| Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities |
Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities Deferred expenses and other assets, net, consist of the following items ($ in thousands): | | | | | | | | | | As of | | December 31, 2019 | | December 31, 2018 | Operating lease right-of-use asset(1) | $ | 29,659 |
| | $ | — |
| Interest rate hedge assets | 7 |
| | 2,991 |
| Other assets | 1,432 |
| | 2,416 |
| Deferred finance costs, net(2) | 4,668 |
| | 2,295 |
| Purchase deposits | 1,575 |
| | 1,800 |
| Leasing costs, net | 473 |
| | 481 |
| Deferred expenses and other assets, net | $ | 37,814 |
| | $ | 9,983 |
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_______________________________________________________________________________ | | (1) | Operating lease right-of-use asset relates to a property that is majority-owned by a third party and is ground leased to the Company. The Company is obligated to pay the owner of the property $0.4 million, subject to adjustment for changes in the CPI, per year through 2044; however, the Company's ground lease tenant at the property pays this expense directly under the terms of a master lease. Operating lease right-of-use asset is amortized on a straight-line basis over the term of the lease and is recorded in "Real estate expense" in the Company's consolidated statements of operations (refer to Note 3). For the year ended December 31, 2019, the Company recognized $0.4 million in "Real estate expense" and $0.4 million in "Other income" from its operating lease right-of-use asset. The related operating lease liability (see table below) equals the present value of the minimum rental payments due under the lease discounted at the Company's incremental secured borrowing rate for a similar asset estimated to be 5.5%. Effective with the adoption of ASU 2016-02 on January 1, 2019, the Company reclassified $24.8 million relating to a below-market lease asset acquired as part of a business combination (refer to Note 4) from "Real estate-related intangible assets, net" to "Deferred expenses and other assets, net" on the Company's consolidated balance sheets. |
| | (2) | Accumulated amortization of deferred finance costs was $3.4 million and $1.7 million as of December 31, 2019 and 2018, respectively. |
Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands): | | | | | | | | | | As of | | December 31, 2019 | | December 31, 2018 | Interest rate hedge liabilities | $ | 13,672 |
| | $ | 10,092 |
| Accrued expenses(1) | 2,746 |
| | 3,596 |
| Dividends declared and payable | 7,472 |
| | 2,741 |
| Operating lease liability | 5,852 |
| | — |
| Other liabilities(2) | 4,975 |
| | 1,788 |
| Interest payable | 5,801 |
| | 1,663 |
| Management fee payable | 2,490 |
| | 920 |
| Accounts payable, accrued expenses and other liabilities | $ | 43,008 |
| | $ | 20,800 |
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_______________________________________________________________________________ | | (1) | As of December 31, 2019 and 2018, accrued expenses primarily includes accrued legal expenses, accrued audit expenses and deferred finance costs. |
(2) As of December 31, 2019 and 2018, other liabilities includes $0.6 million and $0.4 million, respectively, due to the Manager for allocated payroll costs and costs it paid on the Company's behalf.
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