Investment in Real Estate

6 Months Ended

Jun. 30, 2019

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


	June 30, 2019		December 31, 2018
Land	$	1,313,411	$	1,372,872
Building and improvements	4,968,626		4,991,770
Tenant improvements	569,976		510,217
Furniture and fixtures	9,573		9,320
Property under development	226,922		175,358
INVESTMENT IN REAL ESTATE, AT COST⁽¹⁾	$	7,088,508	$	7,059,537

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

Acquisitions

On June 5, 2019, the Company purchased, through a joint venture with Blackstone, the Bentall Centre office properties

and retail complex in Vancouver, Canada. This joint venture is an unconsolidated entity, please refer to Note 4 for details.

The Company had no acquisitions related to consolidated entities during the six months ended June 30, 2019.

Dispositions

The Company had no dispositions during the six months ended June 30, 2019.

Held for Sale

The Company had one property, Campus Center, classified as held for sale as of June 30, 2019. The property was identified as a non-strategic asset to the Company’s portfolio and is included in the Company’s office segment. 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 $148.4 million (before certain credits, prorations and closing costs). The office property was sold on July 24, 2019 and the developable land was sold on July 30, 2019. Refer to Note 22 for details. 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:


	June 30, 2019
ASSETS
Investment in real estate, net	$	99,726



Prepaid expenses and other assets, net	114
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE	$	99,840

LIABILITIES
Accounts payable, accrued liabilities and other	$	104


LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE	$	104

Impairment of Long-Lived AssetsThe 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 during the three months ended March 31, 2019 related to the Campus Center office property. The Company’s estimated fair value was based on the sale price. The Company did not recognize additional impairment charges during the three months ended June 30, 2019. The Company did not recognize impairment charges during the six months ended June 30, 2018.