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Acquisitions
 12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
Operating Property Acquisitions

During the year ended December 31, 2021, we acquired the operating property listed below from an unrelated third party. We did not acquire any operating properties during the year ended December 31, 2020.

PropertyDate of AcquisitionNumber of BuildingsRentable Square Feet (unaudited)
Purchase Price (in millions) (1)
2021 Acquisition
2001 West 8th Avenue, Seattle, WA (2)
September 17, 20211539,226$490.0 
________________________ 
(1)Excludes acquisition-related costs.
(2)The results of operations for the property acquired during 2021 contributed $9.9 million to revenue and a net loss of $3.1 million for the year ended December 31, 2021 primarily due to the amortization of in-place leases acquired.

The related assets, liabilities and results of operations of the acquired property are included in the consolidated financial statements as of the date of acquisition. The following table summarizes the estimated relative fair values of the assets acquired and liabilities assumed at the acquisition date for our 2021 operating property acquisition:
Total 2021 Operating Property Acquisition
Assets
Land and improvements$84,033 
Buildings and improvements (1)
370,967 
Deferred leasing costs and acquisition-related intangible assets (2)
49,882 
Total assets acquired$504,882 
Liabilities
Acquisition-related intangible liabilities (3)
$15,112 
Total liabilities assumed$15,112 
Net assets acquired$489,770 
________________________ 
(1)Represents buildings, building improvements and tenant improvements.
(2)Represents in-place leases (approximately $46.5 million with a weighted average amortization period of 2.2 years), leasing commissions (approximately $3.1 million with a weighted average amortization period of 3.1 years) and an above-market lease (approximately $0.3 million with a weighted average amortization period of 8.4 years).
(3)Represents below-market leases (approximately $15.1 million with a weighted average amortization period of 2.4 years).

In addition to the operating property acquisition listed above, during 2021, we completed the acquisition of the land that was subject to a ground lease underlying our operating property at 601 108th Avenue NE in Bellevue, Washington for $47.0 million.

The 2021 acquisitions were funded with proceeds from the operating property disposition completed during the three months ended March 31, 2021 that were temporarily being held by a qualified intermediary, at our discretion, for the purpose of facilitating a Section 1031 Exchange.

Development Project Acquisitions

During the year ended December 31, 2021, we acquired the following development properties in two transactions from unrelated third parties. The acquisitions were funded with the proceeds from the operating property disposition completed during the three months ended March 31, 2021 that were temporarily being held by a qualified intermediary, at our discretion, for the purpose of facilitating a Section 1031 Exchange. We did not acquire any development sites during the year ended December 31, 2020.
ProjectDate of AcquisitionCity/Submarket
Purchase Price (in millions) (1)
2021 Acquisitions
2045 Pacific Highway, San Diego, CA (2)
June 22, 2021Little Italy$42.0 
200 W. 6th Street, Austin, TX (3)
June 23, 2021Austin CBD580.2 
Total 2021 Acquisitions$622.2 
_______________________ 
(1)Excludes acquisition-related costs.
(2)This property was added to our future development pipeline. In connection with this acquisition, we also recorded $5.2 million of environmental remediation liabilities as of the date of acquisition, which is not included in the purchase price above.
(3)This property was added to the tenant improvement phase as it was acquired upon completion of core/shell. In connection with this acquisition, we assumed the underlying ground lease for the property and recorded a right of use ground lease asset and ground lease liability of $46.4 million. We evaluated the ground lease and concluded it met the criteria to be classified as an operating lease. The discount rate used in determining the present value of the minimum future lease payments was 3.97%. Refer to Note 18 “Commitments and Contingencies” for further discussion of the Company’s ground lease obligations.

Acquisition Costs
During the years ended December 31, 2021, 2020, and 2019, we capitalized $1.3 million, $0.3 million, and $1.6 million, respectively, of acquisition costs.