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Real Estate and Lease Intangibles | 12 Months Ended
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Dec. 31, 2017
Real Estate [Abstract] |
Real Estate and Lease Intangibles | 4. Real Estate and Lease Intangibles The following table summarizes the carrying amounts for the Company’s investment in real estate (at cost) as of December 31, 2017 and 2016 (amounts in thousands):
|  | 2017 |  |  | 2016 |
Land |  | $ | 5,996,024 |  |  | $ | 5,899,862 |
Depreciable property: |  |  |  |  |  |  |  |
Buildings and improvements |  |  | 17,743,042 |  |  |  | 16,913,430 |
Furniture, fixtures and equipment |  |  | 1,548,961 |  |  |  | 1,346,300 |
In-Place lease intangibles |  |  | 476,359 |  |  |  | 470,849 |
Projects under development: |  |  |  |  |  |  |  |
Land |  |  | 43,226 |  |  |  | 115,876 |
Construction-in-progress |  |  | 120,321 |  |  |  | 521,292 |
Land held for development: |  |  |  |  |  |  |  |
Land |  |  | 62,538 |  |  |  | 84,440 |
Construction-in-progress |  |  | 36,425 |  |  |  | 34,376 |
Investment in real estate |  |  | 26,026,896 |  |  |  | 25,386,425 |
Accumulated depreciation |  |  | (6,040,378 | ) |  |  | (5,360,389 | )
Investment in real estate, net |  | $ | 19,986,518 |  |  | $ | 20,026,036 |
The following table summarizes the carrying amounts for the Company’s above and below market ground and retail lease intangibles as of December 31, 2017 and 2016 (amounts in thousands):
Description |  | Balance Sheet Location |  | 2017 |  |  | 2016 |
Assets |  |  |  |  |  |  |  |  |  |
Ground lease intangibles – below market |  | Other Assets |  | $ | 191,918 |  |  | $ | 178,251 |
Retail lease intangibles – above market |  | Other Assets |  |  | 1,260 |  |  |  | 1,260 |
Lease intangible assets |  |  |  |  | 193,178 |  |  |  | 179,511 |
Accumulated amortization |  |  |  |  | (22,434 | ) |  |  | (17,972 | )
Lease intangible assets, net |  |  |  | $ | 170,744 |  |  | $ | 161,539 |
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 |  |  |  |  | (5,143 | ) |  |  | (4,509 | )
Lease intangible liabilities, net |  |  |  | $ | 2,527 |  |  | $ | 3,161 |
The following table provides a summary of the effect of the amortization for above and below market ground and retail lease intangibles on the Company’s accompanying consolidated statements of operations and comprehensive income for the years ended December 31, 2017, 2016 and 2015 (amounts in thousands):
Description |  | Income Statement Location |  | 2017 |  |  | 2016 |  |  | 2015 |
Ground lease intangible amortization |  | Property and Maintenance |  | $ | (4,369 | ) |  | $ | (4,321 | ) |  | $ | (4,321 | )
Retail lease intangible amortization |  | Rental Income |  |  | 541 |  |  |  | 895 |  |  |  | 939 |
Total amortization of above/below market lease intangibles |  |  |  | $ | (3,828 | ) |  | $ | (3,426 | ) |  | $ | (3,382 | )
The following table provides a summary of the aggregate amortization for above and below market ground and retail lease intangibles for each of the next five years (amounts in thousands):
|  | 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |  |
Ground lease intangibles |  | $ | (4,463 | ) |  | $ | (4,463 | ) |  | $ | (4,463 | ) |  | $ | (4,463 | ) |  | $ | (4,463 | ) |
Retail lease intangibles |  | 71 |  |  |  | 71 |  |  |  | 71 |  |  |  | 71 |  |  |  | 27 |  |
Total |  | $ | (4,392 | ) |  | $ | (4,392 | ) |  | $ | (4,392 | ) |  | $ | (4,392 | ) |  | $ | (4,436 | ) |
Acquisitions and Dispositions During the year ended December 31, 2017, 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 |  |  |  | 947 |  |  | $ | 468,050 |
Total |  |  | 4 |  |  |  | 947 |  |  | $ | 468,050 |
| (1) | Purchase price includes an allocation of approximately $68.3 million to land, $386.2 million to depreciable property (inclusive of capitalized closing costs) and $13.7 million to ground lease intangible (included in other assets). For one of the property acquisitions, the Company owns the building and improvements and leases the land underlying the improvements under a long-term ground lease that expires in 2113. This property is consolidated and reflected as a real estate asset while the ground lease is accounted for as an operating lease.
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, 2017, the Company disposed of the following to unaffiliated parties (sales price in thousands):
|  | Properties |  |  | Apartment Units |  |  | Sales Price |
Rental Properties – Consolidated |  |  | 5 |  |  |  | 1,194 |  |  | $ | 354,950 |
Land Parcels (one) |  |  | — |  |  |  | — |  |  |  | 33,450 |
Total |  |  | 5 |  |  |  | 1,194 |  |  | $ | 388,400 |
The Company recognized a net gain on sales of real estate properties of approximately $157.1 million and a net gain on sales of land parcels of approximately $19.2 million on the above sales. 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 (included in income (loss) from investments in unconsolidated entities in the consolidated statements of operations and comprehensive income) of approximately $8.9 million on the above sales. Starwood Disposition 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”). The Starwood Portfolio included substantially all of the assets in the Company’s South Florida and Denver markets and certain suburban assets in the Washington D.C., Seattle and Los Angeles markets. On January 26 and 27, 2016, the Company closed on the sale of the entire portfolio described above. The following table provides the operating segments/locations of the properties and apartment units sold in the Starwood Transaction. The sale of these properties represents the continuation of the Company’s long-term strategy of investing in the urban and high-density suburban areas of its coastal gateway 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. Impairment During the year ended December 31, 2017, the Company recorded an approximate $1.7 million non-cash asset impairment charge on a land parcel currently being marketed for sale, which is included in land held for development on the consolidated balance sheets and included in the non-same store/other segment discussed in Note 17. The charge was the result of an analysis of the parcel’s estimated fair value (determined using internally developed models based on market assumptions and potential sales data from the marketing process) compared to its current capitalized carrying value. The parcel now has a carrying value of $0.2 million. 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 sheets 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 sheets. 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 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 + Details
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