Investments in Real Estate

A summary of our investments in properties as of December 31, 2017 and 2016 is as follows:



	As of December 31, 2017
	(in thousands)
Property Type	Land		Acquired Ground Lease		Buildings and Improvements (1)		Tenant Improvements		Accumulated Depreciation and Amortization			Net Investment in Properties
Internet Gateway Data Centers	$	109,844	$	—	$	1,940,495	$	99,174	$	(778,659	)	$	1,370,854
Data Centers	1,010,306		11,150		13,147,042		453,712		(2,430,984		)	12,191,226
Technology Manufacturing	11,959		—		1,564		76		(31		)	13,568
Technology Office	2,067		—		23,029		—		(16,779		)	8,317
Other	2,165		—		103,275		78		(11,774		)	93,744
	$	1,136,341	$	11,150	$	15,215,405	$	553,040	$	(3,238,227	)	$	13,677,709



	As of December 31, 2016
	(in thousands)
Property Type	Land		Acquired Ground Lease		Buildings and Improvements (1)		Tenant Improvements		Accumulated Depreciation and Amortization			Net Investment in Properties
Internet Gateway Data Centers	$	109,083	$	—	$	1,834,052	$	93,472	$	(674,823	)	$	1,361,784
Data Centers	610,007		10,014		8,254,108		431,444		(1,932,127		)	7,373,446
Technology Manufacturing	20,199		1,321		57,765		6,333		(24,595		)	61,023
Technology Office	5,368		—		43,574		1,460		(21,407		)	28,995
Other	2,165		—		78,026		78		(15,557		)	64,712
	$	746,822	$	11,335	$	10,267,525	$	532,787	$	(2,668,509	)	$	8,889,960


(1)	Balances include, as of December 31, 2017 and 2016, $1.4 billion and $0.7 billion of direct and accrued costs associated with development in progress, respectively.

Acquisitions

We acquired the following real estate during the years ended December 31, 2017 and 2016 (excluding real estate already discussed in Note 3):

2017 Acquisitions



Property Type	Amount (in millions)⁽²⁾
Land Parcels ⁽¹⁾	$	55.3
Data Centers	346.2
Technology Manufacturing	14.3
	$	415.8


(1)	Represents currently vacant land which is not included in our operating property count.


(2)	Purchase price in U.S. dollars and excludes capitalized closing costs. Each of these acquisitions was accounted for as an asset acquisition pursuant to the adoption of ASU 2017-01 on January 1, 2017.

The table below reflects the purchase price allocation for the above properties acquired in 2017 (in thousands):



Property Type	Land		Buildings and Improvements		Tenant Improvements		Above-Market Leases		In-Place Leases		Below-Market Leases			Acquisition Date Fair Value
Land Parcels	$	55,229	$	—	$	—	$	—	$	—	$	—		$	55,229
Data Centers	20,431		275,374		1,506		21,043		28,656		(811		)	346,199
Technology Manufacturing	11,950		1,539		76		—		1,455		(684		)	14,336
	$	87,610	$	276,913	$	1,582	$	21,043	$	30,111	$	(1,495	)	$	415,764
Weighted average remaining intangible amortization life (in months)							65		81		80

2016 Acquisitions



Property Type	Amount (in millions)
Land Parcels ⁽¹⁾	$	47.6


(1)	Represents currently vacant land which is not included in our operating property count. We completed four acquisitions of land parcels in the three months ended September 30, 2016 in Northern Virginia, Dallas and Chicago. Excludes capitalized closing costs on land acquisitions.

Held for Sale

As of December 31, 2017, we have identified eight properties that met the criteria to be classified as held for sale. As of December 31, 2017, the eight properties had an aggregate carrying value of $139.5 million within total assets and $5.0 million within total liabilities and are shown as assets held for sale and obligations associated with assets held for sale on the consolidated balance sheet, respectively. As of December 31, 2016, we had identified three properties that met the criteria to be classified as held for sale. As of December 31, 2016, the three properties had an aggregate carrying value of $56.1 million within total assets and $2.6 million within total liabilities and are shown as assets held for sale and obligations associated with assets held for sale on the consolidated balance sheet, respectively. The properties are not representative of a significant component of our portfolio, nor do the potential sales represent a significant shift in our strategy. In addition, we evaluated the carrying value of the properties identified as held for sale to ensure the carrying value is recoverable in light of a potentially shorter holding period. As a result of our evaluation, during the year ended December 31, 2017, we recognized $29.0 million of impairment charges on three properties located in the United States to reduce the carrying values to the estimated fair values less costs to sell. The fair values of the three properties were based on comparable sales price data (Level 2 under the fair value hierarchy). There were no impairment charges for the years ended December 31, 2016 and 2015.

Dispositions

We sold the following real estate properties during the years ended December 31, 2017 and 2016:

2017 Dispositions



Location	Metro Area	Date Sold	Gross Proceeds (in millions)		Gain on Sale (in millions)
8025 North Interstate 35	Austin	August 10, 2017	$	20.2	$	9.6
44874 Moran Road ⁽¹⁾	Northern Virginia	October 6, 2017	34.0		15.6
1 Solutions Parkway	St. Louis	November 28, 2017	37.1		14.7
			$	91.3	$	39.9


(1)	The property was held in a consolidated joint venture in which the Company owned a 75% interest. The Company recognized a gain on the sale of approximately $11.7 million, net of noncontrolling interests.

On February 9, 2018, the Company closed on the sale of 34551 Ardenwood Boulevard, a 323,000 square foot technology manufacturing property in Silicon Valley for approximately $73 million. The Company expects to recognize a gain on the sale of approximately $25 million in the first quarter of 2018. The property was classified as held for sale as of December 31, 2017.

On January 25, 2018, the Company closed on the sale of 200 Quannapowitt Parkway, a substantially vacant, 211,000 square foot data center redevelopment project in Boston for $15 million. The Company expects to recognize a loss on the sale of approximately $0.4 million in the first quarter of 2018. The property was classified as held for sale as of December 31, 2017.

2016 Dispositions



Location	Metro Area	Date Sold	Gross Proceeds (in millions)		Gain on Sale (in millions)
47700 Kato Road and 1055 Page Avenue	Silicon Valley	January 21, 2016	$	37.5	$	1.0
Data center portfolio ⁽¹⁾	Various	July 11, 2016	114.5		24.5
114 Rue Ambroise Croizat ⁽²⁾	Paris	August 1, 2016	212.0		144.3
			$	364.0	$	169.8


(1)	On July 11, 2016, the Company closed on the sale of a four-property data center portfolio, including two in St. Louis and two in Northern Virginia, totaling over 454,000 square feet for approximately $114.5 million. The Company recognized a gain on the sale of approximately $24.5 million in the third quarter of 2016. The four properties were classified as held for sale as of June 30, 2016.

(2)

The Company granted Equinix an option to acquire the Company's facility in 114 rue Ambroise Croizat in Paris. Equinix elected to exercise its option to acquire the Paris property, and on July 2, 2016, the Company entered into an agreement to sell the property to Equinix for approximately €190 million (or approximately $212 million based on the exchange rate as of August 1, 2016). The Paris property sale closed on August 1, 2016. The Company recognized a gain on the sale of approximately $144.3 million in the third quarter of 2016. This property was classified as held for sale as of June 30, 2016.