ACQUISITIONS AND DISPOSITIONS

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS

The fair value of real estate acquired is recorded to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, and furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate.

There were no acquisitions during the year ended December 31, 2016.

On February 2, 2016, we sold a 100% fee-simple interest in the Courtyard Oakland located in Oakland, California to an unrelated third party. In addition, on July 19, 2016, we sold a 100% fee-simple interest in the LAX Holiday Inn located in Los Angeles, California to an unrelated third party. The results of operations of the two hotels have been included in the consolidated statements of operations through the date of disposition.

	Asset	Date of		Sales		Gain on
Property	Type	Sale	Rooms	Price		Sale
				(in thousands)
Courtyard Oakland, Oakland, CA	Hotel	February 2, 2016	162	$	43,800	$	24,739
LAX Holiday Inn, Los Angeles, CA	Hotel	July 19, 2016	405	$	52,500	$	14,927

During 2015, we acquired a 100% fee-simple interest in a surface parking lot known as 2 Kaiser Plaza Parking Lot from an unrelated third party. The parking lot has approximately 44,642 square feet of land and is located in Oakland, California. The acquisition was funded with proceeds from our unsecured credit facility, and the acquired property is reported as part of the office segment (Note 21).

	Asset	Date of		Purchase
Property	Type	Acquisition	Square Feet	Price
				(in thousands)
2 Kaiser Plaza Parking Lot, Oakland, CA	Surface parking lot	August 26, 2015	44,642	$	11,143

During 2015, we sold a 100% fee-simple interest in Civic Center located at 500 West Santa Ana Boulevard, Santa Ana, California to an unrelated third party.

	Asset	Date of		Sales		Gain on
Property	Type	Sale	Square Feet	Price		Sale
				(in thousands)
500 West Santa Ana Boulevard, Santa Ana, CA	Office	November 19, 2015	37,116	$	8,050	$	3,092

Acquisitions during 2014, funded with proceeds from drawdowns on our unsecured credit facilities, consisted of the following:

	Asset	Date of	Number	Rentable	Purchase
Property	Type	Acquisition	of Buildings	Square Feet	Price
					(in thousands)
4750 Wilshire Boulevard, Los Angeles, CA (1)	Office	April 18, 2014	1	143,361	$	44,936
Lindblade Media Center, Los Angeles, CA (2)	Office	October 21, 2014	3	32,428	$	18,500

(1) 100% fee-simple interest in an office building built in 1984 and renovated in 2014, located in the Mid-Wilshire submarket of Los Angeles, California.

(2) 100% fee-simple interest in a portfolio of creative office buildings located in the West Los Angeles submarket of Los Angeles, California.  Two of the buildings were built in 1930 and the third was built in 1957. The buildings were renovated in 2010.

The results of operations of the properties acquired have been included in the consolidated statements of operations from the date of acquisition. The fair values of the net assets acquired for the above-noted acquisitions during the years ended December 31, 2015 and 2014, respectively, are as follows:

	Year Ended December 31,
	2015 (1)		2014 (1)
	(in thousands)
Land	$	10,931	$	22,975
Land improvements	110		535
Buildings and improvements	—		38,821
Tenant improvements	—		1,197
Acquired in-place leases (2)	102		2,396
Acquired below-market leases (3)	—		(2,488		)
Net assets acquired	$	11,143	$	63,436

(1) The purchase price of the acquisitions completed during the years ended December 31, 2015 and 2014, respectively, were individually less than 5% and in aggregate less than 10% of our total assets as of December 31, 2015 and 2014, respectively.

(2) Acquired in-place leases have a weighted average amortization period of 3.0 years and 5.1 years for the 2015 and 2014 acquisitions, respectively.

(3) Acquired below-market leases have a weighted average amortization period of 5.0 years for the 2014 acquisitions.

Acquisition related expenses of $0, $107,000 and $491,000 were expensed as incurred during the years ended December 31, 2016, 2015 and 2014, respectively.

Abandoned project costs of $328,000, $486,000 and $132,000 were expensed as incurred during the years ended December 31, 2016, 2015 and 2014, respectively.

On February 10, 2017, we entered into a purchase and sale agreement with an unrelated third-party for the sale of our office building located at 211 Main Street in San Francisco, California. The contract sales price is approximately $293,000,000 and we expect the closing of the sale to occur within the first quarter of 2017.