Investment in Real Estate

3 Months Ended

Mar. 31, 2019

The following table summarizes the Company’s investment in real estate, at cost as of:


	March 31, 2019		December 31, 2018
Land	$	1,313,411	$	1,372,872
Building and improvements	4,941,701		4,991,770
Tenant improvements	547,427		510,217
Furniture and fixtures	9,451		9,320
Property under development	178,430		175,358
INVESTMENT IN REAL ESTATE, AT COST⁽¹⁾	$	6,990,420	$	7,059,537

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1.Excludes balances related to properties that have been classified as held for sale.

Acquisitions

The Company had no acquisitions during the three months ended March 31, 2019. On March 26, 2019, the Company entered into an agreement to purchase, through a joint venture with Blackstone Property Partners (“Blackstone”), the 1.45 million-square-foot Bentall Centre property located in Vancouver, Canada. The acquisition is expected to close during the second quarter of 2019.

Dispositions

The Company had no dispositions during the three months ended March 31, 2019.

Held for Sale

The Company had one property, Campus Center, classified as held for sale as of March 31, 2019. The Campus Center property, which includes the office property and developable land, is being sold to two separate, unrelated buyers for a combined amount of approximately $150 million (before certain credits, prorations and closing costs). Both sales are expected to close during the second quarter of 2019. The Company did not have any properties classified as held for sale as of December 31, 2018.

The following table summarizes the components of assets and liabilities associated with real estate held for sale as of:


	March 31, 2019
ASSETS
Investment in real estate, net	$	99,703


Deferred leasing costs and lease intangible assets, net	14
Prepaid expenses and other assets, net	104
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE	$	99,821

LIABILITIES
Accounts payable, accrued liabilities and other	$	732


LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE	$	732

Impairment of Long-Lived Assets

The Company assesses the carrying value of real estate assets and related intangibles whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value, based on Level 1 or Level 2 inputs, less estimated costs to sell. The Company recorded $52.2 million of impairment charges related to the Campus Center office property that was held for sale as March 31, 2019. The Company’s estimated fair value was based on the sale price. The Company did not recognize impairment losses during the three months ended March 31, 2018.