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Real Estate | 12 Months Ended
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Dec. 31, 2016
Real Estate [Abstract] |
Real Estate Disclosure [Text Block] |
4. | Real Estate, Real Estate Held for Sale and Lease Intangibles
The following table summarizes the carrying amounts for the Company’s investment in real estate (at cost) as of December 31, 2016 and 2015 (amounts in thousands):
|  | 2016 |  | 2015
Land |  | $ | 5,899,862 |  |  | $ | 5,864,046 |
Depreciable property: |  |  |  |  |  |
Buildings and improvements |  | 16,913,430 |  |  | 16,346,829 |
Furniture, fixtures and equipment |  | 1,346,300 |  |  | 1,207,098 |
In-Place lease intangibles |  | 470,849 |  |  | 483,160 |
Projects under development: |  |  |  |  |  |
Land |  | 115,876 |  |  | 284,995 |
Construction-in-progress |  | 521,292 |  |  | 837,381 |
Land held for development: |  |  |  |  |  |
Land |  | 84,440 |  |  | 120,007 |
Construction-in-progress |  | 34,376 |  |  | 38,836 |
Investment in real estate |  | 25,386,425 |  |  | 25,182,352 |
Accumulated depreciation |  | (5,360,389 | ) |  | (4,905,406 | )
Investment in real estate, net |  | $ | 20,026,036 |  |  | $ | 20,276,946 |
The following table summarizes the carrying amounts for the Company's above and below market ground and retail lease intangibles as of December 31, 2016 and 2015 (amounts in thousands):
Description |  | Balance Sheet Location |  | 2016 |  | 2015
Assets |  |  |  |  |  |
Ground lease intangibles – below market |  | Other Assets |  | $ | 178,251 |  |  | $ | 178,251 |
Retail lease intangibles – above market |  | Other Assets |  | 1,260 |  |  | 1,260 |
Lease intangible assets |  |  |  | 179,511 |  |  | 179,511 |
Accumulated amortization |  |  |  | (17,972 | ) |  | (13,451 | )
Lease intangible assets, net |  |  |  | $ | 161,539 |  |  | $ | 166,060 |
Liabilities |  |  |  |  |  |
Ground lease intangibles – above market |  | Other Liabilities |  | $ | 2,400 |  |  | $ | 2,400 |
Retail lease intangibles – below market |  | Other Liabilities |  | 5,270 |  |  | 5,270 |
Lease intangible liabilities |  |  |  | 7,670 |  |  | 7,670 |
Accumulated amortization |  |  |  | (4,509 | ) |  | (3,414 | )
Lease intangible liabilities, net |  |  |  | $ | 3,161 |  |  | $ | 4,256 |
During the years ended December 31, 2016, 2015 and 2014, the Company amortized approximately $4.3 million in each year of above and below market ground lease intangibles which is included (net increase) in property and maintenance expense in the accompanying consolidated statements of operations and comprehensive income. During the years ended December 31, 2016, 2015 and 2014, the Company amortized approximately $0.9 million, $0.9 million and $1.1 million, respectively, of above and below market retail lease intangibles which is included (net increase) in rental income in the accompanying consolidated statements of operations and comprehensive income. The following table provides a summary of the aggregate amortization expense for above and below market ground lease intangibles and retail lease intangibles for each of the next five years (amounts in thousands):
|  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021
Ground lease intangibles |  | $ | 4,321 |  |  | $ | 4,321 |  |  | $ | 4,321 |  |  | $ | 4,321 |  |  | $ | 4,321 |
Retail lease intangibles |  | (540 | ) |  | (71 | ) |  | (71 | ) |  | (71 | ) |  | (67 | )
Total |  | $ | 3,781 |  |  | $ | 4,250 |  |  | $ | 4,250 |  |  | $ | 4,250 |  |  | $ | 4,254 |
Acquisitions and Dispositions During the year ended December 31, 2016, the Company acquired the entire equity interest in the following from unaffiliated parties (purchase price in thousands):
|  | Properties |  | Apartment Units |  | Purchase Price
Rental Properties – Consolidated (1) |  | 4 |  |  | 573 |  |  | $ | 249,334 |
Total |  | 4 |  |  | 573 |  |  | $ | 249,334 |
(1) | Purchase price includes an allocation of approximately $98.0 million to land and $151.3 million to depreciable property.
During the year ended December 31, 2015, the Company acquired the entire equity interest in the following from unaffiliated parties (purchase price in thousands):
|  | Properties |  | Apartment Units |  | Purchase Price
Rental Properties – Consolidated (1) |  | 4 |  |  | 625 |  |  | $ | 296,037 |
Land Parcels (2) |  | — |  |  | — |  |  | 27,800 |
Total |  | 4 |  |  | 625 |  |  | $ | 323,837 |
(1) | Purchase price includes an allocation of approximately $44.7 million to land and $251.3 million to depreciable property.
(2) | The Company acquired three contiguous land parcels in San Francisco during 2015 which will be combined for future development.
During the year ended December 31, 2016, the Company disposed of the following to unaffiliated parties (sales price in thousands):
|  | Properties |  | Apartment Units |  | Sales Price
Consolidated: |  |  |  |  |  |
Rental Properties (1) |  | 98 |  |  | 29,440 |  |  | $ | 6,811,503 |
Land Parcels |  | — |  |  | — |  |  | 57,455 |
Unconsolidated: |  |  |  |  |  |
Rental Properties (2) |  | 1 |  |  | 336 |  |  | 74,500 |
Total |  | 99 |  |  | 29,776 |  |  | $ | 6,943,458 |
(1) | Includes the Starwood Portfolio sale (see further discussion below) representing 72 operating properties consisting of 23,262 apartment units for $5.365 billion.
(2) The Company owned a 20% interest in this unconsolidated rental property. Sale price listed is the gross sale price. The Company's share of the net sales proceeds approximated $12.4 million. The Company recognized a net gain on sales of real estate properties of approximately $4.0 billion (inclusive of $3.2 billion on the Starwood Portfolio sale), a net gain on sales of land parcels of approximately $15.7 million and a net gain on sales of unconsolidated entities of approximately $8.9 million on the above sales. During the year ended December 31, 2015, the Company disposed of the following to unaffiliated parties (sales price in thousands):
|  | Properties |  | Apartment Units |  | Sales Price
Consolidated: |  |  |  |  |  |
Rental Properties (1) |  | 8 |  |  | 1,857 |  |  | $ | 513,312 |
Total |  | 8 |  |  | 1,857 |  |  | $ | 513,312 |
(1) | Includes a 193,230 square foot medical office building adjacent to our Longfellow Place property in Boston with a sales price of approximately $123.3 million which is not included in the Company's property and apartment unit counts.
The Company recognized a net gain on sales of real estate properties of approximately $335.1 million on the above sales. Starwood Disposition Following the approval by the Company's Board of Trustees, the Company executed an agreement with controlled affiliates of Starwood Capital Group ("Starwood") on October 23, 2015 to sell a portfolio of 72 operating properties consisting of 23,262 apartment units located in five markets across the United States for $5.365 billion (the "Starwood Transaction" or "Starwood Portfolio"). As of December 31, 2015, Starwood had deposited $250.0 million in cash into escrow as earnest money, which was non-refundable unless the Company defaulted on the sales agreement. On January 26 and 27, 2016, the Company closed on the sale of the entire portfolio described above. As a result, the Starwood Transaction met the held for sale criteria at December 31, 2015. In accordance with this classification, the Company ceased depreciation on all assets in the Starwood Portfolio as of November 1, 2015 and the following assets were classified as held for sale in the accompanying consolidated balance sheets at December 31, 2015 (amounts in thousands):
|  | December 31, 2015
Land |  | $ | 602,737 |
Depreciable property: |  |
Buildings and improvements |  | 2,386,489 |
Furniture, fixtures and equipment |  | 335,565 |
In-Place lease intangibles |  | 35,554 |
Real estate held for sale before accumulated depreciation |  | 3,360,345 |
Accumulated depreciation |  | (1,179,210 | )
Real estate held for sale |  | $ | 2,181,135 |
The following table provides the operating segments/locations of the properties and apartment units sold in the Starwood Transaction, which represents substantially all of the assets in the Company's South Florida and Denver markets and certain assets in the Washington D.C., Seattle and Los Angeles markets. The sale of these properties represents the continuation of the Company's long-term strategy of investing in six core coastal markets. See Note 11 for further discussion.
Markets/Metro Areas |  | Properties |  | Apartment Units
South Florida |  | 33 |  |  | 10,742 |
Denver |  | 18 |  |  | 6,635 |
Washington D.C. |  | 10 |  |  | 3,020 |
Seattle |  | 8 |  |  | 1,721 |
Los Angeles |  | 3 |  |  | 1,144 |
Total |  | 72 |  |  | 23,262 |
The Company used proceeds from the Starwood Transaction and other 2016 sales discussed above to pay special dividends of $8.00 per share/unit (approximately $3.0 billion) on March 10, 2016 and $3.00 per share/unit (approximately $1.1 billion) on October 14, 2016. The Company used the majority of the remaining proceeds to reduce aggregate indebtedness in order to make the transaction leverage neutral. See Note 8 for further discussion. Other In December 2011, the Company and Toll Brothers (NYSE: TOL) jointly acquired a vacant land parcel at 400 Park Avenue South in New York City. The Company's and Toll Brothers' allocated portions of the purchase price were approximately $76.1 million and $57.9 million, respectively. The acquisition was financed through contributions by the Company and Toll Brothers of approximately $102.5 million and $75.7 million, respectively, which included the land purchase noted above, restricted deposits and taxes and fees. Until the core and shell of the building were complete, the building and land were owned jointly and were required to be consolidated on the Company's balance sheet as the Company was the managing member and Toll Brothers did not have substantive kick-out or participating rights. In July 2015, the Company recorded the master condominium declaration for this development project and as a result, the Toll Brothers’ portion of the property was deconsolidated from the Company's balance sheet. The Company now solely owns the rental portion of the building (floors 2-22) and the ground floor retail and Toll Brothers solely owns the for sale portion of the building (floors 23-40). The joint venture no longer owns any real property. In conjunction with this transaction, the Company reduced investment in real estate by $116.7 million, noncontrolling interests in partially owned properties by $117.3 million and accrued retainage by $1.1 million and increased other liabilities by $1.7 million (to account for Toll Brothers' restricted cash still held by the Company). The deconsolidation of the Toll Brothers' portion of the project had no impact on the consolidated results of operations and comprehensive income.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 210 -Section S99 -Paragraph 3 -Subparagraph (SX 210.6-06(1)) -URI http://asc.fasb.org/extlink&oid=6488278&loc=d3e604059-122996 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(1)(d)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule III)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -SubTopic 360 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-28) -URI http://asc.fasb.org/extlink&oid=6590653&loc=d3e638233-123024 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(10)(4)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 235 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-24) -URI http://asc.fasb.org/extlink&oid=34714203&loc=d3e608456-123001 + Details
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