ACQUISITIONS AND DISPOSITIONS (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of Assets Sold and Held for Sale

We sold 100% fee-simple interests in the following properties to unrelated third-parties during the year ended December 31, 2019. Transaction costs related to these sales were expensed as incurred.

Property	Asset Type	Date of Sale	Square Feet	Sales Price		Transaction Costs		Gain on Sale
				(in thousands)
March Oakland Properties, Oakland, CA (1)	Office / Parking Garage	March 1, 2019	975,596	$	512,016	$	8,971	$	289,779
830 1st Street, Washington, D.C.	Office	March 1, 2019	247,337	116,550		2,438		45,710
260 Townsend Street, San Francisco, CA	Office	March 14, 2019	66,682	66,000		2,539		42,092
1333 Broadway, Oakland, CA	Office	May 16, 2019	254,523	115,430		658		55,221
Union Square Properties, Washington, D.C. (2)	Office / Land	July 30, 2019	630,650	181,000		3,744		302
				$	990,996	$	18,350	$	433,104

(1) The "March Oakland Properties" consist of 1901 Harrison Street, 2100 Franklin Street, 2101 Webster Street, and 2353 Webster Street Parking Garage.

(2) The "Union Square Properties" consist of 899 North Capitol Street, 901 North Capitol Street and 999 North Capitol Street. Prior to the sale, we determined that the book values of such properties exceeded their estimated fair values and recognized an impairment charge of $69,000,000 for the year ended December 31, 2019 (Note 2). Our determination of the fair values of these properties was based on negotiations with the third-party buyer and the contract sales price. The gain on sale includes $113,000 of extinguishment of noncontrolling interests as a result of the sale.

Property	Asset Type	Date of Sale	Square Feet or Units (1)	Sales Price		Transaction Costs		Gain on Sale
				(in thousands)
211 Main Street, San Francisco, CA (2)	Office	March 28, 2017	417,266	$	292,882	$	1,435	$	189,242
3636 McKinney Avenue, Dallas, TX (2)	Multifamily	May 30, 2017	103	$	20,000	$	177	$	6,631
3839 McKinney Avenue, Dallas, TX (2)	Multifamily	May 30, 2017	75	$	14,100	$	180	$	4,982
200 S College Street, Charlotte, NC	Office	June 8, 2017	567,865	$	148,500	$	833	$	45,906
980 9th and 1010 8th Street, Sacramento, CA	Office & Parking Garage	June 20, 2017	485,926	$	120,500	$	1,119	$	34,559
4649 Cole Avenue, Dallas, TX (2)	Multifamily	June 23, 2017	334	$	64,000	$	499	$	28,648
800 N Capitol Street, Washington, D.C.	Office	August 31, 2017	311,593	$	119,750	$	2,388	$	34,456
7083 Hollywood Boulevard, Los Angeles, CA (3)	Office	September 21, 2017	82,193	$	42,300	$	584	$	23,810
47 E 34th Street, New York, NY	Multifamily	September 26, 2017	110	$	80,000	$	3,157	$	16,556
370 L'Enfant Promenade, Washington, D.C. (4)	Office	October 17, 2017	409,897	$	126,680	$	2,451	$	2,994
4200 Scotland Street, Houston, TX (3)	Multifamily	December 15, 2017	308	$	64,025	$	597	$	20,314
				$	1,092,737	$	13,420	$	408,098

(1) Reflects the square footage of office properties and number of units of multifamily properties.

(2) A mortgage collateralized by this property was prepaid in connection with our sale of the property (Note 7).

(3) A mortgage collateralized by this property was assumed by the buyer in connection with our sale of the property (Note 7).

(4) In August 2017, we negotiated an agreement with an unrelated third-party for the sale of this property. We determined that the book value of this property exceeded its estimated fair value less costs to sell, and recognized an impairment charge of $13,100,000 for the year ended December 31, 2017 (Note 2). Our determination of fair value was based on the sales price negotiated with the third-party buyer.

The following is the detail of the carrying amounts of assets and liabilities for the office properties that are classified as held for sale on our consolidated balance sheet as of December 31, 2018:

	December 31, 2018
	(in thousands)
Assets
Investments in real estate, net (1)	$	17,123
Cash and cash equivalents	755
Accounts receivable, net	41
Deferred rent receivable and charges, net (2)	4,009
Other intangible assets, net (3)	220
Other assets	27
Total assets held for sale, net	$	22,175
Liabilities
Debt, net (4)	$	28,018
Accounts payable and accrued expenses	370
Due to related parties	81
Other liabilities	297
Total liabilities associated with assets held for sale, net	$	28,766

(1) Investments in real estate of $24,832,000 are presented net of accumulated depreciation of $7,709,000.

(2) Deferred rent receivable and charges consist of deferred rent receivable of $2,909,000 and deferred leasing costs of $1,669,000 net of accumulated amortization of $569,000.

(3) Other intangible assets, net, represent acquired in-place leases of $1,778,000, which are presented net of accumulated amortization of $1,558,000.

(4) Debt, net, includes the outstanding principal balance of 260 Townsend Street of $28,200,000, net of deferred loan costs of $243,000 and accumulated amortization of $61,000.

The following is the detail of the carrying amounts of assets and liabilities at the time of the sales of the properties that occurred during the years ended December 31, 2019, 2018 and 2017:

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Assets
Investments in real estate, net	$	476,532	$	—	$	631,740
Deferred rent receivable and charges, net	55,297		—		34,071
Other intangible assets, net	316		—		11,283
Other assets	4,096		—		38
Total assets	$	536,241	$	—	$	677,132
Liabilities
Debt, net (1) (2)	$	318,072	$	—	$	115,037
Other liabilities	—		—		14,029
Intangible liabilities, net	—		—		1,800
Total liabilities	$	318,072	$	—	$	130,866

(1) Debt, net for the year ended December 31, 2019 is presented net of deferred loan costs of $1,704,000 and accumulated amortization of $576,000. Additionally, a mortgage loan with an outstanding principal balance of $28,200,000 was assumed by the buyer in connection with the sale of our property in San Francisco, California. A mortgage loan with an outstanding principal balance of $46,000,000 was prepaid in connection with the sale in March 2019 of our property in Washington, D.C. that was collateral for the loan. Mortgage loans with an aggregate outstanding principal balance of $205,500,000 were legally defeased in connection with the sale of the March Oakland Properties that were collateral for the loans. A mortgage loan with an outstanding principal balance of $39,500,000 was legally defeased in connection with the sale in May 2019 of our property in Oakland, California that was collateral for the loan.

(2) Debt, net for the year ended December 31, 2017 is presented net of $665,000 of premium on assumed mortgage. Additionally, debt of $50,260,000 was assumed by certain buyers in connection with sales of certain properties.

Schedule of Asset Acquisitions

	Asset	Date of		Purchase
Property	Type	Acquisition	Square Feet	Price (1)
				(in thousands)
9460 Wilshire Boulevard, Beverly Hills, CA	Office	January 18, 2018	91,750	$	132,000

(1) In December 2017, at the time we entered into the purchase and sale agreement, we made a $20,000,000 non-refundable deposit to an escrow account that was included in other assets on our consolidated balance sheet at December 31, 2017. Transaction costs that were capitalized in connection with the acquisition of this property totaled $48,000, which are not included in the purchase price above.

	Asset	Date of		Purchase
Property	Type	Acquisition	Square Feet	Price (1)
				(in thousands)
1130 Howard Street, San Francisco, CA	Office	December 29, 2017	21,194	$	17,717

(1) Transaction costs that were capitalized and assumption of liabilities totaled $1,915,000, which are excluded from the purchase price above.

Schedule of the Fair Value of the Assets Acquired and Liabilities Assumed

The fair value of the net assets acquired for the aforementioned acquisitions during the years ended December 31, 2019, 2018 and 2017 are as follows:

	Year Ended December 31,
	2019		2018			2017
	(in thousands)
Land	$	—	$	52,199		$	8,290
Land improvements	—		756			—
Buildings and improvements	—		74,522			10,109
Tenant improvements	—		1,451			371
Acquired in-place leases (1)	—		7,003			1,184
Acquired above-market leases (2)	—		109			37
Acquired below-market leases (3)	—		(3,992		)	(360		)
Net assets acquired	$	—	$	132,048		$	19,631

(1) Acquired in-place leases have a weighted average amortization period of 3 years and 5 years, respectively, for the 2018 and 2017 acquisitions.

(2) Acquired above-market leases have a weighted average amortization period of 2 years and 7 years, respectively, for the 2018 and 2017 acquisitions.

(3) Acquired below-market leases have a weighted average amortization period of 3 years and 2 years, respectively, for the 2018 and 2017 acquisitions.