RECENT TRANSACTIONS

9 Months Ended

Sep. 30, 2023

Real Estate Held for Sale/Discontinued Operations/Dispositions

The Company has discontinued operations related to its former New Jersey office and hotel portfolio (collectively, the “Office Portfolio”) which represented a strategic shift in the Company’s operations beginning in 2019. During the third quarter of 2023, the Company identified one additional land parcel as discontinued operations. See Note 7: Discontinued Operations.

As of September 30, 2023, the Company included as held for sale one office property totaling approximately 0.4 million square feet and several developable land parcels, which are located in Jersey City, Holmdel and Parsippany, New Jersey.

During the nine months ended September 30, 2023, a land parcel that was previously identified as held for sale was reclassified as held and used.

As a result of recent sales contracts in place, the Company determined that the carrying value of one office and three land parcels held for sale were not expected to be recovered from estimated net sales proceeds, and accordingly, during the three and nine months ended September 30, 2023, recognized impairment of zero and $7.0 million, respectively.

As of September 30, 2023, the total estimated sales proceeds of real estate held for sale, net of expected selling costs, are expected to be approximately $145.7 million. Subsequently, in October 2023, the Company completed the sale of one office property and two parcels of land for a gross sales price of $89.0 million.

The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands) as of September 30, 2023:


	Office Portfolio		Other Properties Held for Sale		Total
Land	$	4,336	$	71,876	$	76,212
Building & Other	25,949		18,243		44,192
Less: Accumulated depreciation	(12,165)		—		(12,165)
Less: Cumulative unrealized losses on property held for sale	(4,440)		(4,616)		(9,056)
Real estate held for sale, net	$	13,680	$	85,503	$	99,183


Other assets and liabilities	Office Portfolio		Other Properties Held for Sale		Total
Unbilled rents receivable, net (a)	$	37	$	—	$	37
Deferred charges, net (a)	43		—		43


Accounts payable, accrued expenses and other liabilities	(854)		(17)		(871)

(a)Expected to be removed with the completion of the sales.

The Company disposed of the following rental properties during the nine months ended September 30, 2023 (dollars in thousands):


Disposition Date	Property	Location	# of Bldgs.	Rentable Square Feet	Property Type	Net Sales Proceeds			Net Carrying Value		Discontinued Operations Realized Gains (Losses)/ Unrealized Losses, net
02/10/23	XS Hotels	Weehawken, New Jersey	2	—	Hotel	$	93,358	(a)	$	92,578	$	780
04/04/23	Harborside 1, 2 and 3	Jersey City, New Jersey	3	1,886,800	Office	362,446			362,304		142
09/13/23	Harborside 6	Jersey City, New Jersey	1	231,856	Office	44,145			43,722		423

Unrealized gains (losses) on real estate held for sale											(3,631)
Totals			6	2,118,656		$	499,949		$	498,604	$	(2,286)

(a)Included the proceeds of $84 million used to repay the mortgage loan encumbering the property at closing.

The Company disposed of the following developable land holding during the nine months ended September 30, 2023 (dollars in thousands):


Disposition Date	Property	Location	Net Sales Proceeds			Net Carrying Value		Realized Gains (Losses)/ Unrealized Losses, net
03/17/23	Columbia-Honeywell	Morris Township, New Jersey	$	8,214	(a)	$	8,236	$	(22)




Totals			$	8,214		$	8,236	$	(22)

(a) Included deposits totaling $1.1 million received by the Company in December 2022 and January 2023.