Real Estate Investments (Tables)

9 Months Ended

Sep. 30, 2016

Real Estate Properties [Line Items]

Gross Carrying Value Of Properties

As of September 30, 2016 and December 31, 2015, the gross carrying value of the Properties were as follows (in thousands):

	September 30,		December 31,
	2016		2015
Land	$	488,580	$	513,268
Building and improvements		2,561,976		2,719,780
Tenant improvements		635,783		459,952
Operating properties		3,686,339		3,693,000
Assets held for sale - real estate investments		16,916		794,588
Total	$	3,703,255	$	4,487,588

Dispositions

The Company sold the following office properties during the nine-month period ended September 30, 2016 (dollars in thousands):

Disposition Date	Property/Portfolio Name	Location	Number of Properties	Rentable Square Feet		Sales Price		Net Proceeds on Sale		Gain (Loss) on Sale (a)
September 1, 2016	1120 Executive Plaza	Mt. Laurel, NJ	1		95,183	$	9,500	$	9,241	$	(18	)	(b)
August 2, 2016	50 East Clementon Road	Gibbsboro, NJ	1		3,080		1,100		1,011		(85	)
May 11, 2016	196/198 Van Buren Street (Herndon Metro Plaza I&II)	Herndon, VA	2		197,225		44,500		43,412		(752	)	(c)
February 5, 2016	2970 Market Street  (Cira Square)	Philadelphia, PA	1		862,692		354,000		350,150		115,828
February 4, 2016	Och-Ziff Portfolio	Various (d)	58		3,924,783		398,100		353,971		(372	)	(e)
Total Dispositions			63		5,082,963	$	807,200	$	757,785	$	114,601

(a) Gain/(Loss) on Sale is net of closing and other transaction related costs.

(b) As of June 30, 2016, the Company determined that the sale of the property was probable and classified this property as held for sale in accordance with applicable accounting standards for long lived assets. At such date, the carrying value of the property exceeded the fair value less the anticipated costs of sale. As a result, the Company recognized a provision for impairment totaling approximately $1.8 million during the three-month period ended June 30, 2016. The fair value measurement was based on the pricing in the purchase and sale agreement. As the pricing in the purchase and sale agreement is unobservable, the Company determined that the inputs utilized to determine fair value for this property falls within Level 3 in accordance with the fair value hierarchy established byAccounting Standards Codification (ASC) Topic 820, "Fair Value Measurements and Disclosures.” The loss on sale represents additional closing costs recognized at settlement.

(c) During the three-month period ended March 31, 2016, the Company recognized a provision for impairment totaling approximately $7.4 million on the properties. See “Held for Use Impairment” section below. The loss on sale primarily relates to additional closing costs recognized at settlement.

(d) Exhibit 99.2 to the Company’s Current Report on Form 8-K filed on February 10, 2016 contains a complete list of the 58 properties disposed of in the transactions with Och-Ziff Capital Management Group LLC. See Note 4, "Investment in Unconsolidated Real Estate Ventures," for further details of the transactions.

(e) During the three-month period ended December 31, 2015, the Company recognized a provision for impairment totaling approximately $45.4 million. The loss on sale represents additional closing costs recognized at settlement.

Held for Sale Properties Included in Continuing Operations [Member]

Real Estate Properties [Line Items]

Summary of Properties Classified as Held for Sale but Which did not Meet the Criteria to be Classified within Discontinued Operations

The following is a summary of properties classified as held for sale but which did not meet the criteria to be classified within discontinued operations at September 30, 2016 (in thousands):

	Held for Sale Properties Included in Continuing Operations
	September 30, 2016
	620, 640 and 660 Allendale Road			Oakland Lot B			Total
ASSETS HELD FOR SALE
Real estate investments:
Operating properties	$	12,550		$	4,366		$	16,916
Accumulated depreciation		(4,520	)		(4	)		(4,524	)
Operating real estate investments, net		8,030			4,362			12,392
Construction-in-progress		212			-			212
Total real estate investments, net		8,242			4,362			12,604
Other assets		-			-			-
Total assets held for sale, net	$	8,242		$	4,362		$	12,604
LIABILITIES HELD FOR SALE
Other liabilities	$	49		$	-		$	49
Total liabilities held for sale	$	49		$	-		$	49