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Investment in Real Estate

12 Months Ended

Dec. 31, 2023

Real Estate [Abstract]

Investment in Real Estate

Investment in Real Estate

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

			December 31, 2023						December 31, 2022
Land			$	1,220,339					$	1,397,714
Building and improvements			5,969,364						6,273,655
Tenant and leasehold improvements			818,653						868,193
Furniture and fixtures			8,609						9,639
Property under development			195,931						167,371
INVESTMENT IN REAL ESTATE, AT COST			$	8,212,896					$	8,716,572

Acquisitions of Real Estate

The Company had no acquisitions of real estate during the year ended December 31, 2023.

On April 27, 2022, the Company completed its previously announced acquisition of Washington 1000, a fully entitled office development site in Seattle, Washington for a total purchase price of $85.6 million, before certain credits, prorations and closing costs.

On May 19, 2022, the Company purchased a parcel of land at Sunset Gower Studios that was previously encumbered by a ground lease for a total purchase price of $22.0 million, before certain credits, prorations and closing costs.

On July 15, 2022, the Company purchased 5801 Bobby Foster Road, approximately 29 acres of land with an office/warehouse located in Albuquerque, New Mexico, for the storage of trailers and other rental assets used to serve the surrounding studio production industry. The property was acquired for a total purchase price of $8.0 million, before certain credits, prorations and closing costs.

The following table represents the Company’s final purchase price accounting for the asset acquisitions completed in 2022:

						Washington 1000						Sunset Gower Studios Land						5801 Bobby Foster Road
TOTAL ACQUISITION COST(1)						$	86,313					$	22,156					$	8,457
Relative fair value allocation
Land						$	59,987					$	22,156					$	2,189
Building and improvements						11,053						—						6,268
Parking easement(2)						15,273						—						—
TOTAL						$	86,313					$	22,156					$	8,457

_____________

1.Includes capitalized transaction-related expenses.

2.Parking easement has an indefinite useful life and is recorded in deferred leasing costs and intangible assets, net on the Consolidated Balance Sheet.

Impairment of Long-Lived Assets

During the year ended December 31, 2023, the Company recorded an impairment charge of $48.5 million related to the tangible assets of its Foothill Research Center property due to a reduction in the estimated fair value of the property. The estimated fair value of $32.7 million was based on a discounted cash flow analysis, which is classified within Level 3 of the fair value hierarchy.

During the year ended December 31, 2022, the Company recorded impairment charges of $13.0 million, $1.5 million and $3.1 million related to the tangible assets of its Del Amo, Northview Center and 6922 Hollywood office properties, respectively, due to reductions in the estimated fair values of the properties. The properties were subsequently sold in 2022. The estimated fair values of $2.8 million, $46.0 million and $96.0 million for Del Amo, Northview Center and 6922 Hollywood, respectively, were based on the sales prices of the properties. These fair value measurements are classified within Level 2 of the fair value hierarchy.

During the year ended December 31, 2021, the Company recorded $2.8 million of impairment charges related to the

tangible assets of its Del Amo office property due to a reduction in the estimated fair value of the property. The estimated fair

value of $17.4 million as of December 31, 2021 was based on then-estimated sales price of the property. This fair value

measurement is classified within Level 2 of the fair value hierarchy.

Dispositions of Real Estate

The following table summarizes information on dispositions completed during the years ended December 31, 2023 and 2022.

Property						Segment						Date of Disposition						Square Feet (unaudited)						Sales Price(1) (in millions)						Gain (Loss) on Sale(2) (in millions)
2023 Dispositions
Skyway Landing						Office						2/6/2023						246,997						$	102.0					$	7.0
604 Arizona						Office						8/24/2023						44,260						32.5						10.3
3401 Exposition						Office						8/25/2023						63,376						40.0						5.8
Cloud10						Office						11/21/2023						350,000						43.5						19.9
One Westside & Westside Two						Office						12/27/2023						686,725						700.0						60.2
Total																								$	918.0					$	103.2
2022 Dispositions
Del Amo						Office						8/5/2022						113,000						$	2.8					$	—
Northview						Office						8/30/2022						179,985						46.0						(0.2)
6922 Hollywood						Office						10/20/2022						205,189						96.0						(2.0)
Total																								$	144.8					$	(2.2)

_____________ 

1.Represents gross sales price before certain credits, prorations and closing costs.

2.Included within gain (loss) on sale of real estate on the Consolidated Statement of Operations.

Held for Sale

As of December 31, 2023, the Company had no properties that met the criteria to be classified as held for sale. The Company had one property, Skyway Landing, classified as held for sale as of December 31, 2022. The property was identified as non-strategic to the Company’s portfolio and was subsequently sold on February 6, 2023.

The following table summarizes the components of assets and liabilities associated with real estate held for sale as of December 31, 2022:

ASSETS
Investment in real estate, net						$	92,148
Accounts receivable, net						112
Straight-line rent receivables, net						460
Deferred leasing costs and intangible assets, net						501
Prepaid expenses and other assets, net						17
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE						$	93,238
LIABILITIES
Accounts payable, accrued liabilities and other						$	400
Security deposits and prepaid rent						265
LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE						$	665

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The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures.

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