Properties Held for Sale and Property Dispositions

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Properties Held for Sale and Property Dispositions

Properties Held for Sale and Property Dispositions

Properties Held for Sale

As of December 31, 2016, no properties in our portfolio were classified as held for sale.

Property Dispositions

The following table summarizes the properties sold during the years ended December 31, 2016, 2015, and 2014:

Property	Disposition Date	Property Type	(unaudited)Approximate Usable Square Feet	Sales Price(1) (in millions)		Gain (Loss) on Sale(2) (in millions)
400 East 57th Street	October 2016	Residential	290,482	$	83.3	$	23.9
11 Madison Avenue (3)	August 2016	Office	2,314,000	2,605.0		3.6
500 West Putnam	July 2016	Office	121,500	41.0		(10.4		)
388 Greenwich	June 2016	Office	2,635,000	2,002.3		206.5
7 International Drive	May 2016	Land	31 Acres	20.0		(6.9		)
248-252 Bedford Avenue	February 2016	Residential	66,611	55.0		15.3
885 Third Avenue (4)	February 2016	Land	607,000	453.0		—
140-150 Grand Street (5)	December 2015	Office/Development	215,100	32.0		(20.1		)
570 & 574 Fifth Avenue	December 2015	Development	24,327	125.4		24.6
120 West 45th Street	September 2015	Office	440,000	365.0		58.6
131-137 Spring Street (6)	August 2015	Office	68,342	277.8		101.1
180 Maiden Lane	January 2015	Office	1,090,000	470.0		17.0
2 Herald Square	November 2014	Land	354,400	365.0		18.8
985-987 Third Avenue	July 2014	Development	13,678	68.7		29.8
673 First Avenue	May 2014	Office	422,000	145.0		117.6

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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 400 East 57th Street, 11 Madison Avenue, 388 Greenwich, 248-252 Bedford Avenue, 570 & 574 Fifth Avenue, 120 West 45th Street, 131-137 Spring Street, 180 Maiden Lane, 2 Herald Square, 985-987 Third Avenue, and 673 First Avenue are net of $1.0 million, $0.6 million, $1.6 million, $1.3 million, $4.0 million, $2.0 million, $4.1 million, $0.8 million, $2.5 million, $1.3 million, and $3.4 million in 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) In August 2016, we sold a 40% interest in 11 Madison Avenue. The sale did not meet the criteria for sale accounting and, as a result, the property was accounted for under the profit sharing method. In November 2016, the Company obtained consent to the modifications to the mortgage on the property, which resulted in the Company achieving sale accounting on the transaction. See Note 6, "Investments in Unconsolidated Joint Ventures."

(4) In February 2016, we closed on the sale of 885 Third Avenue. The sale did not meet the criteria for sale accounting and, therefore, remains consolidated. We expect to deconsolidate the property in or before July 2017. An estimated loss relating to the sale of $6.6 million was recorded in December 2015.

(5) Gain/(loss) on sale includes a $19.2 million charge that was recorded during the third quarter of 2015. This charge is included in depreciable real estate reserves in the consolidated statement of operations.

(6) 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 which raised the threshold for disposals to qualify as discontinued operations to include only dispositions that represent a strategic shift in an entity’s operations. The guidance was applied prospectively for new disposals. As a result, the Company classified 242-252 Bedford Avenue in Brooklyn, New York as held for sale as of December 31, 2015, 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 years ended December 31, 2016, 2015, and 2014 respectively (in thousands):

	Year Ended December 31,
	2016		2015			2014
Revenues
Rental revenue	$	—	$	236		$	51,090
Escalation and reimbursement revenues	—		(127		)	4,646
Other income	—		—			23
Total revenues	—		109			55,759
Operating expenses	—		(631		)	7,772
Real estate taxes	—		250			7,156
Ground rent	—		—			3,001
Transaction related costs	—		(49		)	89
Interest expense, net of interest income	—		109			12,652
Amortization of deferred financing costs	—		3			433
Depreciation and amortization	—		—			5,581
Total expenses	—		(318		)	36,684
Net income from discontinued operations	$	—	$	427		$	19,075