Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

7. Discontinued Operations

In accordance with the provisions of ASC 360, Property, Plant, and Equipment, we have reclassified the revenues and expenses of properties and businesses sold or held for sale to “income (loss) from discontinued operations” and the related assets and liabilities to “assets related to discontinued operations” and “liabilities related to discontinued operations” for all periods presented in the accompanying consolidated financial statements. The net gains resulting from the sale of the properties below are included in “income (loss) from discontinued operations” on our consolidated statements of income.

On January 6, 2012, we completed the sale of350 West Mart Center, a 1.2 million square foot office building in Chicago, Illinois,for $228,000,000 in cash, which resulted in a net gain of $54,200,000 that will be recognized in the first quarter of 2012.

On March 31, 2011, the receiver completed the disposition of the High Point Complex in North Carolina. In connection therewith, the property and related debt were removed from our consolidated balance sheet and we recognized a net gain of $83,907,000 on the extinguishment of debt.

On January 12, 2011, we sold 1140 Connecticut Avenue and 1227 25th Street in Washington, DC, for $127,000,000 in cash, which resulted in a net gain of $45,862,000.

In 2011, we sold three retail properties in separate transactions for an aggregate of $40,990,000 in cash, which resulted in net gains of $5,761,000.

In December 2010, pursuant to a Court judgment, we sold the fee interest in land located in Arlington County, Virginia, known as Pentagon Row, to the tenants for an aggregate of $14,992,000 in cash.

In March 2010, we ceased making debt service payments on the mortgage loan secured by the Cannery, a retail property in California as a result of insufficient cash flow, and the loan went into default. On October 14, 2010, the special servicer foreclosed on the property, and the property and related debt were removed from our consolidated balance sheet.

On September 1, 2009, we sold 1999 K Street, a newly developed 250,000 square foot office building, in Washington's Central Business District, for $207,800,000 in cash, which resulted in a net gain of approximately $41,211,000.

In 2009, we sold 15 retail properties in separate transactions for an aggregate of $55,000,000 in cash which resulted in net gains aggregating $4,073,000.

7. Discontinued Operations- continued

The tables below set forth the assets and liabilities related to discontinued operations at December 31, 2011 and 2010, and their combined results of operations for the years ended December 31, 2011, 2010 and 2009.

	Assets Related to				Liabilities Related to
(Amounts in thousands)	Discontinued Operations as of				Discontinued Operations as of
	December 31,				December 31,
	2011		2010		2011		2010
350 West Mart Center	$	173,780	$	162,984	$	6,361	$	-
Retail properties		77,422		121,837		7,792		11,730
High Point		-		154,563		-		236,974
1227 25th Street		-		43,630		-		-
1140 Connecticut Avenue		-		36,271		-		18,948
Total	$	251,202	$	519,285	$	14,153	$	267,652
(Amounts in thousands)			For the Year Ended December 31,
			2011		2010		2009
Total revenues			$	45,745	$	82,917	$	96,853
Total expenses				29,943		77,511		78,148
				15,802		5,406		18,705
Net gain on extinguishment of High Point debt				83,907		-		-
Net gain on sale of 1140 Connecticut Avenue
and 1227 25th Street				45,862		-		-
Net gain on sales of other real estate				5,761		2,506		45,284
Impairment losses and litigation loss accrual				(5,799)		(15,056)		(14,060)
Income (loss) from discontinued operations			$	145,533	$	(7,144)	$	49,929