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Properties, net | 12 Months Ended
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Dec. 31, 2013
Real Estate [Abstract] |
Properties, net | Properties, net Operating properties, net consisted of the following (in thousands):
| December 31,
| 2013 |  | 2012
Land | $ | 430,472 |  |  | $ | 427,766 |
Buildings and improvements | 2,869,870 |  |  | 2,725,875 |
Less: accumulated depreciation | (597,649 | ) |  | (555,975 | )
Operating properties, net | $ | 2,702,693 |  |  | $ | 2,597,666 |
Projects we had in development or held for future development consisted of the following (in thousands):
| December 31,
| 2013 |  | 2012
Land | $ | 245,676 |  |  | $ | 236,324 |
Construction in progress, excluding land | 265,932 |  |  | 329,054 |
Projects in development or held for future development | $ | 511,608 |  |  | $ | 565,378 |
2013 Dispositions In April 2011, we completed a review of our portfolio and identified a number of properties that are no longer closely aligned with our strategy, and our Board of Trustees approved a plan by Management to dispose of some of these properties (the “Strategic Reallocation Plan”). In December 2011, we identified additional properties for disposal, and our Board of Trustees approved a plan by management to increase the scope of the Strategic Reallocation Plan to include the disposition of additional properties. We completed dispositions of the following properties in 2013 primarily in connection with the Strategic Reallocation Plan (dollars in thousands):
Project Name |  | Location |  | Date of Sale |  | Number of Buildings |  | Total Rentable Square Feet |  | Transaction Value |  | Gain on Disposition
920 Elkridge Landing Road |  | Linthicum, MD |  | 6/25/2013 |  | 1 |  |  | 103,000 |  |  | $ | 6,900 |  |  | $ | — |
4230 Forbes Boulevard |  | Lanham, MD |  | 12/11/2013 |  | 1 |  |  | 56,000 |  |  | 5,600 |  |  | 1,507 |
December 2013 Colorado Springs Portfolio Disposition |  | Colorado Springs, CO |  | 12/12/2013 |  | 15 |  |  | 1,165,000 |  |  | 133,925 |  |  | 1,164 |
December 2013 Portfolio Conveyance |  | Colorado Springs, CO and Linthicum, MD |  | 12/23/2013 |  | 14 |  |  | 1,021,000 |  |  | 146,876 |  |  | — |
|  |  |  |  |  | 31 |  |  | 2,345,000 |  |  | $ | 293,301 |  |  | $ | 2,671 |
Each of the above dispositions represents property sales except for the December 2013 Portfolio Conveyance, the disposition of which was completed in connection with a debt extinguishment, as described further below. We also had a disposition of a non-operating property in 2013 for an aggregate transaction value of $3.5 million. In addition to the gains on dispositions reflected above, we also recognized impairment losses on certain of these sales that are disclosed in Note 3. On December 23, 2013, the mortgage lender on a $146.5 million nonrecourse mortgage loan that was secured by the December 2013 Portfolio Conveyance accepted a deed in lieu of foreclosure on the properties. As a result, we transferred title to the properties to the mortgage lender and we were relieved of the debt obligation plus accrued interest. As of the transfer date, the property had an estimated fair value of $74 million. Upon completion of this transfer, we recognized a gain on extinguishment of debt of $67.8 million, representing the difference between the mortgage loan and interest payable extinguished over the carrying value of the property transferred as of the transfer date (which included the effect of previous impairment losses) and related closing costs. 2013 Construction Activities During 2013, we placed into service an aggregate of 812,000 square feet in eight newly constructed office properties located in the Baltimore/Washington Corridor, Northern Virginia and Huntsville. As of December 31, 2013, we had seven office properties under construction, or for which we were contractually committed to construct, that we estimate will total 1.0 million square feet upon completion, including three in Northern Virginia, two in the Baltimore/Washington Corridor, one in Huntsville and one in San Antonio. We also had redevelopment underway, or otherwise approved, for three office properties that we estimate will total 376,000 square feet upon completion, including two in Greater Philadelphia and one in the Baltimore/Washington Corridor. 2012 Dispositions We completed dispositions of the following properties in 2012 primarily in connection with the Strategic Reallocation Plan (dollars in thousands):
Project Name |  | Location |  | Date of Sale |  | Number of Buildings |  | Total Rentable Square Feet |  | Transaction Value |  | Gain on Disposition
White Marsh Portfolio Disposition |  | White Marsh, MD |  | 1/30/2012 |  | 5 |  |  | 163,000 |  |  | $ | 19,100 |  |  | $ | 2,445 |
1101 Sentry Gateway |  | San Antonio, TX |  | 1/31/2012 |  | 1 |  |  | 95,000 |  |  | 13,500 |  |  | 1,739 |
222 and 224 Schilling Circle |  | Hunt Valley, MD |  | 2/10/2012 |  | 2 |  |  | 56,000 |  |  | 4,400 |  |  | 102 |
15 and 45 West Gude Drive |  | Rockville, MD |  | 5/2/2012 |  | 2 |  |  | 231,000 |  |  | 49,107 |  |  | — |
11800 Tech Road |  | Silver Spring, MD |  | 6/14/2012 |  | 1 |  |  | 240,000 |  |  | 21,300 |  |  | — |
400 Professional Drive |  | Gaithersburg, MD |  | 7/2/2012 |  | 1 |  |  | 130,000 |  |  | 16,198 |  |  | — |
July 2012 Portfolio Disposition |  | Baltimore/Washington Corridor and Greater Baltimore |  | 7/24/2012 |  | 23 |  |  | 1,387,000 |  |  | 161,901 |  |  | 16,900 |
|  |  |  |  |  | 35 |  |  | 2,302,000 |  |  | $ | 285,506 |  |  | $ | 21,186 |
Each of the above dispositions represents property sales except for 400 Professional Drive, the disposition of which was completed in connection with a debt extinguishment, as described further below. We also had dispositions of non-operating properties in 2012 for aggregate transaction values totaling $28.1 million. In addition to the gains on dispositions reflected above, we also recognized impairment losses on certain of these sales that are disclosed in Note 3. On July 2, 2012, the mortgage lender on a $15 million nonrecourse mortgage loan that was secured by our 400 Professional Drive property accepted a deed in lieu of foreclosure on the property. As a result, we transferred title to the property to the mortgage lender and we were relieved of the debt obligation plus accrued interest. As of the transfer date, the property had an estimated fair value of $11 million. Upon completion of this transfer, we recognized a gain on extinguishment of debt of $3.7 million, representing the difference between the mortgage loan and interest payable extinguished over the carrying value of the property transferred as of the transfer date (which included the effect of previous impairment losses) and related closing costs. 2012 Acquisition On July 11, 2012, we acquired 13857 McLearen Road, a 202,000 square foot office property in Herndon, Virginia that was 100% leased, for $48.3 million. The table below sets forth the allocation of the acquisition costs of this property (in thousands):
Land, operating properties |  | $ | 3,507 |
Building and improvements |  | 30,177 |
Intangible assets on real estate acquisitions |  | 14,993 |
Total assets |  | 48,677 |
Below-market leases |  | (369 | )
Total acquisition cost |  | $ | 48,308 |
Intangible assets recorded in connection with the above acquisition included the following (dollars in thousands):
|  |  | Weighted Average Amortization Period (in Years)
Tenant relationship value | $ | 7,472 |  |  | 10
In-place lease value | 7,109 |  |  | 5
Above-market leases | 412 |  |  | 5
| $ | 14,993 |  |  | 7
We expensed $229,000 in operating property acquisition costs in 2012 that are included in business development expenses and land carry costs on our consolidated statements of operations. 2012 Construction Activities During 2012, we placed into service an aggregate of 371,000 square feet in four newly constructed office properties, including two properties in the Baltimore/Washington Corridor, one in Greater Baltimore and one in Northern Virginia.

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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 SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 6 -Subparagraph a -Article 5 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 28 -Article 12 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Subparagraph Schedule III -Article 5 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 10 -Subparagraph 4 -Article 9 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 11 -Article 9 + Details
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