DISPOSITION ACTIVITY

6 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

DISPOSITION ACTIVITY

4. DISPOSITION ACTIVITY

MacArthur Park Joint Venture

          On March 26, 2013, we entered into the MacArthur Park Joint Venture with Goldman Sachs whereby we contributed our MacArthur Park property for a 30% interest in the joint venture and Goldman Sachs contributed cash for a 70% interest. Our 30% ownership interest does not qualify for consolidation under GAAP and we deconsolidated this property on March 26, 2013. However, our significant continuing involvement in MacArthur Park precludes us from treating our contribution of the property to the joint venture as discontinued operations and MacArthur Park’s historical operating results prior to the formation of the joint venture are included in our income from continuing operations. Our 30% ownership grants us the ability to exercise significant influence over the operation and management of the joint venture and we account for our ownership under the equity method since the date of the formation of the joint venture. See also Note 5 for discussion of our MacArthur Park Joint Venture.

Other Dispositions and Discontinued Operations

          Our properties generally have operations and cash flows that can be clearly distinguished from the rest of the Company. The operations and gains on sales reported in discontinued operations include those properties that have been sold and for which operations and cash flows have been clearly distinguished. The operations of these properties have been eliminated from ongoing operations, and we will not have continuing involvement after disposition. Prior period operating activity related to such properties and business has been reclassified as discontinued operations in the accompanying statements of operations.

• On August 12, 2013, we completed the sale of our single tenant asset in Illinois for approximately $1.9 million, and we recorded a gain on sale of approximately $799,000 during the third quarter of 2013.

• On November 12, 2013, we completed the sale of Loop 610 & Ella for $7.5 million, and we recorded a gain on sale of $2.3 million in the fourth quarter of 2013.

          The following table is a summary of our discontinued operations for the three and six months ended June 30, 2014 and 2013 (in thousands, except for per share data):

	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Revenues:
Rental income from operating leases	$	—	$	49	$	—	$	87
Total revenues		—		49		—		87
Expenses:
General and administrative		—		1		—		1
Property expense		—		11		—		11
Legal and professional		—		3		—		7
Depreciation and amortization		—		6		—		12
Total expenses		—		21		—		31
Income from discontinued operations, net of tax	$	—	$	28		—		56
Basic and diluted income from discontinued operations per share	$	—	$	—	$	—	$	—