Real Estate Investments

2016 Acquisitions

First Quarter

In March 2016, the Company acquired a 69,712 square foot medical office building in Seattle, Washington for a purchase price of $38.3 million, including cash consideration of $37.7 million and purchase price credits of $0.6 million. In addition, the Company expensed $1.6 million of acquisition costs related to credits to the seller for loan prepayment, broker's commission and excise taxes. The property is adjacent (as defined in Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources beginning on page 15) to UW Medicine's Northwest Hospital and Medical Center campus, a 281-bed general medical and surgical hospital. Upon acquisition, the building was 100% leased.

Subsequent Acquisition

In April 2016, the Company acquired a 46,637 square foot medical office building in Seattle, Washington for a purchase price of $21.6 million. The transaction includes cash consideration of $18.4 million, purchase price credits of $1.9 million and capital obligations of $1.3 million. In addition, the Company capitalized closing costs of $0.4 million. The property is located on UW Medicine's Valley Medical Center campus, a 321-bed general medical and surgical hospital. Upon acquisition, the building was 100% leased to the seller. This transaction was accounted for as an asset acquisition.

Assets Held for Sale

At March 31, 2016 and December 31, 2015, the Company had one on-campus medical office building classified as held for sale. The table below reflects the assets and liabilities of the property classified as held for sale as of March 31, 2016 and December 31, 2015.



(Dollars in thousands)	March 31, 2016			December 31, 2015
Balance Sheet data:
Land	$	422		$	422
Buildings, improvements and lease intangibles	1,350			1,350
	1,772			1,772
Accumulated depreciation	(1,070		)	(1,070		)
Assets held for sale, net	702			702
Other assets, net (including receivables)	4			22
Assets of discontinued operations, net	4			22
Assets held for sale and discontinued operations, net	$	706		$	724

Accounts payable and accrued liabilities	$	18		$	28
Other liabilities	2			5
Liabilities of discontinued operations	$	20		$	33

Discontinued Operations

The following table represents the results of operations of the properties included in discontinued operations on the Company's Condensed Consolidated Statements of Income for the three months ended March 31, 2016 and 2015.



	Three Months Ended March 31,
(Dollars in thousands)	2016			2015
Statements of Income data:
Revenues
Rental income	$	—		$	341
	—			341
Expenses
Property operating	7			29
Bad debts, net of recoveries	—			(1		)
	7			28
Other Income (Expense)
Interest and other income, net	—			20
	—			20
Discontinued Operations
Income (Loss) from discontinued operations	(7		)	333
Income (Loss) from Discontinued Operations	$	(7	)	$	333