Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings

The Company is, from time to time, involved in litigation arising in the ordinary course of business. The Company is not aware of any pending or threatened litigation that, if resolved against the Company, would have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

Redevelopment Activity

The Company is in the process of redeveloping two medical office buildings in Tennessee, including a 70,000 square foot expansion. The Company spent approximately $32.6 million on the redevelopment of these properties through March 31, 2016, including the acquisition of a land parcel for $4.3 million on which the Company is building a parking garage. The total redevelopment budget for these properties is $51.8 million and the project is expected to be completed in the first quarter of 2017.

The Company completed the redevelopment of a medical office building in Alabama, which included the construction of a parking garage. Construction of the garage was completed in the fourth quarter of 2015. The total redevelopment budget is $15.4 million, of which $10.7 million has been spent as of March 31, 2016. The remaining $4.7 million budgeted for the project is primarily related to a tenant improvement allowance that is expected to be funded in 2016.

Development Activity

In 2015, the Company began development of a 12,900 square foot retail center in Texas, which is adjacent to two of the Company's existing medical office buildings associated with Baylor Scott & White Health. The total development budget is $5.6 million, of which $4.6 million has been spent as of March 31, 2016. These amounts include $1.5 million used by the Company to purchase land in 2006 and previously recorded as land held for development. Construction was completed on April 15, 2016. Tenant build-out is expected to be completed throughout the remainder of 2016.

In 2015, the Company began development of a 98,000 square foot medical office building in Colorado. The total development budget is $26.5 million, of which $0.9 million has been spent as of March 31, 2016. Construction is expected to be completed in the second quarter of 2017.

The table below details the Company’s construction activity as of March 31, 2016. The information included in the table below represents management’s estimates and expectations at March 31, 2016, which are subject to change. The Company’s disclosures regarding certain projections or estimates of completion dates may not reflect actual results.



			As of March 31, 2016
(Dollars in thousands)	Number of Properties	Estimated Completion Date	Construction in Progress Balance		Other Amounts Funded		Total Amount Funded		Estimated Remaining Fundings		Estimated Total Investment		Approximate Square Feet
Construction Activity
Birmingham, AL	1	Q4 2015⁽¹⁾	$	—	$	10,705	$	10,705	$	4,695	$	15,400	138,000
Austin, TX	1	Q2 2016	4,614		—		4,614		961		5,575		12,900
Nashville, TN	2	Q1 2017	26,185		6,423		32,608		19,192		51,800		294,000
Denver, CO	1	Q2 2017	870		—		870		25,630		26,500		98,000
Total			$	31,669	$	17,128	$	48,797	$	50,478	$	99,275	542,900

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(1) Includes $5.9 million for the addition of a 400-space parking garage which was completed in November 2015 and $9.5 million in tenant improvement allowances and commissions, a portion of which improvements have not been completed.