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Investment in Real Estate
 6 Months Ended
Jun. 30, 2016
Real Estate [Abstract]  
Investment in Real Estate
Investment in Real Estate

Acquisitions

The Company’s acquisitions are accounted for using the acquisition method. The results of operations for each of these acquisitions are included in the Company’s Consolidated Statements of Operations from the date of acquisition.
    
On July 1, 2016, the Company purchased the 11601 Wilshire Boulevard office property in West Los Angeles, California. See Note 20—Subsequent Events for details.
    
During 2015, the Company acquired 26 office properties totaling approximately 8.2 million square feet and two development parcels throughout Northern California. In addition, the Company also acquired 4th and Traction and 405 Mateo, both located in Los Angeles, California.

Dispositions

The following table summarizes the properties sold during the six months ended June 30, 2016 and June 30, 2015. These properties were non-strategic assets to the Company’s portfolio.
Property
 
Date of Disposition
 
Number of Buildings
 
Square Feet
 
Sales Price(1) (in millions)
Bayhill Office Center
 
January 14, 2016
 
4
 
554,328
 
$215.0
Patrick Henry Drive
 
April 7, 2016
 
1
 
70,520
 
19.0
One Bay Plaza
 
June 1, 2016
 
1
 
195,739
 
53.4
  Total dispositions for the six months ended June 30, 2016
 
 
 
6
 
820,587
 
$287.4
First Financial
 
March 6, 2015
 
1
 
223,679
 
$89.0
    Total dispositions for the six months ended June 30, 2015(2)
 
 
 
1
 
223,679
 
$89.0
_________________ 
(1)
Represents gross sales price before certain credits, prorations and closing costs.
(2)
Excludes the disposition of 45% interest in 1455 Market Street office property on January 7, 2015.

The dispositions of these properties resulted in a gain of $2.2 million and $8.5 million for the three and six months ended June 30, 2016, respectively, and a loss of $0.6 million and a gain of $22.1 million for the three and six months ended June 30, 2015, respectively.    

The Company has not presented the operating results in net income (loss) from discontinued operations for these disposals because they do not represent a strategic shift in the Company’s business. In addition, the Company reclassified the assets and liabilities related to these dispositions to assets and liabilities associated with real estate held for sale as of December 31, 2015.

Held for sale

On April 25, 2016, the Company entered into an agreement to sell its 12655 Jefferson property for $80.0 million (before certain credits, prorations and closing costs). The Company determined that 12655 Jefferson met the criteria to be classified as held for sale and reclassified the balances related to such property within the Consolidated Balance Sheet as of June 30, 2016 and December 31, 2015.

The following table summarizes the components of assets and liabilities associated with real estate held for sale as of June 30, 2016 and December 31, 2015:
 
 
June 30, 2016
 
December 31, 2015
ASSETS
 
 
 
 
Investment in real estate, net
 
48,996

 
313,344

Straight-line rent receivables, net
 
4

 
2,016

Deferred leasing costs and lease intangible assets, net
 
2,676

 
14,415

Other
 
756

 
525

Assets associated with real estate held for sale
 
$
52,432

 
$
330,300

 
 
 
 
 
LIABILITIES
 
 
 
 
Accounts payable and accrued liabilities
 
$
3,136

 
$
3,831

Other
 
2,131

 
12,960

Liabilities associated with real estate held for sale
 
$
5,267

 
$
16,791

    
Cost Capitalization

Capitalized personnel costs were $2.3 million and $4.6 million for the three and six months ended June 30, 2016, respectively, and $1.9 million and $2.8 million for the three and six months ended June 30, 2015, respectively. Capitalized interest was $2.9 million and $5.5 million for the three and six months ended June 30, 2016, respectively, and $0.9 million and $3.0 million for for the three and six months ended June 30, 2015, respectively.

Impairment of Long-Lived Assets

No impairment indicators have been noted and the Company recorded no impairment charges for the three and six months ended June 30, 2016 and 2015.