Intangibles, Net

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangibles, Net

As more fully discussed in the Annual Report on Form 10-K for the year ended December 31, 2014, intangible assets include above market leases and leases in place and intangible liabilities include below market leases which were recorded at fair value when we acquired substantially all of the real estate properties and operations of Leucadia National Corporation, now known as Jefferies Financial Group Inc. ("Jefferies"), the membership interests in Brooklyn Renaissance Plaza ("BRP Holding") and Brooklyn Renaissance Hotel LLC ("BRP Hotel") and cash in exchange for 7.5 million of our common shares (the "Acquisition") during 2014.

A summary of intangible assets is as follows (in thousands):


	March 31, 2019		December 31, 2018		Amortization (in years)
Above market lease contracts, net of accumulated amortization of $10,527 and $10,513	$	347	$	361	1 to 24
Lease in place value, net of accumulated amortization of $3,424 and $3,393	662		693		1 to 24
Intangible assets, net	$	1,009	$	1,054

Below market lease contracts, net of accumulated amortization of $4,273 and $4,211	$	1,315	$	1,377	1 to 24

The amortization of above and below market lease contracts is recognized in Rental income. Above market lease values are amortized over the remaining terms of the underlying leases, and below market lease values are amortized over the initial terms plus the terms of any below market renewal options of the underlying leases. The amortization of lease in place intangible assets is reflected in Depreciation and amortization expenses and amortized over the life of the related lease.

Amortization expense related to above market lease contracts recognized in Rental income was $10,000 and$500,000 for the three months ended March 31, 2019 and 2018, respectively. The estimated future amortization expense recognized in Rental income for the above market lease intangible assets is as follows: remainder of 2019 - $50,000; 2020 - $50,000; 2021 - $50,000; 2022 - $50,000; 2023 - $50,000 and thereafter - $150,000.

Amortization expense on lease in place intangible assets was $50,000 and $150,000 for the three months ended March 31, 2019 and 2018, respectively. The estimated future amortization expense for the lease in place intangible asset for each of the next five years is as follows: remainder of 2019 - $50,000; 2020 - $100,000; 2021 - $100,000; 2022 - $100,000; 2023 - $50,000 and thereafter - $300,000.

Negative amortization expense related to below market lease contracts recognized in Rental income was $50,000 and $200,000 for three months ended March 31, 2019 and 2018, respectively. The estimated future negative amortization expense recognized in Rental income for the below market lease intangible assets is as follows: remainder of 2019 - $(150,000); 2020 - $(200,000); 2021 - $(200,000); 2022 - $(100,000); 2023 - $(100,000) and thereafter - $(500,000).

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