| Acquired operating properties from unrelated third parties |
During the year ended December 31, 2014, we acquired the five operating office properties, listed below, from unrelated third parties. Unless otherwise noted, we funded these acquisitions with proceeds from the Company’s public offerings of common stock and the Company's at-the-market stock offering program (see Note 11 “Stockholders’ Equity of the Company”), borrowings under the unsecured line of credit (see Note 8 “Secured and Unsecured Debt of the Operating Partnership”), disposition proceeds (see Note 4 “Dispositions and Real Estate Assets Held for Sale” for additional information”), the assumption of existing debt and/or the issuance of common units of the Operating Partnership.
| | | | | | | | | | | | | | | Property | | Date of Acquisition | | Number of Buildings | | Rentable Square Feet (unaudited) | | Occupancy as of December 31, 2015 (unaudited) | | Purchase Price (in millions) (1) | 2014 Acquisitions | | | | | | | | | | | 401 Terry Ave. N., Seattle, WA | | March 13, 2014 | | 1 | | 140,605 |
| | 100.0% | | $ | 106.1 |
| 1310, 1315, 1320-1324, 1325-1327 Chesapeake Terrace, Sunnyvale, CA (2) | | November 5, 2014 | | 4 | | 266,982 |
| | 100.0% | | 100.5 |
| Total (3) | | | | 5 | | 407,587 |
| | | | $ | 206.6 |
|
| | (1) | Excludes acquisition-related costs and non-lease related accrued liabilities assumed. Includes assumed unpaid leasing commissions and tenant improvements. |
| | (2) | As of December 31, 2014, these properties, together the “Chesapeake Commons” project, were temporarily being held in a separate VIE to facilitate potential Section 1031 Exchanges. During January 2015, the Company closed out the Section 1031 Exchange related to this VIE. (See Note 2 “Basis of Presentation and Significant Accounting Policies”). |
| | (3) | The results of operations for the properties acquired during 2014 contributed $7.7 million and $2.8 million to revenues and net income from continuing operations, respectively, for the year ended December 31, 2014. |
The related assets, liabilities and results of operations of the acquired properties are included in the consolidated financial statements as of the date of acquisition. Th following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the respective acquisition dates for our 2014 operating property acquisitions:
| | | | | Acquisitions | Total 2014 Acquisitions (1) | | | Assets | | Land and improvements | $ | 81,430 |
| Buildings and improvements (2) | 114,876 |
| Deferred leasing costs and acquisition-related intangible assets (3) | 17,259 |
| Total assets acquired | 213,565 |
| Liabilities | | Deferred revenue and acquisition-related intangible liabilities (4) | 6,990 |
| Accounts payable, accrued expenses and other liabilities | 2,029 |
| Total liabilities assumed | 9,019 |
| Net assets and liabilities acquired (5) | $ | 204,546 |
|
_______________ | | (1) | The purchase price of the two acquisitions completed during the year ended December 31, 2014 were individually less than 5% and in aggregate less than 10% of the Company’s total assets as of December 31, 2014. |
| | (2) | Represents buildings, building improvements and tenant improvements. |
| | (3) | Represents in-place leases (approximately $12.3 million with a weighted average amortization period of 7.0 years) and leasing commissions (approximately $4.9 million with a weighted average amortization period of 7.0 years). |
| | (4) | Represents below-market leases (approximately $7.0 million with a weighted average amortization period of 6.1 years). |
| | (5) | Reflects the purchase price net of assumed secured debt and other lease-related obligations. |
|