Property Dispositions and Assets Held for Sale

6 Months Ended

Jun. 30, 2012

Property Dispositions and Assets Held for Sale

Property Dispositions and Assets Held for Sale

4.  Property Dispositions and Assets Held for Sale

An entity that holds the property which served as collateral for our loan position, which is collateralized by a property in London, was determined to be a VIE under a reconsideration event and we have been determined to be the primary beneficiary. As a result of this determination, we consolidated the entity and reclassified the investment to assets held for sale on the consolidated balance sheet at June 30, 2012.

In February 2012, we sold our leased fee interest at 292 Madison Avenue for $85.0 million. We recognized a gain of $6.6 million on the sale.

In May 2011, we sold our property located at 28 West 44th Street for $161.0 million. The property is approximately 359,000 square feet. We recognized a gain of $46.1 million on the sale.

Discontinued operations included the results of operations of real estate assets sold prior to June 30, 2012. This included 28 West 44th Street, which was sold in May 2011, and 292 Madison Avenue, which was sold in February 2012.

The following table summarizes income from discontinued operations for the three and six months ended June 30, 2012 and 2011, respectively (amounts in thousands).

	Three MonthsEnded		Three Months Ended		Six MonthsEnded			Six Months Ended
	June 30,		June 30,		June 30,			June 30,
	2012		2011		2012			2011
Revenues
Rental revenue	$	—	$	3,194	$	516		$	8,735
Escalation and reimbursement revenues	—		219		—			873
Other income	—		56		—			60
Total revenues	—		3,469		516			9,668
Operating expense	—		498		(3		)	1,645
Real estate taxes	—		188		—			1,034
Interest expense, net of interest income	—		1,101		597			2,604
Amortization of deferred financing costs	—		6		—			160
Depreciation and amortization	—		—		—			676
Total expenses	—		1,793		594			6,119
Net income (loss) from discontinued operations	$	—	$	1,676	$	(78	)	$	3,549