Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Environmental Matters

Substantially all of the Company's properties and land were subject to Phase I Environmental Assessments and when appropriate Phase II Environmental Assessments (collectively, the “Environmental Assessments”) obtained in contemplation of their acquisition by the Company or obtained by predecessor owners prior to the sale of the property or land to the Company. The Environmental Assessments did not reveal, nor is the Company aware of, any non-compliance with environmental laws, environmental liability or other environmental claim that the Company believes would likely have a material adverse effect on the Company.

Legal Matters

From time to time, the Company is a party to a variety of legal proceedings, claims and assessments arising in the normal course of business. As of June 30, 2019 there were no legal proceedings, claims or assessments that the Company expects to have a material adverse effect on the Company. However, see Note 13 for discussion of Comcast Technology Center.

Other

As of June 30, 2019, the Company had letter of credit obligations of $8.3 million.

As of June 30, 2019, the Company had 24 buildings under development. These buildings are expected to contain, when completed, a total of 6.8 million square feet of leasable space and represent an anticipated aggregate investment of $584.3 million. At June 30, 2019, development in progress totaled $416.0 million. In addition, as of June 30, 2019, the Company had invested $18.0 million in deferred leasing costs related to these development buildings.

The Company is currently developing three properties for its unconsolidated joint ventures which represent an anticipated aggregate investment by the joint ventures of $247.8 million.

As of June 30, 2019, the Company was committed to the following:


•	$12.0 million in improvements on certain buildings and land parcels;


•	$44.5 million in future land acquisitions which it expects to complete during the year ending December 31, 2019;


•	up to $16.9 million of tenant improvements not yet completed; and


•	infrastructure improvements of approximately $1.0 million.

The Company maintains cash and cash equivalents at financial institutions. The combined account balances at each institution typically exceed FDIC insurance coverage and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes the risk is not significant.

Two unconsolidated joint ventures in which the Company holds an interest have engaged the Company as the developer of the Comcast Technology Center (the “Project") pursuant to a Development Agreement by which the Company agrees, in consideration for a development fee, to be responsible for all aspects of the development of the Project and to guarantee the timely lien-free completion of construction of the Project as well as the payment, subject to certain exceptions, of any cost overruns incurred in the development of the Project. See Note 13 for details on the commitments and contingencies associated with the Project.