Investment in Real Estate

9 Months Ended

Sep. 30, 2020

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


	September 30, 2020		December 31, 2019
Land	$	1,313,412	$	1,313,412
Building and improvements	5,286,780		5,189,342
Tenant improvements	677,305		631,459
Furniture and fixtures	11,697		10,693
Property under development	245,579		124,222
INVESTMENT IN REAL ESTATE, AT COST	$	7,534,773	$	7,269,128

Acquisitions

The Company had no acquisitions during the nine months ended September 30, 2020.

Dispositions

The Company had no dispositions during the nine months ended September 30, 2020.

Held for Sale

As of September 30, 2020 and December 31, 2019, the Company had no properties that met the criteria to be classified as held for sale.

Studio Joint Venture

On July 30, 2020, funds affiliated with Blackstone acquired a 49% interest in the Hollywood Media Portfolio, a 2.2 million-square-foot collection of studio and office properties with a gross portfolio valuation of $1.65 billion before closing credits, prorations and costs, resulting in cash proceeds to the Company of $808.5 million. The transaction included Sunset Gower, Sunset Bronson and Sunset Las Palmas Studios, as well as 6040 Sunset, ICON, CUE, EPIC and Harlow, along with 1.1 million square feet of development rights associated with Sunset Gower and Sunset Las Palmas Studios. The Company retained a 51% ownership stake in the Hollywood Media Portfolio.

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 did not recognize impairment charges during the nine months ended September 30, 2020. During the nine months ended September 30, 2019, the Company recorded $52.2 million of impairment charges related to the Campus Center office property that was held for sale at June 30, 2019 and was subsequently sold. The Company’s estimated fair value was based on the sale price (Level 2 input).