Investment in Real Estate

12 Months Ended

Dec. 31, 2024

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


	December 31, 2024		December 31, 2023
Land	$	1,235,974	$	1,220,339
Building and improvements	6,101,787		5,969,364
Tenant and leasehold improvements	728,186		818,653
Furniture and fixtures	5,895		8,609
Property under development	161,444		195,931
INVESTMENT IN REAL ESTATE, AT COST	$	8,233,286	$	8,212,896

Acquisitions of Real Estate

The Company had no acquisitions of real estate during the years ended December 31, 2024 and 2023.

Impairment of Long-Lived Assets

During the year ended December 31, 2024, the Company recorded impairment charges totaling $39.9 million related to the real estate assets of certain office properties, including held for sale 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 values based on non-binding purchase offers from third party buyers or the properties’ contractual sales prices, as applicable, which are considered Level 2 measurements.

During the year ended December 31, 2023, the Company recorded an impairment charge of $48.5 million related to the real estate assets of one office property. The impairment charge reflects a shortened expected holding period for the property and reduction in the carrying value of the property to its estimated fair value based on a discounted cash flow analysis, which is considered a Level 3 measurement.

During the year ended December 31, 2022, the Company recorded impairment charges totaling $17.6 million related to the real estate assets of certain office properties, including held for sale 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 values based on non-binding purchase offers from third party buyers or the properties’ contractual sales prices, as applicable, which are considered Level 2 measurements.

The impairment charges are recorded within impairment loss on the Consolidated Statements of Operations.

Dispositions of Real Estate

The following table summarizes information on dispositions completed during the years ended December 31, 2024 and 2023:


Property	Segment	Date of Disposition	Square Feet (unaudited)	Sales Price(1) (in millions)		(Loss) Gain on Sale(2) (in millions)
2024 Dispositions
3176 Porter	Office	12/10/2024	46,759	$	24.8	$	(2.2)

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 2023 Dispositions				$	918.0	$	103.2

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

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

Held for Sale

As of December 31, 2024, the Company classified two of its office properties as held for sale: 195,121 square-foot (unaudited) Foothill Research Center located in the Palo Alto submarket and 102,963 square-foot (unaudited) Maxwell located in the Downtown Los Angeles submarket. The properties were identified as non-strategic assets to the Company’s portfolio. The following table summarizes the components of assets and liabilities associated with real estate held for sale as of December 31, 2024:


	Foothill Research Center		Maxwell
ASSETS
Investment in real estate, net	$	31,387	$	41,210
Straight-line rent receivables, net	386		2,206
Deferred leasing costs and intangible assets, net	1,328		528
Operating lease right-of-use asset	5,890		—
Prepaid expenses and other assets, net	102		76
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE	$	39,093	$	44,020

LIABILITIES
Accounts payable, accrued liabilities and other	$	13,201	$	195
Operating lease liabilities	15,827		—
Intangible liabilities, net	228		—
Security deposits and prepaid rent	1,539		127
LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE	$	30,795	$	322