Real Estate Activities

9 Months Ended

Sep. 30, 2012

Real Estate Activities

Real Estate Activities

5.Real Estate Activities

Dispositions

On January 5, 2012, pursuant to a foreclosure, we transferred ownership of our Minnesota Center property to the lender associated with this property resulting in a gain on troubled debt restructuring of approximately $3.4 million and a gain on transfer of discontinued operations of approximately $2.0 million.  Prior to the transaction, the loan had an outstanding principal balance of $27.3 million and a scheduled maturity date of November 2010.  Minnesota Center is located in Bloomington, Minnesota and consists of approximately 276,000 square feet.

On May 15, 2012, we sold our Southwest Center property, a building located in Tigard, Oregon, consisting of 89,000 square feet to an unaffiliated third party for a contract sales price of $10.6 million.  The sale generated proceeds of $10.3 million which were used to pay down debt associated with this property.

On June 28, 2012, we sold our 4440 El Camino Real property, a building located in Los Altos, California, consisting of 97,000 square feet to an unaffiliated third party for a contract sales price of $48.0 million.  The sale generated proceeds of $47.0 million which were used to pay down our credit facility.

On September 20, 2012, we sold our One City Centre property, a building located in Houston, Texas, consisting of 609,000 square feet to an unaffiliated third party for a contract sales price of $131.0 million.  The sale generated proceeds of $53.8 million, of which $50.7 million were used to pay down our credit facility.