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Real Estate Investments (Tables) | 9 Months Ended
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Sep. 30, 2017
Real Estate Properties [Line Items] |
Gross Carrying Value Of Company's Properties | As of September 30, 2017 and December 31, 2016, the gross carrying value of the properties was as follows (in thousands):
| September 30, |  |  | December 31, |
| 2017 |  |  | 2016 |
Land | $ | 470,391 |  |  | $ | 469,522 |
Building and improvements |  | 2,846,869 |  |  |  | 2,683,087 |
Tenant improvements |  | 451,807 |  |  |  | 433,686 |
Operating properties |  | 3,769,067 |  |  |  | 3,586,295 |
Assets held for sale - real estate investments (a) |  | 47,291 |  |  |  | 73,591 |
Total | $ | 3,816,358 |  |  | $ | 3,659,886 |
(a) | Real estate investments related to assets held for sale above represents gross real estate assets and does not include accumulated depreciation, land held for development or other assets on the balance sheet of the property held for sale. See “Held for Sale” below in this Note 3.
Schedule of Purchase Price Allocation | The purchase price has been allocated as follows (in thousands):
|  | July 18, 2017 |
Building, land and improvements |  | $ | 31,728 |
Intangible assets acquired (a) |  |  | 2,838 |
Below market lease liabilities assumed (b) |  |  | (1,818 | )
|  | $ | 32,748 |
| (a) | Weighted average amortization period of 5.9 years.
| (b) | Weighted average amortization period of 6.0 years.
Dispositions | The Company sold the following twelve office properties, one retail property and one mixed-use property during the nine-month period ended September 30, 2017 (dollars in thousands):
Disposition Date |  | Property/Portfolio Name |  | Location |  | Type |  | Number of Properties |  | Rentable Square Feet |  |  | Sales Price |  |  | Net Proceeds on Sale |  |  | Gain/(Loss) on Sale (a) |  |
June 27, 2017 |  | Two, Four A, Four B and Five Eves Drive (Evesham Corporate Center) |  | Marlton, NJ |  | Office |  | 4 |  |  | 134,794 |  |  | $ | 9,700 |  |  | $ | 8,650 |  |  | $ | (325 | ) | (b)
June 12, 2017 |  | 7000 Midlantic Drive |  | Mount Laurel, NJ |  | Retail |  | 1 |  |  | 10,784 |  |  |  | 8,200 |  |  |  | 7,714 |  |  |  | 1,413 |  |
March 30, 2017 |  | 200, 210 & 220 Lake Drive East (Woodland Falls) |  | Cherry Hill, NJ |  | Office |  | 3 |  |  | 215,465 |  |  |  | 19,000 |  |  |  | 17,771 |  |  |  | (249 | ) | (c)
March 15, 2017 |  | Philadelphia Marine Center (Marine Piers) |  | Philadelphia, PA |  | Mixed-use |  | 1 |  |  | 181,900 |  |  |  | 21,400 |  |  |  | 11,182 |  |  |  | 6,498 |  | (d)
March 13, 2017 |  | 11700, 11710, 11720 & 11740 Beltsville Drive (Calverton) |  | Beltsville, MD |  | Office |  | 3 |  |  | 313,810 |  |  |  | 9,000 |  |  |  | 8,354 |  |  |  | - |  | (e)
February 2, 2017 |  | 1200 & 1220 Concord Avenue (Concord Airport Plaza) |  | Concord, CA |  | Office |  | 2 |  |  | 350,256 |  |  |  | 33,100 |  |  |  | 32,010 |  |  |  | 551 |  | (f)
Total Dispositions |  |  |  |  |  |  |  | 14 |  |  | 1,207,009 |  |  | $ | 100,400 |  |  | $ | 85,681 |  |  | $ | 7,888 |  |
(a) | Gain/(Loss) on Sale is net of closing and other transaction related costs.
(b) | During the first quarter of 2017, the Company recognized a $1.0 million impairment related to these properties. The loss on sale represents closing costs.
(c) | During the fourth quarter of 2016, the Company recognized a $7.3 million impairment related to these properties. The loss on sale represents closing costs.
(d) | On March 15, 2017, the Company sold its sublease interest in the Piers at Penn’s Landing (the “Marine Piers”), which includes leasehold improvements containing 181,900 net rentable square feet, and a marina, located in Philadelphia, Pennsylvania for an aggregate sales price of $21.4 million, which will be paid in two installments. On the closing date, the buyer paid $12.0 million in cash. On the second purchase price installment date, the buyer will pay $9.4 million. The second purchase price installment is due on (a) January 31, 2020, in the event that the tenant at the Marine Piers does not exercise its existing option to extend the term of the sublease or (b) January 15, 2024, in the event that the tenant does exercise its current extension option to extend the term of the sublease. In accordance with ASC 360-20, Real Estate Sales, the Company determined that it is appropriate to account for the sales transaction under the cost recovery method. The Company received cash proceeds of $11.2 million, after closing costs and prorations, and the net book value of the Marine Piers was $4.7 million, resulting in a gain on sale of $6.5 million. The remaining gain on sale of $9.4 million will be recognized on the second purchase price installment date. The Marine Piers was classified as mixed-use within the Company’s property count.
(e) | During the fourth quarter of 2016, the Company recognized a $3.0 million impairment related to these properties. During the first quarter of 2017, there was a price reduction of $1.7 million under the agreement of sale and an additional impairment of $1.7 million was recognized.
(f) | During the fourth quarter of 2016, the Company recognized an $11.5 million impairment related to these properties. This sale is designated as a like-kind exchange under Section 1031 of the Internal Revenue Code (“IRC”) and, as such, the proceeds, totaling $32.0 million after closing costs and prorations, were deposited with a Qualified Intermediary, as defined under the IRC. The proceeds received at closing were recorded as “Other assets” in the Company’s consolidated balance sheet. During the third quarter of 2017, the Company acquired 3000 Market Street in Philadelphia, Pennsylvania using the full balance of the Section 1031 proceeds. See “Acquisition” section above.
The Company sold the following land parcels during the nine-month period ended September 30, 2017 (dollars in thousands):
Disposition Date |  | Property/Portfolio Name |  | Location |  | Number of Parcels |  |  | Acres |  |  | Sales Price |  |  | Net Proceeds on Sale |  |  | Gain on Sale |  |
September 13, 2017 |  | 50 E. Swedesford Square |  | Malvern, PA |  |  | 1 |  |  |  | 12.0 |  |  | $ | 7,200 |  |  | $ | 7,098 |  |  | $ | 882 |  |
July 18, 2017 |  | Bishop's Gate |  | Mount Laurel, NJ |  |  | 1 |  |  |  | 49.5 |  |  |  | 6,000 |  |  |  | 5,640 |  |  |  | 71 |  | (a)
April 28, 2017 |  | Garza Ranch - Multi-family |  | Austin, TX |  |  | 1 |  |  |  | 8.4 |  |  |  | 11,800 |  |  |  | 11,560 |  |  |  | - |  | (b)
February 15, 2017 |  | Gateway Land - Site C |  | Richmond, VA |  |  | 1 |  |  |  | 4.8 |  |  |  | 1,100 |  |  |  | 1,043 |  |  |  | - |  | (c)
January 30, 2017 |  | Garza Ranch - Hotel |  | Austin, TX |  |  | 1 |  |  |  | 1.7 |  |  |  | 3,500 |  |  |  | 3,277 |  |  |  | - |  | (b)
Total Dispositions |  |  |  |  |  |  | 5 |  |  |  | 76.4 |  |  | $ | 29,600 |  |  | $ | 28,618 |  |  | $ | 953 |  |
(a) | During the fourth quarter of 2016, the Company recognized an impairment of $3.0 million. During the second quarter of 2017, the Company recognized an additional impairment of $0.3 million, representing closing costs. See “Land Impairment” section below.
(b) | The Company has a continuing involvement through a completion guaranty, which requires the Company as developer to complete certain infrastructure improvements on behalf of the buyers of the land parcels. The cash received at settlement was recorded as “Deferred income, gains and rent” on the Company’s consolidated balance sheet and the Company will recognize the sale once the infrastructure improvements are complete. See Note 13, “Commitments and Contingencies” for further discussion of the infrastructure improvements.
(c) | During the fourth quarter of 2016, the Company recognized a nominal impairment related to this land parcel.
Held for Sale Properties Included in Continuing Operations [Member] |
Real Estate Properties [Line Items] |
Summary of Properties Classified as Held for Sale but Which did not Meet the Criteria to be Classified within Discontinued Operations | The following is a summary of properties classified as held for sale but which did not meet the criteria to be classified within discontinued operations at September 30, 2017 (in thousands):
| Held for Sale Properties Included in Continuing Operations |
| September 30, 2017 |
| 630 Allendale Road - Office (a) |  |  | Newtown Square - Office (b) |  |  | Total |
ASSETS HELD FOR SALE |  |  |  |  |  |  |  |  |  |  |
Real estate investments: |  |  |  |  |  |  |  |  |  |  |
Operating properties | $ | 19,482 |  |  | $ | 27,809 |  |  | $ | 47,291 |
Accumulated depreciation |  | (6,985 | ) |  |  | (9,206 | ) |  |  | (16,191 | )
Operating real estate investments, net |  | 12,497 |  |  |  | 18,603 |  |  |  | 31,100 |
Construction-in-progress |  | - |  |  |  | 25 |  |  |  | 25 |
Total assets held for sale, net | $ | 12,497 |  |  | $ | 18,628 |  |  | $ | 31,125 |
LIABILITIES HELD FOR SALE |  |  |  |  |  |  |  |  |  |  |
Other liabilities | $ | 35 |  |  | $ | 234 |  |  | $ | 269 |
Total liabilities held for sale | $ | 35 |  |  | $ | 234 |  |  | $ | 269 |
(a) | Office property containing 150,000 rentable square feet located in the Pennsylvania Suburbs segment.
(b) | Five office properties containing 252,802 rentable square feet located in the Pennsylvania Suburbs segment.

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