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Notes Payable, net (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2017
Debt Disclosure [Abstract] |
Schedule of Long-term Debt Instruments | The following table sets forth information with respect to the amounts included in notes payable, net as of:
| December 31, 2017 |  | December 31, 2016 |  | Interest Rate(1) |  | Contractual Maturity Date |
UNSECURED NOTES PAYABLE |  |  |  |  |  |  |  |
Unsecured Revolving Credit Facility(2) | $ | 100,000 |  |  | $ | 300,000 |  |  | LIBOR + 1.15% to 1.85% |  | 4/1/2019 | (3)
5-Year Term Loan due April 2020(2)(4) | 300,000 |  |  | 450,000 |  |  | LIBOR + 1.30% to 2.20% |  | 4/1/2020 |
5-Year Term Loan due November 2020(2) | 75,000 |  |  | 175,000 |  |  | LIBOR + 1.30% to 2.20% |  | 11/17/2020 |
7-Year Term Loan due April 2022(2)(5) | 350,000 |  |  | 350,000 |  |  | LIBOR + 1.60% to 2.55% |  | 4/1/2022 |
7-Year Term Loan due November 2022(2)(6) | 125,000 |  |  | 125,000 |  |  | LIBOR + 1.60% to 2.55% |  | 11/17/2022 |
Series A Notes | 110,000 |  |  | 110,000 |  |  | 4.34% |  | 1/2/2023 |
Series E Notes | 50,000 |  |  | 50,000 |  |  | 3.66% |  | 9/15/2023 |
Series B Notes | 259,000 |  |  | 259,000 |  |  | 4.69% |  | 12/16/2025 |
Series D Notes | 150,000 |  |  | 150,000 |  |  | 3.98% |  | 7/6/2026 |
Registered Senior Notes(7) | 400,000 |  |  | — |  |  | 3.95% |  | 11/1/2027 |
Series C Notes | 56,000 |  |  | 56,000 |  |  | 4.79% |  | 12/16/2027 |
TOTAL UNSECURED NOTES PAYABLE | 1,975,000 |  |  | 2,025,000 |  |  |  |  |  |
SECURED NOTES PAYABLE |  |  |  |  |  |  |  |
Rincon Center(8)(9) | 98,392 |  |  | 100,409 |  |  | 5.13% |  | 5/1/2018 |
Sunset Gower Studios/Sunset Bronson Studios | 5,001 |  |  | 5,001 |  |  | LIBOR + 2.25% |  | 3/4/2019 | (3)
Met Park North(10) | 64,500 |  |  | 64,500 |  |  | LIBOR + 1.55% |  | 8/1/2020 |
10950 Washington(8) | 27,418 |  |  | 27,929 |  |  | 5.32% |  | 3/11/2022 |
Element LA | 168,000 |  |  | 168,000 |  |  | 4.59% |  | 11/6/2025 |
Hill7(11) | 101,000 |  |  | 101,000 |  |  | 3.38% |  | 11/6/2028 |
Pinnacle I(12) | — |  |  | 129,000 |  |  | 3.95% |  | 11/7/2022 |
Pinnacle II(12) | — |  |  | 87,000 |  |  | 4.30% |  | 6/11/2026 |
TOTAL SECURED NOTES PAYABLE | 464,311 |  |  | 682,839 |  |  |  |  |  |
TOTAL NOTES PAYABLE | 2,439,311 |  |  | 2,707,839 |  |  |  |  |  |
Held for sale balances(12) | — |  |  | (216,000 | ) |  |  |  |  |
Unamortized deferred financing costs and loan discounts(13) | (17,931 | ) |  | (18,513 | ) |  |  |  |  |
TOTAL NOTES PAYABLE, NET | $ | 2,421,380 |  |  | $ | 2,473,326 |  |  |  |  |  |
_____________
(1) | Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of December 31, 2017, which may be different than the interest rates as of December 31, 2016 for corresponding indebtedness.
(2) | The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of December 31, 2017, no such election had been made.
(3) | The maturity date may be extended once for an additional one-year term.
(4) | In July 2016, $300.0 million of the term loan was effectively fixed at 2.75% to 3.65% per annum through the use of two interest rate swaps. See Note 6 for details.
(5) | In July 2016, the outstanding balance of the term loan was effectively fixed at 3.36%% to 4.31% per annum through the use of two interest rate swaps. See Note 6 for details.
(6) | In June 2016, the outstanding balance of the term loan was effectively fixed at 3.03% to 3.98% per annum through the use of an interest rate swap. See Note 6 for details.
(7) | On October 2, 2017, the Company completed an underwritten public offering of $400.0 million of senior notes, which were issued at 99.815% of par.
(8) | Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.
(9) | On February 1, 2018, the Company repaid the full outstanding balance of the mortgage loan secured by our Rincon Center property.
(10) | This loan bears interest only. Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 6 for details.
(11) | The Company has a 55% ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principle payments with a balloon payment at maturity.
(12) | On November 16, 2017, the Company sold its ownership interest in the consolidated joint venture that owned Pinnacle I and Pinnacle II. The debt balances related to these properties were classified as held for sale at December 31, 2016.
(13) | Excludes deferred financing costs related to properties held for sale and amounts related to establishing the Company’s unsecured revolving credit facility.
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented:
| December 31,
| 2017 |  | 2016 |  | 2015(1)
Beginning of period: |  |  |  |  |
Cash and cash equivalents | $ | 83,015 |  |  | $ | 53,551 |  |  | $ | 17,753 |
Restricted cash | 25,177 |  |  | 18,010 |  |  | 17,083 |
Total | $ | 108,192 |  |  | $ | 71,561 |  |  | $ | 34,836 |
End of period: |  |  |  |  |
Cash and cash equivalents | $ | 78,922 |  |  | $ | 83,015 |  |  | $ | 53,551 |
Restricted cash | 22,358 |  |  | 25,177 |  |  | 18,010 |
Total | $ | 101,280 |  |  | $ | 108,192 |  |  | $ | 71,561 |
_____________
(1) | Includes restricted cash that was previously included in assets held for sale as of December 31, 2014.
Included in restricted cash on the Company’s Consolidated Balance Sheets at December 31, 2017 and December 31, 2016 are lockbox and reserve funds as follows:
Property |  | December 31, 2017 |  | December 31, 2016
Rincon Center |  | $ | 14,220 |  |  | $ | 16,291 |
Element LA |  | 3,581 |  |  | 2,627 |
Hill7 |  | 2,392 |  |  | 1,643 |
10950 Washington |  | 1,406 |  |  | 1,249 |
Pinnacle I |  | — |  |  | 1,811 |
Pinnacle II |  | — |  |  | 1,382 |
Total |  | $ | 21,599 |  |  | $ | 25,003 |
Schedule of Maturities of Long-term Debt | The following table provides information regarding the Company’s future minimum principal payments due on the Company’s notes payable (before the impact of extension options, if applicable) as of December 31, 2017:
For the Year Ended December 31, |  | Annual Principal Payments
2018 |  | $ | 98,930 |
2019 |  | 105,569 |
2020 |  | 440,095 |
2021 |  | 632 |
2022 |  | 500,085 |
Thereafter |  | 1,294,000 |
Total |  | $ | 2,439,311 |
Schedule of Balance and Key Terms of the Unsecured Revolving Credit Facility | The following table summarizes borrowing capacity and outstanding borrowings under the unsecured revolving credit facility as of:
| December 31, 2017 |  | December 31, 2016
Outstanding borrowings(1) | $ | 100,000 |  |  | $ | 300,000 |
Remaining borrowing capacity(1) | 300,000 |  |  | 100,000 |
Total borrowing capacity | $ | 400,000 |  |  | $ | 400,000 |
Interest rate(2) | LIBOR + 1.15% to 1.85%
Facility fee-annual rate(2) | 0.20% or 0.35%
Contractual maturity date(3) | 4/1/2019
_________________
(1) | On January 30, 2018, the Company borrowed an additional $100.0 million bringing the total outstanding borrowings to $200.0 million.
(2) | The rate is based on the operating partnership’s leverage ratio.
(3) | The maturity date may be extended once for an additional one-year term.
Summary of Existing Covenants and Their Covenant Levels | The following table summarizes existing covenants and their covenant levels, when considering the most restrictive term:
Covenant Ratio |  | Covenant Level
Leverage ratio |  | less than 60%
Unencumbered leverage ratio |  | less than 60%
Fixed charge coverage ratio |  | greater than 1.5x
Secured indebtedness leverage ratio |  | less than 45%
Unsecured interest coverage ratio |  | greater than 2x
Reconciliation of Gross Interest Expense and Interest Expense | The following table represents a reconciliation from the gross interest expense to the amount on the interest expense line item in the Consolidated Statements of Operations:
|  | Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015
Gross interest expense(1) |  | $ | 94,660 |  |  | $ | 82,887 |  |  | $ | 52,437 |
Capitalized interest |  | (10,655 | ) |  | (11,307 | ) |  | (6,516 | )
Amortization of deferred financing costs and loan discount/premium, net |  | 6,032 |  |  | 4,464 |  |  | 4,746 |
Interest expense |  | $ | 90,037 |  |  | $ | 76,044 |  |  | $ | 50,667 |
_________________
(1) | Includes interest on the Company’s notes payable and hedging activities and extinguishment costs related to partial paydowns in our term loans of $1.1 million during the year ended December 31, 2017.

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