Schedule III—Real Estate and Accumulated Depreciation

(amounts in thousands)



				Initial Cost to the Company				Cost Capitalized Subsequent to Acquisition				Gross Amount at which Carried at 12/31/14
Development	Type	Encumbrances		Land		Building & Improvements		Improvements		Carrying Costs		Land		Buildings & Improvements		Total		Accumulated Depreciation			Date of Construction	Date Acquired	Life on which depreciation in latest income statement is computed
112 West 34th Street, New York, NY	office / retail	$	94,720	$	13,630	$	244,461	$	4,936	n/a		$	13,630	$	249,397	$	263,027	$	(4,092	)	1954	2014	various
1400 Broadway, New York, NY	office / retail	85,256		—		96,338		4,413		—		—		100,750		100,750		(3,396		)	1930	2014	various
1333 Broadway, New York, NY	office / retail	75,330		91,435		120,190		2,582		n/a		91,435		122,772		214,207		(5,243		)	1915	2013	various
1350 Broadway, New York, NY	office / retail	41,831		—		102,518		5,526		n/a		—		108,044		108,044		(4,974		)	1929	2013	various
250 West 57th Street, New York, NY	office/ retail	—		2,117		5,041		71,959		n/a		2,117		77,000		79,117		(23,125		)	1921	1953	various
501 Seventh Avenue, New York, NY	office/ retail	—		1,100		2,600		87,992		n/a		1,100		90,592		91,692		(30,127		)	1923	1950	various
1359 Broadway, New York, NY	office/ retail	44,146		1,233		1,809		45,398		n/a		1,233		47,207		48,440		(17,187		)	1924	1953	various
350 Fifth Avenue (Empire State Building), New York, NY	office/ retail	—		21,551		38,934		539,630		n/a		21,551		578,564		600,115		(71,225		)	1930	2013	various
One Grand Central Place, New York, NY	office/ retail	91,000		7,240		17,490		161,039		n/a		7,222		178,546		185,768		(66,999		)	1930	1954	various
First Stamford Place, Stamford, CT	office	242,294		22,952		122,739		40,321		n/a		24,861		161,150		186,011		(58,595		)	1986	2001	various
One Station Place, Stamford, CT (Metro Center)	office	99,845		5,313		28,602		10,067		n/a		5,313		38,669		43,982		(24,443		)	1987	1984	various
383 Main Avenue, Norwalk, CT	office	29,852		2,262		12,820		11,145		n/a		2,262		23,965		26,227		(9,125		)	1985	1994	various
500 Mamaroneck Avenue, Harrison, NY	office	—		4,571		25,915		16,011		n/a		4,571		41,925		46,496		(17,328		)	1987	1999	various
10 Bank Street, White Plains, NY	office	32,847		5,612		31,803		10,813		n/a		5,612		42,616		48,228		(16,032		)	1989	1999	various
10 Union Square, New York, NY	retail	20,641		5,003		12,866		1,535		n/a		5,003		14,401		19,404		(6,162		)	1987	1996	various
1542 Third Avenue, New York, NY	retail	18,628		2,239		15,266		382		n/a		2,239		15,648		17,887		(6,079		)	1991	1999	various
1010 Third Avenue, New York, NY and 77 West 55th Street, New York, NY	retail	27,595		4,462		15,817		774		n/a		4,462		16,593		21,055		(6,889		)	1962	1998	various
69-97 Main Street, Westport, CT	retail	—		2,782		15,766		918		n/a		2,782		16,684		19,466		(5,034		)	1922	2003	various
103-107 Main Street, Westport, CT	retail	—		1,243		7,043		131		n/a		1,260		7,157		8,417		(1,497		)	1900	2006	various
Property for development at the Transportation Hub in Stamford CT	land	—		4,542		—		6,986		—		4,542		6,986		11,528		—			n/a	n/a	n/a
Totals		$	903,985	$	199,287	$	918,018	$	1,022,558	$	—	$	201,196	$	1,938,667	$	2,139,863	$	(377,552	)

Empire State Realty Trust, Inc. and Empire State Realty Trust, Inc. Predecessor

Notes to Schedule III—Real Estate and Accumulated Depreciation

(amounts in thousands)

1. Reconciliation of Investment Properties

The changes in our investment properties for the years ended December 31, 2014, 2013 and 2012 are as follows:



	2014			2013			2012
Balance, beginning of year	$	1,649,423		$	939,330		$	856,151
Acquisition of new properties	354,429			607,779			—
Improvements	143,315			130,346			85,409
Distribution of real property to owners prior to the formation transactions	—			(16,345		)	—
Disposals	(7,304		)	(11,687		)	(2,230		)
Balance, end of year	$	2,139,863		$	1,649,423		$	939,330

The unaudited aggregate cost of investment properties for federal income tax purposes as of December 31, 2014 was $1,843,184.

2. Reconciliation of Accumulated Depreciation

The changes in our accumulated depreciation for the years ended December 31, 2014, 2013 and 2012 are as follows:



	2014			2013			2012
Balance, beginning of year	$	295,351		$	257,091		$	224,019
Depreciation expense	89,505			49,947			35,302
Disposals	(7,304		)	(11,687		)	(2,230		)
Balance, end of year	$	377,552		$	295,351		$	257,091

Depreciation of investment properties reflected in the combined statements of operations is calculated over the estimated original lives of the assets as follows:



Buildings		39 years
Building improvements		39 years or useful life
Tenant improvements		Term of related lease