Acquisitions and Dispositions

9 Months Ended

Sep. 30, 2025

Acquisitions and Dispositions

Acquisitions and Dispositions

3.Acquisitions and Dispositions

Acquisitions

In September 2025, we acquired the remaining 45.0% interest in the unconsolidated real estate venture that owned 1101 17^th Street, a 210,410 square-foot commercial asset in Washington D.C., for no consideration. We had discontinued applying the equity method of accounting on this investment in 2018 as we had received cumulative distributions in excess of our cumulative contributions and share of earnings, which reduced our investment to zero. 1101 17^th Street was consolidated as of the date of acquisition, and we recorded our investment in the asset at the net carryover basis of our previously held equity investment. We recorded assets of $32.3 million primarily consisting of land, and we recorded liabilities of $32.3 million primarily consisting of $30.4 million related to the estimated fair value of a $60.0 million non-recourse interest-only mortgage loan with a fixed interest rate of 3.40% and a maturity date of July 14, 2026.

In May 2025, we acquired Tysons Dulles Plaza, a 491,494 square-foot commercial asset in Tysons, Virginia, through a reverse like-kind exchange agreement pursuant to Section 1031 of the Code (a "Reverse 1031 Exchange") with a third-party intermediary, for $42.3 million, exclusive of $413,000 of transaction costs that were capitalized as part of the acquisition. See Note 5 for additional information.

Dispositions

The following summarizes activity for the nine months ended September 30, 2025:

							Gain (Loss)
			Gross		Cash		on the Sale
			Sales		Proceeds		of Real
Date Disposed	Assets	Segment	Price		from Sale		Estate
			(In thousands)
July 10, 2025	The Batley	Multifamily	$	155,000	$	150,053	$	(39)
June 25, 2025	WestEnd25 (1)	Multifamily		186,000		181,098		42,309
June 20, 2025	Development Parcel	Other		11,000		10,355		(539)
February 19, 2025	8001 Woodmont (2)	Multifamily		194,000		188,779		(840)
	Other (3)							6,138
							$	47,029

(1) In connection with the sale, we repaid the related $97.5 million mortgage loan and terminated the related interest rate swap resulting in a $2.2 million gain, which was included in "Gain (loss) on the extinguishment of debt, net" in our statement of operations for the nine months ended September 30, 2025.

(2) In connection with the sale, we repaid the related $99.7 million mortgage loan.

(3) Includes a $4.7 million gain related to permanent land easement transactions across various parcels in National Landing and a gain of $1.4 million related to prior year dispositions.

In May 2025, we sold a 40.0% noncontrolling interest in a real estate venture that owns West Half, a multifamily asset in Washington, D.C., for $100.0 million. See Note 9 for additional information.