Prepaid Expenses and Other Assets, net

6 Months Ended

Jun. 30, 2020

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

Prepaid Expenses and Other Assets, net

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


	June 30, 2020		December 31, 2019
Non-refundable deposit for Studio Joint Venture	$	50,000	$	—
Deposits for future acquisitions	20,500		22,405
Prepaid insurance	10,940		3,463
Goodwill	8,754		8,754
Non-real estate investments	6,101		5,545
Deferred financing costs	2,608		3,246
Prepaid property tax	—		2,070
Derivative assets	—		479
Other	29,043		23,012
PREPAID EXPENSES AND OTHER ASSETS, NET	$	127,946	$	68,974

Non-refundable deposit for Studio Joint Venture

On July 30, 2020, funds affiliated with Blackstone Property Partners (“Blackstone”) acquired a 49% interest in the Company’s three Hollywood studios and five on-lot or adjacent Class A office properties (collectively, the “Hollywood Media Portfolio”) at a gross portfolio valuation of $1.65 billion resulting in cash proceeds to the Company of $808.5 million before potential asset-level financings (and before certain credits, prorations and closing costs) (the “Studio Joint Venture”). The Company retained a 51% ownership stake and remains responsible for day-to-day operations, leasing and development, and the joint venture will look to partner on studio acquisitions in Los Angeles and other key markets.

As of June 30, 2020, the Company recorded a $50.0 million non-refundable deposit related to the Studio Joint Venture in Prepaid expenses and other assets, net with the offset recorded in Accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. See Note 22 for details.

Goodwill

No goodwill impairment indicators have been identified during the three and six months ended June 30, 2020.

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. Changes in fair value are included in the unrealized loss on non-real estate investment line item on the Consolidated Statements of Operations. The Company recognized an unrealized loss of $1.6 million due to the observable changes in fair value for the three and six months ended June 30, 2020. No gain or loss was recognized due to observable changes in fair value for the three and six months ended June 30, 2019. Over the life of this investment, the Company has recognized a net unrealized loss of $0.6 million due to observable changes in fair value.

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 June 30, 2020, the Company has contributed $5.5 million to this fund with $14.5 million remaining to be contributed. Changes in fair value are included in the unrealized loss on non-real estate investment line item on the Consolidated Statements of Operations. The Company recognized an unrealized loss of $0.7 million and $1.2 million due to the observable changes in fair value for the three and six months ended June 30, 2020, respectively. No gain or loss was recognized due to observable changes in fair value for the three and six months ended June 30, 2019.