Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

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Commitments and Contingencies
 6 Months Ended
Jun. 30, 2014
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

8. Commitments and Contingencies

Ground Leases

We are obligated as lessee under three ground leases. Future minimum rental payments due under the terms of these leases for the remainder of 2014 and each of the five succeeding years and thereafter, are as follows (dollars in thousands):

 

            For the year ended December 31,         

Location

    Lease End Date      2014      2015      2016      2017      2018      2019      Thereafter  

Tulsa, OK

      Apr-21       $ 76       $ 153       $ 153       $ 153       $ 153       $ 153       $ 229   

Dartmouth, MA

      May-36         87         174         174         174         174         174         3,300   

Springfield, MA

      Feb-30         43         86         86         89         90         90         972   
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
      $ 206       $ 413       $ 413       $ 416       $ 417       $ 417       $ 4,501   
     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Rental expense for the properties listed above is recorded straight-line over the term of the lease and was $0.2 million during both the six months ended June 30, 2014 and 2013. Rental expenses are reflected in property operating expenses on the condensed consolidated statements of operations.

Tenant Improvements

We have committed to provide tenant improvement funding for certain properties. The following table reflects unconditional purchase obligations which have not been recognized on the balance sheet as of June 30, 2014. In addition, we have committed to provide financing to expand our building located in Canton, North Carolina. Future tenant improvement payments due on these properties for the remainder of 2014 and each of the five succeeding years and thereafter, are as follows (dollars in thousands):

 

           For the year ended December 31,         

Location

    Lease End Date     2014      2015      2016      2017      2018      2019      Thereafter  

Canton, NC

      Jul-24  (1)    $ 1,306       $ —         $ —         $ —         $ —         $ —         $ —     

Concord Township, OH

      Aug-34        150         —           —           —           —           —           —     

Egg Harbor Township, NJ

      Apr-23        229         —           —           —           —           —           —     
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     $ 1,685       $ —         $ —         $ —         $ —         $ —         $ —     
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(1)  Upon completion of expansion of this property, currently projected to be September of 2014, the lease will be extended for 20 years, through September 2034.