XML 60 R11.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Investment in Real Estate | 6 Months Ended
--- | ---
Jun. 30, 2015
Real Estate [Abstract] |
Investment in Real Estate | Investment in Real Estate The Company’s acquisitions are accounted for using the acquisition method. The results of operations for each of these acquisitions are included in our consolidated statements of operations from the date of acquisition. Acquisitions On April 1, 2015, the Company completed the acquisition of the EOP Northern California Portfolio from Blackstone Real Estate Partners V and VI (“Blackstone”). The EOP Northern California Portfolio consists of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout the San Francisco Peninsula, Redwood Shores, Palo Alto, Silicon Valley and San Jose Airport submarkets. The total consideration paid for the EOP Northern California Portfolio before certain credits, proration, and closing costs included a cash payment of $1.75 billion (financed with proceeds received from the Company’s January 2015 common equity offering and $1.3 billion of new term debt), an aggregate of 63,474,791 shares of common stock of the company and common units in the Operating Partnership. On May 22, 2015, the Company acquired a three-story, 120,937-square-foot former manufacturing facility known as “4th & Traction” in Los Angeles, California for $49.3 million (before certain credits, prorations and closing costs). The Company funded this off-market transaction with proceeds from its unsecured revolving credit facility. Included in the Company’s consolidated financial statements for the six months ended June 30, 2015 were revenues and net income from 2015 acquisitions of $87.6 million and $6.6 million, respectively. The following table represents our aggregate preliminary purchase price allocation for each of these acquisitions:
| EOP Northern California Portfolio |  | 4th & Traction |  |
Date of Acquisition | April 1, 2015 |  | May 22, 2015 |  | Total
Consideration paid |  |  |  |  |
Cash consideration | $ | 1,715,346 |  |  | $ | 49,250 |  |  | $ | 1,764,596 |
Common stock | 87 |  |  | — |  |  | 87 |
Additional paid-in capital | 285,358 |  |  | — |  |  | 285,358 |
Non-controlling common units in the Operating Partnership | 1,814,936 |  |  | — |  |  | 1,814,936 |
Total consideration | $ | 3,815,727 |  |  | $ | 49,250 |  |  | $ | 3,864,977 |
Allocation of consideration paid |  |  |  |  |
Investment in real estate, net | $ | 3,611,294 |  |  | $ | 49,250 |  |  | $ | 3,660,544 |
Above-market leases | 28,745 |  |  | — |  |  | 28,745 |
Above-market ground leases | 51,180 |  |  | — |  |  | 51,180 |
Deferred leasing costs and lease intangibles, net | 225,440 |  |  | — |  |  | 225,440 |
Below-market leases | (99,837 | ) |  | — |  |  | (99,837 | )
Below-market ground leases | (1,095 | ) |  | — |  |  | (1,095 | )
Total consideration paid | $ | 3,815,727 |  |  | $ | 49,250 |  |  | $ | 3,864,977 |
The table below shows the pro forma financial information for the six months ended June 30, 2015 and 2014 as if the EOP Northern California Portfolio had been acquired as of January 1, 2014.
| Six Months Ended June 30, 2015
| 2015 |  | 2014
Total revenues | $ | 297,229 |  |  | $ | 364,990 |
Net income (loss) | $ | (3,531 | ) |  | $ | (1,208 | )
During 2014, we acquired 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 allocation 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 |
Pending Acquisitions In April 2015, we entered into agreements to purchase two redevelopment properties totaling approximately 80,000 square feet, located in downtown Los Angeles for a purchase price of $40.0 million. We have made non-refundable deposits totaling $1.5 million. We expect to close on this purchase in the third quarter of 2015. Dispositions On March 6, 2015, the Company sold i ts First Financial office property for $89.0 million (before certain credits, prorations, and closing costs). Pursuant to ASU No. 2014-08, we will not be presenting the operating results in net income (loss) from discontinued operations and, in addition, reclassified First Financial’s assets and liabilities to assets and liabilities associated with real estate held for sale as of December 31, 2014.

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 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 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 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 11 -Article 9 Reference 3: 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 4: 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 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 6 -Subparagraph a -Article 5 + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration