Acquisition, Disposals and Assets Held for Sale (Notes)

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

Acquisition, Dispositions and Assets Held for Sale

Acquisition

We have agreed, subject to customary closing conditions, to acquire F1RST Residences, a 325-unit multifamily asset in the Ballpark submarket of Washington, D.C. with approximately 21,000 square feet of street level retail, for a purchase price of approximately $160.5 million. The multifamily portion of the building is 95.4% occupied as of September 30, 2019. We expect the transaction to close by the end of 2019. We intend to use F1RST Residences as a replacement property in a like-kind exchange for the expected proceeds from the sale of Metropolitan Park to Amazon.com, Inc. ("Amazon").

Dispositions

The following is a summary of disposition activity for the nine months ended September 30, 2019:



Date Disposed	Assets	Segment	Location	Total Square Feet	Gross Sales Price		Cash Proceeds from Sale		Gain on Sale of Real Estate
					(In thousands)
February 4, 2019	Commerce Executive / Commerce Metro Land ^{(1) (2)}	Commercial / Other	Reston, Virginia	388,562	$	114,950	$	117,676	$	39,033
July 31, 2019	1600 K Street	Commercial	Washington, D.C.	82,653	43,000		40,134		8,088
Total				471,215	$	157,950	$	157,810	$	47,121

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⁽¹⁾	The sale also included approximately 894,000 square feet of estimated potential development density. The sale was part of a reverse like-kind exchange. See Note 5 for additional information.


⁽²⁾	Cash proceeds include the reimbursement of $4.0 million of tenant improvement costs and leasing commissions paid by us prior to the closing.

Assets Held for Sale

As of September 30, 2019 and December 31, 2018, we had certain real estate properties that were classified as held for sale. The amounts included in "Assets held for sale" in our balance sheets primarily represent the carrying value of real estate. The following is a summary of assets held for sale:



Assets	Segment	Location	Total Square Feet		Assets Held for Sale		Liabilities Related to Assets Held for Sale
				(In thousands)
September 30, 2019
Pen Place ⁽¹⁾	Other	Arlington, Virginia	—		$	74,107	$	—
Metropolitan Park ⁽¹⁾	Other	Arlington, Virginia	—		94,713		66
			—		$	168,820	$	66

December 31, 2018
Commerce Executive / Commerce Metro Land ⁽²⁾	Commercial	Reston, Virginia	388,562		$	78,981	$	3,717

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⁽¹⁾	In March 2019, we entered into agreements for the sale of Pen Place and Metropolitan Park, future development assets having an aggregate estimated potential development density of up to approximately 4.1 million square feet, for approximately $293.9 million, subject to customary closing conditions.


⁽²⁾	As noted above, we sold Commerce Executive/Commerce Metro Land in February 2019.