XML 34 R12.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Real Estate Assets | 12 Months Ended
--- | ---
Dec. 31, 2023
Real Estate [Abstract] |
Real Estate Assets | Real Estate Assets Acquisitions During 2023, we acquired land in Raleigh for a purchase price, including capitalized acquisition costs, of $2.7 million. During 2022, we acquired SIX50 at Legacy Union, a 367,000 square foot trophy office building in Charlotte’s Uptown CBD submarket, for a net purchase price of $198.0 million. The assets acquired and liabilities assumed were recorded at relative fair value as determined by management, with the assistance of third party specialists, based on information available at the acquisition date and on current assumptions as to future operations. During 2022, we also acquired land in Charlotte for an aggregate purchase price, including capitalized acquisition costs, of $27.0 million. During 2021, we acquired a portfolio of real estate assets from PAC. The portfolio consists of the following assets:
Asset |  | Market |  | Submarket/BBD |  | Square Footage
150 Fayetteville |  | Raleigh |  | CBD |  | 560,000
CAPTRUST Towers |  | Raleigh |  | North Hills |  | 300,000
Capitol Towers |  | Charlotte |  | SouthPark |  | 479,000
Morrocroft Centre |  | Charlotte |  | SouthPark |  | 291,000
Galleria 75 Redevelopment Site |  | Atlanta |  | Cumberland/Galleria |  |
Our total purchase price, net of closing credits and cash acquired, was $653.6 million, including $4.5 million of capitalized acquisition costs. The acquisition included the assumption of four secured loans (see Note 6). The assets acquired and liabilities assumed were recorded at relative fair value as determined by management, with the assistance of third party specialists, based on information available at the acquisition date and on current assumptions as to future operations. The following table sets forth a summary of the relative fair value of the material assets acquired and liabilities assumed relating to this acquisition:
|  | Amount Recorded at Acquisition
Real estate assets (1) |  | $ | 593,039 |
Acquisition-related intangible assets (in deferred financing and leasing costs) (1) |  | $ | 61,126 |
Right of use asset (in prepaid expenses and other assets) (1) |  | $ | 8,440 |
Mortgages and notes payable |  | $ | (403,000) |
Debt issuance costs (in mortgages and notes payable) (1) |  | $ | 3,473 |
Acquisition-related intangible liabilities (in accounts payable, accrued expenses and other liabilities) (1) |  | $ | (7,174) |
Lease liability (in accounts payable, accrued expenses and other liabilities) (1) |  | $ | (5,310) |
__________ (1)Included in purchase price. During 2021, we acquired various development land parcels in Nashville for an aggregate purchase price, including capitalized acquisition costs, of $74.1 million. The $16.0 million purchase price for one of the acquired parcels was fully paid in or prior to the second quarter of 2023. Duri ng 2021, we also acquired our joint venture partner’s 75.0% interest in our Highwoods DLF Forum, LLC joint venture (the “Forum”), which owned five buildings in Raleigh encompassing 636,000 rentable square feet, for a purchase price of $131.3 million. We previously accounted for our 25.0% interest in this joint venture using the equity method of accounting. The assets and liabilities of the joint venture are now wholly owned and we have determined the acquisition constitutes an asset purchase. As such, because the Forum is not a variable interest entity, we allocated our previously held equity interest at historical cost along with the consideration paid and acquisition costs to the assets acquired and liabilities assumed. The assets acquired and liabilities assumed were recorded at relative fair value as determined by management, with the assistance of third party specialists, based on information available at the acquisition date and on current assumptions as to future operations. Dispositions During 2023, we sold a total of four buildings and various land parcels in Nashville, Raleigh and Tampa for an aggregate sales price of $103.8 million and recorded aggregate gains on disposition of property of $47.8 million. During 2022, we sold a total of five office buildings and various land parcels in Atlanta, Greensboro, Richmond and Tampa for an aggregate sales price of $133.5 million (before closing credits to buyers of $1.1 million) and recorded aggregate gains on disposition of property of $63.5 million. During 2021, we sold a total of 13 office buildings and various land parcels in Atlanta, Memphis, Raleigh, Richmond and Tampa for an aggregate sales price of $384.6 million (before closing credits to buyers of $6.9 million) and recorded aggregate gains on disposition of property of $172.8 million. Seller Financed Transaction During 2023, we sold a land parcel in Tampa for an aggregate sales price of $21.0 million. In connection with this disposition, we received cash of $2.0 million and provided $19.0 million of non-recourse seller financing in the form of a two-year, interest-only first mortgage that bears interest at SOFR plus 100 basis points. We have deemed repayment of the mortgage to be not probable primarily because the seller financing represents a significant portion of the aggregate sales price and, since the seller financing is non-recourse, our only remedy in the event of a default would be to foreclose on the asset. As a result, the disposition does not meet the contract criteria to be recognized as a sale. Until such time as the contract criteria are met, we will continue to account for the land parcel as land held for development on our Consolidated Balance Sheets, and the mortgage associated with the seller financing will not be recorded on our Consolidated Balance Sheets. The cash received at closing is recorded as a nonrefundable deposit in accounts payable, accrued expenses and other liabilities on our Consolidated Balance Sheets as of December 31, 2023. Impairments We recorded the following impairment charges in 2022: •During the third quarter of 2022, we recorded an impairment charge of $1.5 million to lower the carrying amount of a land parcel to its estimated fair value less costs to sell; and •During the second quarter of 2022, we recorded an impairment charge of $35.0 million to lower the carrying amount of EQT Plaza (including accrued straight-line rents receivable and deferred leasing costs) to its estimated fair value less costs to sell. EQT Plaza is a 616,000 square foot office building located in the heart of Pittsburgh’s CBD. EQT Corporation’s lease of 317,000 square feet at EQT Plaza is scheduled to expire in September 2024.

X
- References No definition available. + Details
Name: | us-gaap_RealEstateAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481990/310-10-45-3 + Details
Name: | us-gaap_RealEstateOwnedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration