Real Estate Activities

Sales of Real Estate Reported in Continuing Operations

The following table presents our sale of real estate for the three months ended March 31, 2015, that is reported in continuing operations (in thousands):

Date of Disposal

Rentable Square Footage

Contract Sales Price

Proceeds from Sale

Property Name

Location

One and Two Chestnut Place

3/6/2015

Worcester, MA

218

14,000

11,515

The following table presents net loss related to One and Two Chestnut Place for the three months ended March 31, 2015 and 2014 (in thousands):



	Three Months Ended
	March 31, 2015			March 31, 2014
Net loss from property sold in 2015	$	(87	)	$	(10	)

Sales of Real Estate Reported in Discontinued Operations

As discussed in Note 3, “New Accounting Pronouncements,” we adopted the provisions of the FASB guidance regarding the reporting of discontinued operations on January 1, 2015. The following presents our sales of real estate during the three months ended March 31, 2015, and the year ended December 31, 2014, that are reported as discontinued operations in the accompanying condensed consolidated statements of operations and comprehensive loss because they were sold or classified as held for sale on or before December 31, 2014 (in thousands):



	Date of Disposal		Rentable Square Footage	Contract Sales Price		Proceeds from Sale
Property Name	Date of Disposal	Location	Rentable Square Footage	Contract Sales Price		Proceeds from Sale
for the three months ended March 31, 2015
250 West Pratt (1)	3/19/2015	Baltimore, MD	368	$	63,500	$	55,276

for the year ended December 31, 2014
City Hall Plaza	9/16/2014	Manchester, NH	210	$	19,750	$	19,130
222 South Riverside Plaza (2)	12/19/2014	Chicago, IL	1,184			223,670
			1,394			$	242,800

_____________

(1) 250 West Pratt was held for sale at December 31, 2014, and the operations were classified as discontinued operations.

(2) The contract sales price for the 222 South Riverside Plaza property was approximately $247.0 million in cash, excluding transaction costs, credits, prorations, and adjustments; plus the conveyance of the 5950 Sherry Lane property in Dallas, Texas.

The table below summarizes the results of operations for each of the properties that have been classified as discontinued operations in the accompanying condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2015 and 2014 (in thousands). This includes properties sold or held for sale on or before December 31, 2014.



	Three Months Ended
	March 31, 2015		March 31, 2014
Rental revenue	$	6,463	$	15,376
Expenses
Property operating expenses	2,636		5,168
Interest expense	1,411		5,234
Real estate taxes	941		2,798
Asset impairment losses	—		8,225
Property management fees	168		478
Depreciation and amortization	—		6,461
Total expenses	5,156		28,364
Other expense	2		3
Income (loss) from discontinued operations	$	1,305	$	(12,991	)

Real Estate Held for Sale

As of December 31, 2014, we had three properties classified as held for sale and the operations of each of those properties were classified as discontinued operations at that time. As of March 31, 2015, one of those properties has been sold, two of those properties remain classified as held for sale, and two additional properties have been classified as held for sale as summarized in the table below:



		Classification of Operations
Property Name	Location	Classification of Operations
Fifth Third Center (1) (2)	Cleveland, OH	Discontinued
Fifth Third Center (1)	Columbus, OH	Discontinued
United Plaza (3)	Philadelphia, PA	Continuing
1650 Arch Street (3)	Philadelphia, PA	Continuing

__________________

(1) This property was classified as held for sale as of December 31, 2014.

(2) On April 7, 2015, our Fifth Third Center property located in Cleveland, Ohio, was sold to an unaffiliated third party for a contract sales price of approximately $53.8 million.

(3) On April 23, 2015, our United Plaza and 1650 Arch Street properties located in Philadelphia, Pennsylvania, were sold to an unaffiliated third party for a combined contract sales price of approximately $190.8 million.

The major classes of assets and obligations associated with real estate held for sale as of March 31, 2015, and December 31, 2014, are as follows (in thousands):



	March 31, 2015		December 31, 2014
Land	$	39,791	$	10,977
Buildings and improvements, net of approximately $65.3 million and $38.0 million in accumulated depreciation at March 31, 2015, and December 31, 2014, respectively	182,862		108,891
Accounts receivable and other assets, net of approximately $0.1 million and $0.1 million in allowance for doubtful accounts at March 31, 2015, and December 31, 2014, respectively	12,062		7,290
Lease intangibles, net of approximately $29.8 million and $15.5 million in accumulated amortization at March 31, 2015, and December 31, 2014, respectively	20,415		10,482
Assets associated with real estate held for sale	$	255,130	$	137,640

Notes payable	$	96,824	$	97,257
Acquired below-market leases, net of approximately $3.9 million and $3.2 million in accumulated amortization at March 31, 2015, and December 31, 2014, respectively	2,187		1,513
Other liabilities	5,446		9,573
Obligations associated with real estate held for sale	$	104,457	$	108,343