Prepaid Expenses and Other Assets, net

9 Months Ended

Sep. 30, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

The following table summarizes the Company’s prepaid expenses and other assets, net as of:


	September 30, 2019		December 31, 2018
Deposits for future acquisitions⁽¹⁾	$	20,500	$	—
Goodwill	8,754		8,754
Non-real estate investments	5,545		2,713
Derivative assets	655		16,687
Other	33,698		27,479
PREPAID EXPENSES AND OTHER ASSETS, NET	$	69,152	$	55,633

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1.In the first quarter of 2019, the Company entered into an agreement to purchase the condominium rights to build a fully entitled office development, Washington 1000, adjacent to the Washington State Convention Center addition for $86.0 million (before credits, prorations and closing costs) and paid a $20.5 million non-refundable deposit. The remaining $65.5 million is a future commitment expected to be settled in 2021.

Goodwill

No goodwill impairment indicators have been identified during the nine months ended September 30, 2019.

Non-Real Estate Investments

The Company holds investments in an entity that does not report NAV. The Company marks this investment to fair value based on Level 2 inputs, whenever fair value is readily available or observable.

The Company also invests in an entity that reports NAV. The investment, which is in a real estate technology venture capital fund, involves a commitment of funding from the Company of up to $20.0 million. The Company uses NAV reported without adjustment unless it is aware of information indicating the NAV reported does not accurately reflect the fair value for the investment. As of September 30, 2019, the Company has contributed $2.8 million to this fund with $17.2 million remaining to be contributed. There has been no change in NAV since the initial investment.

Changes in fair value are included in the unrealized gain on non-real estate investment line item on the Consolidated Statements of Operations. No gain or loss has been recognized due to observable changes in fair value for the nine months ended September 30, 2019. To date, the Company has recognized an unrealized gain of $928 thousand related to observable changes in fair value, which was recognized in the second quarter of 2018.