Commitments and Contingencies

Future Minimum Lease Payments

The Company entered into operating and capital lease agreements primarily related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash payments due from the Company over the next five years and thereafter under these arrangements, including the present value of the net minimum payments due under capital leases. These amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes among other items.



	Future Minimum Base Rent Payments
(In thousands)	Operating Leases		Capital Leases
July 1, 2015 - December 31, 2015	$	2,450	$	43
2016	4,958		86
2017	4,905		86
2018	5,089		86
2019	5,346		86
Thereafter	251,627		3,490
Total minimum lease payments	$	274,375	$	3,877
Less: amounts representing interest			(1,753		)
Total present value of minimum lease payments			$	2,124

Total rental expense related to operating leases was $1.9 million and $3.9 million, respectively, for the three and six months ended June 30, 2015. Total rental expense related to operating leases was $1.9 million and $3.9 million, respectively, for the three and six months ended June 30, 2014. During the three and six months ended June 30, 2015, interest expense related to capital leases was approximately $16,000 and $32,000, respectively. During the three and six months ended June 30, 2014, interest expense related to capital leases was approximately $16,000 and $32,000, respectively. The following table discloses assets recorded under capital leases and the accumulated amortization thereon as of June 30, 2015 and December 31, 2014.



(In thousands)	June 30, 2015			December 31, 2014
Buildings, fixtures and improvements	$	11,783		$	11,783
Less accumulated depreciation and amortization	(1,421		)	(1,137		)
Total real estate investments, net	$	10,362		$	10,646

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company.

The Company received a favorable ruling in a suit initiated against the Company by RXR Realty (“RXR”). RXR alleged that it suffered “lost profits” in connection with the Company’s purchase of Worldwide Plaza in October 2013. On August 12, 2014, the Supreme Court of the State of New York dismissed all of RXR’s claims against the seller of Worldwide Plaza and dismissed RXR’s disgorgement claims against the Company, permitting only a limited, immaterial claim against the Company for RXR’s cost of producing due diligence-related material to proceed. RXR is currently appealing the ruling. The Company has not recognized a liability with respect to RXR's claim because the Company does not believe that it is probable that it will incur a related material loss.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company maintains environmental insurance for its properties that provides coverage for potential environmental liabilities, subject to the policy's coverage conditions and limitations. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the consolidated results of operations.