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Discontinued Operations (Tables) | 12 Months Ended
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Dec. 31, 2016
Dispositions | The Company sold the following properties during the twelve-month period ended December 31, 2016 (dollars in thousands):
Disposition Date |  | Property/Portfolio Name |  | Location |  | Number of Properties |  | Rentable Square Feet |  |  | Sales Price |  |  | Net Proceeds on Sale |  |  | Gain/(Loss) on Sale (a) |  |
October 13, 2016 |  | 620, 640, 660 Allendale Road |  | King of Prussia, PA |  | 3 |  |  | 156,669 |  |  | $ | 12,800 |  |  | $ | 12,014 |  |  | $ | 2,382 |  |
September 1, 2016 |  | 1120 Executive Plaza |  | Mt. Laurel, NJ |  | 1 |  |  | 95,183 |  |  |  | 9,500 |  |  |  | 9,241 |  |  |  | (18 | ) | (b)
August 2, 2016 |  | 50 East Clementon Road |  | Gibbsboro, NJ |  | 1 |  |  | 3,080 |  |  |  | 1,100 |  |  |  | 1,011 |  |  |  | (85 | ) |
May 11, 2016 |  | 196/198 Van Buren Street (Herndon Metro Plaza I&II) |  | Herndon, VA |  | 2 |  |  | 197,225 |  |  |  | 44,500 |  |  |  | 43,412 |  |  |  | (752 | ) | (c)
February 5, 2016 |  | 2970 Market Street (Cira Square) |  | Philadelphia, PA |  | 1 |  |  | 862,692 |  |  |  | 354,000 |  |  |  | 350,150 |  |  |  | 115,828 |  |
February 4, 2016 |  | Och-Ziff Portfolio |  | Various (d) |  | 58 |  |  | 3,924,783 |  |  |  | 398,100 |  |  |  | 353,971 |  |  |  | (372 | ) | (e)
Total Dispositions |  |  |  |  |  | 66 |  |  | 5,239,632 |  |  | $ | 820,000 |  |  | $ | 769,799 |  |  | $ | 116,983 |  |
| (a) | Gain/(Loss) on Sale is net of closing and other transaction related costs.
| (b) | As of June 30, 2016, the Company determined that the sale of the property was probable and classified this property as held for sale in accordance with applicable accounting standards for long lived assets. At such date, the carrying value of the property exceeded the fair value less the anticipated costs of sale. As a result, the Company recognized a provision for impairment totaling approximately $1.8 million during the three-month period ended June 30, 2016. The fair value measurement was based on the pricing in the purchase and sale agreement for the sale of the property. As the pricing in the purchase and sale agreement is unobservable, the Company determined that the inputs utilized to determine fair value for this property falls within Level 3 in accordance with the fair value hierarchy established by Accounting Standards Codification (ASC) Topic 820, "Fair Value Measurements and Disclosures.” The loss on sale represents additional closing costs recognized at closing.
| (c) | During the three-month period ended March 31, 2016, the Company recognized a provision for impairment totaling approximately $7.4 million on the properties. See “Held for Use Impairment” section below. The loss on sale primarily relates to additional closing costs recognized at closing.
| (d) | Exhibit 99.2 to the Company’s Current Report on Form 8-K filed on February 10, 2016 contains a complete list of the 58 properties disposed of in the transactions with Och-Ziff Capital Management Group LLC. See Note 4, "Investment in Unconsolidated Real Estate Ventures," for further details of the transactions.
| (e) | During the three-month period ended December 31, 2015, the Company recognized a provision for impairment totaling approximately $45.4 million. The loss on sale represents additional closing costs recognized at closing.
The Company sold the following land parcels during the twelve-month period ended December 31, 2016 (dollars in thousands):
Disposition Date |  | Property/Portfolio Name |  | Location |  | Number of Parcels |  |  | Acres |  |  | Sales Price |  |  | Net Proceeds on Sale |  |  | Gain on Sale (a) |  |
December 2, 2016 |  | Oakland Lot B |  | Oakland, CA |  |  | 1 |  |  |  | 0.9 |  |  | $ | 13,750 |  |  | $ | 13,411 |  |  | $ | 9,039 |  |
August 19, 2016 |  | Highlands Land |  | Mt. Laurel, NJ |  |  | 1 |  |  |  | 2.0 |  |  |  | 288 |  |  |  | 284 |  |  |  | 193 |  |
January 15, 2016 |  | Greenhills Land |  | Reading, PA |  |  | 1 |  |  |  | 120.0 |  |  |  | 900 |  |  |  | 837 |  |  |  | - |  | (b)
Total Dispositions |  |  |  |  |  |  | 3 |  |  |  | 122.9 |  |  | $ | 14,938 |  |  | $ | 14,532 |  |  | $ | 9,232 |  |
| (a) | Gain on Sale is net of closing and other transaction related costs.
| (b) | The carrying value of the land exceeded the fair value less the anticipated costs of sale as of December 31, 2015, therefore the Company recognized an impairment loss of $0.3 million during the three-month period ended December 31, 2015. There was no gain or loss recognized on the sale during 2016.
The Company sold the following office properties, in each case to unaffiliated third parties in arms’ length transactions, during the twelve-month period ended December 31, 2015 (dollars in thousands):
Disposition Date |  | Property/Portfolio Name |  | Location |  | Number of Properties |  | Rentable Square Feet |  |  | Sales Price |  |  | Net Proceeds on Sale |  |  | Gain on Sale (a) |  |
December 31, 2015 |  | 5707 Southwest Parkway (Encino Trace) |  | Austin, TX |  | 2 |  |  | 320,000 |  |  | $ | 76,700 |  |  | $ | 50,158 |  |  | $ | 2,008 |  | (b)
December 29, 2015 |  | Laurel Corporate Center |  | Mt. Laurel, NJ |  | 6 |  |  | 560,147 |  |  |  | 56,500 |  |  |  | 56,253 |  |  |  | 2,901 |  |
December 18, 2015 |  | Carlsbad Properties |  | Carlsbad, CA |  | 3 |  |  | 196,075 |  |  |  | 30,400 |  |  |  | 29,568 |  |  |  | - |  | (c)
December 18, 2015 |  | 751-761 Fifth Ave |  | King of Prussia, PA |  | 1 |  |  | 158,000 |  |  |  | 4,600 |  |  |  | 4,245 |  |  |  | 894 |  |
September 29, 2015 |  | 1000 Howard Boulevard |  | Mt. Laurel, NJ |  | 1 |  |  | 105,312 |  |  |  | 16,500 |  |  |  | 15,780 |  |  |  | 4,828 |  |
August 13, 2015 |  | Bay Colony Office Park |  | Wayne, PA |  | 4 |  |  | 247,294 |  |  |  | 37,500 |  |  |  | 36,386 |  |  |  | 269 |  |
August 11, 2015 |  | 741 First Avenue |  | King of Prussia, PA |  | 1 |  |  | 77,184 |  |  |  | 4,900 |  |  |  | 4,640 |  |  |  | 372 |  |
June 10, 2015 |  | 100 Gateway Centre Parkway |  | Richmond, VA |  | 1 |  |  | 74,991 |  |  |  | 4,100 |  |  |  | 3,911 |  |  |  | - |  | (d)
April 24, 2015 |  | Christina & Delaware Corporate Centers |  | Wilmington, DE |  | 5 |  |  | 485,182 |  |  |  | 50,100 |  |  |  | 49,579 |  |  |  | 1,749 |  |
April 9, 2015 |  | Lake Merritt Tower |  | Oakland, CA |  | 1 |  |  | 204,336 |  |  |  | 65,000 |  |  |  | 62,800 |  |  |  | - |  | (e)
January 8, 2015 |  | 1000 Atrium Way / 457 Haddonfield Road (Atrium I / Libertyview) |  | Mt. Laurel, NJ / Cherry Hill, NJ |  | 2 |  |  | 221,405 |  |  |  | 28,300 |  |  |  | 26,778 |  |  |  | 8,981 |  |
Total Dispositions |  |  |  |  |  | 27 |  |  | 2,649,926 |  |  | $ | 374,600 |  |  | $ | 340,098 |  |  | $ | 22,002 |  | (f)
| (a) | Gain on Sale is net of closing and other transaction related costs.
| (b) | On December 31, 2015, the Company contributed two newly constructed four-story, Class A office buildings, commonly known as “Encino Trace,” containing an aggregate of approximately 320,000 square feet in Austin, Texas to one of its existing real estate ventures (the “Austin Venture”) that the Company formed in 2013 with G&I VII Austin Office LLC, an investment vehicle advised by DRA Advisors LLC (“DRA”). When these two properties were contributed to the Austin Venture the Company had incurred a total of $76.7 million of development costs, representing the contribution value. The project is expected to cost $91.3 million with remaining costs fully funded by the Austin Venture. In conjunction with the contribution: (i) the Austin Venture obtained a $30.0 million mortgage loan; (ii) DRA contributed $25.1 million in net cash to the capital of the Austin Venture, including a $1.8 million working capital contribution; and (iii) the Austin Venture distributed $50.2 million to the Company and credited the Company with a $23.3 million capital contribution to the Austin Venture. In addition to the contribution of the properties, the Company also made a $1.8 million cash contribution to the Austin Venture for working capital. The Company recognized a $2.0 million gain on the contribution. Under the Encino Trace loan agreement the Austin Venture has the option, subject to certain leasing and loan-to-value requirements, to borrow an additional $29.7 million to fund tenant improvements and leasing commissions.
| (c) | The Company recorded an impairment loss of $6.3 million for the Carlsbad office properties during the fourth quarter of 2015. As such, there was no gain at disposition for this property.
| (d) | The Company recorded an impairment loss of $0.8 million for 100 Gateway Centre Parkway during the second quarter of 2015. As such, there was no gain at disposition for this property.
| (e) | The Company recorded an impairment loss of $1.7 million for Lake Merritt Tower at March 31, 2015. As such, there was no gain at disposition for this property. Sales proceeds were deposited in escrow under Section 1031 of the Internal Revenue Code and applied to purchase the Broadmoor Austin portfolio. Refer to Broadmoor Austin Associates acquisition summary, above, for further details.
| (f) | Total gain on sale does not include a deferred gain of $0.5 million related to a prior sale.
The Company sold the following land parcels, in each case to unaffiliated third parties in arms’ length transactions, during the twelve-month period ended December 31, 2015 (dollars in thousands):
Disposition Date |  | Property/Portfolio Name |  | Location |  | Number of Parcels |  |  | Acres |  |  | Sales Price |  |  | Net Proceeds on Sale |  |  | Gain/(Loss) on Sale (a) |  |
December 18, 2015 |  | Two Christina Centre |  | Wilmington, DE |  | 1 |  |  | 1.6 |  |  | $ | 6,500 |  |  | $ | 5,986 |  |  | $ | - |  | (b)
September 1, 2015 |  | 7000 Midlantic |  | Mt. Laurel, NJ |  |  | 1 |  |  |  | 3.5 |  |  |  | 2,200 |  |  |  | 1,742 |  |  |  | (169 | ) |
August 31, 2015 |  | Four Points |  | Austin, TX |  |  | 1 |  |  |  | 8.6 |  |  |  | 2,500 |  |  |  | 2,344 |  |  |  | 71 |  |
August 25, 2015 |  | Two Kaiser Plaza |  | Oakland, CA |  |  | 1 |  |  |  | 1.0 |  |  |  | 11,100 |  |  |  | 11,016 |  |  |  | 3,117 |  |
Total Dispositions |  |  |  |  |  | 4 |  |  | 14.7 |  |  | $ | 22,300 |  |  | $ | 21,088 |  |  | $ | 3,019 |  |
| (a) | Gain/(Loss) on sale includes closing and other transaction related costs.
| (b) | The Company recorded an impairment loss of $0.3 million for Two Christina Centre during the fourth quarter of 2015. As such, there was no gain/(loss) at disposition for this land parcel.
The Company sold the following office properties, in each case to unaffiliated third parties in arms’ length transactions, during the twelve-month period ended December 31, 2014 (dollars in thousands):
Disposition Date |  | Property/Portfolio Name |  | Location |  | Number of Properties |  | Rentable Square Feet |  |  | Sales Price |  |  | Net Proceeds on Sale |  |  | Gain/(Loss) on Sale (a) |  |
October 24, 2014 |  | 100, 101, 200, 300 and 301 Lindenwood Drive (the Valleybrooke Properties) |  | Malvern, PA |  | 5 |  |  | 279,934 |  |  | $ | 37,900 |  |  | $ | 37,156 |  |  | $ | 203 |  | (b)
September 30, 2014 |  | 1880 Campus Commons Drive (Campus Pointe) |  | Reston, VA |  | 1 |  |  | 172,943 |  |  |  | 42,500 |  |  |  | 41,476 |  |  |  | 4,698 |  |
April 3, 2014 |  | 11305 Four Points Drive (Four Points Centre) (c) |  | Austin, TX |  | 2 |  |  | 192,396 |  |  |  | 20,750 |  |  |  | 34,392 |  |  |  | (255 | ) | (c)
Total Dispositions |  |  |  |  |  | 8 |  |  | 645,273 |  |  | $ | 101,150 |  |  | $ | 113,024 |  |  | $ | 4,646 |  |
| (a) | Gain/(Loss) on sale is net of closing and other transaction related costs.
| (b) | During the third quarter of 2014, the Company recorded a $1.8 million impairment loss on these properties.
| (c) | On April 3, 2014, the Company contributed two three-story, Class A office buildings, commonly known as “Four Points Centre,” containing an aggregate of approximately 192,396 net rentable square feet in Austin, Texas to an existing real estate venture (the “Austin Venture”) that the Company formed in 2013 with G&I VII Austin Office LLC, an investment vehicle advised by DRA Advisors LLC (“DRA”). The Company contributed the properties to the Austin Venture at an agreed upon value of $41.5 million. In conjunction with the contribution: (i) the Austin Venture obtained a $29.0 million mortgage loan; (ii) DRA contributed $5.9 million in net cash to the capital of the Austin Venture; and (iii) the Austin Venture distributed $34.4 million to the Company and credited the Company with a $5.9 million capital contribution to the Austin Venture. The Company incurred a $0.2 million loss on the contribution, driven primarily by closing costs.
The Company sold the following land parcels, in each case to unaffiliated third parties in arms’ length negotiations, during the twelve-month period ended December 31, 2014 (dollars in thousands):
Disposition Date |  | Property/Portfolio Name |  | Location |  | Number of Parcels |  |  | Acres |  |  | Sales Price |  |  | Net Proceeds on Sale |  |  | Gain on Sale (a) |
April 16, 2014 |  | Westpoint II Land |  | Dallas, TX |  | 1 |  |  | 5.3 |  |  | $ | 1,600 |  |  | $ | 1,505 |  |  | $ | 12 |
March 27, 2014 |  | Rob Roy Land |  | Austin, TX |  |  | 1 |  |  |  | 16.8 |  |  |  | 3,520 |  |  |  | 3,350 |  |  |  | 1,172 |
Total Dispositions |  |  |  |  |  | 2 |  |  | 22.1 |  |  | $ | 5,120 |  |  | $ | 4,855 |  |  | $ | 1,184 |
| (a) | Gain/(Loss) on Sale is net of closing and other transaction related costs.
Discontinued Operations [Member] |
Dispositions | The following table summarizes revenue and expense information for the properties sold which qualify for discontinued operations reporting since January 1, 2014 (in thousands):
| Years ended December 31, |
| 2014 |
Revenue: |  |  |
Rents | $ | - |
Tenant reimbursements |  | 26 |
Other |  | - |
Total revenue |  | 26 |
Expenses: |  |  |
Property operating expenses |  | 8 |
Real estate taxes |  | - |
Depreciation and amortization |  | - |
Total operating expenses |  | 8 |
Other income: |  |  |
Interest income |  | - |
Income from discontinued operations before gain on sale of interests in real estate |  | 18 |
Net gain on disposition of discontinued operations |  | 900 |
Income from discontinued operations | $ | 918 |

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