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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.