12. Subsequent Events

On January 13, 2015, our Board of Directors declared the following monthly distributions:

On February 9, 2015, we modified the leases with the tenant occupying two of our properties located in Raleigh, North Carolina, The leases covering these properties were extended for an additional five years through July 2020. Both leases were originally set to expire in July 2015. The tenant was previously fully occupying both buildings, totaling 174,426 square feet, but had reduced their space requirement in one of their buildings by 94,200 square feet. Both leases contain prescribed rent escalations over the life of the lease, with annualized straight line rents of approximately $0.9 million, as compared to annualized straight line rents of $1.3 million under the previous terms of the lease. In connection with the extension of the lease and modification of certain terms of the lease, we anticipate paying $0.2 million in leasing commissions, and committed to $0.1 million in tenant improvements.