Schedule III - Consolidated Real Estate and Accumulated Depreciation

December 31, 2015

(In thousands)



			Initial Costs				Cost Capitalized Subsequent to Acquisition				Gross Carrying Amount at December 31, 2015						Accumulated Depreciation at December 31, 2015⁽³⁾			Year Built / Renovated	Year Acquired
Property name	Encumbrances at December 31, 2015		Land		Building & Improvements		Improvements		Carrying Costs		Land		Building & All Improvements		Total
Office
Technicolor Building⁽¹⁾	$	—	$	6,599	$	27,187	$	25,206	$	3,088	$	6,599	$	55,481	$	62,080	$	(15,441	)	2008	2007
875 Howard Street Property⁽¹⁾	—		18,058		41,046		9,568		1,270		18,058		51,884		69,942		(13,437		)	Various	2007
Del Amo	—		—		18,000		1,749		—		—		19,749		19,749		(3,330		)	1986	2010
9300 Wilshire	—		—		10,718		1,036		—		—		11,754		11,754		(2,901		)	1965/2001	2010
222 Kearny⁽¹⁾	—		7,563		23,793		3,497		—		7,563		27,290		34,853		(3,996		)	Various	2010
Rincon Center	102,309		58,251		110,656		14,579		—		58,251		125,235		183,486		(19,367		)	1985	2010
1455 Market⁽¹⁾	—		41,226		34,990		43,618		—		41,226		78,608		119,834		(5,838		)	1977	2010
10950 Washington	28,407		17,979		25,110		586		—		17,979		25,696		43,675		(4,174		)	Various	2010
604 Arizona⁽¹⁾	—		5,620		14,745		1,396		—		5,620		16,141		21,761		(1,912		)	1950	2011
275 Brannan Street	—		4,187		8,063		14,018		1,115		4,187		23,196		27,383		(3,291		)	1906	2011
625 Second Street⁽¹⁾	—		10,744		42,650		1,877		—		10,744		44,527		55,271		(5,238		)	1905	2011
6922 Hollywood	—		16,608		72,392		4,781		—		16,608		77,173		93,781		(10,334		)	1965	2011
10900 Washington	—		1,400		1,200		735		—		1,400		1,935		3,335		(359		)	1973	2012
901 Market Street	30,000		17,882		79,305		15,818		—		17,882		95,123		113,005		(9,764		)	1912/1985	2012
Element LA	168,000		79,769		19,755		85,057		10,391		79,769		115,203		194,972		(2,439		)	1949	2012, 2013
Pinnacle I	129,000		28,518		171,657		4,567		—		28,518		176,224		204,742		(15,745		)	2002	2012
Pinnacle II	86,228		15,430		115,537		217		—		15,430		115,754		131,184		(8,658		)	2005	2013
3401 Exposition	—		14,120		11,319		11,351		1,028		14,120		23,698		37,818		(969		)	1961	2013
First & King	—		35,899		184,437		7,078		—		35,899		191,515		227,414		(13,669		)	1904/2009	2013
Met Park North	64,500		28,996		71,768		538		—		28,996		72,306		101,302		(5,341		)	2000	2013
Northview	—		4,803		41,191		78		—		4,803		41,269		46,072		(3,878		)	1991	2013
3402 Pico (Existing)	—		16,410		2,136		3,698		1,275		16,410		7,109		23,519		—			1950	2014
Merrill Place	—		27,684		29,824		4,712		63		27,684		34,599		62,283		(2,892		)	Various	2014
Alaskan Way	—		—		—		3,143		43		—		3,186		3,186		—			Ongoing	2014
Jefferson	—		6,040		31,960		4,193		1,158		6,040		37,311		43,351		—			1985	2014
Icon	—		—		—		78,146		1,181		—		79,327		79,327		—			Ongoing	2008
4th & Traction	—		12,140		37,110		4,274		877		12,140		42,261		54,401		—			1939	2015
405 Mateo	—		13,040		26,960		566		428		13,040		27,954		40,994		—			Various	2015
Palo Alto	—		—		326,033		1,107		—		—		327,140		327,140		(9,326		)	1971	2015



			Initial Costs				Cost Capitalized Subsequent to Acquisition					Gross Carrying Amount at December 31, 2015						Accumulated Depreciation at December 31, 2015⁽³⁾			Year Built / Renovated	Year Acquired
Property name	Encumbrances at December 31, 2015		Land		Building & Improvements		Improvements			Carrying Costs		Land		Building & All Improvements		Total
Hillview	—		—		159,641		2,216			—		—		161,857		161,857		(5,397		)	Various	2015
Embarcadero	—		41,050		77,006		2,027			—		41,050		79,033		120,083		(2,261		)	1984	2015
Foothill	—		—		133,994		7,271			—		—		141,265		141,265		(5,200		)	Various	2015
Page Mill	—		—		147,625		583			—		—		148,208		148,208		(4,912		)	1970/2016	2015
Clocktower	—		—		93,949		80			—		—		94,029		94,029		(2,403		)	1983	2015
Lockheed	—		—		34,561		29			—		—		34,590		34,590		(1,470		)	1991	2015
2180 Sand Hill	—		13,663		50,559		368			—		13,663		50,927		64,590		(1,131		)	1973	2015
Towers at Shore Center	—		72,673		144,188		2,278			—		72,673		146,466		219,139		(3,585		)	2001	2015
Skyway Landing	—		37,959		63,559		(106		)	—		37,959		63,453		101,412		(2,091		)	2001	2015
Shorebreeze	—		69,448		59,806		(78		)	—		69,448		59,728		129,176		(1,715		)	1985/1989	2015
555 Twin Dolphin	—		40,614		73,457		514			—		40,614		73,971		114,585		(2,027		)	1989	2015
333 Twin Dolphin	—		36,441		64,892		2,565			—		36,441		67,457		103,898		(1,712		)	1985	2015
Peninsula Office Park	—		109,906		104,180		3,981			—		109,906		108,161		218,067		(3,717		)	Various	2015
Metro Center	—		—		313,683		6,175			—		—		319,858		319,858		(8,163		)	Various	2015
One Bay Plaza	—		16,076		33,743		912			—		16,076		34,655		50,731		(1,228		)	1980	2015
Concourse	—		45,085		224,271		1,463			—		45,085		225,734		270,819		(7,118		)	Various	2015
Gateway	—		33,117		121,217		2,836			—		33,117		124,053		157,170		(6,328		)	Various	2015
Metro Plaza	—		16,038		106,156		1,921			—		16,038		108,077		124,115		(3,238		)	1986	2015
1740 Technology	—		8,052		49,486		1,734			—		8,052		51,220		59,272		(1,841		)	1985	2015
Skyport Plaza	—		29,033		153,844		207			—		29,033		154,051		183,084		(5,574		)	N/A	2015
Techmart Commerce	—		—		66,660		2,507			—		—		69,167		69,167		(2,491		)	1986	2015
Patrick Henry	—		9,151		7,351		323			319		9,151		7,993		17,144		—			1982	2015
Campus Center	—		59,460		79,604		13			—		59,460		79,617		139,077		(3,107		)	N/A	2015
Media & Entertainment
Sunset Gower⁽²⁾	—		79,321		64,697		26,296			139		79,321		91,132		170,453		(18,577		)	Various	2007, 2011, 2012
Sunset Bronson⁽²⁾	—		77,698		32,374		9,639			422		77,698		42,435		120,133		(11,489		)	Various	2008
Total	$	608,444	$	1,283,751	$	4,040,045	$	422,943		$	22,797	$	1,283,751	$	4,485,785	$	5,769,536	$	(269,074	)
Real estate held for sale:
Bayhill	—		90,083		113,656		3,248					90,083		116,907		206,990		(3,650		)	Various	2015
	$	608,444	$	1,373,834	$	4,153,701	$	426,191		$	22,797	$	1,373,834	$	4,602,692	$	5,976,526	$	(272,724	)

______________________________


(1)	These properties are secured under our line of credit, which, as of December 31, 2015, has an outstanding balance of $230.0 million.

(2)

Interest on $92.0 million of the outstanding loan balance has been effectively capped at 5.97% and 4.25% per annum on $50.0 million and $42.0 million, respectively, of the loan through the use of two interest rate caps through February 11, 2016. On March 4, 2015, the terms of the loan were amended to enable the Company to draw up to an additional $160.0 million and to extend the maturity date from February 11, 2018 to March 4, 2019 with a one-year extension option.


(3)	The Company computes depreciation using the straight-line method over the estimated useful lives of 39 years for building and improvements, 15 years for land improvements, and over the shorter of asset life or life of the lease for tenant improvements.

The aggregate gross cost of property included above for federal income tax purposes approximated $5.1 billion, unaudited as of December 31, 2015.

The following table reconciles the historical cost of total real estate held for investment and accumulated depreciation from January 1, 2013 to December 31, 2015:



	Year Ended December 31,
	2015			2014			2013
Total Investment in real estate, beginning of year	$	2,239,741		$	2,035,330		$	1,475,955
Additions during period:
Acquisitions	3,699,289			114,008			538,322
Improvements, capitalized costs	198,561			128,018			89,707
Total additions during period	3,897,850			242,026			628,029
Deductions during period
Disposal (fully depreciated assets and early terminations)	(13,556		)	(23,977		)	(9,638		)
Cost of property sold	(147,509		)	(13,638		)	(59,016		)
Total deductions during period	(161,065		)	(37,615		)	(68,654		)
Ending balance, before reclassification to assets associated with real estate held for sale	5,976,526			2,239,741			2,035,330
Reclassification to assets associated with real estate held for sale	(206,990		)	(68,446		)	(82,305		)
Total Investment in real estate, end of year	$	5,769,536		$	2,171,295		$	1,953,025

Total accumulated depreciation, beginning of year	$	(142,561	)	$	(116,342	)	$	(85,184	)
Additions during period:
Depreciation of real estate	(151,066		)	(50,044		)	(41,454		)
Total additions during period	(151,066		)	(50,044		)	(41,454		)
Deductions during period:
Deletions	12,999			22,310			4,837
Write-offs due to sale	7,904			1,515			5,459
Total deductions during period	20,903			23,825			10,296
Ending balance, before reclassification to assets associated with real estate held for sale	(272,724		)	(142,561		)	$	(116,342	)
Reclassification to assets associated with real estate held for sale	3,650			7,904			7,931
Total accumulated depreciation, end of year	$	(269,074	)	$	(134,657	)	$	(108,411	)