Investments in Real Estate

A summary of our investments in properties as of December 31, 2018 and 2017 is as follows:



	As of December 31, 2018
	(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	$	101,964	$	—	$	2,137,458	$	114,013	$	(885,315	)	$	1,468,120
Data Centers (2)	1,391,585		10,575		14,502,437		460,247		(3,016,646		)	13,348,198
Technology Manufacturing	11,959		—		1,582		76		(100		)	13,517
Technology Office	2,091		—		23,104		—		(18,441		)	6,754
Other	2,165		—		80,629		—		(14,765		)	68,029
	$	1,509,764	$	10,575	$	16,745,210	$	574,336	$	(3,935,267	)	$	14,904,618



	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 (2)	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


(1)	Balances include, as of December 31, 2018 and 2017, $1.6 billion and $1.4 billion of direct and accrued costs associated with development in progress, respectively.


(2)	Balances include vacant land to support ground-up development.

As of December 31, 2017, we had 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. All eight properties were sold during the year ended December 31, 2018. The properties were not representative of a significant component of our portfolio, nor did the 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 approximately $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, 2018 and 2016.

Acquisitions

We acquired the following real estate during the years ended December 31, 2018 and 2017 (excluding business combinations already discussed in Note 3):

2018 Acquisitions



Property Type	Amount (in millions)⁽²⁾
Land Parcels ⁽¹⁾	$	296.1
Data Centers	114.6
	$	410.7

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 2018 and 2017 (in thousands):



Property Type	Land		Buildings and Improvements		Tenant Improvements		Above-Market Leases		In-Place Leases		Below-Market Leases			Acquisition Date Fair Value
2018
Land Parcels	$	296,071	$	—	$	—	$	—	$	—	$	—		$	296,071
Data Centers	60,633		54,008		—		—		—		—			114,641
Total	$	356,704	$	54,008	$	—	$	—	$	—	$	—		$	410,712

2017
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
Total	$	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

Dispositions

We sold the following real estate properties during the years ended December 31, 2018 and 2017:

2018 Dispositions



Location	Metro Area	Date Sold	Gross Proceeds (in millions)		Gain (loss) on sale (in millions)
200 Quannapowitt Parkway	Boston	Jan 25, 2018	$	15.0	$	(0.4	)
34551 Ardenwood Boulevard	Silicon Valley	Feb 9, 2018	73.3		25.3
3065 Gold Camp Drive	Sacramento	Mar 14, 2018	14.2		5.4
11085 Sun Center Drive	Sacramento	Mar 14, 2018	36.8		9.1
Austin Portfolio	Austin	Apr 19, 2018	47.6		12.0
2010 East Centennial Circle	Phoenix	May 22, 2018	5.5		(0.5		)
1125 Energy Park Drive	Minneapolis	May 31, 2018	7.0		2.8
360 Spear Street	San Francisco	Sep 21, 2018	92.3		26.7
			$	291.7	$	80.4

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.