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Investment in Real Estate | 9 Months Ended
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Sep. 30, 2024
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:
| September 30, 2024 |  | December 31, 2023
Land | $ | 1,244,284 |  |  | $ | 1,220,339 |
Building and improvements | 6,162,832 |  |  | 5,969,364 |
Tenant improvements | 734,929 |  |  | 818,653 |
Furniture and fixtures | 6,118 |  |  | 8,609 |
Property under development | 169,922 |  |  | 195,931 |
INVESTMENT IN REAL ESTATE, AT COST | $ | 8,318,085 |  |  | $ | 8,212,896 |
Acquisitions of Real Estate The Company had no acquisitions of real estate during the nine months ended September 30, 2024. 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 over the life of the asset or its intended holding period. If impairment indicators are present for a specific real estate asset, we perform a recoverability test by comparing the carrying value of the asset group to the asset group’s estimated undiscounted future cash flows over the anticipated hold period. If the carrying value exceeds the estimated undiscounted future cash flows, we then compare the carrying value to the asset group’s estimated fair value and recognize an impairment loss for the amount by which the carrying value exceeds the fair value. The future cash flows utilized in the evaluation of recoverability and the measurement of fair value are highly subjective and are based on assumptions regarding anticipated hold periods, future occupancy, future rental rates, future capital requirements, discount rates and capitalization rates, which are considered Level 2 and Level 3 inputs within the fair value hierarchy. During the three and nine months ended September 30, 2024, the Company recorded impairment charges totaling $34.4 million related to the real estate assets of certain office properties. The impairment charges reflect a shortened expected holding period for the properties and a reduction in the carrying value of the properties to their estimated fair value based on non-binding purchase offers from third party buyers, which is considered a Level 2 measurement. The impairment charges are recorded within impairment loss on the Consolidated Statements of Operations. The Company had no impairments of real estate during the nine months ended September 30, 2023. Dispositions of Real Estate The Company had no dispositions of real estate during the nine months ended September 30, 2024. The following table summarizes information on dispositions completed during the nine months ended September 30, 2023. These properties were considered non-strategic to the Company’s portfolio:
Property |  | Segment |  | Date of Disposition |  | Square Feet (unaudited) |  | Sales Price(1) (in millions) |  | Gain on Sale(2) (in millions)
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 |
__________________ 1.Represents gross sales price before certain credits, prorations and closing costs. 2.Included within gain on sale of real estate on the Consolidated Statement of Operations. Held for Sale As of September 30, 2024, the Company classified its 195,121 square-foot (unaudited) Foothill Research Center office property located in the Palo Alto submarket as held for sale. The property was identified as a non-strategic asset to the Company’s portfolio. The following table summarizes the components of assets and liabilities associated with real estate held for sale as of September 30, 2024:
Investment in real estate, net |  | $ | 31,387 |
Straight-line rent receivables, net |  | 964 |
Deferred leasing costs and intangible assets, net |  | 1,328 |
Operating lease right-of-use asset |  | 5,991 |
Prepaid expenses and other assets, net |  | 265 |
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE |  | $ | 39,935 |
LIABILITIES |  |
Accounts payable, accrued liabilities and other |  | $ | 13,284 |
Operating lease liabilities |  | 16,007 |
Intangible liabilities, net |  | 228 |
Security deposits and prepaid rent |  | 1,545 |
LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE |  | $ | 31,064 |

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 974 -SubTopic 720 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477728/974-720-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 976 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/976/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 978 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/978/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 970 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/970/tableOfContent Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 972 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/972/tableOfContent Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 974 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/974/tableOfContent + Details
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