Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Redevelopment Activity

The Company completed the redevelopment of a medical office building in Charlotte, North Carolina, which includes a 40,278 square foot vertical expansion and funded approximately $1.5 million during the year ended December 31, 2019. The first tenant took occupancy in the second quarter of 2019.

The Company initiated the redevelopment of a 110,883 square foot medical office building in Memphis, Tennessee in December 2019. The Company funded approximately $0.3 million, excluding the purchase price of $8.7 million for the land and building. The building will continue to operate with in-place leases during construction. The Memphis Redevelopment is expected to be completed in the first quarter of 2021.

The Company also funded approximately $1.0 million of primarily tenant improvements in connection with its previously completed redevelopment of a medical office building in Nashville, Tennessee.

Development Activity

The Company continued the development of a 151,000 square foot medical office building in Seattle, Washington. The Company spent approximately $25.2 million on the development during the year ended December 31, 2019. The Company expects initial occupancy to occur in the first quarter of 2020.

The Company also funded approximately $0.6 million of primarily tenant improvements as the Company continues to lease up its previously completed development of a medical office building in Denver, Colorado.

The table below details the Company’s construction activity as of December 31, 2019. The information included in the table below represents management’s estimates and expectations at December 31, 2019, which are subject to change. The Company’s disclosures regarding certain projections or estimates of completion dates may not reflect actual results.

			DECEMBER 31, 2019						ESTIMATED REMAINING FUNDINGS unaudited		ESTIMATED TOTAL INVESTMENT unaudited		APPROXIMATE SQUARE FEET unaudited
Dollars in thousands	NUMBER OF PROPERTIES	INITIAL OCCUPANCY	CONSTRUCTION IN PROGRESS BALANCE		TOTAL FUNDED during the year		TOTAL AMOUNT FUNDED
Construction Activity
Seattle, WA	1	Q1 2020	$	48,731	$	25,211	$	49,033	$	15,087	$	64,120	151,000
Redevelopment Activity
Memphis, TN 1	1	Q1 2021	—		9,032		9,032		18,768		27,800		110,883
Total			$	48,731	$	34,243	$	58,065	$	33,855	$	91,920	261,883

1 Initial occupancy represents the quarter in which the redevelopment is expected to be completed. The building will continue to operate with in-place leases during construction.

Tenant Improvements

The Company may provide a tenant improvement allowance in new or renewal leases for the purpose of refurbishing or renovating tenant space. As of December 31, 2019, the Company had commitments of approximately $46.6 million that are expected to be spent on tenant improvements throughout the portfolio, excluding development properties currently under construction.

Land Held for Development

Land held for development includes parcels of land owned by the Company, upon which the Company intends to develop and own outpatient healthcare facilities. The Company’s investment in seven parcels of land held for development located adjacent to certain of the Company's existing medical office buildings in Texas, Iowa, Tennessee and Colorado totaled approximately $24.6 million as of December 31, 2019 and December 31, 2018.