View Filing Data

Accounts payable, accrued expenses and other liabilities

212,918,000

192,491,000

6,345,000

6,024,000

Dividends payable

3,066,000

5,368,000

Acquired lease intangible liabilities, net

1,553,000

1,160,000

Tenant security deposits

6,960,000

6,155,000

Prepaid rents

778,000

1,448,000

Liabilities associated with real estate held for sale

260,000

Total Liabilities

231,620,000

212,906,000

Equity

Common Stock, $0.01 par value 490,000,000 authorized and 25,551,204 and 25,559,886 outstanding at March 31, 2014 and December 31, 2013, respectively

255,000

Additional paid in capital

312,131,000

311,936,000

Accumulated other comprehensive income

269,000

Accumulated deficit

(7,782,000)

(5,993,000)

Total stockholders' equity

304,873,000

306,198,000

Noncontrolling interests

35,122,000

35,571,000

Total Equity

339,995,000

341,769,000

Total Liabilities and Equity

$ 571,615,000

$ 554,675,000

[1]	This is a mortgage loan secured by 32401-32803 Calle Perfecto.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2014	Dec. 31, 2013
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	490,000,000	490,000,000
Common stock, shares outstanding	25,551,204	25,559,886

CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
RENTAL REVENUES
Rental revenues	$ 11,628,000
Tenant reimbursements	1,511,000
Management, leasing and development services	234,000
Other income	42,000
TOTAL RENTAL REVENUES	13,415,000
Interest income	276,000
TOTAL REVENUES	13,691,000
OPERATING EXPENSES
Property expenses	4,134,000
General and administrative	2,605,000
Depreciation and amortization	6,130,000
TOTAL OPERATING EXPENSES	12,869,000
OTHER (INCOME) EXPENSE
Acquisition expenses	333,000
Interest expense	1,251,000
Gain on mark-to-market of interest rate swaps	0
TOTAL OTHER EXPENSE	1,584,000
TOTAL EXPENSES	14,453,000
Equity in income (loss) from unconsolidated real estate entities	45,000
Gain from early repayment of note receivable	0
NET (LOSS) INCOME FROM CONTINUING OPERATIONS	(717,000)
DISCONTINUED OPERATIONS
Income (loss) from discontinued operations before gain on sale of real estate and loss on extinguishment of debt	21,000
Gain on sale of real estate	2,125,000
INCOME FROM DISCONTINUED OPERATIONS	2,146,000
NET INCOME	1,429,000
Net income attributable to noncontrolling interests	(152,000)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. STOCKHOLDERS	$ 1,277,000
Loss from continuing operations available to common stockholders per share - basic and diluted	$ (0.03)
Net income available to common stockholders per share - basic and diluted	$ 0.05
Weighted average shares of common stock outstanding - basic and diluted	25,419,418
Dividends declared per common share	$ 0.12
Predecessor
RENTAL REVENUES
Rental revenues		$ 7,760,000
Tenant reimbursements		847,000
Management, leasing and development services		261,000
Other income		118,000
TOTAL RENTAL REVENUES		8,986,000
Interest income		311,000
TOTAL REVENUES		9,297,000
OPERATING EXPENSES
Property expenses		2,400,000
General and administrative		1,139,000
Depreciation and amortization		2,620,000
TOTAL OPERATING EXPENSES		6,159,000
OTHER (INCOME) EXPENSE
Acquisition expenses		93,000
Interest expense		3,776,000
Gain on mark-to-market of interest rate swaps		(49,000)
TOTAL OTHER EXPENSE		3,820,000
TOTAL EXPENSES		9,979,000
Equity in income (loss) from unconsolidated real estate entities		(212,000)
Gain from early repayment of note receivable		1,365,000
Loss on extinguishment of debt		(37,000)
NET (LOSS) INCOME FROM CONTINUING OPERATIONS		434,000
DISCONTINUED OPERATIONS
Income (loss) from discontinued operations before gain on sale of real estate and loss on extinguishment of debt		(581,000)
Loss on extinguishment of debt		(209,000)
Gain on sale of real estate		2,409,000
INCOME FROM DISCONTINUED OPERATIONS		1,619,000
NET INCOME		2,053,000
Net income attributable to noncontrolling interests		(1,726,000)
NET INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. STOCKHOLDERS		$ 327,000

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net income	$ 1,429,000
Other comprehensive income: cash flow hedge adjustment	300,000
Comprehensive income	1,729,000
Less: comprehensive income attributable to noncontrolling interests	(183,000)
Comprehensive income attributable to common stockholders	$ 1,546,000
Predecessor
Net income		$ 2,053,000
Comprehensive income		2,053,000
Less: comprehensive income attributable to noncontrolling interests		(1,726,000)
Comprehensive income attributable to common stockholders		$ 327,000

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - 3 months ended Mar. 31, 2014 - USD ($)	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Total Stockholders' Equity	Noncontrolling Interest
Beginning Balance at Dec. 31, 2013	$ 341,769,000	$ 255,000	$ 311,936,000	$ (5,993,000)		$ 306,198,000	$ 35,571,000
Beginning Balance, shares at Dec. 31, 2013	25,559,886	25,559,886
Issuance of restricted stock, shares		963
Forfeiture of restricted stock	$ (29,000)	$ (9,645)	(29,000)			(29,000)
Offering costs	(6,000)		(6,000)			(6,000)
Amortization of stock based compensation	230,000		230,000			230,000
Dividends	(3,066,000)			(3,066,000)		(3,066,000)
Distributions	(632,000)						(632,000)
Net income	1,429,000			1,277,000		1,277,000	152,000
Other comprehensive income	300,000				$ 269,000	269,000	31,000
Ending Balance at Mar. 31, 2014	$ 339,995,000	$ 255,000	$ 312,131,000	$ (7,782,000)	$ 269,000	$ 304,873,000	$ 35,122,000
Ending Balance, shares at Mar. 31, 2014	25,551,204	25,551,204

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,429,000
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in (earnings) loss of unconsolidated real estate entities	(45,000)
Depreciation and amortization	6,130,000
Depreciation and amortization included in discontinued operations	7,000
Amortization of above (below) market lease intangibles, net	81,000
Accretion of discount on notes receivable	(64,000)
Loss on extinguishment of debt	0
Gain on sale of real estate	(2,125,000)
Amortization of loan costs	129,000
Gain on mark-to-market of interest rate swaps	0
Accretion of premium on notes payable	(11,000)
Deferred interest expense	0
Equity based compensation expense	172,000
Gain from early repayment of notes receivable	0
Change in working capital components:
Rents and other receivables	(325,000)
Deferred rent receivable	(184,000)
Change in restricted cash	0
Leasing commissions	(336,000)
Other assets	(1,985,000)
Accounts payable, accrued expenses and other liabilities	835,000
Tenant security deposits	462,000
Prepaid rent	(1,014,000)
Net cash provided by operating activities	3,156,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of investments in real estate	(32,339,000)
Capital expenditures	(1,594,000)
Acquisition related deposits	(40,000)
Contributions to unconsolidated real estate entities	(105,000)
Distributions from unconsolidated real estate entities	14,000
Change in restricted cash	(27,000)
Principal repayments of notes receivable	68,000
Disposition of investment in real estate	13,790,000
Net cash (used in) provided by investing activities	(20,233,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable	24,500,000
Repayment of notes payable	(4,062,000)
Deferred loan costs	(8,000)
Offering costs	(6,000)
Prepaid offering costs	0
Capital contributions from Predecessor members	0
Distributions to Predecessor members	0
Reimbursements due to Predecessor members	0
Dividends paid to common stockholders	(5,368,000)
Distributions paid to common unitholders	(632,000)
Change in restricted cash	0
Net cash provided by (used in) financing activities	14,424,000
Net (decrease) increase in cash and cash equivalents	(2,653,000)
Cash and cash equivalents, beginning of period	8,997,000
Cash and cash equivalents, end of period	$ 6,344,000
Predecessor
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$ 2,053,000
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in (earnings) loss of unconsolidated real estate entities		212,000
Depreciation and amortization		2,620,000
Depreciation and amortization included in discontinued operations		666,000
Amortization of above (below) market lease intangibles, net		56,000
Accretion of discount on notes receivable		(62,000)
Loss on extinguishment of debt		245,000
Gain on sale of real estate		(2,409,000)
Amortization of loan costs		263,000
Gain on mark-to-market of interest rate swaps		(49,000)
Deferred interest expense		271,000
Equity based compensation expense		66,000
Gain from early repayment of notes receivable		(1,365,000)
Change in working capital components:
Rents and other receivables		77,000
Deferred rent receivable		(197,000)
Change in restricted cash		(173,000)
Leasing commissions		(135,000)
Other assets		(1,459,000)
Accounts payable, accrued expenses and other liabilities		198,000
Tenant security deposits		441,000
Prepaid rent		53,000
Net cash provided by operating activities		1,372,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of investments in real estate		0
Capital expenditures		(495,000)
Acquisition related deposits		(2,223,000)
Distributions from unconsolidated real estate entities		124,000
Change in restricted cash		(52,000)
Principal repayments of notes receivable		5,435,000
Disposition of investment in real estate		3,851,000
Net cash (used in) provided by investing activities		6,640,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable		6,730,000
Repayment of notes payable		(5,577,000)
Deferred loan costs		(40,000)
Offering costs		0
Prepaid offering costs		(518,000)
Capital contributions from Predecessor members		1,332,000
Distributions to Predecessor members		(4,792,000)
Reimbursements due to Predecessor members		(1,221,000)
Dividends paid to common stockholders		0
Distributions paid to common unitholders		0
Change in restricted cash		21,000
Net cash provided by (used in) financing activities		(4,065,000)
Net (decrease) increase in cash and cash equivalents		3,947,000
Cash and cash equivalents, beginning of period		43,499,000
Cash and cash equivalents, end of period		$ 47,446,000

Organization

3 Months Ended

Mar. 31, 2014

Organization

1.	Organization

Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (“REIT”) focused on owning and operating industrial properties in Southern California infill markets. We were formed as a Maryland corporation on January 18, 2013 and Rexford Industrial Realty, L.P. (the “Operating Partnership”), of which we are the sole general partner, was formed as a Maryland limited partnership on January 18, 2013. Through our controlling interest in our Operating Partnership and its subsidiaries, we own, manage, lease, acquire and develop industrial real estate primarily located in Southern California infill markets. As of March 31, 2014, our consolidated portfolio consisted of 68 properties with approximately 6.5 million rentable square feet. We also own a 15% interest in a joint venture that owns three properties with approximately 1.2 million square feet, which we also manage. In addition, we currently manage an additional 20 properties with approximately 1.2 million rentable square feet.

We did not have any meaningful operating activity until the consummation of our initial public offering (“IPO”) and the related acquisition of certain assets of our predecessor as part of our formation transactions on July 24, 2013. The historical financial results in these financial statements for the three months ended March 31, 2013 relate to our accounting predecessor. Our Predecessor is comprised of Rexford Industrial, LLC (“RILLC”), Rexford Sponsor V, LLC (“Sponsor”), Rexford Industrial Fund V REIT, LLC (“RIF V REIT”) and their consolidated subsidiaries, which consist of Rexford Industrial Fund I, LLC (“RIF I”), Rexford Industrial Fund II, LLC (“RIF II”), Rexford Industrial Fund III, LLC (“RIF III”), Rexford Industrial Fund IV, LLC (“RIF IV”), Rexford Industrial Fund V, LP (“RIF V”) and their subsidiaries (collectively the “Predecessor Funds”). The entities comprising Rexford Industrial Realty, Inc. Predecessor are combined on the basis of common management and common ownership.

The terms “us,” “we,” “our,” and the “Company” as used in these financial statements refer to Rexford Industrial Realty, Inc. and its subsidiaries (including our Operating Partnership) subsequent to our IPO on July 24, 2013 and our predecessor prior to that date (“Predecessor” or “Rexford Industrial Realty, Inc. Predecessor”).

Basis of Presentation

As of March 31, 2014 and December 31, 2013 and for the three months ended March 31, 2014, the financial statements presented are the consolidated financial statements of Rexford Industrial Realty, Inc. and its subsidiaries, including our Operating Partnership. The financial statements presented for the three months ended March 31, 2013, are the combined financial statements of our Predecessor. All of the outside ownership interests in entities that our Predecessor consolidates are included in non-controlling interests. All significant intercompany balances and transactions have been eliminated in the consolidated and combined financial statements.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ended December 31, 2014. The interim financial statements should be read in conjunction with the combined and consolidated financial statements in our 2013 Annual Report on Form 10-K and the notes thereto. Any references to the number of properties and square footage are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board.

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated and combined financial statements and accompanying notes. Actual results could differ from those estimates.

We consolidate all entities that are wholly owned and those in which we own less than 100% but control, as well as any variable interest entities in which we are the primary beneficiary. We evaluate our ability to control an entity and whether the entity is a variable interest entity and we are the primary beneficiary through consideration of the substantive terms of the arrangement to identify which enterprise has the power to direct the activities of a variable interest entity that most significantly impacts the entity’s economic performance and the obligation to absorb losses of the entity or the right to receive benefits from the entity. Investments in entities in which we do not control but over which we have the ability to exercise significant influence over operating and financial policies are presented under the equity method. Investments in entities that we do not control and over which we do not exercise significant influence are carried at the lower of cost or fair value, as appropriate. Our ability to correctly assess our influence and/or control over an entity affects the presentation of these investments in our consolidated and combined financial statements.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2014

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Cash and Cash Equivalents

Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short term maturity of these investments.

Discontinued Operations

The revenue, expenses, impairment and/or gain on sale of operating properties that meet the applicable criteria are reported as discontinued operations in the consolidated and combined statements of operations for all periods presented. A gain on sale, if any, is recognized in the period during which the property is disposed. In addition, all amounts for all prior periods presented are reclassified from continuing operations to discontinued operations

In determining whether to report the results of operations, impairment and/or gain on sale of operating properties as discontinued operations, we evaluate whether we have any significant continuing involvement in the operations, leasing or management of the property after disposition. If we determine that we have significant continuing involvement after disposition, we report the revenue, expenses, impairment and/or gain on sale as part of continuing operations.

Held for Sale Assets

We classify properties as held for sale when certain criteria set forth in the Long-Lived Assets Classified as Held for Sale Subsections of ASC Topic 360: Property, Plant, and Equipment, are met. At that time, the assets and liabilities of the property held for sale are presented separately in the consolidated and combined balance sheets and we cease recording depreciation and amortization expense at the time a property is classified as held for sale. Properties held for sale are reported at the lower of their carrying value or their estimated fair value, less estimated costs to sell. In addition, the assets and liabilities of the property are reclassified and presented separately for all comparative periods.

Investment in Real Estate

Acquisitions

When we acquire operating properties, with the intention to hold the investment for the long-term, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component. The components typically include land, building and improvements, intangible assets related to above and below market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities. The initial allocation of the purchase price is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price allocation are made within the allocation period, which typically does not exceed one year.

We allocate the purchase price to the fair value of the tangible assets by valuing the property as if it were vacant. We consider Level 3 inputs such as the replacement cost of such assets, appraisals, property condition reports, comparable market rental data and other related information.

In determining the fair value of intangible lease assets or liabilities, we consider Level 3 inputs including the value associated with leasing commissions, legal and other costs, as well as the estimated period necessary to lease such property and lease commencement. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above market leases and the initial term plus the term of any below market fixed rate renewal options for below market leases, if applicable. The estimated fair value of acquired in-place at-market tenant leases are the costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. Such estimates include the fair value of leasing commissions and legal costs that would be incurred to lease the property to this occupancy level.

The difference between the fair value and the face value of debt assumed in connection with an acquisition is recorded as a premium or discount and amortized to “interest expense” over the life of the debt assumed. The valuation of assumed liabilities is based on our estimate of the current market rates for similar liabilities in effect at the acquisition date.

For acquisitions that do not meet the accounting criteria to be accounted for as a business combination, we record to land and building the purchase price paid and capitalize the associated acquisition costs.

Capitalization of Costs

We capitalize costs incurred in developing, renovating, rehabilitating, and improving real estate assets as part of the investment basis. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. During the land development and construction periods, we capitalize insurance, real estate taxes and certain general and administrative costs of the personnel performing development, renovations, and rehabilitation if such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. Capitalized costs are included in the investment basis of real estate assets.

Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate a change in the useful life, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets.

Depreciation and Amortization

Real estate, including land, building and land improvements, tenant improvements, and furniture, fixtures and equipment, leasing costs and intangible lease assets and liabilities are stated at historical cost less accumulated depreciation and amortization, unless circumstances indicate that the cost cannot be recovered, in which case, the carrying value of the property is reduced to estimated fair value as discussed below in our policy with regards to impairment of long-lived assets. We estimate the depreciable portion of our real estate assets and related useful lives in order to record depreciation expense. Our ability to estimate the depreciable portions of our real estate assets and useful lives is critical to the determination of the appropriate amount of depreciation and amortization expense recorded and the carrying value of the underlying assets. Any change to the assets to be depreciated and the estimated depreciable lives of these assets would have an impact on the depreciation expense recognized.

The values allocated to buildings, site improvements, in-place leases, tenant improvements and leasing costs are depreciated on a straight-line basis using an estimated remaining life of 10-30 years for buildings, 20 years for site improvements, and the shorter of the estimated useful life or respective lease term for tenant improvements.

As discussed above, in connection with property acquisitions, we may acquire leases with rental rates above or below the market rental rates. Such differences are recorded as an intangible lease asset or liability and amortized to “rental revenues” over the reasonably assured term of the related leases. The unamortized balances of these assets and liabilities associated with the early termination of leases are fully amortized to their respective revenue line items in our consolidated financial statements over the shorter of the expected life of such assets and liabilities or the remaining lease term.

Impairment of Long-Lived Assets

In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC Topic 360: Property, Plant, and Equipment, we assess the carrying values of our respective long-lived assets, including goodwill, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable.

Recoverability of real estate assets is measured by comparison of the carrying amount of the asset to the estimated future undiscounted cash flows. In order to review real estate assets for recoverability, we consider current market conditions, as well as our intent with respect to holding or disposing of the asset. The intent with regard to the underlying assets might change as market conditions change, as well as other factors. Fair value is determined through various valuation techniques; including discounted cash flow models, applying a capitalization rate to estimated net operating income of a property, quoted market values and third party appraisals, where considered necessary. The use of projected future cash flows is based on assumptions that are consistent with estimates of future expectations and the strategic plan used to manage our underlying business. If our analysis indicates that the carrying value of the real estate asset is not recoverable on an undiscounted cash flow basis, we will recognize an impairment charge for the amount by which the carrying value exceeds the current estimated fair value of the real estate property.

Assumptions and estimates used in the recoverability analyses for future cash flows, discount rates and capitalization rates are complex and subjective. Changes in economic and operating conditions or our intent with regard to our investment that occur subsequent to our impairment analyses could impact these assumptions and result in future impairment of our real estate properties.

At March 31, 2014 and December 31, 2013, our investment in real estate has been recorded net of a cumulative impairment of $18.6 million.

Acquired Indefinite-Lived Intangibles

Acquired indefinite-lived intangibles represent the fair value of the management contracts in-place at the time of the contribution of Sponsor, RIF V REIT and their consolidated subsidiaries to the Operating Partnership as part of our formation transactions. The asset has an indefinite life, and, accordingly, is not amortized.

Income Taxes

We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with our initial taxable year ending December 31, 2013. To qualify as a REIT, we are required (among other things) to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to matters such as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. If we fail to qualify as a REIT in any taxable year, and were unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax.

In addition, we are subject to taxation by various state and local jurisdictions, including those in which we transact business or reside. Our non-taxable REIT subsidiaries, including our Operating Partnership, are either partnerships or disregarded entities for federal income tax purposes. Under applicable federal and state income tax rules, the allocated share of net income or loss from disregarded entities (including limited partnerships and S-Corporations) is reportable in the income tax returns of the respective partners and stockholders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three months ended March 31, 2014.

Each of RIF I, RIF II, RIF III and RIF IV are limited liability companies but have elected to be taxed as a partnership for tax purposes. As such, the allocated share of net income or loss from the limited liability companies is reportable in the income tax returns of the respective partners and investors. Accordingly, no income tax provision is included in the accompanying combined financial statements.

RIF V REIT has elected to be taxed as a REIT under the Code, commencing with its tax period ended December 31, 2010. We believe that RIF V REIT has met all of the REIT distribution and technical requirements for the three months ended March 31, 2013, and accordingly, we have not recognized any provision for income taxes.

We periodically evaluate our tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2014 and December 31, 2013, we have not established a liability for uncertain tax positions.

Derivative Instruments and Hedging Activities

FASB ASC Topic 815: Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.

As required by ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, and whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting. See Note 8.

Revenue Recognition

We recognize revenue from rent, tenant reimbursements and other revenue sources once all of the following criteria are met: persuasive evidence of an arrangement exists, the delivery has occurred or services rendered, the fee is fixed and determinable and collectability is reasonably assured. Minimum annual rental revenues are recognized in rental revenues on a straight-line basis over the term of the related lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space.

Estimated reimbursements from tenants for real estate taxes, common area maintenance and other recoverable operating expenses are recognized as revenues in the period that the expenses are incurred. Subsequent to year-end, we perform final reconciliations on a lease-by-lease basis and bill or credit each tenant for any cumulative annual adjustments. Lease termination fees, which are included in rental revenues in the accompanying consolidated and combined statements of operations, are recognized when the related lease is canceled and we have no continuing obligation to provide services to such former tenant.

Revenues from management, leasing and development services are recognized when the related services have been provided and earned.

The recognition of gains on sales of real estate requires us to measure the timing of a sale against various criteria related to the terms of the transaction, as well as any continuing involvement in the form of management or financial assistance associated with the property. If the sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, profit-sharing or leasing method. If the sales criteria have been met, we further analyze whether profit recognition is appropriate using the full accrual method. If the criteria to recognize profit using the full accrual method have not been met, we defer the gain and recognize it when the criteria are met or use the installment or cost recovery method as appropriate under the circumstances. See Note 13 for discussion of dispositions.

Valuation of Receivables

We are subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables. In order to mitigate these risks, we perform credit reviews and analyses on prospective tenants before significant leases are executed and on existing tenants before properties are acquired. We specifically analyze aged receivables, customer credit-worthiness, historical bad debts and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. As a result of our periodic analysis, we maintain an allowance for estimated losses that may result from the inability of our tenants to make required payments. This estimate requires significant judgment related to the lessees’ ability to fulfill their obligations under the leases. We believe our allowance for doubtful accounts is adequate for our outstanding receivables for the periods presented. If a tenant is insolvent or files for bankruptcy protection and fails to make contractual payments beyond any allowance, we may recognize additional bad debt expense in future periods equal to the net outstanding balances, which include amounts recognized as straight-line revenue not realizable until future periods. We had a $0.8 million and $0.5 million reserve for allowance for doubtful accounts as of March 31, 2014 and December 31, 2013, respectively.

Equity Based Compensation

We account for equity-based compensation, including shares of restricted stock, in accordance with ASC Topic 718 Compensation – Stock Compensation, which requires us to recognize an expense for the fair value of equity-based compensation awards. The estimated fair value of shares of restricted stock are amortized over their respective vesting periods. See Note 14.

Earnings Per Share

Basic earnings per share is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average shares of common shares outstanding for the period, as adjusted for the effect of participating securities. Diluted earnings per share is computed using the weighted average shares of common stock outstanding determined for the basic earnings per share computation plus the effect of any dilutive securities, including the dilutive effect of unvested restricted common stock using the treasury stock method. See Note 15.

Segment Reporting

Management views the Company as a single segment based on its method of internal reporting in addition to its allocation of capital and resources.

Recently Issued Accounting Pronouncements

Changes to GAAP are established by the FASB in the form of ASUs to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all ASUs.

On April 14, 2014, the FASB issued ASU 2014-08: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. In addition, ASU 2014-08 (1) expands the disclosure requirements for disposals that meet the definition of a discontinued operation, (2) requires entities to disclose information about disposals of individually significant components, and (3) defines “discontinued operations” similarly to how it is defined under IFRS 5, "Non-current Assets Held for Sale and Discontinued Operations." ASU 2014-08 is effective for us in the first quarter of 2015 and early adoption is permitted for any annual or interim period for which an entity’s financial statements have not yet been made available for issuance. We are currently evaluating ASU 2014-08 to determine its impact on our consolidated financial statements.

Investments in Real Estate

3 Months Ended

Mar. 31, 2014

Investments in Real Estate

3.	Investments in Real Estate

Acquisitions

On January 15, 2014, we acquired the property located at 7110 Rosecrans Avenue located in Paramount, CA for a contract price of $4.969 million using funds from our revolving credit facility. The property consists of one industrial building totaling 72,000 square foot situated on 3.25 acres of land.

On January 22, 2014, we acquired the property located at 14723-14825 Oxnard Street in Van Nuys, CA for a contract price of $8.875 million using funds from our revolving credit facility. The property consists of a six-building multi-tenant industrial business park totaling 78,000 square feet situated on 3.25 acres of land.

On February 12, 2014, we acquired the property located at 845, 855, and 865 Milliken Avenue and 4317 and 4319 Santa Ana Street in Ontario, CA with a contract price of $8.55 million as part of a 1031 exchange using proceeds from the disposition of our property located at 1335 Park Center Drive. The property consists of a five-building multi-tenant industrial business park totaling 113,612 square feet situated on 5.74 acres of land.

On February 25, 2014, we acquired the property located at 1500-1510 W. 228th Street in Los Angeles, CA for a contract price of $6.6 million. A portion of the acquisition was funded with the remaining proceeds from the disposition of 1335 Park Center Drive, and the remainder of the funding was provided from availability under our revolving credit facility. The property consists of a six-building multi-tenant industrial complex totaling 88,330 square feet situated on 3.9 acres of land.

On March 20, 2014, we acquired the property located at 24105 and 24201 Frampton Avenue in Los Angeles, California for a contract price of $3.93 million using funds from our revolving credit facility. The property consists of one single-tenant building totaling 47,903 square feet situated on 2.07 acres of land.

Our predecessor did not acquire any properties during the three months ended March 31, 2013.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

		Real estate assets:				Acquisition-related intangibles
Address	Acquisition Date	Land		Buildings and Improvements		In-place Lease Intangibles ⁽¹⁾		Net Above (Below) Market Lease Intangibles ⁽²⁾			Total Purchase Price		Other Assets		Notes Payable, Accounts Payable, Accrued Expenses and Tenant Security Deposits			Net Assets Acquired
2014 Acquisitions
7110 Rosecrans Avenue⁽³⁾	1/15/2014	$	3,117,000	$	1,894,000	$	-	$	-		$	5,011,000	$	-	$	(321,000	)	$	4,690,000
14723-14825 Oxnard Street	1/22/2014	$	4,373,000	$	3,873,000	$	650,000	$	(21,000	)	$	8,875,000	$	-	$	(117,000	)	$	8,758,000
845, 855, & 865 Milliken Avenue and 4317 & 4319 Santa Ana Street	2/12/2014	$	2,440,000	$	5,588,000	$	616,000	$	(94,000	)	$	8,550,000	$	2,000	$	(116,000	)	$	8,436,000
1500-1510 West 228th Street	2/25/2014	$	2,609,000	$	3,879,000	$	419,000	$	(307,000	)	$	6,600,000	$	-	$	(33,000	)	$	6,567,000
24105 & 24201 Frampton Avenue	3/20/2014	$	2,315,000	$	1,553,000	$	62,000	$	-		$	3,930,000	$	22,000	$	(64,000	)	$	3,888,000
Total		$	14,854,000	$	16,787,000	$	1,747,000	$	(422,000	)	$	32,966,000	$	24,000	$	(651,000	)	$	32,339,000

(1)	The weighted average amortization period of acquired in-place lease intangibles for our 2014 acquisitions was 1.9 years as of March 31, 2014.

(2)	The weighted average amortization period of net below market leases for our 2014 acquisitions was 2.6 years as of March 31, 2014.

(3)	As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation of includes $42,000 of capitalized acquisition costs.

The preliminary allocation of the purchase price is based upon a preliminary valuation and our estimates and assumptions are subject to change within the purchase price allocation period (generally one year from the acquisition date).

The following table summarizes the combined results from operations of our 2014 acquisitions since the acquisition date, included in the consolidated income statement for the following period:

	Three Months Ended March 31, 2014
Revenues	$	371,000
Net loss	$	(76,000	)

The following table presents unaudited pro-forma financial information as if the closing of our 2014 acquisitions had occurred on January 1, 2013. These unaudited pro-forma results have been prepared for comparative purposes only and include certain adjustments, such as increased depreciation and amortization expenses as a result of tangible and intangible assets acquired in the acquisitions. These unaudited pro-forma results do not purport to be indicative of what operating results would have been had the acquisitions actually occurred on January 1, 2013 and may not be indicative of future operating results.

	Three Months Ended March 31,
	2014		2013
Revenues	$	13,992,000	$	9,659,000
Net operating income	$	9,251,000	$	6,767,000
Net income	$	1,707,000	$	1,593,000

Intangible Assets

3 Months Ended

Mar. 31, 2014

Intangible Assets

4.	Intangible Assets

The following table summarizes our acquired lease intangible assets, including the value of in-place leases and above-market tenant leases, and our acquired lease intangible liabilities, including below-market tenant leases and above-market ground leases as follows:

	March 31, 2014			December 31, 2013
Acquired Lease Intangible Assets:
In-place lease intangibles	$	17,886,000		$	16,321,000
Accumulated amortization		(6,200,000	)		(4,296,000	)
In-place lease intangibles, net		11,686,000			12,025,000

Above-market tenant leases		1,937,000			1,881,000
Accumulated amortization		(449,000	)		(284,000	)
Above-market tenant leases, net		1,488,000			1,597,000
Acquired lease intangible assets, net	$	13,174,000		$	13,622,000

Acquired Lease Intangible Liabilities:
Below-market tenant leases		(1,547,000	)		(1,081,000	)
Accumulated accretion		263,000			198,000
Below-market tenant leases, net		(1,284,000	)		(883,000	)

Above-market ground lease		(290,000	)		(290,000	)
Accumulated accretion		21,000			13,000
Above-market ground lease, net		(269,000	)		(277,000	)
Acquired lease intangible liabilities, net	$	(1,553,000	)	$	(1,160,000	)

The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
	2014			2013
In-place lease intangibles⁽¹⁾	$	2,086,000		$	400,000
Above-market tenant leases⁽²⁾	$	165,000		$	51,000
Below-market tenant leases⁽²⁾	$	(77,000	)	$	(8,000	)
Above-market ground lease⁽³⁾	$	(8,000	)	$	-

(1)	The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated and combined statements of operations for the periods presented.

(2)	The amortization of above-market tenant leases is recorded as a decrease to rental revenues in the consolidated and combined statements of operations for the periods presented.

(3)	The accretion of below-market tenant leases is recorded as an increase to rental revenues in the consolidated and combined statements of operations for the periods presented.

(4)	The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated and combined statements of operations for the periods presented.

Notes Receivable

3 Months Ended

Mar. 31, 2014

Notes Receivable

5.	Notes Receivable

On February 8, 2013 the mortgage note borrower for the 2824 E. Foothill Blvd. loan repaid, ahead of schedule, the outstanding principal in full. We received gross proceeds from this payoff of $5.4 million, including $6,310 in per diem interest, of which $2.5 million was used to repay the loan secured by this note. The remaining proceeds were paid as a distribution to investors in RIF V. Our predecessor recorded a $1.4 million gain on collection of notes receivable during the three months ended March 31, 2013.

The following table summarizes the balance of our notes receivable:

	March 31, 2014			December 31, 2013
Face Amount	$	14,093,000		$	14,161,000
Unrecognized Accretable Yield		(958,000	)		(1,022,000	)
Note Receivable⁽¹⁾	$	13,135,000		$	13,139,000

(1)	This is a mortgage loan secured by 32401-32803 Calle Perfecto.

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

Notes Payable

3 Months Ended

Mar. 31, 2014

Notes Payable

6.	Notes Payable

The following table summarizes our notes payable:

	March 31, 2014			December 31, 2013			Contractual Maturity Date		Interest Rate
Fixed Rate Debt
RIF V - Jersey, LLC	$	5,145,000	⁽¹⁾	$	5,189,000	⁽¹⁾	1/1/2015			5.45	%	⁽²⁾
The Park		3,148,000	⁽³⁾		3,177,000	⁽³⁾	3/1/2031			5.13	%	⁽⁴⁾
Variable Rate Debt
RIF V - Glendale Commerce Center, LLC		42,750,000			42,750,000		5/1/2016	⁽⁵⁾	LIBOR + 2.00%
Term Loan ⁽⁶⁾		60,000,000			60,000,000		8/1/2019		LIBOR + 1.90%
Unsecured Credit Facility
$200M Facility		101,875,000			81,375,000		7/24/2016	⁽⁵⁾	LIBOR + 1.50%			⁽⁷⁾
Total	$	212,918,000		$	192,491,000

(1)	Includes unamortized debt premium of $38,000 at March 31, 2014 and $50,000 at December 31, 2013.

(2)	Monthly payments of interest and principal based on 30-year amortization table.

(3)	Includes unamortized debt discount of $117,000 at March 31, 2014 and $118,000 at December 31, 2013.

(4)	Monthly payments of interest and principal based on 20-year amortization table.

(5)	Two additional one year extensions available at the borrower’s option.

(6)	Loan is secured by six properties and has one additional one year extension available.

(7)	The facility additionally bears interest at 0.30% or 0.20% of the daily unused commitment, if the balance is under $100 million or over $100 million, respectively. The daily unused commitment is calculated as $200 million less the daily outstanding balance.

The following table summarizes the stated debt maturities and scheduled amortization payments, excluding debt discounts and premiums, as of March 31, 2014 and does not consider extension options available to us as noted above:

April 1, 2014 - December 31, 2014	$	186,000
2015		5,141,000
2016		144,760,000
2017		142,000
2018		150,000
Thereafter		62,618,000
Total⁽¹⁾	$	212,997,000

(1)	Includes gross principal balance of outstanding debt before impact of the $79,000 net debt discount.

Unsecured Revolving Credit Facility

As of March 31, 2014 we had $101.9 million outstanding under the facility, with additional availability of $85.2 million. The amount available for us to borrow under the facility is subject to the lesser of the then applicable facility amount, a percentage of the net operating income of our properties that form the borrowing base of the facility, and a minimum implied debt service coverage ratio.

Our ability to borrow under the revolving credit facility is subject to our ongoing compliance with a number of customary restrictive covenants, including a maximum leverage ratio, a maximum secured leverage ratio, a maximum recourse debt ratio, a minimum fixed charge coverage ratio, an unencumbered debt yield ratio, and a minimum tangible net worth requirement. Additionally, under the revolving credit facility, our distributions may not exceed the greater of (i) 95.0% of our funds from operations or (ii) the amount required for us to qualify and maintain our status as a REIT and avoid the payment of federal or state income or excise tax in any 12 month period. If a default or event of default occurs and is continuing, we may be precluded from making certain distributions (other than those required to allow us to qualify and maintain our status as a REIT). The revolving credit facility also includes cross-default provisions with respect to certain of our other indebtedness.

Operating Leases

3 Months Ended

Mar. 31, 2014

Operating Leases

7.	Operating Leases

We lease space to tenants primarily under non-cancelable operating leases that generally contain provisions for a base rent plus reimbursement for certain operating expenses. Operating expense reimbursements are reflected in the consolidated and combined statements of operations as tenant reimbursements.

Future minimum base rent under operating leases as of March 31, 2014 is summarized as follows:

Twelve months ending March 31:
2014	$	43,724,000
2015		33,280,000
2016		23,353,000
2017		15,243,000
2018		9,490,000
Thereafter		17,581,000
Total	$	142,671,000

The future minimum base rent in the table above excludes tenant reimbursements, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles.

Interest Rate Contracts

3 Months Ended

Mar. 31, 2014

Interest Rate Contracts

8.	Interest Rate Contracts

Risk Management Objective of Using Derivatives

We are exposed to certain risk arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of our debt funding and the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash payments principally related to our borrowings.

Derivative Instruments

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. We do not use derivatives for trading or speculative purposes.

The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative that is designated and that qualifies as a cash flow hedge, the effective portion of the change in fair value of the derivative is initially recorded in accumulated other comprehensive income (“AOCI”). Amounts recorded in AOCI are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings.

On February 4, 2014, we executed two forward interest rate swaps to hedge the variable cash flows associated with our existing $60.0 million variable-rate term loan. Each of the two swaps has a notional value of $30.0 million, which will be in effect beginning in 2015. The first forward swap will effectively fix $30.0 million of debt at 3.726% annually from the period from January 15, 2015 to February 15, 2019. The second forward swap will effectively fix the other $30.0 million of debt at 3.91% annually from the period from July 15, 2015 to February 15, 2019.

Prior to our IPO, our predecessor was party to an interest rate swap that was not designated as a hedge, and as such, the changes in its fair value were recognized in earnings. This interest rate swap reached its natural termination on March 15, 2013. As of March 31, 2014 and December 31, 2013, we do not have any derivatives that are not designated as hedges.

The following table is a summary of our derivative instruments and their fair value, which is included in the line item “Other assets” on the accompanying consolidated balance sheets.

						Fair Value⁽¹⁾				Notional Amount in Effect as of
Derivative Instrument	Effective Date	Maturity Date	Interest Strike Rate			March 31, 2014		December 31, 2013		March 31, 2014		December 31, 2013
Designated as hedging instruments:
Interest Rate Swap	1/15/2015	2/15/2019		1.826	%		146,000		-		-		-
Interest Rate Swap	7/15/2015	2/15/2019		2.010	%		154,000		-		-		-
							300,000		-		-		-

(1)	We record all derivative instruments on a gross basis in the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities. All of our derivatives were in an asset position as end of the period noted above.

The following table presents the impact of our derivative instruments on our consolidated and combined statement of operations for the periods presented:

	For the Three Months Ended March 31,
	2014		2013
Interest Rate Swaps in Cash Flow Hedging Relationships:
Amount of gain recognized in AOCI on derivatives (effective portion)		300,000		-
Amount of gain (loss) reclassified from AOCI into earnings under "Interest expense" (effective portion)		-		-
Amount of gain (loss) recognized in earnings under "Interest expense" (ineffective portion and amount excluded from effectiveness testing)		-		-

Interest Rate Swaps Not in Cash Flow Hedging Relationships:
Amount of realized and unrealized gain recognized in earnings under "Gain on mark-to-market of interest rate swaps"		-		49,000

Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments and accruals are made on our variable-rate debt. During the next twelve months, we estimate that an additional $98,000 will be reclassified as an increase to interest expense.

Credit-risk-related Contingent Features

We have agreements with each of our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender within a specified time period, then we could also be declared in default on its derivative obligations.

Certain of our agreements with our derivative counterparties contain provisions where if a merger or acquisition occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument.

As of March 31, 2014, we did not have any derivatives that were in a net liability position, and therefore the provisions described above do not apply.

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2014

Fair Value Measurements

9.	Fair Value Measurements

We have adopted FASB Accounting Standards Codification Topic 820: Fair Value Measurements and Disclosure (ASC 820). ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances.

ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Recurring Measurements – Interest Rate Swaps

Currently, we use interest rate swap agreements to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves.

To comply with the provisions of ASC 820, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our counterparties. However, as of March 31, 2014, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, we have determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

The table below sets forth the estimated fair value of our interest rate swaps as of March 31, 2014, which we measure on a recurring basis by level within the fair value hierarchy. There were no assets or liabilities that we measure at fair value on a recurring basis as of December 31, 2013.

	Fair Value Measurement Using
Assets	Total Fair Value		Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Interest rate swap at:
March 31, 2014	$	300,000	$	-	$	300,000	$	-

Financial Instruments Disclosed at Fair Value

The carrying amounts of cash and cash equivalents, restricted cash, rents and other receivables, other assets, accounts payable, accrued expenses and other liabilities, and tenant security deposits approximate fair value because of their short-term nature.

The fair value of our secured notes payable was estimated by calculating the present value of principal and interest payments, using currently available market rates, adjusted with a credit spread, and assuming the loans are outstanding through maturity.

The table below sets forth the carrying value and the estimated fair value of our notes payable as of March 31, 2014 and December 31, 2013:

	Fair Value Measurement Using
	Total Fair Value		Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Carrying Value
Liabilities
Notes Payable at:
March 31, 2014	$	212,976,000	$	-	$	212,976,000	$	-	$	212,918,000
December 31, 2013	$	192,492,000	$	-	$	192,492,000	$	-	$	192,491,000

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Related Party Transactions

Related Party Transactions

3 Months Ended

Mar. 31, 2014

10.	Related Party Transactions

Howard Schwimmer

We engage in transactions with Howard Schwimmer, our Co-Chief Executive Officer, earning management and development fees and leasing commissions from entities controlled individually by Mr. Schwimmer. Fees and commissions earned from these entities are included in management, leasing and development services in the consolidated and combined statements of operations. We recorded $53,000 and $29,000 in management, leasing and development services revenue during the three months ended March 31, 2014 and 2013, respectively.

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

Commitments and Contingencies

Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

11.	Commitments and Contingencies

Legal

From time to time, we are subject to various legal proceedings that arise in the ordinary course of business.

On October 3, 2013, one husband and wife couple who were pre-IPO investors filed a putative class action purportedly brought on behalf of the investors in Rexford Industrial Fund III (“RIF III”) in the Los Angeles County Superior Court. On February 14, 2014, the plaintiffs filed an amended complaint (as amended, the “RIF III and RIF IV Action”) adding an additional individual pre-IPO investor and putative class claims on behalf of investors in Rexford Industrial Fund IV, LLC (“RIF IV”). Plaintiffs in the RIF III and RIF IV Action assert claims against the Company, RIF III, RIF IV, RILLC and Messrs. Schwimmer, Frankel and Ziman for breach of fiduciary duty, violation of certain California securities laws, negligent misrepresentation, and fraud. Plaintiffs allege, among other things, that the terms of the Company’s formation transactions were unfair to investors in RIF III and RIF IV, that the consideration received by investors in RIF III and RIF IV in the formation transactions was inadequate, that the pre-IPO management companies were allocated unfair value in the formation transactions and that the disclosure documents related to the formation transactions were materially misleading. The first amended complaint seeks class certification, requests to inspect the books and records of currently non-existent RIF III and RIF IV, and further seeks declaratory relief, unspecified recessionary damages, disgorgement, compensatory, punitive and exemplary damages, an accounting for unjust enrichment, and an award of costs including pre-judgment interest, attorneys’ and experts’ fees, and other unspecified relief. Plaintiffs also allege that the formal communication of the proposed accommodation (in which Messrs. Schwimmer, Frankel and Ziman, together with certain other pre-IPO owners of the pre-IPO management companies agreed to return up to $32.1 million that they received in connection with our IPO and formation transactions) was materially misleading by not including disclosures regarding the lawsuit and claims asserted by plaintiffs. While we believe that the RIF III and RIF IV Action is without merit and intend to defend the litigation vigorously, we expect to incur costs associated with defending the RIF III and RIF IV Action. At this early stage of the litigation, the ultimate outcome of the RIF III and RIF IV Action is uncertain and we cannot reasonably assess the timing or outcome, or estimate the amount of loss, if any, or its effect, if any, on our financial statements.

Environmental

We monitor our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist, we are not currently aware of any environmental liability with respect to the properties that would have a material effect on our consolidated financial condition, results of operations and cash flows. Further, we are not aware of any environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency.

Rent Expense

As of March 31, 2014, we lease a parcel of land that is currently being sub-leased to a tenant for a parking lot. The ground lease is scheduled to expire on June 1, 2062.

The future minimum commitment under our ground lease and corporate office lease as of March 31, 2014 is as follows:

	Office Lease		Ground Rent
April 1, 2014 - December 31, 2014	$	151,000	$	108,000
2015		266,000		144,000
2016		274,000		144,000
2017		282,000		144,000
2018		291,000		144,000
Thereafter		173,000		6,252,000
Total	$	1,437,000	$	6,936,000

Tenant Related

As of March 31, 2014, we had commitments of $1.0 million for tenant improvement and construction work under the terms of leases with certain of our tenants.

Investment in Unconsolidated Real Estate

3 Months Ended

Mar. 31, 2014

Investment in Unconsolidated Real Estate

12.	Investment in Unconsolidated Real Estate

We currently manage and hold a 15% equity interest in a joint venture (“the JV”) that indirectly owns three properties located at 3001-3233 Mission Oaks Boulevard in Ventura County. We account for this investment under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from other-than-temporary impairments, if applicable). The carrying value of our JV investment includes a gross $2.8 million basis adjustment resulting from the contribution of our equity interest as part of the formation transactions that occurred on July 24, 2013. The basis adjustment is being amortized over the estimated useful life of the underlying assets.

Our Predecessor owned a 70% interest in a property located at 10439-10477 Roselle Street. This was a tenancy-in-common interest in which control was shared equally with the other 30% tenant-in-common partner. As part of the formation transactions, on July 24, 2013, we acquired the 30% interest not previously owned by us in exchange for 2,828 units in our Operating Partnership. Before this transaction, this investment was accounted for under the equity method of accounting.

The following tables present combined summarized financial information of our equity method investment properties. Amounts provided are the total amounts attributable to the entities and do not represent our proportionate share:

	Three Months Ended March 31,
	2014⁽¹⁾			2013⁽²⁾
Revenues	$	1,812,000		$	2,146,000
Expenses		(1,605,000	)		(2,220,000	)
Net income (loss)	$	207,000		$	(74,000	)

	March 31, 2014			December 31, 2013
Assets	$	62,092,000		$	61,422,000
Liabilities		(42,833,000	)		(42,475,000	)
Partners'/members' equity	$	19,259,000		$	18,947,000

(1)	Includes summarized financial information for our equity method investment property located at 3001-3233 Mission Oaks Boulevard.

(2)	Includes summarized financial information for properties located at 3001-3233 Mission Oaks Boulevard and 10439-10477 Roselle St.

Our unconsolidated real estate entities incurred management, leasing and development fees, which were payable to us, of $94,000 and $0.1 million for the three months ended March 31, 2014 and 2013, respectively.

We recognized management, leasing and development revenue of $139,000 and $0.1 million for the three months ended March 31, 2014 and 2013, respectively, which has been recorded in management, leasing and development services.

Discontinued Operations

3 Months Ended

Mar. 31, 2014

Discontinued Operations

13.	Discontinued Operations

Dispositions

The following table summarizes the properties sold during the three months ended March 31, 2014 and 2013:

Address	Location	Date of Disposition	Rentable Square Feet		Sales Price		Debt Satisfied ⁽¹⁾		Gain (Loss) Recorded ⁽²⁾
2014 Dispositions:
1335 Park Center Drive	Vista, CA	1/29/2014		124,997	$	10,103,000	$	-	$	2,262,000
2900 N. Madera Road	Simi Valley, CA	3/13/2014		63,305	$	4,350,000	$	-	$	(137,000	)

2013 Dispositions:
4578 Worth Street	Los Angeles, CA	1/31/2013		79,370	$	4,100,000	$	2,500,000	$	2,409,000

(1)	Amount represents the principal paid back to the lender to release the property from a larger pool of properties serving as collateral for the respective portfolio loan.

(2)	Gain on sale of real estate is recorded as part of discontinued operations during the period of disposition.

Properties Held for Sale

As of March 31, 2014, we did not have any properties classified as held for sale. As of December 31, 2013, our properties located at 1335 Park Center Drive and 2900 N. Madera Road were classified as held for sale.

The major classes of assets and liabilities associated with real estate held for sale are summarized in the table below:

	December 31, 2013
Investment in real estate, net	$	10,963,000
Other		935,000
Assets associated with real estate held for sale	$	11,898,000

Mortgage loan	$	-
Accounts payable and other liabilities		260,000
Liabilities associated with real estate held for sale	$	260,000

Discontinued Operations

Income from discontinued operations includes the results of operations (prior to disposition) and the gain on sale of real estate attributable to the seven properties sold during the period from January 1, 2013 through March 31, 2014. Their consolidated results of operations for the three months ended March 31, 2014 and combined results of operations for the three months ended March 31, 2013, are summarized in the table below.

				The Predecessor
	Three Months Ended March 31,
	2014			2013
Revenues	$	85,000		$	411,000
Operating expenses		(57,000	)		(169,000	)
Interest expense		-			(157,000	)
Depreciation and amortization expense		(7,000	)		(666,000	)
Loss on extinguishment of debt		-			(209,000	)
Gain on sale of real estate		2,125,000			2,409,000
Income from discontinued operations	$	2,146,000		$	1,619,000

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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Equity

3 Months Ended

Mar. 31, 2014

Equity

14.

Equity

Noncontrolling Interests

Noncontrolling interests in our Operating Partnership relate to interests in the partnership that are not owned by us. Noncontrolling interests consisted of 3,009,259 Operating Partnership units and represented approximately 10.6% of our Operating Partnership as of March 31, 2014. Operating Partnership units and shares of our common stock have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of our Operating Partnership. Investors who own units in our Operating Partnership have the right to cause our Operating Partnership to redeem any or all of their units in our Operating Partnership for an amount of cash per unit equal to the then current market value of one share of common stock, or, at our election, shares of our common stock on a one-for-one basis.

2013 Incentive Award Plan

In July 2013, we established the Rexford Industrial Realty, Inc. and Rexford Industrial Realty, L.P. 2013 Incentive Award Plan (the “Plan”), pursuant to which the compensation committee of the board of directors may make grants of stock options, restricted stock, long term incentive plan units (“LTIP units”) in our Operating Partnership and other stock based and cash awards to our non-employee directors, employees and consultants. The maximum number of shares of our common stock that may be issued or transferred pursuant to the Plan is 2,272,689 shares (of which 2,140,903 shares of common stock remain available for issuance as of March 31, 2014).

Shares of our restricted common stock generally may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent or the administrator of the Plan, a domestic relations order, unless and until all restrictions applicable to such shares have lapsed. Such restrictions expire upon vesting. Shares of our restricted common stock have full voting rights and rights to dividends. During the three months ended March 31, 2014, we recognized net equity compensation expense of $172,000 related to the restricted common stock grants, ultimately expected to vest. Equity compensation expense is included in general and administrative and property expenses in the accompanying consolidated statements of operations. Certain amounts of equity compensation expense are capitalized for employees who provide leasing and construction services. During the three months ended March 31, 2014, we capitalized $29,000 related to these employees.

The following is a table summarizing our unvested restricted stock activity for the three months ended March 31, 2014:

	Number of Unvested Shares of Restricted Common Stock
Balance at January 1, 2014		140,468
Granted		963
Forfeited		(9,645	)
Vested		-
Balance at March 31, 2014		131,786

The following is a vesting schedule of the total unvested shares of restricted stock outstanding as of March 31, 2014:

	Shares
April 1, 2014 - December 31, 2014		34,377
2015		33,414
2016		33,411
2017		30,584
		131,786

ASC Topic 718: Compensation - Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We have estimated a forfeiture rate of 7.3% for unvested restricted stock as of March 31, 2014. As of March 31, 2014, there was $1.1 million of total unrecognized compensation expense related to the unvested shares of our restricted common stock assuming the forfeiture rate noted above, of which $0.1 million will be capitalized for employees who provide leasing and construction services. As of March 31, 2014, this expense is expected to be recognized over a weighted average remaining period of 24 months.

Changes in Accumulated Other Comprehensive Income

The following table summarizes the changes in Accumulated Other Comprehensive Income for the three months ended March 31, 2014, which consists solely of adjustments related to our cash flow hedges:

	Accumulated Other Comprehensive Income
Balance at January 1, 2014	$	-
Other comprehensive income before reclassifications		300,000
Amounts reclassified from accumulated other comprehensive income to interest expense		-
Net current period other comprehensive income		300,000
Less other comprehensive income attributable to noncontrolling interests		(31,000	)
Other comprehensive income attributable to common stockholders		269,000
Balance at March 31, 2014	$	269,000

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Earnings Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share

15.	Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31, 2014
Numerator:
Net loss from continuing operations	$	(717,000	)
Net loss from continuing operations attributable to noncontrolling interests		75,000
Numerator for basic and diluted loss from continuing operations available to common stockholders		(642,000	)
Net income from discontinued operations		2,146,000
Net income from discontinued operations attributable to noncontrolling interests		(227,000	)
Numerator for basic and diluted net income available to common stockholders	$	1,277,000
Denominator:
Weighted average shares of common stock outstanding - basic and diluted		25,419,418
Earnings per share - Basic and Diluted:
Net loss from continuing operations available to common stockholders	$	(0.03	)
Net income from discontinued operations available to common stockholders	$	0.08
Net income available to common stockholders	$	0.05

Participating securities include 131,786 shares of unvested restricted stock outstanding at March 31, 2014, which participate in non-forfeitable dividends of the Company. Under the two class method, participating securities are allocated income, in proportion to total weighted average shares outstanding, based upon the greater of net income or common dividends declared. Since dividends were declared during the period, causing us to have an undistributed net loss for the three months ending March 31, 2014, and participating security holders are not obligated to share in losses, there was no allocation of net income or loss to participating securities above the amounts distributed to them for the three months ended March 31, 2014.

The effect of including unvested restricted common stock using the treasury stock method was excluded from our calculation of weighted average shares of common stock – diluted as its inclusion would have been antidilutive. As such, the number of weighted average shares of common stock outstanding, both basic and diluted, are the same for the three months ended March 31, 2014.

Predecessor Equity

3 Months Ended

Mar. 31, 2014

Equity

14.

Equity

Noncontrolling Interests

2013 Incentive Award Plan

The following is a table summarizing our unvested restricted stock activity for the three months ended March 31, 2014:

	Number of Unvested Shares of Restricted Common Stock
Balance at January 1, 2014		140,468
Granted		963
Forfeited		(9,645	)
Vested		-
Balance at March 31, 2014		131,786

The following is a vesting schedule of the total unvested shares of restricted stock outstanding as of March 31, 2014:

	Shares
April 1, 2014 - December 31, 2014		34,377
2015		33,414
2016		33,411
2017		30,584
		131,786

Changes in Accumulated Other Comprehensive Income

The following table summarizes the changes in Accumulated Other Comprehensive Income for the three months ended March 31, 2014, which consists solely of adjustments related to our cash flow hedges:

	Accumulated Other Comprehensive Income
Balance at January 1, 2014	$	-
Other comprehensive income before reclassifications		300,000
Amounts reclassified from accumulated other comprehensive income to interest expense		-
Net current period other comprehensive income		300,000
Less other comprehensive income attributable to noncontrolling interests		(31,000	)
Other comprehensive income attributable to common stockholders		269,000
Balance at March 31, 2014	$	269,000

Predecessor

Equity

16.	Predecessor Equity

Controlling interests in our Predecessor include the interests owned by partners of RILLC, and Rexford Sponsor V LLC, and any interests held by their spouses and children (“RILLC and Affiliates”). Noncontrolling interests relate to all other interests not held by RILLC and Affiliates. Noncontrolling interests also includes the 27.76% interest of 10 investors in RIF I—Walnut, LLC, and the 3.23% interest of one investor in RIF IV—Burbank, LLC, both consolidated subsidiaries in our Predecessor’s financial statements during the three months ended March 31, 2013.

Equity distributions by our Predecessor Funds are allocated between the general partner and limited partners (collectively “Partners”) in accordance with each fund’s operating agreements. Generally this provides for distributions to be allocated to Partners, pari passu, in accordance with their respective percentage interests. After Partners have exceeded certain cash distribution thresholds, as defined in each Predecessor Fund’s operating agreement, then the general partner may receive incentive promote cash distributions commensurate with the cash return performance hurdles also detailed in the Predecessor Fund’s operating agreement. Each fund’s operating agreement generally provides for income, expenses, gains and losses to be allocated in a manner consistent with cash distributions described above.

During November and December 2012, our predecessor granted to its employees a 9.0% equity interest in Rexford Fund V Manager, LLC’s (“Fund V Manager”) profits interest in RIF V. An additional 2.0% equity interest was granted in January 2013. Fund V Manager is the controlling member of RIF V and is a wholly-owned subsidiary of Sponsor. The fair value of these interests was estimated to be approximately $1.0 million at the time they were granted. The equity interests are considered performance-based equity interests and are subject to graded vesting over the shorter of a 7-year period or the dissolution date of Fund V Manager. On July 24, 2013, the day we consummated our IPO, Fund V Manager was dissolved.

We expensed $66,000 during the three months ended March 31, 2013 related to these equity awards.

Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed

Subsequent Events

3 Months Ended

Mar. 31, 2014

Subsequent Events

17.	Subsequent Events

On April 14, 2014, we granted 71,990 shares of restricted common stock to employees of the Company with a grant date fair value of approximately $1.0 million. These shares will vest in four equal annual installments on each of the four anniversaries of the date of grant.

On April 17, 2014, we acquired the property located at 1700 Saturn Way located in Seal Beach, CA for a contract price of $21.1 million using funds from our revolving credit facility. The property consists of one single-tenant industrial building totaling 170,865 square feet situated on 9.24 acres of land.

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2014
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short term maturity of these investments.
Discontinued Operations	Discontinued Operations The revenue, expenses, impairment and/or gain on sale of operating properties that meet the applicable criteria are reported as discontinued operations in the consolidated and combined statements of operations for all periods presented. A gain on sale, if any, is recognized in the period during which the property is disposed. In addition, all amounts for all prior periods presented are reclassified from continuing operations to discontinued operations In determining whether to report the results of operations, impairment and/or gain on sale of operating properties as discontinued operations, we evaluate whether we have any significant continuing involvement in the operations, leasing or management of the property after disposition. If we determine that we have significant continuing involvement after disposition, we report the revenue, expenses, impairment and/or gain on sale as part of continuing operations.
Held for Sale Assets	Held for Sale Assets We classify properties as held for sale when certain criteria set forth in the Long-Lived Assets Classified as Held for Sale Subsections of ASC Topic 360: Property, Plant, and Equipment, are met. At that time, the assets and liabilities of the property held for sale are presented separately in the consolidated and combined balance sheets and we cease recording depreciation and amortization expense at the time a property is classified as held for sale. Properties held for sale are reported at the lower of their carrying value or their estimated fair value, less estimated costs to sell. In addition, the assets and liabilities of the property are reclassified and presented separately for all comparative periods.
Investment in Real Estate	Investment in Real Estate Acquisitions When we acquire operating properties, with the intention to hold the investment for the long-term, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component. The components typically include land, building and improvements, intangible assets related to above and below market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities. The initial allocation of the purchase price is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price allocation are made within the allocation period, which typically does not exceed one year. We allocate the purchase price to the fair value of the tangible assets by valuing the property as if it were vacant. We consider Level 3 inputs such as the replacement cost of such assets, appraisals, property condition reports, comparable market rental data and other related information. In determining the fair value of intangible lease assets or liabilities, we consider Level 3 inputs including the value associated with leasing commissions, legal and other costs, as well as the estimated period necessary to lease such property and lease commencement. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above market leases and the initial term plus the term of any below market fixed rate renewal options for below market leases, if applicable. The estimated fair value of acquired in-place at-market tenant leases are the costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. Such estimates include the fair value of leasing commissions and legal costs that would be incurred to lease the property to this occupancy level. The difference between the fair value and the face value of debt assumed in connection with an acquisition is recorded as a premium or discount and amortized to “interest expense” over the life of the debt assumed. The valuation of assumed liabilities is based on our estimate of the current market rates for similar liabilities in effect at the acquisition date. For acquisitions that do not meet the accounting criteria to be accounted for as a business combination, we record to land and building the purchase price paid and capitalize the associated acquisition costs. Capitalization of Costs We capitalize costs incurred in developing, renovating, rehabilitating, and improving real estate assets as part of the investment basis. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. During the land development and construction periods, we capitalize insurance, real estate taxes and certain general and administrative costs of the personnel performing development, renovations, and rehabilitation if such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. Capitalized costs are included in the investment basis of real estate assets. Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate a change in the useful life, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets. Depreciation and Amortization Real estate, including land, building and land improvements, tenant improvements, and furniture, fixtures and equipment, leasing costs and intangible lease assets and liabilities are stated at historical cost less accumulated depreciation and amortization, unless circumstances indicate that the cost cannot be recovered, in which case, the carrying value of the property is reduced to estimated fair value as discussed below in our policy with regards to impairment of long-lived assets. We estimate the depreciable portion of our real estate assets and related useful lives in order to record depreciation expense. Our ability to estimate the depreciable portions of our real estate assets and useful lives is critical to the determination of the appropriate amount of depreciation and amortization expense recorded and the carrying value of the underlying assets. Any change to the assets to be depreciated and the estimated depreciable lives of these assets would have an impact on the depreciation expense recognized. The values allocated to buildings, site improvements, in-place leases, tenant improvements and leasing costs are depreciated on a straight-line basis using an estimated remaining life of 10-30 years for buildings, 20 years for site improvements, and the shorter of the estimated useful life or respective lease term for tenant improvements. As discussed above, in connection with property acquisitions, we may acquire leases with rental rates above or below the market rental rates. Such differences are recorded as an intangible lease asset or liability and amortized to “rental revenues” over the reasonably assured term of the related leases. The unamortized balances of these assets and liabilities associated with the early termination of leases are fully amortized to their respective revenue line items in our consolidated financial statements over the shorter of the expected life of such assets and liabilities or the remaining lease term. Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate a change in the useful life, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC Topic 360: Property, Plant, and Equipment, we assess the carrying values of our respective long-lived assets, including goodwill, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. Recoverability of real estate assets is measured by comparison of the carrying amount of the asset to the estimated future undiscounted cash flows. In order to review real estate assets for recoverability, we consider current market conditions, as well as our intent with respect to holding or disposing of the asset. The intent with regard to the underlying assets might change as market conditions change, as well as other factors. Fair value is determined through various valuation techniques; including discounted cash flow models, applying a capitalization rate to estimated net operating income of a property, quoted market values and third party appraisals, where considered necessary. The use of projected future cash flows is based on assumptions that are consistent with estimates of future expectations and the strategic plan used to manage our underlying business. If our analysis indicates that the carrying value of the real estate asset is not recoverable on an undiscounted cash flow basis, we will recognize an impairment charge for the amount by which the carrying value exceeds the current estimated fair value of the real estate property. Assumptions and estimates used in the recoverability analyses for future cash flows, discount rates and capitalization rates are complex and subjective. Changes in economic and operating conditions or our intent with regard to our investment that occur subsequent to our impairment analyses could impact these assumptions and result in future impairment of our real estate properties. At March 31, 2014 and December 31, 2013, our investment in real estate has been recorded net of a cumulative impairment of $18.6 million.
Acquired Indefinite-Lived Intangibles	Acquired Indefinite-Lived Intangibles Acquired indefinite-lived intangibles represent the fair value of the management contracts in-place at the time of the contribution of Sponsor, RIF V REIT and their consolidated subsidiaries to the Operating Partnership as part of our formation transactions. The asset has an indefinite life, and, accordingly, is not amortized.
Income Taxes	Income Taxes We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with our initial taxable year ending December 31, 2013. To qualify as a REIT, we are required (among other things) to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to matters such as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. If we fail to qualify as a REIT in any taxable year, and were unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. In addition, we are subject to taxation by various state and local jurisdictions, including those in which we transact business or reside. Our non-taxable REIT subsidiaries, including our Operating Partnership, are either partnerships or disregarded entities for federal income tax purposes. Under applicable federal and state income tax rules, the allocated share of net income or loss from disregarded entities (including limited partnerships and S-Corporations) is reportable in the income tax returns of the respective partners and stockholders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three months ended March 31, 2014. Each of RIF I, RIF II, RIF III and RIF IV are limited liability companies but have elected to be taxed as a partnership for tax purposes. As such, the allocated share of net income or loss from the limited liability companies is reportable in the income tax returns of the respective partners and investors. Accordingly, no income tax provision is included in the accompanying combined financial statements. RIF V REIT has elected to be taxed as a REIT under the Code, commencing with its tax period ended December 31, 2010. We believe that RIF V REIT has met all of the REIT distribution and technical requirements for the three months ended March 31, 2013, and accordingly, we have not recognized any provision for income taxes. We periodically evaluate our tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2014 and December 31, 2013, we have not established a liability for uncertain tax positions.
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities FASB ASC Topic 815: Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, and whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting. See Note 8.
Revenue Recognition	Revenue Recognition We recognize revenue from rent, tenant reimbursements and other revenue sources once all of the following criteria are met: persuasive evidence of an arrangement exists, the delivery has occurred or services rendered, the fee is fixed and determinable and collectability is reasonably assured. Minimum annual rental revenues are recognized in rental revenues on a straight-line basis over the term of the related lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. Estimated reimbursements from tenants for real estate taxes, common area maintenance and other recoverable operating expenses are recognized as revenues in the period that the expenses are incurred. Subsequent to year-end, we perform final reconciliations on a lease-by-lease basis and bill or credit each tenant for any cumulative annual adjustments. Lease termination fees, which are included in rental revenues in the accompanying consolidated and combined statements of operations, are recognized when the related lease is canceled and we have no continuing obligation to provide services to such former tenant. Revenues from management, leasing and development services are recognized when the related services have been provided and earned. The recognition of gains on sales of real estate requires us to measure the timing of a sale against various criteria related to the terms of the transaction, as well as any continuing involvement in the form of management or financial assistance associated with the property. If the sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, profit-sharing or leasing method. If the sales criteria have been met, we further analyze whether profit recognition is appropriate using the full accrual method. If the criteria to recognize profit using the full accrual method have not been met, we defer the gain and recognize it when the criteria are met or use the installment or cost recovery method as appropriate under the circumstances. See Note 13 for discussion of dispositions.
Valuation of Receivables	Valuation of Receivables We are subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables. In order to mitigate these risks, we perform credit reviews and analyses on prospective tenants before significant leases are executed and on existing tenants before properties are acquired. We specifically analyze aged receivables, customer credit-worthiness, historical bad debts and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. As a result of our periodic analysis, we maintain an allowance for estimated losses that may result from the inability of our tenants to make required payments. This estimate requires significant judgment related to the lessees’ ability to fulfill their obligations under the leases. We believe our allowance for doubtful accounts is adequate for our outstanding receivables for the periods presented. If a tenant is insolvent or files for bankruptcy protection and fails to make contractual payments beyond any allowance, we may recognize additional bad debt expense in future periods equal to the net outstanding balances, which include amounts recognized as straight-line revenue not realizable until future periods. We had a $0.8 million and $0.5 million reserve for allowance for doubtful accounts as of March 31, 2014 and December 31, 2013, respectively.
Equity Based Compensation	Equity Based Compensation We account for equity-based compensation, including shares of restricted stock, in accordance with ASC Topic 718 Compensation – Stock Compensation, which requires us to recognize an expense for the fair value of equity-based compensation awards. The estimated fair value of shares of restricted stock are amortized over their respective vesting periods. See Note 14.
Earnings Per Share	Earnings Per Share Basic earnings per share is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average shares of common shares outstanding for the period, as adjusted for the effect of participating securities. Diluted earnings per share is computed using the weighted average shares of common stock outstanding determined for the basic earnings per share computation plus the effect of any dilutive securities, including the dilutive effect of unvested restricted common stock using the treasury stock method. See Note 15.
Segment Reporting	Segment Reporting Management views the Company as a single segment based on its method of internal reporting in addition to its allocation of capital and resources.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Changes to GAAP are established by the FASB in the form of ASUs to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all ASUs. On April 14, 2014, the FASB issued ASU 2014-08: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. In addition, ASU 2014-08 (1) expands the disclosure requirements for disposals that meet the definition of a discontinued operation, (2) requires entities to disclose information about disposals of individually significant components, and (3) defines “discontinued operations” similarly to how it is defined under IFRS 5, "Non-current Assets Held for Sale and Discontinued Operations." ASU 2014-08 is effective for us in the first quarter of 2015 and early adoption is permitted for any annual or interim period for which an entity’s financial statements have not yet been made available for issuance. We are currently evaluating ASU 2014-08 to determine its impact on our consolidated financial statements.

Investments in Real Estate (Tables)

3 Months Ended

Mar. 31, 2014

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

		Real estate assets:				Acquisition-related intangibles
Address	Acquisition Date	Land		Buildings and Improvements		In-place Lease Intangibles ⁽¹⁾		Net Above (Below) Market Lease Intangibles ⁽²⁾			Total Purchase Price		Other Assets		Notes Payable, Accounts Payable, Accrued Expenses and Tenant Security Deposits			Net Assets Acquired
2014 Acquisitions
7110 Rosecrans Avenue⁽³⁾	1/15/2014	$	3,117,000	$	1,894,000	$	-	$	-		$	5,011,000	$	-	$	(321,000	)	$	4,690,000
14723-14825 Oxnard Street	1/22/2014	$	4,373,000	$	3,873,000	$	650,000	$	(21,000	)	$	8,875,000	$	-	$	(117,000	)	$	8,758,000
845, 855, & 865 Milliken Avenue and 4317 & 4319 Santa Ana Street	2/12/2014	$	2,440,000	$	5,588,000	$	616,000	$	(94,000	)	$	8,550,000	$	2,000	$	(116,000	)	$	8,436,000
1500-1510 West 228th Street	2/25/2014	$	2,609,000	$	3,879,000	$	419,000	$	(307,000	)	$	6,600,000	$	-	$	(33,000	)	$	6,567,000
24105 & 24201 Frampton Avenue	3/20/2014	$	2,315,000	$	1,553,000	$	62,000	$	-		$	3,930,000	$	22,000	$	(64,000	)	$	3,888,000
Total		$	14,854,000	$	16,787,000	$	1,747,000	$	(422,000	)	$	32,966,000	$	24,000	$	(651,000	)	$	32,339,000

(1)	The weighted average amortization period of acquired in-place lease intangibles for our 2014 acquisitions was 1.9 years as of March 31, 2014.

(2)	The weighted average amortization period of net below market leases for our 2014 acquisitions was 2.6 years as of March 31, 2014.

(3)	As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation of includes $42,000 of capitalized acquisition costs.

Proforma Financial Information

The following table summarizes the combined results from operations of our 2014 acquisitions since the acquisition date, included in the consolidated income statement for the following period:

	Three Months Ended March 31, 2014
Revenues	$	371,000
Net loss	$	(76,000	)

	Three Months Ended March 31,
	2014		2013
Revenues	$	13,992,000	$	9,659,000
Net operating income	$	9,251,000	$	6,767,000
Net income	$	1,707,000	$	1,593,000

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Acquired Lease Intangible Assets and Liabilities

	March 31, 2014			December 31, 2013
Acquired Lease Intangible Assets:
In-place lease intangibles	$	17,886,000		$	16,321,000
Accumulated amortization		(6,200,000	)		(4,296,000	)
In-place lease intangibles, net		11,686,000			12,025,000

Above-market tenant leases		1,937,000			1,881,000
Accumulated amortization		(449,000	)		(284,000	)
Above-market tenant leases, net		1,488,000			1,597,000
Acquired lease intangible assets, net	$	13,174,000		$	13,622,000

Acquired Lease Intangible Liabilities:
Below-market tenant leases		(1,547,000	)		(1,081,000	)
Accumulated accretion		263,000			198,000
Below-market tenant leases, net		(1,284,000	)		(883,000	)

Above-market ground lease		(290,000	)		(290,000	)
Accumulated accretion		21,000			13,000
Above-market ground lease, net		(269,000	)		(277,000	)
Acquired lease intangible liabilities, net	$	(1,553,000	)	$	(1,160,000	)

Summary of Amortization or Accretion Recorded During the Period Related to Acquired Lease Intangibles

The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
	2014			2013
In-place lease intangibles⁽¹⁾	$	2,086,000		$	400,000
Above-market tenant leases⁽²⁾	$	165,000		$	51,000
Below-market tenant leases⁽²⁾	$	(77,000	)	$	(8,000	)
Above-market ground lease⁽³⁾	$	(8,000	)	$	-

(1)	The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated and combined statements of operations for the periods presented.

(2)	The amortization of above-market tenant leases is recorded as a decrease to rental revenues in the consolidated and combined statements of operations for the periods presented.

(3)	The accretion of below-market tenant leases is recorded as an increase to rental revenues in the consolidated and combined statements of operations for the periods presented.

(4)	The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated and combined statements of operations for the periods presented.

Notes Receivable (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Notes Receivable

The following table summarizes the balance of our notes receivable:

	March 31, 2014			December 31, 2013
Face Amount	$	14,093,000		$	14,161,000
Unrecognized Accretable Yield		(958,000	)		(1,022,000	)
Note Receivable⁽¹⁾	$	13,135,000		$	13,139,000

(1)	This is a mortgage loan secured by 32401-32803 Calle Perfecto.

Notes Payable (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Notes Payable

The following table summarizes our notes payable:

	March 31, 2014			December 31, 2013			Contractual Maturity Date		Interest Rate
Fixed Rate Debt
RIF V - Jersey, LLC	$	5,145,000	⁽¹⁾	$	5,189,000	⁽¹⁾	1/1/2015			5.45	%	⁽²⁾
The Park		3,148,000	⁽³⁾		3,177,000	⁽³⁾	3/1/2031			5.13	%	⁽⁴⁾
Variable Rate Debt
RIF V - Glendale Commerce Center, LLC		42,750,000			42,750,000		5/1/2016	⁽⁵⁾	LIBOR + 2.00%
Term Loan ⁽⁶⁾		60,000,000			60,000,000		8/1/2019		LIBOR + 1.90%
Unsecured Credit Facility
$200M Facility		101,875,000			81,375,000		7/24/2016	⁽⁵⁾	LIBOR + 1.50%			⁽⁷⁾
Total	$	212,918,000		$	192,491,000

(1)	Includes unamortized debt premium of $38,000 at March 31, 2014 and $50,000 at December 31, 2013.

(2)	Monthly payments of interest and principal based on 30-year amortization table.

(3)	Includes unamortized debt discount of $117,000 at March 31, 2014 and $118,000 at December 31, 2013.

(4)	Monthly payments of interest and principal based on 20-year amortization table.

(5)	Two additional one year extensions available at the borrower’s option.

(6)	Loan is secured by six properties and has one additional one year extension available.

(7)	The facility additionally bears interest at 0.30% or 0.20% of the daily unused commitment, if the balance is under $100 million or over $100 million, respectively. The daily unused commitment is calculated as $200 million less the daily outstanding balance.

Summary of Aggregate Future Minimum Payments of Debt

April 1, 2014 - December 31, 2014	$	186,000
2015		5,141,000
2016		144,760,000
2017		142,000
2018		150,000
Thereafter		62,618,000
Total⁽¹⁾	$	212,997,000

(1)	Includes gross principal balance of outstanding debt before impact of the $79,000 net debt discount.

Operating Leases (Tables)

3 Months Ended

Mar. 31, 2014

Future Minimum Base Rent Under Noncancelable Operating Leases

Future minimum base rent under operating leases as of March 31, 2014 is summarized as follows:

Twelve months ending March 31:
2014	$	43,724,000
2015		33,280,000
2016		23,353,000
2017		15,243,000
2018		9,490,000
Thereafter		17,581,000
Total	$	142,671,000

Interest Rate Contracts (Tables)

3 Months Ended

Mar. 31, 2014

Summary of Interest Rate Swap Agreement

The following table is a summary of our derivative instruments and their fair value, which is included in the line item “Other assets” on the accompanying consolidated balance sheets.

						Fair Value⁽¹⁾				Notional Amount in Effect as of
Derivative Instrument	Effective Date	Maturity Date	Interest Strike Rate			March 31, 2014		December 31, 2013		March 31, 2014		December 31, 2013
Designated as hedging instruments:
Interest Rate Swap	1/15/2015	2/15/2019		1.826	%		146,000		-		-		-
Interest Rate Swap	7/15/2015	2/15/2019		2.010	%		154,000		-		-		-
							300,000		-		-		-

Summary of Impact of Derivative Instruments on Consolidated and Combined Financial Statements

The following table presents the impact of our derivative instruments on our consolidated and combined statement of operations for the periods presented:

	For the Three Months Ended March 31,
	2014		2013
Interest Rate Swaps in Cash Flow Hedging Relationships:
Amount of gain recognized in AOCI on derivatives (effective portion)		300,000		-
Amount of gain (loss) reclassified from AOCI into earnings under "Interest expense" (effective portion)		-		-
Amount of gain (loss) recognized in earnings under "Interest expense" (ineffective portion and amount excluded from effectiveness testing)		-		-

Interest Rate Swaps Not in Cash Flow Hedging Relationships:
Amount of realized and unrealized gain recognized in earnings under "Gain on mark-to-market of interest rate swaps"		-		49,000

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 8
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Paragraph 4
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Assets Measures at Fair Vale on a Recurring Basis by Level within Fair Value Hierarchy

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

	Fair Value Measurement Using
Assets	Total Fair Value		Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Interest rate swap at:
March 31, 2014	$	300,000	$	-	$	300,000	$	-

Carrying Value and Estimated Fair Value of Notes Payable

The table below sets forth the carrying value and the estimated fair value of our notes payable as of March 31, 2014 and December 31, 2013:

	Fair Value Measurement Using
	Total Fair Value		Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Carrying Value
Liabilities
Notes Payable at:
March 31, 2014	$	212,976,000	$	-	$	212,976,000	$	-	$	212,918,000
December 31, 2013	$	192,492,000	$	-	$	192,492,000	$	-	$	192,491,000

Commitments and contingencies (Tables)

3 Months Ended

Mar. 31, 2014

Future Minimum Commitment Under Ground Lease and Corporate Office Lease

The future minimum commitment under our ground lease and corporate office lease as of March 31, 2014 is as follows:

	Office Lease		Ground Rent
April 1, 2014 - December 31, 2014	$	151,000	$	108,000
2015		266,000		144,000
2016		274,000		144,000
2017		282,000		144,000
2018		291,000		144,000
Thereafter		173,000		6,252,000
Total	$	1,437,000	$	6,936,000

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

Summarized Information of Our Equity Method Investment Properties

Investment in Unconsolidated Real Estate (Tables)

3 Months Ended

Mar. 31, 2014

	Three Months Ended March 31,
	2014⁽¹⁾			2013⁽²⁾
Revenues	$	1,812,000		$	2,146,000
Expenses		(1,605,000	)		(2,220,000	)
Net income (loss)	$	207,000		$	(74,000	)

	March 31, 2014			December 31, 2013
Assets	$	62,092,000		$	61,422,000
Liabilities		(42,833,000	)		(42,475,000	)
Partners'/members' equity	$	19,259,000		$	18,947,000

(1)	Includes summarized financial information for our equity method investment property located at 3001-3233 Mission Oaks Boulevard.

(2)	Includes summarized financial information for properties located at 3001-3233 Mission Oaks Boulevard and 10439-10477 Roselle St.

Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2014

Summary of the Properties Sold

Dispositions

The following table summarizes the properties sold during the three months ended March 31, 2014 and 2013:

Address	Location	Date of Disposition	Rentable Square Feet		Sales Price		Debt Satisfied ⁽¹⁾		Gain (Loss) Recorded ⁽²⁾
2014 Dispositions:
1335 Park Center Drive	Vista, CA	1/29/2014		124,997	$	10,103,000	$	-	$	2,262,000
2900 N. Madera Road	Simi Valley, CA	3/13/2014		63,305	$	4,350,000	$	-	$	(137,000	)

2013 Dispositions:
4578 Worth Street	Los Angeles, CA	1/31/2013		79,370	$	4,100,000	$	2,500,000	$	2,409,000

(1)	Amount represents the principal paid back to the lender to release the property from a larger pool of properties serving as collateral for the respective portfolio loan.

(2)	Gain on sale of real estate is recorded as part of discontinued operations during the period of disposition.

Major Class of Assets and Liabilities Associated with Real Estate Held for Sale

Properties Held for Sale

The major classes of assets and liabilities associated with real estate held for sale are summarized in the table below:

	December 31, 2013
Investment in real estate, net	$	10,963,000
Other		935,000
Assets associated with real estate held for sale	$	11,898,000

Mortgage loan	$	-
Accounts payable and other liabilities		260,000
Liabilities associated with real estate held for sale	$	260,000

Results of Operations

Discontinued Operations

				The Predecessor
	Three Months Ended March 31,
	2014			2013
Revenues	$	85,000		$	411,000
Operating expenses		(57,000	)		(169,000	)
Interest expense		-			(157,000	)
Depreciation and amortization expense		(7,000	)		(666,000	)
Loss on extinguishment of debt		-			(209,000	)
Gain on sale of real estate		2,125,000			2,409,000
Income from discontinued operations	$	2,146,000		$	1,619,000

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

Schedule of Unvested Restricted Stock Activity

Equity (Tables)

3 Months Ended

Mar. 31, 2014

The following is a table summarizing our unvested restricted stock activity for the three months ended March 31, 2014:

	Number of Unvested Shares of Restricted Common Stock
Balance at January 1, 2014		140,468
Granted		963
Forfeited		(9,645	)
Vested		-
Balance at March 31, 2014		131,786

Vesting Schedule of the Unvested Shares of Restricted Stock Outstanding

The following is a vesting schedule of the total unvested shares of restricted stock outstanding as of March 31, 2014:

	Shares
April 1, 2014 - December 31, 2014		34,377
2015		33,414
2016		33,411
2017		30,584
		131,786

Summary of the Components of Changes in Accumulated Other Comprehensive Income

The following table summarizes the changes in Accumulated Other Comprehensive Income for the three months ended March 31, 2014, which consists solely of adjustments related to our cash flow hedges:

	Accumulated Other Comprehensive Income
Balance at January 1, 2014	$	-
Other comprehensive income before reclassifications		300,000
Amounts reclassified from accumulated other comprehensive income to interest expense		-
Net current period other comprehensive income		300,000
Less other comprehensive income attributable to noncontrolling interests		(31,000	)
Other comprehensive income attributable to common stockholders		269,000
Balance at March 31, 2014	$	269,000

Computation of Basic and Diluted Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2014

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended March 31, 2014
Numerator:
Net loss from continuing operations	$	(717,000	)
Net loss from continuing operations attributable to noncontrolling interests		75,000
Numerator for basic and diluted loss from continuing operations available to common stockholders		(642,000	)
Net income from discontinued operations		2,146,000
Net income from discontinued operations attributable to noncontrolling interests		(227,000	)
Numerator for basic and diluted net income available to common stockholders	$	1,277,000
Denominator:
Weighted average shares of common stock outstanding - basic and diluted		25,419,418
Earnings per share - Basic and Diluted:
Net loss from continuing operations available to common stockholders	$	(0.03	)
Net income from discontinued operations available to common stockholders	$	0.08
Net income available to common stockholders	$	0.05

Organization - Additional Information (Detail) ft² in Millions	Mar. 31, 2014 ft² Property
Real Estate Properties [Line Items]
Number of real estate properties \| Property	68
Area of real estate property \| ft²	6.5
Area of real estate property owned in joint venture \| ft²	1.2
Number of real estate properties additionally managed \| Property	20
Area of real estate property additionally managed \| ft²	1.2
Interest percentage owned in joint venture of real estate properties	15.00%
Number of real estate properties owned in joint venture \| Property	3
Maximum
Real Estate Properties [Line Items]
Ownership Interest	100.00%

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Summary Of Significant Accounting Policies [Line Items]
Allocation period	1 year
Real estate investment cumulative impairment	$ 18.6	$ 18.6
REIT annual taxable income distribution requirement percentage	90.00%
Reserve for allowance for doubtful accounts	$ 0.8	$ 0.5
Site Improvements
Summary Of Significant Accounting Policies [Line Items]
Estimated remaining life	20 years
Minimum \| Building
Summary Of Significant Accounting Policies [Line Items]
Estimated remaining life	10 years
Maximum \| Building
Summary Of Significant Accounting Policies [Line Items]
Estimated remaining life	30 years

Investments in Real Estate - Acquisitions - Additional Information (Detail)

1 Months Ended

Mar. 20, 2014

USD ($)

ft²

Buildings

Feb. 25, 2014

USD ($)

ft²

Buildings

Feb. 12, 2014

USD ($)

ft²

Buildings

Jan. 22, 2014

USD ($)

ft²

Buildings

Jan. 15, 2014

USD ($)

ft²

Buildings

Mar. 31, 2014

USD ($)

Disclosure Investment In Real Estate Acquisitions Additional Information Detail [Line Items]

Disclosure Investment In Real Estate Acquisitions Additional Information Detail [Line Items]

$ 32,966,000

Rosecrans Avenue

$ 4,969,000

5,011,000

^[1]

72,000

Disclosure Investment In Real Estate Acquisitions Additional Information Detail [Line Items]

3.25

Oxnard Street

$ 8,875,000

8,875,000

78,000

Disclosure Investment In Real Estate Acquisitions Additional Information Detail [Line Items]

3.25

Milliken Avenue

$ 8,550,000

8,550,000

113,612

Disclosure Investment In Real Estate Acquisitions Additional Information Detail [Line Items]

5.74

West 228th Street

$ 6,600,000

6,600,000

88,330

Disclosure Investment In Real Estate Acquisitions Additional Information Detail [Line Items]

3.9

Frampton Avenue

$ 3,930,000

47,903

2.07

[1]	As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation of includes $42,000 of capitalized acquisition costs.

Investments in Real Estate - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($)

3 Months Ended

Mar. 31, 2014

Mar. 20, 2014

Feb. 25, 2014

Feb. 12, 2014

Jan. 22, 2014

Jan. 15, 2014

$ 14,854,000

16,787,000

Notes Payable, Accounts Payable, Accrued Expenses and Tenant Security Deposits

32,966,000

Other Assets

24,000

(651,000)

Leases, Acquired-in-Place

32,339,000

Net Above (Below) Market Lease Intangibles

^[1]

1,747,000

^[2]

$ (422,000)

Rosecrans Avenue

^[3]

Jan. 15, 2014

^[3]

$ 3,117,000

^[3]

1,894,000

Notes Payable, Accounts Payable, Accrued Expenses and Tenant Security Deposits

5,011,000

^[3]

$ 4,969,000

^[3]

(321,000)

^[3]

$ 4,690,000

Oxnard Street

Jan. 22, 2014

$ 4,373,000

3,873,000

Notes Payable, Accounts Payable, Accrued Expenses and Tenant Security Deposits

8,875,000

$ 8,875,000

(117,000)

Oxnard Street | Leases, Acquired-in-Place

8,758,000

Oxnard Street | Net Above (Below) Market Lease Intangibles

^[1]

650,000

^[2]

$ (21,000)

Milliken Avenue

Feb. 12, 2014

$ 2,440,000

5,588,000

Notes Payable, Accounts Payable, Accrued Expenses and Tenant Security Deposits

8,550,000

$ 8,550,000

Other Assets

2,000

(116,000)

Milliken Avenue | Leases, Acquired-in-Place

8,436,000

Milliken Avenue | Net Above (Below) Market Lease Intangibles

^[1]

616,000

^[2]

$ (94,000)

West 228th Street

Feb. 25, 2014

$ 2,609,000

3,879,000

Notes Payable, Accounts Payable, Accrued Expenses and Tenant Security Deposits

6,600,000

$ 6,600,000

(33,000)

West 228th Street | Leases, Acquired-in-Place

6,567,000

West 228th Street | Net Above (Below) Market Lease Intangibles

^[1]

419,000

^[2]

$ (307,000)

Frampton Avenue

Mar. 20, 2014

$ 2,315,000

1,553,000

Notes Payable, Accounts Payable, Accrued Expenses and Tenant Security Deposits

3,930,000

$ 3,930,000

Other Assets

22,000

(64,000)

Frampton Avenue | Leases, Acquired-in-Place

3,888,000

Acquired Finite Lived Intangible Assets [Line Items]

^[1]

$ 62,000

[1]	The weighted average amortization period of acquired in-place lease intangibles for our 2014 acquisitions was 1.9 years as of March 31, 2014.
[2]	The weighted average amortization period of net below market leases for our 2014 acquisitions was 2.6 years as of March 31, 2014.
[3]	As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation of includes $42,000 of capitalized acquisition costs.

Investments in Real Estate - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2014 USD ($)
Rosecrans Avenue
Business Acquisition [Line Items]
Asset acquisition capitalized acquisition costs	$ 42,000
Leases, Acquired-in-Place
Business Acquisition [Line Items]
Amortization period of acquired intangible assets	1 year 10 months 24 days
Net Above (Below) Market Lease Intangibles
Business Acquisition [Line Items]
Amortization period of acquired intangible assets	2 years 7 months 6 days

Summary of Combined Results from Operations of Acquisitions (Detail)	3 Months Ended
	Mar. 31, 2014 USD ($)
Business Acquisition [Line Items]
Revenues	$ 371,000
Net loss	$ (76,000)

Investments in Real Estate - Proforma Financial Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items]
Revenues	$ 13,992,000	$ 9,659,000
Net operating income	9,251,000	6,767,000
Net income	$ 1,707,000	$ 1,593,000

Intangible Assets - Summary of Acquired Lease Intangible Assets and Liabilities (Detail) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Acquired Finite Lived Intangible Assets [Line Items]
Acquired lease intangible assets, net	$ 13,174,000	$ 13,622,000
Acquired lease intangible liabilities, net	(1,553,000)	(1,160,000)
In-place Lease Intangibles
Acquired Finite Lived Intangible Assets [Line Items]
Acquired lease intangible assets, gross	17,886,000	16,321,000
Accumulated amortization	(6,200,000)	(4,296,000)
Acquired lease intangible assets, net	11,686,000	12,025,000
Above Market Tenant Leases
Acquired Finite Lived Intangible Assets [Line Items]
Acquired lease intangible assets, gross	1,937,000	1,881,000
Accumulated amortization	(449,000)	(284,000)
Acquired lease intangible assets, net	1,488,000	1,597,000
Below Market Tenant Leases
Acquired Finite Lived Intangible Assets [Line Items]
Acquired lease intangible liabilities, gross	(1,547,000)	(1,081,000)
Accumulated accretion	263,000	198,000
Acquired lease intangible liabilities, net	(1,284,000)	(883,000)
Above Market Ground Lease
Acquired Finite Lived Intangible Assets [Line Items]
Acquired lease intangible liabilities, gross	(290,000)	(290,000)
Accumulated accretion	21,000	13,000
Acquired lease intangible liabilities, net	$ (269,000)	$ (277,000)

Intangible Assets - Summary of Amortization or Accretion Recorded During the Period Related to Acquired Lease Intangibles (Detail) - USD ($)

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Amortization of above (below) market lease intangibles, net

$ 81,000

Leases, Acquired-in-Place

Acquired Finite Lived Intangible Assets [Line Items]

Amortization of in-place lease intangibles

^[1]

2,086,000

$ 400,000

Above Market Tenant Leases

Acquired Finite Lived Intangible Assets [Line Items]

Amortization of above (below) market lease intangibles, net

^[2]

165,000

51,000

Below Market Tenant Leases

Acquired Finite Lived Intangible Assets [Line Items]

Amortization of above (below) market lease intangibles, net

^[3]

(77,000)

$ (8,000)

Above Market Ground Lease

Acquired Finite Lived Intangible Assets [Line Items]

Accretion Of Above Market Ground Lease Intangible

^[4]

$ (8,000)

[1]	The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated and combined statements of operations for the periods presented.
[2]	The amortization of above-market tenant leases is recorded as a decrease to rental revenues in the consolidated and combined statements of operations for the periods presented.
[3]	The accretion of below-market tenant leases is recorded as an increase to rental revenues in the consolidated and combined statements of operations for the periods presented.
[4]	The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated and combined statements of operations for the periods presented.

Notes Receivable - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Notes Receivables
Proceeds from collection of mortgage note	$ 5,400,000
Interest received from mortgage note	6,310
Amount used to repay secured loan	2,500,000
Gain from early repayment of note receivable	$ 0
Predecessor
Notes Receivables
Gain from early repayment of note receivable		$ 1,365,000

Notes Receivable - Summary of Notes Receivable (Detail) - USD ($)

Mar. 31, 2014

Dec. 31, 2013

Notes Receivables

Face Amount

$ 14,093,000

$ 14,161,000

Unrecognized Accretable Yield

(958,000)

(1,022,000)

Note Receivable

^[1]

$ 13,135,000

$ 13,139,000

[1]	This is a mortgage loan secured by 32401-32803 Calle Perfecto.

Notes Payable - Summary of Notes Payable (Detail) - USD ($)

3 Months Ended

Mar. 31, 2014

Dec. 31, 2013

Fixed Rate Debt | RIF V - Jersey, LLC

$ 212,918,000

$ 192,491,000

^[1]

$ 5,145,000

5,189,000

Fixed Rate Debt | The Park

Jan. 01, 2015

Fixed interest rate

^[2]

5.45%

^[3]

$ 3,148,000

3,177,000

Variable Rate Debt | Term Loan

Jan. 03, 2031

Fixed interest rate

^[4]

5.13%

^[5]

$ 60,000,000

60,000,000

Variable Rate Debt | RIF V - Glendale Commerce Center, LLC

^[5]

Aug. 01, 2019

Variable interest rate

^[5]

LIBOR + 1.90%

$ 42,750,000

42,750,000

Revolving Credit Facility | Unsecured Credit Facility

^[6]

May 01, 2016

Variable interest rate

LIBOR + 2.00%

$ 101,875,000

$ 81,375,000

^[6]

Jul. 24, 2016

Variable interest rate

^[7]

LIBOR + 1.50%

[1]	Includes unamortized debt premium of $38,000 at March 31, 2014 and $50,000 at December 31, 2013.
[2]	Monthly payments of interest and principal based on 30-year amortization table.
[3]	Includes unamortized debt discount of $117,000 at March 31, 2014 and $118,000 at December 31, 2013.
[4]	Monthly payments of interest and principal based on 20-year amortization table.
[5]	Loan is secured by six properties and has one additional one year extension available.
[6]	Two additional one year extensions available at the borrower’s option.
[7]	The facility additionally bears interest at 0.30% or 0.20% of the daily unused commitment, if the balance is under $100 million or over $100 million, respectively. The daily unused commitment is calculated as $200 million less the daily outstanding balance.

Notes Payable - Summary of Notes Payable (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2014 USD ($) Property Period	Dec. 31, 2013 USD ($)
Debt Instrument [Line Items]
Unamortized debt discount	$ 79,000
Revolving Credit Facility
Debt Instrument [Line Items]
Unsecured revolving credit facility	200,000,000
Revolving Credit Facility \| Unsecured Credit Facility
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding	$ 101,900,000
Variable Rate Debt \| Term Loan
Debt Instrument [Line Items]
Number of extensions \| Period	1
Extension period	1 year
Number of properties acquired \| Property	6
RIF V - Jersey, LLC \| Fixed Rate Debt
Debt Instrument [Line Items]
Unamortized debt premium	$ 38,000	$ 50,000
Amortization period	30 years
The Park \| Fixed Rate Debt
Debt Instrument [Line Items]
Amortization period	20 years
Unamortized debt discount	$ 117,000	$ 118,000
RIF V - Glendale Commerce Center, LLC \| Variable Rate Debt
Debt Instrument [Line Items]
Number of extensions \| Period	2
Extension period	1 year
Maximum
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding	$ 100,000,000
Maximum \| Revolving Credit Facility \| Unsecured Credit Facility
Debt Instrument [Line Items]
Additional interest	0.30%
Minimum
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding	$ 100,000,000
Minimum \| Revolving Credit Facility \| Unsecured Credit Facility
Debt Instrument [Line Items]
Additional interest	0.20%

Notes Payable - Summary of Aggregate Future Minimum Payments of Debt (Detail) - USD ($)

Mar. 31, 2014

Dec. 31, 2013

With Out Extension Option

Total

$ 212,918,000

$ 192,491,000

April 1, 2014 - December 31, 2014

186,000

5,141,000

144,760,000

142,000

150,000

62,618,000

^[1]

$ 212,997,000

[1]	Includes gross principal balance of outstanding debt before impact of the $79,000 net debt discount.

Notes Payable - Summary of Aggregate Future Minimum Payments of Debt (Parenthetical) (Detail)	Mar. 31, 2014 USD ($)
Debt Instrument [Line Items]
Unamortized debt discount	$ 79,000

Notes Payable - Additional Information (Detail) - Revolving Credit Facility - Unsecured Credit Facility $ in Millions	3 Months Ended
	Mar. 31, 2014 USD ($)
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding	$ 101.9
Line of Credit Facility, Additional Availability	$ 85.2
Maximum distribution	95.00%

Operating Leases - Future Minimum Base Rate for Predecessor Under Operating Leases (Detail)	Mar. 31, 2014 USD ($)
Operating Leases, Future Minimum Payments Receivable [Abstract]
2014	$ 43,724,000
2015	33,280,000
2016	23,353,000
2017	15,243,000
2018	9,490,000
Thereafter	17,581,000
Total	$ 142,671,000

Interest Rate Contracts - Summary of Interest Rate Swap Agreements (Detail) - USD ($)

3 Months Ended

Mar. 31, 2014

Dec. 31, 2013

^[1]

$ 300,000

60,000,000

Predecessor

^[1]

Interest Rate Swap 1

Interest rate swap agreement, effective date

Jan. 15, 2015

Interest rate swap agreement, termination date

Feb. 15, 2019

Interest Strike Rate

1.826%

^[1]

$ 146,000

Interest Rate Swap 1 | Predecessor

30,000,000

^[1]

Interest Rate Swap 2

Interest rate swap agreement, effective date

Jul. 15, 2015

Interest rate swap agreement, termination date

Feb. 15, 2019

Interest Strike Rate

2.01%

^[1]

$ 154,000

Interest Rate Swap 2 | Predecessor

30,000,000

^[1]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

[1]	We record all derivative instruments on a gross basis in the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities. All of our derivatives were in an asset position as end of the period noted above.

Interest Rate Contracts - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2014 USD ($) Swap
Derivative [Line Items]
Number of derivative instruments \| Swap	2
Interest rate swap agreement, notional amount	$ 60,000,000
Additional amount reclassified from AOCI as an increase to interest expense	98,000
Interest Rate Swap 1
Derivative [Line Items]
Interest rate swap agreement, notional amount	$ 30,000,000
Interest rate swap agreement, effective date	Jan. 15, 2015
Interest rate swap agreement, termination date	Feb. 15, 2019
Interest rate swap, fixed interest rate	3.726%
Interest Rate Swap 2
Derivative [Line Items]
Interest rate swap agreement, notional amount	$ 30,000,000
Interest rate swap agreement, effective date	Jul. 15, 2015
Interest rate swap agreement, termination date	Feb. 15, 2019
Interest rate swap, fixed interest rate	3.91%

Interest Rate Contracts - Impact of our Derivative Instruments on our Consolidated and Combined Statement of Operations - (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Derivative [Line Items]
Amount of gain recognized in AOCI on derivatives (effective portion)	$ 300,000
Amount of gain (loss) reclassified from AOCI into earnings under "Interest expense" (effective portion)
Amount of gain (loss) recognized in earnings under "Interest expense" (ineffective portion and amount excluded from effectiveness testing)
Interest Rate Swaps Not in Cash Flow Hedging Relationships:
Amount of realized and unrealized gain recognized in earnings under "Gain on mark-to-market of interest rate swaps"	$ 0
Predecessor
Interest Rate Swaps Not in Cash Flow Hedging Relationships:
Amount of realized and unrealized gain recognized in earnings under "Gain on mark-to-market of interest rate swaps"		$ 49,000

Fair Value Measurements - Assets Measures at Fair Value on a Recurring Basis by Level within Fair Value Hierarchy (Detail)

Mar. 31, 2014

USD ($)

Interest rate swap, fair value

$ 300,000

^[1]

Significant Other Observable Inputs (Level 2)

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Interest rate swap, fair value

$ 300,000

[1]	We record all derivative instruments on a gross basis in the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities. All of our derivatives were in an asset position as end of the period noted above.

Fair Value Measurements - Carrying Value and Estimated Fair Value of Notes Payable (Detail) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Notes payable, fair value	$ 212,976,000	$ 192,492,000
Notes payable	212,918,000	192,491,000
Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Notes payable, fair value
Significant Other Observable Inputs (Level 2)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Notes payable, fair value	212,976,000	192,492,000
Significant Unobservable Inputs (Level 3)
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Notes payable, fair value

Related Party Transactions - Additional Information (Detail) - Chief Executive Officer - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Related Party Transaction [Line Items]
Revenue from management, leasing and development services	$ 53,000
Predecessor
Related Party Transaction [Line Items]
Revenue from management, leasing and development services		$ 29,000

Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2014 USD ($)
Commitments And Contingencies [Line Items]
Accommodation	$ 32.1
Ground lease, expiration date	Jun. 01, 2062
Commitments for tenant improvement and construction work	$ 1.0

Commitment and Contingencies- Future Minimum Commitment (Detail) $ in Thousands	Mar. 31, 2014 USD ($)
Office Lease
Operating Leased Assets [Line Items]
April 1, 2014 - December 31, 2014	$ 151,000
2015	266,000
2016	274,000
2017	282,000
2018	291,000
Thereafter	173,000
Total	1,437,000
Ground Lease
Operating Leased Assets [Line Items]
April 1, 2014 - December 31, 2014	108,000
2015	144,000
2016	144,000
2017	144,000
2018	144,000
Thereafter	6,252,000
Total	$ 6,936,000

Investment in Unconsolidated Real Estate - Additional Information (Detail)	1 Months Ended	3 Months Ended
	Jul. 24, 2013 shares	Mar. 31, 2014 USD ($) Property	Mar. 31, 2013 USD ($)	Jul. 23, 2013
Equity Method Investments And Joint Ventures [Abstract]
Number of real estate properties \| Property		68
Management, leasing and development fees payable		$ 94,000
Management, leasing and development fees		$ 139,000
Predecessor
Equity Method Investments And Joint Ventures [Abstract]
Management, leasing and development fees payable			$ 100,000
Management, leasing and development fees			$ 100,000
Mission Oaks Boulevard
Equity Method Investments And Joint Ventures [Abstract]
Ownership Interest		15.00%
Number of real estate properties \| Property		3
Carrying value of JV investment gross basis adjustment		$ 2,800,000
Roselle Street
Equity Method Investments And Joint Ventures [Abstract]
Ownership Interest				70.00%
Acquired tenancy-in-common interest not previously owned	30.00%
Operating Partnership
Equity Method Investments And Joint Ventures [Abstract]
Issuance of Operating Partnership Units \| shares	2,828

Investment in Unconsolidated Real Estate - Combined Financial Information of Predecessor's Equity Method Investment Properties (Detail) - Predecessor - USD ($)

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

^[2]

Dec. 31, 2013

Schedule Of Equity Method Investments [Line Items]

Revenues

$ 1,812,000

^[1]

$ 2,146,000

Expenses

(1,605,000)

^[1]

(2,220,000)

Net income (loss)

207,000

^[1]

$ (74,000)

Assets

62,092,000

$ 61,422,000

Liabilities

(42,833,000)

(42,475,000)

Partners'/members' equity

$ 19,259,000

$ 18,947,000

[1]	Includes summarized financial information for our equity method investment property located at 3001-3233 Mission Oaks Boulevard.
[2]	Includes summarized financial information for properties located at 3001-3233 Mission Oaks Boulevard and 10439-10477 Roselle St.

Discontinued Operations - Summary of the Properties Sold (Detail)

3 Months Ended

Mar. 31, 2014

USD ($)

ft²

Mar. 31, 2013

USD ($)

ft²

$ 2,125,000

Predecessor

2014 Dispositions | Predecessor | Park Center Drive

$ 2,409,000

Rentable Square Feet | ft²

Location

Vista, CA

Date of Disposition

Jan. 29, 2014

124,997

Sales Price

$ 10,103,000

2014 Dispositions | Predecessor | N. Madera Road

^[1]

$ 2,262,000

Rentable Square Feet | ft²

Location

Simi Valley, CA

Date of Disposition

Mar. 13, 2014

63,305

Sales Price

$ 4,350,000

2013 Dispositions | Predecessor | Worth Street

^[1]

$ (137,000)

Rentable Square Feet | ft²

Location

Los Angeles, CA

Date of Disposition

Jan. 31, 2013

79,370

Sales Price

$ 4,100,000

Debt Satisfied

^[2]

2,500,000

^[1]

$ 2,409,000

[1]	Gain on sale of real estate is recorded as part of discontinued operations during the period of disposition.
[2]	Amount represents the principal paid back to the lender to release the property from a larger pool of properties serving as collateral for the respective portfolio loan.

Discontinued Operations - Major Class of Assets and Liabilities Associated With Real Estate Held for Sale (Detail)	Dec. 31, 2013 USD ($)
Disclosure Investment In Real Estate Major Classes Of Assets And Liabilities Of Real Estate Held For Sale Detail [Line Items]
Assets associated with real estate held for sale	$ 11,898,000
Liabilities associated with real estate held for sale	260,000
Predecessor
Disclosure Investment In Real Estate Major Classes Of Assets And Liabilities Of Real Estate Held For Sale Detail [Line Items]
Investment in real estate, net	10,963,000
Other	935,000
Assets associated with real estate held for sale	11,898,000
Mortgage loan
Accounts payable and other liabilities	260,000
Liabilities associated with real estate held for sale	$ 260,000

Discontinued Operations - Results of Operations (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Disclosure Investment In Real Estate Discontinued Operations Detail [Line Items]
Revenues	$ 85,000
Operating expenses	(57,000)
Depreciation and amortization expense	(7,000)
Gain on sale of real estate	2,125,000
Income from discontinued operations	$ 2,146,000
Predecessor
Disclosure Investment In Real Estate Discontinued Operations Detail [Line Items]
Revenues		$ 411,000
Operating expenses		(169,000)
Interest expense		(157,000)
Depreciation and amortization expense		(666,000)
Loss on extinguishment of debt		(209,000)
Gain on sale of real estate		2,409,000
Income from discontinued operations		$ 1,619,000

Equity - Additional Information (Detail)	3 Months Ended
Equity - Additional Information (Detail)	Mar. 31, 2014 USD ($) shares
2013 Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock and/or LTIP units available for issuance \| shares	2,272,689
Common stock, shares reserved for future issuance \| shares	2,140,903
Recognized equity compensation expense related to restricted common stock	$ 172,000
Capitalized compensation expense related to restricted common stock	$ 29,000
Forfeiture rate for non-vested restricted stock	7.30%
Unrecognized compensation expense related to non-vested shares	$ 1,100,000
Employee service share based compensation nonvested awards total compensation cost not yet capitalized	$ 100,000
Weighted average remaining vesting period	24 months
Operating Partnership \| Noncontrolling Interest \| Equity
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of operating partnership units \| shares	3,009,259
Noncontrolling interest percentage ownership in Operating Partnership	10.60%

Equity - Schedule of Unvested Restricted Stock Activity (Detail)	3 Months Ended
	Mar. 31, 2014 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Balance at January 1, 2014	140,468
Granted	963
Forfeited	(9,645)
Vested
Balance at March 31, 2014	131,786

Equity - Vesting Schedule of the Unvested Shares of Restricted Stock Outstanding (Detail) - shares	Mar. 31, 2014	Dec. 31, 2013
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	131,786	140,468
April 1, 2014 - December 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	34,377
2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	33,414
2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	33,411
2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested shares	30,584

Equity - Summary of the Components of Changes in Accumulated Other Comprehensive Income (Detail)	3 Months Ended
	Mar. 31, 2014 USD ($)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance at January 1, 2014
Other comprehensive income before reclassifications	300,000
Amounts reclassified from accumulated other comprehensive income to interest expense
Net current period other comprehensive income	300,000
Less other comprehensive income attributable to noncontrolling interests	(31,000)
Other comprehensive income attributable to common stockholders	269,000
Balance at March 31, 2014	$ 269,000

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.