Properties Held for Sale and Property Dispositions

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Properties Held for Sale and Property Dispositions

Properties Held for Sale and Property Dispositions

Properties Held for Sale

During the third quarter of 2015, we entered into separate agreements to sell 570-574 Fifth Avenue for $125.4 million and 140-150 Grand Street in White Plains, New York for $32.0 million. During the quarter, we recorded a $19.2 million charge in connection with the expected sale of 140-150 Grand Street. These charges are included in depreciable real estate reserves in the consolidated statements of operations. See Note 2, "Significant Account Policies - Investments in Commercial Real Estate Properties" for further discussion.

Property Disposition

The following table summarizes the properties sold during the nine months ended September 30, 2015:

Property	Disposition Date	Property Type	Approximate Usable Square Feet	Sales Price(1) (in millions)		Gain on Sale(2) (in millions)
180 Maiden Lane	January 2015	Office	1,090,000	$	470.0	$	17.0
131-137 Spring Street(3)	August 2015	Office	68,342	277.8		101.1
120 West 45th Street	September 2015	Office	440,000	365.0		58.6

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(1) Sales price represents the actual sales price for a property or the gross asset valuation for interests in a property.

(2) The gain on sale for 180 Maiden Lane, 131-137 Spring Street, and 120 West 45th Street are net of employee compensation awards accrued in connection with the realization of these investment gains as a bonus to certain employees that were instrumental in realizing the gain on sale. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.

(3) We sold an 80% interest in 131-137 Spring Street and have subsequently accounted for our interest in the properties as an investment in unconsolidated joint ventures. See Note 6, "Investments in Unconsolidated Joint Ventures."

Discontinued Operations

The Company adopted ASU 2014-08 effective January 1, 2015. As a result, the Company classified 570-574 Fifth Avenue and 140-150 Grand Street in White Plains, New York as held for sale as of September 30, 2015, and 131-137 Spring Street and 120 West 45th Street as of June 30, 2015 and included the results of operations in continuing operations for all periods presented. Discontinued operations included the results of operations of real estate assets sold or held for sale prior to January 1, 2015. This included 180 Maiden Lane, which was held for sale at December 31, 2014 and sold in January 2015, and 2 Herald Square, 985-987 Third Avenue and 673 First Avenue, which were sold during 2014.

The following table summarizes net income from discontinued operations for the three and nine months ended September 30, 2015 and 2014, respectively (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015		2014			2015			2014
Revenues
Rental revenue	$	—	$	9,504		$	236		$	44,676
Escalation and reimbursement revenues	—		(194		)	(127		)	4,413
Other income	—		—			—			21
Total revenues	—		9,310			109			49,110
Operating expenses	—		773			(631		)	7,101
Real estate taxes	—		787			250			6,618
Ground rent	—		—			—			3,001
Transaction related costs	—		115			(49		)	155
Interest expense, net of interest income	—		2,874			109			10,983
Amortization of deferred financing costs	—		48			3			369
Depreciation and amortization	—		678			—			5,434
Total expenses	—		5,275			(318		)	33,661
Net income from discontinued operations	$	—	$	4,035		$	427		$	15,449