Investment in Real Estate

9 Months Ended

Sep. 30, 2019

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


	September 30, 2019		December 31, 2018
Land	$	1,313,411	$	1,372,872
Building and improvements	4,997,814		4,991,770
Tenant improvements	590,065		510,217
Furniture and fixtures	10,596		9,320
Property under development	250,588		175,358
INVESTMENT IN REAL ESTATE, AT COST	$	7,162,474	$	7,059,537

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 nine months ended September 30, 2019.

Dispositions

During the nine months ended September 30, 2019, the Company sold its Campus Center property, which included the office property and developable land, to two separate and unrelated buyers. The office property and developable land were sold on July 24, 2019 and July 30, 2019, respectively, for $70.3 million and $78.1 million (before credits, prorations, and closing costs), respectively. The Company recognized a gain on sale of $47.1 million during the three and nine months ended September 30, 2019 related to the developable land. It is included in the gains on sale of real estate line item in the Consolidated Statements of Operations. The Campus Center property was part of our office segment prior to disposition.

Held for Sale

As of September 30, 2019 and December 31, 2018, we had no properties that met the criteria to be classified as held for sale.

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 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 nine months ended September 30, 2019. The Company did not recognize impairment charges during the nine months ended September 30, 2018.