Investment in Real Estate (Tables)

12 Months Ended

Dec. 31, 2014

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Real Estate Investment Property

A summary of the activity of our investment in real estate including investment in real estate held for sale (First Financial, Tierrasanta and City Plaza) is as follows:



	Year Ended December 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012
Investment in real estate
Beginning balance	$	2,035,330		$	1,475,955		$	1,060,504
Acquisitions	114,008			538,322			390,370
Improvements, capitalized costs	128,018			89,707			27,901
Disposal	(37,615		)	(9,638		)	(2,820		)
Cost of property sold	—			(59,016		)	—
Ending Balance	$	2,239,741		$	2,035,330		$	1,475,955
Reclassification to assets associated with real estate held for sale	(68,446		)	(82,305		)	—
Total Investment in real estate	$	2,171,295		$	1,953,025		$	1,475,955

Accumulated depreciation
Beginning balance	$	(116,342	)	$	(85,184	)	$	(53,329	)
Additions	(50,044		)	(41,454		)	(34,675		)
Deletions	23,825			10,296			2,820
Ending Balance	$	(142,561	)	$	(116,342	)	$	(85,184	)
Reclassification to assets associated with real estate held for sale	7,904			7,931			—
Total Accumulated depreciation	$	(134,657	)	$	(108,411	)	$	(85,184	)

Schedule of Business Acquisitions, by Acquisition

During 2014, we acquired the following properties: Merrill Place, 3402 Pico Blvd., and 12655 Jefferson. The results of operations for each of these acquisitions are included in our consolidated statements of operations from the date of acquisition. The following table represents our purchase price accounting for each of these acquisitions:



	Merrill Place			3402 Pico Blvd.		12655 Jefferson
Date of Acquisition	February 12, 2014			February 28, 2014		October 17, 2014		Total
Consideration paid
Cash consideration	$	57,034		$	18,546	$	38,000	$	113,580
Total consideration	$	57,034		$	18,546	$	38,000	$	113,580
Allocation of consideration paid
Investment in real estate, net	$	57,508		$	18,500	$	38,000	$	114,008
Above-market leases	173			—		—		173
Deferred leasing costs and lease intangibles, net	3,163			—		—		3,163
Below-market leases	(3,315		)	—		—		(3,315		)
Other (liabilities) asset assumed, net	(495		)	46		—		(449		)
Total consideration paid	$	57,034		$	18,546	$	38,000	$	113,580

During 2013, we acquired the following properties: 3401 Exposition, Pinnacle II, the Seattle Portfolio, and 1861 Bundy. The results of operations for each of these acquisitions are included in our consolidated statements of operations from the date of acquisition. The following table represents our purchase price accounting for each of these acquisitions:



	3401 Exposition		Pinnacle II			Seattle Portfolio			1861 Bundy
Date of Acquisition	May 22, 2013		June 14, 2013			July 31, 2013			September 26, 2013		Total
Consideration paid
Cash consideration	$	8,489	$	1,505		$	368,389		$	11,500	$	389,883
Notes Receivable	4,000		—			—			—		4,000
Debt Assumed	13,233		89,066			—			—		102,299
Non-controlling interest in consolidated real estate entity	—		45,704			—			—		45,704
Total consideration	$	25,722	$	136,275		$	368,389		$	11,500	$	541,886
Allocation of consideration paid
Investment in real estate, net	$	25,439	$	134,289		$	367,094		$	11,500	$	538,322
Deferred leasing costs and lease intangibles, net	—		12,637			21,619			—		34,256
Fair market unfavorable debt value	—		(5,820		)	—			—		(5,820		)
Below-market leases	—		(7,783		)	(14,666		)	—		(22,449		)
Other (liabilities) asset assumed, net	283		2,952			(5,658		)	—		(2,423		)
Total consideration paid	$	25,722	$	136,275		$	368,389		$	11,500	$	541,886

During 2012, we acquired the following properties: 10900 Washington, 901 Market Street, Element LA (Olympic Bundy), 1455 Gordon Street and Pinnacle I. The results of operations for each of these acquisitions are included in our consolidated statements of operations from the date of acquisition. The following table represents our purchase price accounting for each of these acquisitions:



	10900 Washington		901 Market			Element LA			1455 Gordon Street			Pinnacle I
Date of Acquisition	April 5, 2012		June 1, 2012			September 5, 2012			September 21, 2012			November 8, 2012			Total
Consideration paid
Cash consideration	$	2,605	$	90,871		$	88,436		$	2,385		$	208,023		$	392,320
Non-controlling interest in consolidated real estate entity	—		—			—			—			1,481			1,481
Total consideration	$	2,605	$	90,871		$	88,436		$	2,385		$	209,504		$	393,801
Allocation of consideration paid
Investment in real estate, net	$	2,600	$	97,187		$	88,024		$	2,384		$	200,175		$	390,370
Above-market leases	—		—			—			—			167			167
Leases in place	—		2,968			1,325			96			11,710			16,099
Other lease intangibles	—		548			46			22			3,456			4,072
Below-market leases	—		(10,249		)	(666		)	(27		)	(5,076		)	(16,018		)
Other (liabilities) asset assumed, net	5		417			(293		)	(90		)	(928		)	(889		)
Total consideration paid	$	2,605	$	90,871		$	88,436		$	2,385		$	209,504		$	393,801

Business Acquisition, Pro Forma Information

The table below shows the pro forma financial information for the years ended December 31, 2014 and 2013 as if these properties had been acquired as of January 1, 2013.



	Year Ended December 31,
	2014		2013
Total revenues	$	253,924	$	224,102
Net loss	$	23,540	$	(5,620	)

Discontinued Operations, Held-for-sale [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Real Estate Held for Sale

The following table sets forth the discontinued operations for the years ended December 31, 2014, 2013 and 2012 for the City Plaza:



	Year Ended December 31,
	2014			2013			2012
Total office revenues	$	—		$	4,321		$	5,695
Office operating expenses	(164		)	(1,961		)	(2,978		)
Depreciation and amortization	—			(789		)	(2,266		)
Income from discontinued operations	$	(164	)	$	1,571		$	451

Disposal Group, Not Discontinued Operations [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Real Estate Held for Sale

The following table summarizes the components that comprise the assets and liabilities associated with real estate held for sale as of December 31, 2014 and 2013:



	Year Ended December 31,
	2014		2013
ASSETS
Investment in real estate, net	$	60,542	$	74,374
Restricted cash	2,839		2,821
Straight-line rent receivables	2,151		1,997
Deferred leasing costs and lease intangibles, net	2,457		3,693
Other	545		360
Assets associated with real estate held for sale	$	68,534	$	83,245

LIABILITIES AND EQUITY
Liabilities:
Notes payable	$	42,449	$	43,000
Accounts payable and accrued liabilities	322		1,393
Other	443		731
Liabilities associated with real estate held for sale	43,214		45,124
Equity	25,320		38,121
Total liabilities and equity associated with real estate held for sale	$	68,534	$	83,245

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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