|
2005
|
|
|
|
(l
|
)
|
665 N. Baldwin Park Blvd.
|
|
City of Industry, CA
|
|
|
4,614
|
|
|
|
2,124
|
|
|
|
5,219
|
|
|
|
1,678
|
|
|
|
2,143
|
|
|
|
6,878
|
|
|
|
9,021
|
|
|
|
1,214
|
|
|
|
2006
|
|
|
|
(l
|
)
|
S-13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
27801 Avenue Scott
|
|
Santa Clarita, CA
|
|
|
|
|
|
|
2,890
|
|
|
|
7,020
|
|
|
|
584
|
|
|
|
2,902
|
|
|
|
7,592
|
|
|
|
10,494
|
|
|
|
1,214
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2610&2660 Columbia St
|
|
Torrance, CA
|
|
|
4,698
|
|
|
|
3,008
|
|
|
|
5,826
|
|
|
|
181
|
|
|
|
3,031
|
|
|
|
5,984
|
|
|
|
9,015
|
|
|
|
963
|
|
|
|
2006
|
|
|
|
(l
|
)
|
433 Alaska Avenue
|
|
Torrance, CA
|
|
|
|
|
|
|
681
|
|
|
|
168
|
|
|
|
5
|
|
|
|
684
|
|
|
|
170
|
|
|
|
854
|
|
|
|
101
|
|
|
|
2006
|
|
|
|
(l
|
)
|
4020 S. Compton Ave
|
|
Los Angeles, CA
|
|
|
|
|
|
|
3,800
|
|
|
|
7,330
|
|
|
|
71
|
|
|
|
3,825
|
|
|
|
7,376
|
|
|
|
11,201
|
|
|
|
978
|
|
|
|
2006
|
|
|
|
(l
|
)
|
21730-21748
Marilla St.
|
|
Chatsworth, CA
|
|
|
3,109
|
|
|
|
2,585
|
|
|
|
3,210
|
|
|
|
126
|
|
|
|
2,608
|
|
|
|
3,313
|
|
|
|
5,921
|
|
|
|
555
|
|
|
|
2007
|
|
|
|
(l
|
)
|
8015 Paramount
|
|
Pico Rivera, CA
|
|
|
|
|
|
|
3,616
|
|
|
|
3,902
|
|
|
|
61
|
|
|
|
3,657
|
|
|
|
3,922
|
|
|
|
7,579
|
|
|
|
675
|
|
|
|
2007
|
|
|
|
(l
|
)
|
3365 E. Slauson
|
|
Vernon, CA
|
|
|
|
|
|
|
2,367
|
|
|
|
3,243
|
|
|
|
40
|
|
|
|
2,396
|
|
|
|
3,254
|
|
|
|
5,650
|
|
|
|
590
|
|
|
|
2007
|
|
|
|
(l
|
)
|
3015 East Ana
|
|
Rancho Domingue, CA
|
|
|
|
|
|
|
19,678
|
|
|
|
9,321
|
|
|
|
7,451
|
|
|
|
20,144
|
|
|
|
16,306
|
|
|
|
36,450
|
|
|
|
2,316
|
|
|
|
2007
|
|
|
|
(l
|
)
|
19067 Reyes Ave.
|
|
Rancho Domingue, CA
|
|
|
|
|
|
|
9,281
|
|
|
|
3,920
|
|
|
|
190
|
|
|
|
9,381
|
|
|
|
4,010
|
|
|
|
13,391
|
|
|
|
805
|
|
|
|
2007
|
|
|
|
(l
|
)
|
1250 Rancho Conejo Blvd.
|
|
Thousand Oaks, CA
|
|
|
|
|
|
|
1,435
|
|
|
|
779
|
|
|
|
36
|
|
|
|
1,441
|
|
|
|
809
|
|
|
|
2,250
|
|
|
|
160
|
|
|
|
2007
|
|
|
|
(l
|
)
|
1260 Rancho Conejo Blvd.
|
|
Thousand Oaks, CA
|
|
|
|
|
|
|
1,353
|
|
|
|
722
|
|
|
|
(898
|
)
|
|
|
651
|
|
|
|
526
|
|
|
|
1,177
|
|
|
|
138
|
|
|
|
2007
|
|
|
|
(l
|
)
|
1270 Rancho Conejo Blvd.
|
|
Thousand Oaks, CA
|
|
|
|
|
|
|
1,224
|
|
|
|
716
|
|
|
|
21
|
|
|
|
1,229
|
|
|
|
732
|
|
|
|
1,961
|
|
|
|
166
|
|
|
|
2007
|
|
|
|
(l
|
)
|
1280 Rancho Conejo Blvd.
|
|
Thousand Oaks, CA
|
|
|
3,234
|
|
|
|
2,043
|
|
|
|
3,408
|
|
|
|
40
|
|
|
|
2,051
|
|
|
|
3,440
|
|
|
|
5,491
|
|
|
|
567
|
|
|
|
2007
|
|
|
|
(l
|
)
|
1290 Rancho Conejo Blvd
|
|
Thousand Oaks, CA
|
|
|
2,788
|
|
|
|
1,754
|
|
|
|
2,949
|
|
|
|
35
|
|
|
|
1,761
|
|
|
|
2,977
|
|
|
|
4,738
|
|
|
|
494
|
|
|
|
2007
|
|
|
|
(l
|
)
|
18201-18291
Santa Fe
|
|
Rancho Domingue, CA
|
|
|
|
|
|
|
6,720
|
|
|
|
|
|
|
|
8,949
|
|
|
|
6,897
|
|
|
|
8,772
|
|
|
|
15,669
|
|
|
|
671
|
|
|
|
2008
|
|
|
|
(l
|
)
|
1011 Rancho Conejo
|
|
Thousand Oaks, CA
|
|
|
5,762
|
|
|
|
7,717
|
|
|
|
2,518
|
|
|
|
(186
|
)
|
|
|
7,752
|
|
|
|
2,296
|
|
|
|
10,048
|
|
|
|
407
|
|
|
|
2008
|
|
|
|
(l
|
)
|
2300 Corporate Center Drive
|
|
Thousand Oaks, CA
|
|
|
|
|
|
|
6,506
|
|
|
|
4,885
|
|
|
|
(5,254
|
)
|
|
|
3,236
|
|
|
|
2,901
|
|
|
|
6,137
|
|
|
|
915
|
|
|
|
2008
|
|
|
|
(l
|
)
|
19021 S. Reyes Ave.
|
|
Rancho Domingue, CA
|
|
|
|
|
|
|
8,183
|
|
|
|
7,501
|
|
|
|
549
|
|
|
|
8,545
|
|
|
|
7,688
|
|
|
|
16,233
|
|
|
|
561
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Miami
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4700 NW 15th Ave
|
|
Ft. Lauderdale, FL
|
|
|
|
|
|
|
908
|
|
|
|
1,883
|
|
|
|
310
|
|
|
|
912
|
|
|
|
2,189
|
|
|
|
3,101
|
|
|
|
360
|
|
|
|
2007
|
|
|
|
(l
|
)
|
4710 NW 15th Ave
|
|
Ft. Lauderdale, FL
|
|
|
|
|
|
|
830
|
|
|
|
2,722
|
|
|
|
384
|
|
|
|
834
|
|
|
|
3,102
|
|
|
|
3,936
|
|
|
|
439
|
|
|
|
2007
|
|
|
|
(l
|
)
|
4720 NW 15th Ave
|
|
Ft. Lauderdale, FL
|
|
|
|
|
|
|
937
|
|
|
|
2,455
|
|
|
|
262
|
|
|
|
942
|
|
|
|
2,712
|
|
|
|
3,654
|
|
|
|
375
|
|
|
|
2007
|
|
|
|
(l
|
)
|
4740 NW 15th Ave
|
|
Ft. Lauderdale, FL
|
|
|
|
|
|
|
1,107
|
|
|
|
3,111
|
|
|
|
261
|
|
|
|
1,112
|
|
|
|
3,367
|
|
|
|
4,479
|
|
|
|
489
|
|
|
|
2007
|
|
|
|
(l
|
)
|
4750 NW 15th Ave
|
|
Ft. Lauderdale, FL
|
|
|
|
|
|
|
947
|
|
|
|
3,079
|
|
|
|
756
|
|
|
|
951
|
|
|
|
3,831
|
|
|
|
4,782
|
|
|
|
532
|
|
|
|
2007
|
|
|
|
(l
|
)
|
4800 NW 15th Ave
|
|
Ft. Lauderdale, FL
|
|
|
|
|
|
|
1,092
|
|
|
|
3,308
|
|
|
|
359
|
|
|
|
1,097
|
|
|
|
3,662
|
|
|
|
4,759
|
|
|
|
673
|
|
|
|
2007
|
|
|
|
(l
|
)
|
Medley Industrial Center
|
|
Medley, FL
|
|
|
|
|
|
|
857
|
|
|
|
3,428
|
|
|
|
2,978
|
|
|
|
864
|
|
|
|
6,399
|
|
|
|
7,263
|
|
|
|
594
|
|
|
|
2007
|
|
|
|
(l
|
)
|
Pan American Business Park
|
|
Medley, FL
|
|
|
|
|
|
|
2,521
|
|
|
|
|
|
|
|
633
|
|
|
|
828
|
|
|
|
2,326
|
|
|
|
3,154
|
|
|
|
50
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Milwaukee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6523 N Sydney Place
|
|
Glendale, WI
|
|
|
|
|
|
|
172
|
|
|
|
976
|
|
|
|
(46
|
)
|
|
|
88
|
|
|
|
1,014
|
|
|
|
1,102
|
|
|
|
538
|
|
|
|
1995
|
|
|
|
(l
|
)
|
5355 South Westridge Drive
|
|
New Berlin, WI
|
|
|
5,489
|
|
|
|
1,630
|
|
|
|
7,058
|
|
|
|
(306
|
)
|
|
|
1,646
|
|
|
|
6,736
|
|
|
|
8,382
|
|
|
|
1,001
|
|
|
|
2004
|
|
|
|
(l
|
)
|
320-334 W. Vogel
Avenue
|
|
Milwaukee, WI
|
|
|
|
|
|
|
506
|
|
|
|
3,199
|
|
|
|
80
|
|
|
|
508
|
|
|
|
3,277
|
|
|
|
3,785
|
|
|
|
1,139
|
|
|
|
2005
|
|
|
|
(l
|
)
|
4950 South 6th Avenue
|
|
Milwaukee, WI
|
|
|
|
|
|
|
299
|
|
|
|
1,565
|
|
|
|
57
|
|
|
|
301
|
|
|
|
1,620
|
|
|
|
1,921
|
|
|
|
672
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1711 Paramount Court
|
|
Waukesha, WI
|
|
|
1,329
|
|
|
|
308
|
|
|
|
1,762
|
|
|
|
41
|
|
|
|
311
|
|
|
|
1,800
|
|
|
|
2,111
|
|
|
|
402
|
|
|
|
2005
|
|
|
|
(l
|
)
|
W140 N9059 Lilly Road
|
|
Menomonee Falls, WI
|
|
|
|
|
|
|
343
|
|
|
|
1,153
|
|
|
|
140
|
|
|
|
366
|
|
|
|
1,270
|
|
|
|
1,636
|
|
|
|
344
|
|
|
|
2005
|
|
|
|
(l
|
)
|
200 W. Vogel Avenue-Bldg B
|
|
Milwaukee, WI
|
|
|
|
|
|
|
301
|
|
|
|
2,150
|
|
|
|
|
|
|
|
302
|
|
|
|
2,149
|
|
|
|
2,451
|
|
|
|
648
|
|
|
|
2005
|
|
|
|
(l
|
)
|
S-14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
4921 S. 2nd Street
|
|
Milwaukee, WI
|
|
|
|
|
|
|
101
|
|
|
|
713
|
|
|
|
(221
|
)
|
|
|
60
|
|
|
|
533
|
|
|
|
593
|
|
|
|
214
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1500 Peebles Drive
|
|
Richland Center, WI
|
|
|
|
|
|
|
1,577
|
|
|
|
1,018
|
|
|
|
(387
|
)
|
|
|
1,434
|
|
|
|
774
|
|
|
|
2,208
|
|
|
|
635
|
|
|
|
2005
|
|
|
|
(l
|
)
|
16600 West Glendale Ave.
|
|
New Berlin, WI
|
|
|
|
|
|
|
704
|
|
|
|
1,923
|
|
|
|
468
|
|
|
|
715
|
|
|
|
2,380
|
|
|
|
3,095
|
|
|
|
710
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2905 S. 160th Street
|
|
New Berlin, WI
|
|
|
|
|
|
|
261
|
|
|
|
672
|
|
|
|
312
|
|
|
|
265
|
|
|
|
980
|
|
|
|
1,245
|
|
|
|
258
|
|
|
|
2007
|
|
|
|
(l
|
)
|
2855 S. 160th Street
|
|
New Berlin, WI
|
|
|
|
|
|
|
221
|
|
|
|
628
|
|
|
|
198
|
|
|
|
225
|
|
|
|
822
|
|
|
|
1,047
|
|
|
|
304
|
|
|
|
2007
|
|
|
|
(l
|
)
|
2485 Commerce Drive
|
|
New Berlin, WI
|
|
|
|
|
|
|
483
|
|
|
|
1,516
|
|
|
|
235
|
|
|
|
491
|
|
|
|
1,743
|
|
|
|
2,234
|
|
|
|
387
|
|
|
|
2007
|
|
|
|
(l
|
)
|
14518 Whittaker Way
|
|
Menomonee Falls, WI
|
|
|
|
|
|
|
437
|
|
|
|
1,082
|
|
|
|
125
|
|
|
|
445
|
|
|
|
1,199
|
|
|
|
1,644
|
|
|
|
358
|
|
|
|
2007
|
|
|
|
(l
|
)
|
Rust-Oleum BTS
|
|
Kenosha, WI
|
|
|
14,362
|
|
|
|
4,100
|
|
|
|
|
|
|
|
23,783
|
|
|
|
3,212
|
|
|
|
24,671
|
|
|
|
27,883
|
|
|
|
1,338
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Menomonee Falls-Barry Land
|
|
Menomonee Falls, WI
|
|
|
11,203
|
|
|
|
1,188
|
|
|
|
|
|
|
|
16,945
|
|
|
|
1,204
|
|
|
|
16,929
|
|
|
|
18,133
|
|
|
|
845
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Minneapolis/St. Paul
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6201 West 111th Street
|
|
Bloomington, MN
|
|
|
4,479
|
|
|
|
1,358
|
|
|
|
8,622
|
|
|
|
5,364
|
|
|
|
1,499
|
|
|
|
13,845
|
|
|
|
15,344
|
|
|
|
8,401
|
|
|
|
1994
|
|
|
|
(l
|
)
|
7251-7267
Washington Avenue
|
|
Edina, MN
|
|
|
|
|
|
|
129
|
|
|
|
382
|
|
|
|
624
|
|
|
|
182
|
|
|
|
953
|
|
|
|
1,135
|
|
|
|
745
|
|
|
|
1994
|
|
|
|
(l
|
)
|
7301-7325
Washington Avenue
|
|
Edina, MN
|
|
|
|
|
|
|
174
|
|
|
|
391
|
|
|
|
(70
|
)
|
|
|
193
|
|
|
|
302
|
|
|
|
495
|
|
|
|
75
|
|
|
|
1994
|
|
|
|
(l
|
)
|
7101 Winnetka Avenue North
|
|
Brooklyn Park, MN
|
|
|
5,933
|
|
|
|
2,195
|
|
|
|
6,084
|
|
|
|
3,982
|
|
|
|
2,228
|
|
|
|
10,033
|
|
|
|
12,261
|
|
|
|
6,173
|
|
|
|
1994
|
|
|
|
(l
|
)
|
9901 West 74th Street
|
|
Eden Prairie, MN
|
|
|
3,480
|
|
|
|
621
|
|
|
|
3,289
|
|
|
|
3,281
|
|
|
|
639
|
|
|
|
6,552
|
|
|
|
7,191
|
|
|
|
4,718
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1030 Lone Oak Road
|
|
Eagan, MN
|
|
|
2,358
|
|
|
|
456
|
|
|
|
2,703
|
|
|
|
616
|
|
|
|
456
|
|
|
|
3,319
|
|
|
|
3,775
|
|
|
|
1,251
|
|
|
|
1994
|
|
|
|
(l
|
)
|
1060 Lone Oak Road
|
|
Eagan, MN
|
|
|
3,083
|
|
|
|
624
|
|
|
|
3,700
|
|
|
|
610
|
|
|
|
624
|
|
|
|
4,310
|
|
|
|
4,934
|
|
|
|
1,844
|
|
|
|
1994
|
|
|
|
(l
|
)
|
5400 Nathan Lane
|
|
Plymouth, MN
|
|
|
2,973
|
|
|
|
749
|
|
|
|
4,461
|
|
|
|
935
|
|
|
|
757
|
|
|
|
5,388
|
|
|
|
6,145
|
|
|
|
2,173
|
|
|
|
1994
|
|
|
|
(l
|
)
|
10120 W 76th Street
|
|
Eden Prairie, MN
|
|
|
|
|
|
|
315
|
|
|
|
1,804
|
|
|
|
1,439
|
|
|
|
315
|
|
|
|
3,243
|
|
|
|
3,558
|
|
|
|
1,042
|
|
|
|
1995
|
|
|
|
(l
|
)
|
12155 Nicollet Ave
|
|
Burnsville, MN
|
|
|
|
|
|
|
286
|
|
|
|
|
|
|
|
1,731
|
|
|
|
288
|
|
|
|
1,729
|
|
|
|
2,017
|
|
|
|
658
|
|
|
|
1995
|
|
|
|
(l
|
)
|
4100 Peavey Road
|
|
Chaska, MN
|
|
|
|
|
|
|
277
|
|
|
|
2,261
|
|
|
|
798
|
|
|
|
277
|
|
|
|
3,059
|
|
|
|
3,336
|
|
|
|
1,061
|
|
|
|
1996
|
|
|
|
(l
|
)
|
5205 Highway 169
|
|
Plymouth, MN
|
|
|
|
|
|
|
446
|
|
|
|
2,525
|
|
|
|
427
|
|
|
|
557
|
|
|
|
2,841
|
|
|
|
3,398
|
|
|
|
1,140
|
|
|
|
1996
|
|
|
|
(l
|
)
|
7100-7198
Shady Oak Road
|
|
Eden Prairie, MN
|
|
|
|
|
|
|
715
|
|
|
|
4,054
|
|
|
|
1,910
|
|
|
|
736
|
|
|
|
5,943
|
|
|
|
6,679
|
|
|
|
1,816
|
|
|
|
1996
|
|
|
|
(l
|
)
|
7500-7546
Washington Square
|
|
Eden Prairie, MN
|
|
|
|
|
|
|
229
|
|
|
|
1,300
|
|
|
|
782
|
|
|
|
235
|
|
|
|
2,076
|
|
|
|
2,311
|
|
|
|
653
|
|
|
|
1996
|
|
|
|
(l
|
)
|
7550-7558
Washington Square
|
|
Eden Prairie, MN
|
|
|
|
|
|
|
153
|
|
|
|
867
|
|
|
|
275
|
|
|
|
157
|
|
|
|
1,138
|
|
|
|
1,295
|
|
|
|
367
|
|
|
|
1996
|
|
|
|
(l
|
)
|
5240-5300
Valley Industrial Blvd S
|
|
Shakopee, MN
|
|
|
|
|
|
|
362
|
|
|
|
2,049
|
|
|
|
810
|
|
|
|
371
|
|
|
|
2,850
|
|
|
|
3,221
|
|
|
|
927
|
|
|
|
1996
|
|
|
|
(l
|
)
|
500-530
Kasota Avenue SE
|
|
Minneapolis, MN
|
|
|
|
|
|
|
415
|
|
|
|
2,354
|
|
|
|
997
|
|
|
|
434
|
|
|
|
3,332
|
|
|
|
3,766
|
|
|
|
992
|
|
|
|
1998
|
|
|
|
(l
|
)
|
2530-2570
Kasota Avenue
|
|
St. Paul, MN
|
|
|
|
|
|
|
407
|
|
|
|
2,308
|
|
|
|
737
|
|
|
|
435
|
|
|
|
3,017
|
|
|
|
3,452
|
|
|
|
953
|
|
|
|
1998
|
|
|
|
(l
|
)
|
5775 12th Avenue
|
|
Shakopee, MN
|
|
|
4,009
|
|
|
|
590
|
|
|
|
|
|
|
|
5,827
|
|
|
|
590
|
|
|
|
5,827
|
|
|
|
6,417
|
|
|
|
1,708
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1157 Valley Park Drive
|
|
Shakopee, MN
|
|
|
4,486
|
|
|
|
760
|
|
|
|
|
|
|
|
6,421
|
|
|
|
888
|
|
|
|
6,293
|
|
|
|
7,181
|
|
|
|
1,807
|
|
|
|
1999
|
|
|
|
(l
|
)
|
9600 West 76th Street
|
|
Eden Prairie, MN
|
|
|
2,610
|
|
|
|
1,000
|
|
|
|
2,450
|
|
|
|
48
|
|
|
|
1,034
|
|
|
|
2,464
|
|
|
|
3,498
|
|
|
|
542
|
|
|
|
2004
|
|
|
|
(l
|
)
|
9700 West 76th Street
|
|
Eden Prairie, MN
|
|
|
3,160
|
|
|
|
1,000
|
|
|
|
2,709
|
|
|
|
529
|
|
|
|
1,038
|
|
|
|
3,200
|
|
|
|
4,238
|
|
|
|
647
|
|
|
|
2004
|
|
|
|
(l
|
)
|
7600 69th Avenue
|
|
Greenfield, MN
|
|
|
|
|
|
|
1,500
|
|
|
|
8,328
|
|
|
|
1,808
|
|
|
|
1,510
|
|
|
|
10,126
|
|
|
|
11,636
|
|
|
|
2,407
|
|
|
|
2004
|
|
|
|
(l
|
)
|
5017 Boone Avenue North
|
|
New Hope, MN
|
|
|
|
|
|
|
1,000
|
|
|
|
1,599
|
|
|
|
(19
|
)
|
|
|
1,009
|
|
|
|
1,571
|
|
|
|
2,580
|
|
|
|
480
|
|
|
|
2005
|
|
|
|
(l
|
)
|
2300 West Highway 13
|
|
Burnsville, MN
|
|
|
|
|
|
|
2,517
|
|
|
|
6,069
|
|
|
|
(3,429
|
)
|
|
|
1,253
|
|
|
|
3,904
|
|
|
|
5,157
|
|
|
|
2,274
|
|
|
|
2005
|
|
|
|
(l
|
)
|
S-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
1087 Park Place
|
|
Shakopee, MN
|
|
|
|
|
|
|
1,195
|
|
|
|
4,891
|
|
|
|
(622
|
)
|
|
|
1,198
|
|
|
|
4,266
|
|
|
|
5,464
|
|
|
|
635
|
|
|
|
2005
|
|
|
|
(l
|
)
|
5391 12th Avenue SE
|
|
Shakopee, MN
|
|
|
5,084
|
|
|
|
1,392
|
|
|
|
8,149
|
|
|
|
201
|
|
|
|
1,395
|
|
|
|
8,347
|
|
|
|
9,742
|
|
|
|
1,729
|
|
|
|
2005
|
|
|
|
(l
|
)
|
4701 Valley Industrial Blvd S
|
|
Shakopee, MN
|
|
|
|
|
|
|
1,296
|
|
|
|
7,157
|
|
|
|
569
|
|
|
|
1,299
|
|
|
|
7,723
|
|
|
|
9,022
|
|
|
|
2,016
|
|
|
|
2005
|
|
|
|
(l
|
)
|
316 Lake Hazeltine Drive
|
|
Chaska, MN
|
|
|
|
|
|
|
714
|
|
|
|
944
|
|
|
|
57
|
|
|
|
729
|
|
|
|
986
|
|
|
|
1,715
|
|
|
|
362
|
|
|
|
2006
|
|
|
|
(l
|
)
|
1225 Highway 169 North
|
|
Plymouth, MN
|
|
|
|
|
|
|
1,190
|
|
|
|
1,979
|
|
|
|
391
|
|
|
|
1,207
|
|
|
|
2,353
|
|
|
|
3,560
|
|
|
|
711
|
|
|
|
2006
|
|
|
|
(l
|
)
|
7102 Winnetka Avene North
|
|
Brooklyn Park, MN
|
|
|
4,534
|
|
|
|
1,275
|
|
|
|
|
|
|
|
6,850
|
|
|
|
1,343
|
|
|
|
6,782
|
|
|
|
8,125
|
|
|
|
931
|
|
|
|
2007
|
|
|
|
(l
|
)
|
139 Eva Street
|
|
St. Paul, MN
|
|
|
|
|
|
|
2,132
|
|
|
|
3,105
|
|
|
|
90
|
|
|
|
2,175
|
|
|
|
3,152
|
|
|
|
5,327
|
|
|
|
352
|
|
|
|
2008
|
|
|
|
(l
|
)
|
21900 Dodd Boulevard
|
|
Lakeville, MN
|
|
|
|
|
|
|
2,289
|
|
|
|
7,952
|
|
|
|
(1
|
)
|
|
|
2,289
|
|
|
|
7,952
|
|
|
|
10,241
|
|
|
|
223
|
|
|
|
2009
|
|
|
|
(l
|
)
|
Nashville
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3099 Barry Drive
|
|
Portland, TN
|
|
|
|
|
|
|
418
|
|
|
|
2,368
|
|
|
|
(745
|
)
|
|
|
240
|
|
|
|
1,801
|
|
|
|
2,041
|
|
|
|
870
|
|
|
|
1996
|
|
|
|
(l
|
)
|
3150 Barry Drive
|
|
Portland, TN
|
|
|
|
|
|
|
941
|
|
|
|
5,333
|
|
|
|
5,955
|
|
|
|
981
|
|
|
|
11,248
|
|
|
|
12,229
|
|
|
|
2,391
|
|
|
|
1996
|
|
|
|
(l
|
)
|
5599 Highway 31 West
|
|
Portland, TN
|
|
|
|
|
|
|
564
|
|
|
|
3,196
|
|
|
|
(1,618
|
)
|
|
|
180
|
|
|
|
1,962
|
|
|
|
2,142
|
|
|
|
1,183
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1650 Elm Hill Pike
|
|
Nashville, TN
|
|
|
|
|
|
|
329
|
|
|
|
1,867
|
|
|
|
180
|
|
|
|
300
|
|
|
|
2,076
|
|
|
|
2,376
|
|
|
|
739
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1931 Air Lane Drive
|
|
Nashville, TN
|
|
|
|
|
|
|
489
|
|
|
|
2,785
|
|
|
|
397
|
|
|
|
493
|
|
|
|
3,178
|
|
|
|
3,671
|
|
|
|
1,037
|
|
|
|
1997
|
|
|
|
(l
|
)
|
4640 Cummings Park
|
|
Nashville, TN
|
|
|
|
|
|
|
360
|
|
|
|
2,040
|
|
|
|
632
|
|
|
|
365
|
|
|
|
2,667
|
|
|
|
3,032
|
|
|
|
678
|
|
|
|
1999
|
|
|
|
(l
|
)
|
1740 River Hills Drive
|
|
Nashville, TN
|
|
|
3,398
|
|
|
|
848
|
|
|
|
4,383
|
|
|
|
1,385
|
|
|
|
888
|
|
|
|
5,728
|
|
|
|
6,616
|
|
|
|
2,040
|
|
|
|
2005
|
|
|
|
(l
|
)
|
211 Ellery Court
|
|
Nashville, TN
|
|
|
2,690
|
|
|
|
606
|
|
|
|
3,192
|
|
|
|
211
|
|
|
|
616
|
|
|
|
3,393
|
|
|
|
4,009
|
|
|
|
630
|
|
|
|
2007
|
|
|
|
(l
|
)
|
Rockdale BTS
|
|
Gallatin, TN
|
|
|
|
|
|
|
1,778
|
|
|
|
|
|
|
|
24,267
|
|
|
|
1,778
|
|
|
|
24,267
|
|
|
|
26,045
|
|
|
|
1,287
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Northern New Jersey
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 Worlds Fair Drive
|
|
Franklin, NJ
|
|
|
|
|
|
|
483
|
|
|
|
2,735
|
|
|
|
610
|
|
|
|
503
|
|
|
|
3,325
|
|
|
|
3,828
|
|
|
|
1,135
|
|
|
|
1997
|
|
|
|
(l
|
)
|
12 Worlds Fair Drive
|
|
Franklin, NJ
|
|
|
|
|
|
|
572
|
|
|
|
3,240
|
|
|
|
682
|
|
|
|
593
|
|
|
|
3,901
|
|
|
|
4,494
|
|
|
|
1,294
|
|
|
|
1997
|
|
|
|
(l
|
)
|
22 Worlds Fair Drive
|
|
Franklin, NJ
|
|
|
|
|
|
|
364
|
|
|
|
2,064
|
|
|
|
665
|
|
|
|
375
|
|
|
|
2,718
|
|
|
|
3,093
|
|
|
|
951
|
|
|
|
1997
|
|
|
|
(l
|
)
|
26 Worlds Fair Drive
|
|
Franklin, NJ
|
|
|
|
|
|
|
361
|
|
|
|
2,048
|
|
|
|
547
|
|
|
|
377
|
|
|
|
2,579
|
|
|
|
2,956
|
|
|
|
863
|
|
|
|
1997
|
|
|
|
(l
|
)
|
24 Worlds Fair Drive
|
|
Franklin, NJ
|
|
|
|
|
|
|
347
|
|
|
|
1,968
|
|
|
|
447
|
|
|
|
362
|
|
|
|
2,400
|
|
|
|
2,762
|
|
|
|
882
|
|
|
|
1997
|
|
|
|
(l
|
)
|
20 Worlds Fair Drive Lot 13
|
|
Sumerset, NJ
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
2,581
|
|
|
|
691
|
|
|
|
1,899
|
|
|
|
2,590
|
|
|
|
505
|
|
|
|
1999
|
|
|
|
(l
|
)
|
45 Route 46
|
|
Pine Brook, NJ
|
|
|
|
|
|
|
969
|
|
|
|
5,491
|
|
|
|
911
|
|
|
|
978
|
|
|
|
6,393
|
|
|
|
7,371
|
|
|
|
1,770
|
|
|
|
2000
|
|
|
|
(l
|
)
|
43 Route 46
|
|
Pine Brook, NJ
|
|
|
|
|
|
|
474
|
|
|
|
2,686
|
|
|
|
435
|
|
|
|
479
|
|
|
|
3,116
|
|
|
|
3,595
|
|
|
|
741
|
|
|
|
2000
|
|
|
|
(l
|
)
|
39 Route 46
|
|
Pine Brook, NJ
|
|
|
|
|
|
|
260
|
|
|
|
1,471
|
|
|
|
191
|
|
|
|
262
|
|
|
|
1,660
|
|
|
|
1,922
|
|
|
|
433
|
|
|
|
2000
|
|
|
|
(l
|
)
|
26 Chapin Road
|
|
Pine Brook, NJ
|
|
|
4,950
|
|
|
|
956
|
|
|
|
5,415
|
|
|
|
802
|
|
|
|
965
|
|
|
|
6,208
|
|
|
|
7,173
|
|
|
|
1,619
|
|
|
|
2000
|
|
|
|
(l
|
)
|
30 Chapin Road
|
|
Pine Brook, NJ
|
|
|
4,833
|
|
|
|
960
|
|
|
|
5,440
|
|
|
|
603
|
|
|
|
969
|
|
|
|
6,034
|
|
|
|
7,003
|
|
|
|
1,629
|
|
|
|
2000
|
|
|
|
(l
|
)
|
20 Hook Mountain Road
|
|
Pine Brook, NJ
|
|
|
|
|
|
|
1,507
|
|
|
|
8,542
|
|
|
|
2,920
|
|
|
|
1,534
|
|
|
|
11,435
|
|
|
|
12,969
|
|
|
|
3,037
|
|
|
|
2000
|
|
|
|
(l
|
)
|
30 Hook Mountain Road
|
|
Pine Brook, NJ
|
|
|
|
|
|
|
389
|
|
|
|
2,206
|
|
|
|
423
|
|
|
|
396
|
|
|
|
2,622
|
|
|
|
3,018
|
|
|
|
681
|
|
|
|
2000
|
|
|
|
(l
|
)
|
55 Route 46
|
|
Pine Brook, NJ
|
|
|
|
|
|
|
396
|
|
|
|
2,244
|
|
|
|
(478
|
)
|
|
|
300
|
|
|
|
1,862
|
|
|
|
2,162
|
|
|
|
560
|
|
|
|
2000
|
|
|
|
(l
|
)
|
16 Chapin Rod
|
|
Pine Brook, NJ
|
|
|
3,708
|
|
|
|
885
|
|
|
|
5,015
|
|
|
|
440
|
|
|
|
901
|
|
|
|
5,439
|
|
|
|
6,340
|
|
|
|
1,313
|
|
|
|
2000
|
|
|
|
(l
|
)
|
20 Chapin Road
|
|
Pine Brook, NJ
|
|
|
4,810
|
|
|
|
1,134
|
|
|
|
6,426
|
|
|
|
664
|
|
|
|
1,154
|
|
|
|
7,070
|
|
|
|
8,224
|
|
|
|
1,815
|
|
|
|
2000
|
|
|
|
(l
|
)
|
S-16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
Sayreville Lot 4
|
|
Sayreville, NJ
|
|
|
3,573
|
|
|
|
944
|
|
|
|
|
|
|
|
4,592
|
|
|
|
944
|
|
|
|
4,592
|
|
|
|
5,536
|
|
|
|
976
|
|
|
|
2002
|
|
|
|
(l
|
)
|
Sayreville Lot 3
|
|
Sayreville, NJ
|
|
|
|
|
|
|
996
|
|
|
|
|
|
|
|
5,380
|
|
|
|
996
|
|
|
|
5,380
|
|
|
|
6,376
|
|
|
|
866
|
|
|
|
2003
|
|
|
|
(l
|
)
|
309-319
Pierce Street
|
|
Somerset, NJ
|
|
|
3,917
|
|
|
|
1,300
|
|
|
|
4,628
|
|
|
|
1,069
|
|
|
|
1,309
|
|
|
|
5,688
|
|
|
|
6,997
|
|
|
|
1,417
|
|
|
|
2004
|
|
|
|
(l
|
)
|
Philadelphia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3240 S. 78th Street
|
|
Philadelphia, PA
|
|
|
|
|
|
|
515
|
|
|
|
1,245
|
|
|
|
(312
|
)
|
|
|
403
|
|
|
|
1,045
|
|
|
|
1,448
|
|
|
|
311
|
|
|
|
2005
|
|
|
|
(l
|
)
|
2455 Boulevard of Generals
|
|
Norristown, PA
|
|
|
3,579
|
|
|
|
1,200
|
|
|
|
4,800
|
|
|
|
1,088
|
|
|
|
1,226
|
|
|
|
5,862
|
|
|
|
7,088
|
|
|
|
888
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Phoenix
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1045 South Edward Drive
|
|
Tempe, AZ
|
|
|
|
|
|
|
390
|
|
|
|
2,160
|
|
|
|
164
|
|
|
|
396
|
|
|
|
2,318
|
|
|
|
2,714
|
|
|
|
653
|
|
|
|
1999
|
|
|
|
(l
|
)
|
50 South 56th Street
|
|
Chandler, AZ
|
|
|
|
|
|
|
1,206
|
|
|
|
3,218
|
|
|
|
352
|
|
|
|
1,252
|
|
|
|
3,524
|
|
|
|
4,776
|
|
|
|
712
|
|
|
|
2004
|
|
|
|
(l
|
)
|
4701 W. Jefferson
|
|
Phoenix, AZ
|
|
|
2,675
|
|
|
|
926
|
|
|
|
2,195
|
|
|
|
443
|
|
|
|
929
|
|
|
|
2,635
|
|
|
|
3,564
|
|
|
|
832
|
|
|
|
2005
|
|
|
|
(l
|
)
|
7102 W. Roosevelt
|
|
Phoenix, AZ
|
|
|
|
|
|
|
1,613
|
|
|
|
6,451
|
|
|
|
1,107
|
|
|
|
1,620
|
|
|
|
7,551
|
|
|
|
9,171
|
|
|
|
1,644
|
|
|
|
2006
|
|
|
|
(l
|
)
|
4137 West Adams Street
|
|
Phoenix, AZ
|
|
|
|
|
|
|
990
|
|
|
|
2,661
|
|
|
|
150
|
|
|
|
1,033
|
|
|
|
2,768
|
|
|
|
3,801
|
|
|
|
503
|
|
|
|
2006
|
|
|
|
(l
|
)
|
245 W. Lodge
|
|
Tempe, AZ
|
|
|
|
|
|
|
898
|
|
|
|
3,066
|
|
|
|
(2,164
|
)
|
|
|
349
|
|
|
|
1,451
|
|
|
|
1,800
|
|
|
|
366
|
|
|
|
2007
|
|
|
|
(l
|
)
|
1590 E Riverview Dr.
|
|
Phoenix, AZ
|
|
|
|
|
|
|
1,293
|
|
|
|
5,950
|
|
|
|
69
|
|
|
|
1,292
|
|
|
|
6,020
|
|
|
|
7,312
|
|
|
|
588
|
|
|
|
2008
|
|
|
|
(l
|
)
|
14131 N. Rio Vista Dr.
|
|
Peoria, AZ
|
|
|
|
|
|
|
2,563
|
|
|
|
9,388
|
|
|
|
1,652
|
|
|
|
2,563
|
|
|
|
11,040
|
|
|
|
13,603
|
|
|
|
1,221
|
|
|
|
2008
|
|
|
|
(l
|
)
|
8716 W. Ludlow Drive
|
|
Peoria, AZ
|
|
|
|
|
|
|
2,709
|
|
|
|
10,970
|
|
|
|
1,008
|
|
|
|
2,709
|
|
|
|
11,978
|
|
|
|
14,687
|
|
|
|
1,024
|
|
|
|
2008
|
|
|
|
(l
|
)
|
3815 W. Washington St.
|
|
Phoenix, AZ
|
|
|
4,090
|
|
|
|
1,675
|
|
|
|
4,514
|
|
|
|
146
|
|
|
|
1,719
|
|
|
|
4,616
|
|
|
|
6,335
|
|
|
|
377
|
|
|
|
2008
|
|
|
|
(l
|
)
|
690 91st Avenue
|
|
Tolleson, AZ
|
|
|
7,548
|
|
|
|
1,904
|
|
|
|
6,805
|
|
|
|
2,617
|
|
|
|
1,923
|
|
|
|
9,403
|
|
|
|
11,326
|
|
|
|
1,016
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Salt Lake City
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
512 Lawndale Drive(i)
|
|
Salt Lake City, UT
|
|
|
|
|
|
|
2,705
|
|
|
|
15,749
|
|
|
|
2,750
|
|
|
|
2,705
|
|
|
|
18,499
|
|
|
|
21,204
|
|
|
|
6,146
|
|
|
|
1997
|
|
|
|
(l
|
)
|
1270 West 2320 South
|
|
West Valley, UT
|
|
|
|
|
|
|
138
|
|
|
|
784
|
|
|
|
155
|
|
|
|
143
|
|
|
|
934
|
|
|
|
1,077
|
|
|
|
336
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1275 West 2240 South
|
|
West Valley, UT
|
|
|
|
|
|
|
395
|
|
|
|
2,241
|
|
|
|
333
|
|
|
|
408
|
|
|
|
2,561
|
|
|
|
2,969
|
|
|
|
792
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1288 West 2240 South
|
|
West Valley, UT
|
|
|
|
|
|
|
119
|
|
|
|
672
|
|
|
|
125
|
|
|
|
123
|
|
|
|
793
|
|
|
|
916
|
|
|
|
257
|
|
|
|
1998
|
|
|
|
(l
|
)
|
2235 South 1300 West
|
|
West Valley, UT
|
|
|
|
|
|
|
198
|
|
|
|
1,120
|
|
|
|
278
|
|
|
|
204
|
|
|
|
1,392
|
|
|
|
1,596
|
|
|
|
566
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1293 West 2200 South
|
|
West Valley, UT
|
|
|
|
|
|
|
158
|
|
|
|
896
|
|
|
|
94
|
|
|
|
163
|
|
|
|
985
|
|
|
|
1,148
|
|
|
|
309
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1279 West 2200 South
|
|
West Valley, UT
|
|
|
|
|
|
|
198
|
|
|
|
1,120
|
|
|
|
310
|
|
|
|
204
|
|
|
|
1,424
|
|
|
|
1,628
|
|
|
|
429
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1272 West 2240 South
|
|
West Valley, UT
|
|
|
|
|
|
|
336
|
|
|
|
1,905
|
|
|
|
301
|
|
|
|
347
|
|
|
|
2,195
|
|
|
|
2,542
|
|
|
|
667
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1149 West 2240 South
|
|
West Valley, UT
|
|
|
|
|
|
|
217
|
|
|
|
1,232
|
|
|
|
118
|
|
|
|
225
|
|
|
|
1,342
|
|
|
|
1,567
|
|
|
|
445
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1142 West 2320 South
|
|
West Valley, UT
|
|
|
|
|
|
|
217
|
|
|
|
1,232
|
|
|
|
73
|
|
|
|
225
|
|
|
|
1,297
|
|
|
|
1,522
|
|
|
|
416
|
|
|
|
1998
|
|
|
|
(l
|
)
|
1152 West 2240 South
|
|
West Valley, UT
|
|
|
|
|
|
|
2,067
|
|
|
|
|
|
|
|
2,551
|
|
|
|
1,083
|
|
|
|
3,535
|
|
|
|
4,618
|
|
|
|
985
|
|
|
|
2000
|
|
|
|
(l
|
)
|
1815-1957
South 4650 West
|
|
Salt Lake City, UT
|
|
|
7,255
|
|
|
|
1,707
|
|
|
|
10,873
|
|
|
|
116
|
|
|
|
1,713
|
|
|
|
10,983
|
|
|
|
12,696
|
|
|
|
1,649
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2100 Alexander Street
|
|
West Valley, UT
|
|
|
1,187
|
|
|
|
376
|
|
|
|
1,670
|
|
|
|
(21
|
)
|
|
|
376
|
|
|
|
1,649
|
|
|
|
2,025
|
|
|
|
208
|
|
|
|
2007
|
|
|
|
(l
|
)
|
2064 Alexander Street
|
|
West Valley, UT
|
|
|
2,118
|
|
|
|
864
|
|
|
|
2,771
|
|
|
|
112
|
|
|
|
869
|
|
|
|
2,878
|
|
|
|
3,747
|
|
|
|
437
|
|
|
|
2007
|
|
|
|
(l
|
)
|
San Diego
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16275 Technology Drive
|
|
San Diego, CA
|
|
|
|
|
|
|
2,848
|
|
|
|
8,641
|
|
|
|
(198
|
)
|
|
|
2,859
|
|
|
|
8,432
|
|
|
|
11,291
|
|
|
|
1,361
|
|
|
|
2005
|
|
|
|
(l
|
)
|
S-17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
6305 El Camino Real
|
|
Carlsbad, CA
|
|
|
|
|
|
|
1,590
|
|
|
|
6,360
|
|
|
|
7,563
|
|
|
|
1,590
|
|
|
|
13,923
|
|
|
|
15,513
|
|
|
|
1,629
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2325 Camino Vida Roble
|
|
Carlsbad, CA
|
|
|
2,192
|
|
|
|
1,441
|
|
|
|
1,239
|
|
|
|
670
|
|
|
|
1,446
|
|
|
|
1,904
|
|
|
|
3,350
|
|
|
|
329
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2335 Camino Vida Roble
|
|
Carlsbad, CA
|
|
|
1,139
|
|
|
|
817
|
|
|
|
762
|
|
|
|
126
|
|
|
|
821
|
|
|
|
884
|
|
|
|
1,705
|
|
|
|
184
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2345 Camino Vida Roble
|
|
Carlsbad, CA
|
|
|
806
|
|
|
|
562
|
|
|
|
456
|
|
|
|
86
|
|
|
|
565
|
|
|
|
539
|
|
|
|
1,104
|
|
|
|
121
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2355 Camino Vida Roble
|
|
Carlsbad, CA
|
|
|
588
|
|
|
|
481
|
|
|
|
365
|
|
|
|
52
|
|
|
|
483
|
|
|
|
415
|
|
|
|
898
|
|
|
|
98
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2365 Camino Vida Roble
|
|
Carlsbad, CA
|
|
|
1,239
|
|
|
|
1,098
|
|
|
|
630
|
|
|
|
(6
|
)
|
|
|
1,102
|
|
|
|
620
|
|
|
|
1,722
|
|
|
|
155
|
|
|
|
2006
|
|
|
|
(l
|
)
|
2375 Camino Vida Roble
|
|
Carlsbad, CA
|
|
|
1,538
|
|
|
|
1,210
|
|
|
|
874
|
|
|
|
173
|
|
|
|
1,214
|
|
|
|
1,043
|
|
|
|
2,257
|
|
|
|
274
|
|
|
|
2006
|
|
|
|
(l
|
)
|
6451 El Camino Real
|
|
Carlsbad, CA
|
|
|
|
|
|
|
2,885
|
|
|
|
1,931
|
|
|
|
461
|
|
|
|
2,895
|
|
|
|
2,382
|
|
|
|
5,277
|
|
|
|
485
|
|
|
|
2006
|
|
|
|
(l
|
)
|
8572 Spectrum Lane
|
|
San Diego, CA
|
|
|
2,252
|
|
|
|
806
|
|
|
|
3,225
|
|
|
|
429
|
|
|
|
807
|
|
|
|
3,653
|
|
|
|
4,460
|
|
|
|
441
|
|
|
|
2007
|
|
|
|
(l
|
)
|
13100 Gregg Street
|
|
Poway, CA
|
|
|
|
|
|
|
1,040
|
|
|
|
4,160
|
|
|
|
474
|
|
|
|
1,073
|
|
|
|
4,601
|
|
|
|
5,674
|
|
|
|
740
|
|
|
|
2007
|
|
|
|
(l
|
)
|
Seattle
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1901 Raymond Ave SW
|
|
Renton, WA
|
|
|
2,046
|
|
|
|
4,458
|
|
|
|
2,659
|
|
|
|
197
|
|
|
|
4,594
|
|
|
|
2,720
|
|
|
|
7,314
|
|
|
|
357
|
|
|
|
2008
|
|
|
|
(l
|
)
|
19014 64th Avenue South
|
|
Kent, WA
|
|
|
3,160
|
|
|
|
1,990
|
|
|
|
3,979
|
|
|
|
244
|
|
|
|
2,042
|
|
|
|
4,172
|
|
|
|
6,214
|
|
|
|
497
|
|
|
|
2008
|
|
|
|
(l
|
)
|
18640 68th Ave. South
|
|
Kent, WA
|
|
|
816
|
|
|
|
1,218
|
|
|
|
1,950
|
|
|
|
118
|
|
|
|
1,258
|
|
|
|
2,028
|
|
|
|
3,286
|
|
|
|
277
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Puget Sound Terminal 7
|
|
Seattle, WA
|
|
|
|
|
|
|
9,139
|
|
|
|
5,881
|
|
|
|
476
|
|
|
|
9,340
|
|
|
|
6,155
|
|
|
|
15,495
|
|
|
|
139
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Southern New Jersey
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 Springdale Road
|
|
Cherry Hill, NJ
|
|
|
|
|
|
|
258
|
|
|
|
1,436
|
|
|
|
782
|
|
|
|
258
|
|
|
|
2,218
|
|
|
|
2,476
|
|
|
|
669
|
|
|
|
1998
|
|
|
|
(l
|
)
|
111 Whittendale Drive
|
|
Morrestown, NJ
|
|
|
1,769
|
|
|
|
522
|
|
|
|
2,916
|
|
|
|
65
|
|
|
|
522
|
|
|
|
2,981
|
|
|
|
3,503
|
|
|
|
815
|
|
|
|
2000
|
|
|
|
(l
|
)
|
7851 Airport Highway
|
|
Pennsauken, NJ
|
|
|
|
|
|
|
160
|
|
|
|
508
|
|
|
|
295
|
|
|
|
151
|
|
|
|
812
|
|
|
|
963
|
|
|
|
194
|
|
|
|
2003
|
|
|
|
(l
|
)
|
103 Central
|
|
Mt. Laurel, NJ
|
|
|
|
|
|
|
610
|
|
|
|
1,847
|
|
|
|
539
|
|
|
|
619
|
|
|
|
2,377
|
|
|
|
2,996
|
|
|
|
153
|
|
|
|
2003
|
|
|
|
(l
|
)
|
999 Grand Avenue
|
|
Hammonton, NJ
|
|
|
5,120
|
|
|
|
969
|
|
|
|
8,793
|
|
|
|
(3,776
|
)
|
|
|
401
|
|
|
|
5,585
|
|
|
|
5,986
|
|
|
|
2,632
|
|
|
|
2005
|
|
|
|
(l
|
)
|
7890 Airport Hwy/7015 Central
|
|
Pennsauken, NJ
|
|
|
1,318
|
|
|
|
300
|
|
|
|
989
|
|
|
|
511
|
|
|
|
425
|
|
|
|
1,375
|
|
|
|
1,800
|
|
|
|
510
|
|
|
|
2006
|
|
|
|
(l
|
)
|
600 Creek Road
|
|
Delanco, NJ
|
|
|
|
|
|
|
2,125
|
|
|
|
6,504
|
|
|
|
(2,098
|
)
|
|
|
1,475
|
|
|
|
5,056
|
|
|
|
6,531
|
|
|
|
1,660
|
|
|
|
2007
|
|
|
|
(l
|
)
|
1070 Thomas Busch Mem Hwy
|
|
Pennsauken, NJ
|
|
|
2,872
|
|
|
|
1,054
|
|
|
|
2,278
|
|
|
|
328
|
|
|
|
1,084
|
|
|
|
2,576
|
|
|
|
3,660
|
|
|
|
623
|
|
|
|
2007
|
|
|
|
(l
|
)
|
1601 Schlumberger Drive
|
|
Moorestown, NJ
|
|
|
|
|
|
|
560
|
|
|
|
2,240
|
|
|
|
(418
|
)
|
|
|
372
|
|
|
|
2,010
|
|
|
|
2,382
|
|
|
|
452
|
|
|
|
2007
|
|
|
|
(l
|
)
|
St. Louis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10431-10449
Midwest Industrial Blvd
|
|
Olivette, MO
|
|
|
|
|
|
|
237
|
|
|
|
1,360
|
|
|
|
371
|
|
|
|
237
|
|
|
|
1,731
|
|
|
|
1,968
|
|
|
|
665
|
|
|
|
1994
|
|
|
|
(l
|
)
|
10751 Midwest Industrial Boulevard
|
|
Olivette, MO
|
|
|
|
|
|
|
193
|
|
|
|
1,119
|
|
|
|
347
|
|
|
|
194
|
|
|
|
1,465
|
|
|
|
1,659
|
|
|
|
581
|
|
|
|
1994
|
|
|
|
(l
|
)
|
6951 N Hanley(d)
|
|
Hazelwood, MO
|
|
|
|
|
|
|
405
|
|
|
|
2,295
|
|
|
|
1,635
|
|
|
|
419
|
|
|
|
3,916
|
|
|
|
4,335
|
|
|
|
1,269
|
|
|
|
1996
|
|
|
|
(l
|
)
|
1067 Warson-Bldg A
|
|
St. Louis, MO
|
|
|
|
|
|
|
246
|
|
|
|
1,359
|
|
|
|
619
|
|
|
|
251
|
|
|
|
1,973
|
|
|
|
2,224
|
|
|
|
450
|
|
|
|
2002
|
|
|
|
(l
|
)
|
1067 Warson-Bldg B
|
|
St. Louis, MO
|
|
|
|
|
|
|
380
|
|
|
|
2,103
|
|
|
|
2,001
|
|
|
|
388
|
|
|
|
4,096
|
|
|
|
4,484
|
|
|
|
996
|
|
|
|
2002
|
|
|
|
(l
|
)
|
1067 Warson-Bldg C
|
|
St. Louis, MO
|
|
|
|
|
|
|
303
|
|
|
|
1,680
|
|
|
|
1,458
|
|
|
|
310
|
|
|
|
3,131
|
|
|
|
3,441
|
|
|
|
741
|
|
|
|
2002
|
|
|
|
(l
|
)
|
1067 Warson-Bldg D
|
|
St. Louis, MO
|
|
|
|
|
|
|
353
|
|
|
|
1,952
|
|
|
|
990
|
|
|
|
360
|
|
|
|
2,935
|
|
|
|
3,295
|
|
|
|
760
|
|
|
|
2002
|
|
|
|
(l
|
)
|
6821-6857
Hazelwood Avenue
|
|
Berkeley, MO
|
|
|
4,912
|
|
|
|
985
|
|
|
|
6,205
|
|
|
|
854
|
|
|
|
985
|
|
|
|
7,059
|
|
|
|
8,044
|
|
|
|
1,725
|
|
|
|
2003
|
|
|
|
(l
|
)
|
13701 Rider Trail North
|
|
Earth City, MO
|
|
|
|
|
|
|
800
|
|
|
|
2,099
|
|
|
|
498
|
|
|
|
804
|
|
|
|
2,593
|
|
|
|
3,397
|
|
|
|
598
|
|
|
|
2003
|
|
|
|
(l
|
)
|
S-18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
1908-2000
Innerbelt(d)
|
|
Overland, MO
|
|
|
7,884
|
|
|
|
1,590
|
|
|
|
9,026
|
|
|
|
633
|
|
|
|
1,591
|
|
|
|
9,658
|
|
|
|
11,249
|
|
|
|
2,577
|
|
|
|
2004
|
|
|
|
(l
|
)
|
9060 Latty Avenue
|
|
Berkeley, MO
|
|
|
|
|
|
|
687
|
|
|
|
1,947
|
|
|
|
(235
|
)
|
|
|
694
|
|
|
|
1,705
|
|
|
|
2,399
|
|
|
|
873
|
|
|
|
2006
|
|
|
|
(l
|
)
|
21-25
Gateway Commerce Center
|
|
Edwardsville, IL
|
|
|
23,773
|
|
|
|
1,874
|
|
|
|
31,958
|
|
|
|
191
|
|
|
|
1,928
|
|
|
|
32,095
|
|
|
|
34,023
|
|
|
|
3,967
|
|
|
|
2006
|
|
|
|
(l
|
)
|
6647 Romiss Court
|
|
St. Louis, MO
|
|
|
|
|
|
|
230
|
|
|
|
681
|
|
|
|
72
|
|
|
|
241
|
|
|
|
742
|
|
|
|
983
|
|
|
|
145
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Tampa
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5313 Johns Road
|
|
Tampa, FL
|
|
|
|
|
|
|
204
|
|
|
|
1,159
|
|
|
|
241
|
|
|
|
257
|
|
|
|
1,347
|
|
|
|
1,604
|
|
|
|
480
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5525 Johns Road
|
|
Tampa, FL
|
|
|
|
|
|
|
192
|
|
|
|
1,086
|
|
|
|
386
|
|
|
|
200
|
|
|
|
1,464
|
|
|
|
1,664
|
|
|
|
553
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5709 Johns Road
|
|
Tampa, FL
|
|
|
|
|
|
|
192
|
|
|
|
1,086
|
|
|
|
312
|
|
|
|
200
|
|
|
|
1,390
|
|
|
|
1,590
|
|
|
|
423
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5711 Johns Road
|
|
Tampa, FL
|
|
|
|
|
|
|
243
|
|
|
|
1,376
|
|
|
|
191
|
|
|
|
255
|
|
|
|
1,555
|
|
|
|
1,810
|
|
|
|
522
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5453 W Waters Avenue
|
|
Tampa, FL
|
|
|
|
|
|
|
71
|
|
|
|
402
|
|
|
|
133
|
|
|
|
82
|
|
|
|
524
|
|
|
|
606
|
|
|
|
165
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5455 W Waters Avenue
|
|
Tampa, FL
|
|
|
|
|
|
|
307
|
|
|
|
1,742
|
|
|
|
405
|
|
|
|
326
|
|
|
|
2,128
|
|
|
|
2,454
|
|
|
|
718
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5553 W Waters Avenue
|
|
Tampa, FL
|
|
|
|
|
|
|
307
|
|
|
|
1,742
|
|
|
|
417
|
|
|
|
326
|
|
|
|
2,140
|
|
|
|
2,466
|
|
|
|
717
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5501 W Waters Avenue
|
|
Tampa, FL
|
|
|
|
|
|
|
215
|
|
|
|
871
|
|
|
|
447
|
|
|
|
242
|
|
|
|
1,291
|
|
|
|
1,533
|
|
|
|
463
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5503 W Waters Avenue
|
|
Tampa, FL
|
|
|
|
|
|
|
98
|
|
|
|
402
|
|
|
|
287
|
|
|
|
110
|
|
|
|
677
|
|
|
|
787
|
|
|
|
192
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5555 W Waters Avenue
|
|
Tampa, FL
|
|
|
|
|
|
|
213
|
|
|
|
1,206
|
|
|
|
236
|
|
|
|
221
|
|
|
|
1,434
|
|
|
|
1,655
|
|
|
|
480
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5557 W Waters Avenue
|
|
Tampa, FL
|
|
|
|
|
|
|
59
|
|
|
|
335
|
|
|
|
44
|
|
|
|
62
|
|
|
|
376
|
|
|
|
438
|
|
|
|
120
|
|
|
|
1997
|
|
|
|
(l
|
)
|
5461 W Waters
|
|
Tampa, FL
|
|
|
|
|
|
|
261
|
|
|
|
|
|
|
|
1,442
|
|
|
|
265
|
|
|
|
1,438
|
|
|
|
1,703
|
|
|
|
506
|
|
|
|
1998
|
|
|
|
(l
|
)
|
5481 W. Waters Avenue
|
|
Tampa, FL
|
|
|
|
|
|
|
558
|
|
|
|
|
|
|
|
2,496
|
|
|
|
561
|
|
|
|
2,493
|
|
|
|
3,054
|
|
|
|
696
|
|
|
|
1999
|
|
|
|
(l
|
)
|
4515-4519
George Road
|
|
Tampa, FL
|
|
|
2,491
|
|
|
|
633
|
|
|
|
3,587
|
|
|
|
712
|
|
|
|
640
|
|
|
|
4,292
|
|
|
|
4,932
|
|
|
|
1,005
|
|
|
|
2001
|
|
|
|
(l
|
)
|
6089 Johns Road
|
|
Tampa, FL
|
|
|
883
|
|
|
|
180
|
|
|
|
987
|
|
|
|
73
|
|
|
|
186
|
|
|
|
1,054
|
|
|
|
1,240
|
|
|
|
249
|
|
|
|
2004
|
|
|
|
(l
|
)
|
6091 Johns Road
|
|
Tampa, FL
|
|
|
696
|
|
|
|
140
|
|
|
|
730
|
|
|
|
120
|
|
|
|
144
|
|
|
|
846
|
|
|
|
990
|
|
|
|
221
|
|
|
|
2004
|
|
|
|
(l
|
)
|
6103 Johns Road
|
|
Tampa, FL
|
|
|
1,112
|
|
|
|
220
|
|
|
|
1,160
|
|
|
|
140
|
|
|
|
226
|
|
|
|
1,294
|
|
|
|
1,520
|
|
|
|
313
|
|
|
|
2004
|
|
|
|
(l
|
)
|
6201 Johns Road
|
|
Tampa, FL
|
|
|
1,055
|
|
|
|
200
|
|
|
|
1,107
|
|
|
|
195
|
|
|
|
205
|
|
|
|
1,297
|
|
|
|
1,502
|
|
|
|
356
|
|
|
|
2004
|
|
|
|
(l
|
)
|
6203 Johns Road
|
|
Tampa, FL
|
|
|
1,297
|
|
|
|
300
|
|
|
|
1,460
|
|
|
|
119
|
|
|
|
311
|
|
|
|
1,568
|
|
|
|
1,879
|
|
|
|
488
|
|
|
|
2004
|
|
|
|
(l
|
)
|
6205 Johns Road
|
|
Tampa, FL
|
|
|
1,272
|
|
|
|
270
|
|
|
|
1,363
|
|
|
|
95
|
|
|
|
278
|
|
|
|
1,450
|
|
|
|
1,728
|
|
|
|
265
|
|
|
|
2004
|
|
|
|
(l
|
)
|
6101 Johns Road
|
|
Tampa, FL
|
|
|
902
|
|
|
|
210
|
|
|
|
833
|
|
|
|
127
|
|
|
|
216
|
|
|
|
954
|
|
|
|
1,170
|
|
|
|
294
|
|
|
|
2004
|
|
|
|
(l
|
)
|
4908 Tampa West Blvd
|
|
Tampa, FL
|
|
|
|
|
|
|
2,622
|
|
|
|
8,643
|
|
|
|
(337
|
)
|
|
|
2,635
|
|
|
|
8,293
|
|
|
|
10,928
|
|
|
|
1,917
|
|
|
|
2005
|
|
|
|
(l
|
)
|
11701 Belcher Road South
|
|
Largo, FL
|
|
|
|
|
|
|
1,657
|
|
|
|
2,768
|
|
|
|
(1,701
|
)
|
|
|
752
|
|
|
|
1,972
|
|
|
|
2,724
|
|
|
|
683
|
|
|
|
2006
|
|
|
|
(l
|
)
|
4900-4914
Creekside Drive(h)
|
|
Clearwater, FL
|
|
|
|
|
|
|
3,702
|
|
|
|
7,338
|
|
|
|
(3,469
|
)
|
|
|
2,121
|
|
|
|
5,450
|
|
|
|
7,571
|
|
|
|
1,538
|
|
|
|
2006
|
|
|
|
(l
|
)
|
12345 Starkey Road
|
|
Largo, FL
|
|
|
|
|
|
|
898
|
|
|
|
2,078
|
|
|
|
(584
|
)
|
|
|
570
|
|
|
|
1,822
|
|
|
|
2,392
|
|
|
|
475
|
|
|
|
2006
|
|
|
|
(l
|
)
|
Toronto
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
135 Dundas Street
|
|
Cambridge, ON
|
|
|
|
|
|
|
3,128
|
|
|
|
4,958
|
|
|
|
(700
|
)
|
|
|
3,179
|
|
|
|
4,207
|
|
|
|
7,386
|
|
|
|
1,705
|
|
|
|
2005
|
|
|
|
(l
|
)
|
678 Erie Street
|
|
Stratford, ON
|
|
|
|
|
|
|
786
|
|
|
|
557
|
|
|
|
(236
|
)
|
|
|
829
|
|
|
|
278
|
|
|
|
1,107
|
|
|
|
209
|
|
|
|
2005
|
|
|
|
(l
|
)
|
114 Packham Rd
|
|
Stratford, ON
|
|
|
|
|
|
|
1,000
|
|
|
|
3,526
|
|
|
|
55
|
|
|
|
1,012
|
|
|
|
3,569
|
|
|
|
4,581
|
|
|
|
1,094
|
|
|
|
2007
|
|
|
|
(l
|
)
|
S-19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition or
|
|
|
Gross Amount Carried
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
|
Completion
|
|
|
At Close of Period 12/31/10
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Location
|
|
(a)
|
|
|
Initial Cost
|
|
|
and Valuation
|
|
|
|
|
|
Building and
|
|
|
|
|
|
Depreciation
|
|
|
Year Acquired/
|
|
|
Depreciable
|
|
Building Address
|
|
(City/State)
|
|
Encumbrances
|
|
|
Land
|
|
|
Buildings
|
|
|
Provision
|
|
|
Land
|
|
|
Improvements
|
|
|
Total
|
|
|
12/31/2010
|
|
|
Constructed
|
|
|
Lives (Years)
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3501 Maple Street
|
|
Abilene, TX
|
|
|
|
|
|
|
67
|
|
|
|
1,057
|
|
|
|
482
|
|
|
|
44
|
|
|
|
1,562
|
|
|
|
1,606
|
|
|
|
1,338
|
|
|
|
1994
|
|
|
|
(l
|
)
|
4200 West Harry Street(e)
|
|
Wichita, KS
|
|
|
|
|
|
|
193
|
|
|
|
2,224
|
|
|
|
1,777
|
|
|
|
532
|
|
|
|
3,662
|
|
|
|
4,194
|
|
|
|
2,509
|
|
|
|
1994
|
|
|
|
(l
|
)
|
5050 Kendrick Court
|
|
Grand Rapids, MI
|
|
|
|
|
|
|
1,721
|
|
|
|
11,433
|
|
|
|
(2,675
|
)
|
|
|
694
|
|
|
|
9,785
|
|
|
|
10,479
|
|
|
|
7,173
|
|
|
|
1994
|
|
|
|
(l
|
)
|
5015 52nd Street SE
|
|
Grand Rapids, MI
|
|
|
|
|
|
|
234
|
|
|
|
1,321
|
|
|
|
(205
|
)
|
|
|
173
|
|
|
|
1,177
|
|
|
|
1,350
|
|
|
|
577
|
|
|
|
1994
|
|
|
|
(l
|
)
|
6266 Hurt Road
|
|
Horn Lake, MS
|
|
|
|
|
|
|
427
|
|
|
|
|
|
|
|
3,234
|
|
|
|
364
|
|
|
|
3,297
|
|
|
|
3,661
|
|
|
|
430
|
|
|
|
2004
|
|
|
|
(l
|
)
|
6266 Hurt Road Building B
|
|
Horn Lake, MS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
866
|
|
|
|
97
|
|
|
|
769
|
|
|
|
866
|
|
|
|
218
|
|
|
|
2004
|
|
|
|
(l
|
)
|
6301 Hazeltine National Drive
|
|
Orlando, FL
|
|
|
4,027
|
|
|
|
909
|
|
|
|
4,613
|
|
|
|
307
|
|
|
|
920
|
|
|
|
4,909
|
|
|
|
5,829
|
|
|
|
1,150
|
|
|
|
2005
|
|
|
|
(l
|
)
|
12626 Silicon Drive
|
|
San Antonio, TX
|
|
|
3,187
|
|
|
|
768
|
|
|
|
3,448
|
|
|
|
158
|
|
|
|
779
|
|
|
|
3,595
|
|
|
|
4,374
|
|
|
|
884
|
|
|
|
2005
|
|
|
|
(l
|
)
|
3100 Pinson Valley Parkway
|
|
Birmingham, AL
|
|
|
|
|
|
|
303
|
|
|
|
742
|
|
|
|
(215
|
)
|
|
|
225
|
|
|
|
605
|
|
|
|
830
|
|
|
|
193
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1021 W. First Street, Hwy 93
|
|
Sumner, IA
|
|
|
|
|
|
|
99
|
|
|
|
2,540
|
|
|
|
(940
|
)
|
|
|
54
|
|
|
|
1,645
|
|
|
|
1,699
|
|
|
|
643
|
|
|
|
2005
|
|
|
|
(l
|
)
|
1245 N. Hearne Avenue
|
|
Shreveport, LA
|
|
|
|
|
|
|
99
|
|
|
|
1,263
|
|
|
|
(166
|
)
|
|
|
82
|
|
|
|
1,114
|
|
|
|
1,196
|
|
|
|
391
|
|
|
|
2005
|
|
|
|
(l
|
)
|
10330 I Street
|
|
Omaha, NE
|
|
|
|
|
|
|
1,808
|
|
|
|
8,340
|
|
|
|
(1,644
|
)
|
|
|
1,569
|
|
|
|
6,935
|
|
|
|
8,504
|
|
|
|
2,147
|
|
|
|
2006
|
|
|
|
(l
|
)
|
3200 Pond Station
|
|
Jefferson County, KY
|
|
|
|
|
|
|
2,074
|
|
|
|
|
|
|
|
9,681
|
|
|
|
2,120
|
|
|
|
9,635
|
|
|
|
11,755
|
|
|
|
895
|
|
|
|
2007
|
|
|
|
(l
|
)
|
Pure Fishing BTS
|
|
Kansas City, MO
|
|
|
|
|
|
|
4,152
|
|
|
|
|
|
|
|
13,605
|
|
|
|
4,228
|
|
|
|
13,529
|
|
|
|
17,757
|
|
|
|
749
|
|
|
|
2008
|
|
|
|
(l
|
)
|
600 Greene Drive
|
|
Greenville, KY
|
|
|
|
|
|
|
294
|
|
|
|
8,570
|
|
|
|
3
|
|
|
|
296
|
|
|
|
8,571
|
|
|
|
8,867
|
|
|
|
2,071
|
|
|
|
2008
|
|
|
|
(l
|
)
|
Redevelopments / Developements / Developable Land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redevelopments /Developments / Developable Land(j)
|
|
|
|
|
|
|
|
|
124,485
|
|
|
|
620
|
|
|
|
(21,023
|
)(m)
|
|
|
93,401
|
|
|
|
10,682
|
|
|
|
104,083
|
|
|
|
537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
$
|
431,629
|
|
|
$
|
649,009
|
|
|
$
|
1,671,653
|
|
|
$
|
462,165
|
|
|
$
|
587,562
|
(k)
|
|
$
|
2,195,270
|
(k)
|
|
$
|
2,782,832
|
|
|
$
|
581,851
|
(k)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S-20
NOTES:
|
|
|
(a) |
|
See description of encumbrances in Note 7 to Notes to
Consolidated Financial Statements. |
|
|
|
(b) |
|
Initial cost for each respective property is tangible purchase
price allocated in accordance with FASBs guidance on
business combinations. |
|
(c) |
|
Improvements are net of write-off of fully depreciated assets. |
|
(d) |
|
Comprised of two properties. |
|
(e) |
|
Comprised of three properties. |
|
(f) |
|
Comprised of four properties. |
|
(g) |
|
Comprised of five properties. |
|
(h) |
|
Comprised of eight properties. |
|
(i) |
|
Comprised of 28 properties. |
|
(j) |
|
These properties represent developable land and redevelopments
that have not been placed in service. |
|
(k) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Amount
|
|
|
|
Amounts
|
|
|
|
|
|
Carried At
|
|
|
|
Included
|
|
|
Amounts Within
|
|
|
Close of Period
|
|
|
|
in Real Estate
|
|
|
Net Investment
|
|
|
December 31,
|
|
|
|
Held for Sale
|
|
|
in Real Estate*
|
|
|
2010*
|
|
|
Land
|
|
$
|
101,772
|
|
|
$
|
485,790
|
|
|
$
|
587,562
|
|
Buildings & Improvements
|
|
|
352,136
|
|
|
|
1,843,134
|
|
|
|
2,195,270
|
|
Accumulated Depreciation
|
|
|
(137,939
|
)
|
|
|
(443,912
|
)
|
|
|
(581,851
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
315,969
|
|
|
|
1,885,012
|
|
|
|
2,200,981
|
|
Construction in Progress
|
|
|
6,163
|
|
|
|
2,672
|
|
|
|
8,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment in Real Estate
|
|
|
322,132
|
|
|
|
1,887,684
|
|
|
|
2,209,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leasing Commissions, Net, Deferred Leasing Intangibles, Net and
Deferred Rent Receivable, Net
|
|
|
22,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet at December 31, 2010
|
|
$
|
344,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Amounts exclude $33,639 of above market leases and other
deferred leasing intangibles, net. |
|
(l) |
|
Depreciation is computed based upon the following estimated
lives: |
|
|
|
Buildings and Improvements
|
|
8 to 50 years
|
Tenant Improvements, Leasehold Improvements
|
|
Life of lease
|
|
|
|
(m) |
|
Includes foreign currency translation adjustments. |
At December 31, 2010, the aggregate cost of land and
buildings and equipment for federal income tax purpose was
approximately $2.7 billion (excluding construction in
progress.)
S-21
The changes in total real estate assets, including real estate
held for sale, for the three years ended December 31, 2010
are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
|
(Dollars in thousands)
|
|
|
Balance, Beginning of Year
|
|
$
|
2,987,950
|
|
|
$
|
3,035,662
|
|
|
$
|
2,952,499
|
|
Acquisition of Real Estate Assets
|
|
|
17,595
|
|
|
|
208
|
|
|
|
279,542
|
|
Construction Costs and Improvements
|
|
|
47,208
|
|
|
|
51,762
|
|
|
|
176,506
|
|
Disposition of Real Estate Assets
|
|
|
(46,458
|
)
|
|
|
(65,428
|
)
|
|
|
(340,802
|
)
|
Impairment of Real Estate
|
|
|
(186,160
|
)
|
|
|
(6,934
|
)
|
|
|
|
|
Write-off of Fully Depreciated Assets
|
|
|
(28,468
|
)
|
|
|
(27,320
|
)
|
|
|
(32,083
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, End of Year
|
|
$
|
2,791,667
|
|
|
$
|
2,987,950
|
|
|
$
|
3,035,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The changes in accumulated depreciation, including accumulated
depreciation for real estate held for sale, for the three years
ended December 31, 2010 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Balance, Beginning of Year
|
|
$
|
522,229
|
|
|
$
|
457,059
|
|
|
$
|
439,312
|
|
Depreciation for Year
|
|
|
92,290
|
|
|
|
100,145
|
|
|
|
101,541
|
|
Disposition of Assets
|
|
|
(4,200
|
)
|
|
|
(7,655
|
)
|
|
|
(51,711
|
)
|
Write-off of Fully Depreciated Assets
|
|
|
(28,468
|
)
|
|
|
(27,320
|
)
|
|
|
(32,083
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, End of Year
|
|
$
|
581,851
|
|
|
$
|
522,229
|
|
|
$
|
457,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S-22
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
FIRST INDUSTRIAL, L.P.
|
|
|
|
By:
|
FIRST INDUSTRIAL REALTY TRUST, INC.
as general partner
|
|
|
By:
|
/s/ Bruce
W. Duncan
|
Bruce W. Duncan
President, Chief Executive Officer and Director
(Principal Executive Officer)
Date: February 23, 2011
Scott A. Musil
Chief Financial and Accounting Officer
(Principal Financial and Accounting Officer)
Date: February 23, 2011
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons
on behalf of the Registrant and in the capacities and on the
dates indicated.
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
/s/ W.
Edwin Tyler
W.
Edwin Tyler
|
|
Chairman of the Board of Directors
|
|
February 23, 2011
|
|
|
|
|
|
/s/ Bruce
W. Duncan
Bruce
W. Duncan
|
|
President, Chief Executive Officer and Director
|
|
February 23, 2011
|
|
|
|
|
|
/s/ Michael
G. Damone
Michael
G. Damone
|
|
Director of Strategic Planning and Director
|
|
February 23, 2011
|
|
|
|
|
|
/s/ Matthew
Dominski
Matthew
Dominski
|
|
Director
|
|
February 23, 2011
|
|
|
|
|
|
/s/ H.
Patrick Hackett, Jr.
H.
Patrick Hackett, Jr.
|
|
Director
|
|
February 23, 2011
|
|
|
|
|
|
/s/ Kevin
W. Lynch
Kevin
W. Lynch
|
|
Director
|
|
February 23, 2011
|
S-23
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
/s/ John
E. Rau
John
E. Rau
|
|
Director
|
|
February 23, 2011
|
|
|
|
|
|
/s/ L.
Peter Sharpe
L.
Peter Sharpe
|
|
Director
|
|
February 23, 2011
|
|
|
|
|
|
/s/ Robert
J. Slater
Robert
J. Slater
|
|
Director
|
|
February 23, 2011
|
S-24