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Real Estate Investments (Tables) | 9 Months Ended
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Sep. 30, 2018
Real Estate Properties [Line Items] |
Gross Carrying Value Of Operating Properties | As of September 30, 2018 and December 31, 2017, the gross carrying value of the operating properties was as follows (in thousands):
| September 30, |  |  | December 31, |
| 2018 |  |  | 2017 |
Land | $ | 437,640 |  |  | $ | 492,197 |
Building and improvements |  | 2,579,740 |  |  |  | 2,896,113 |
Tenant improvements |  | 411,668 |  |  |  | 444,038 |
Operating properties |  | 3,429,048 |  |  |  | 3,832,348 |
Assets held for sale - real estate investments |  | 396,072 |  |  |  | - |
Total | $ | 3,825,120 |  |  | $ | 3,832,348 |
Schedule of Purchase Price Allocation | The acquisition value has been allocated as follows (in thousands):
|  | January 5, 2018 |
Building, land and improvements |  | $ | 20,734 |
Intangible assets acquired (a) |  |  | 3,144 |
Below market lease liabilities assumed (b) |  |  | (182 | )
Total unencumbered acquisition value |  | $ | 23,696 |
Mortgage debt assumed - at fair value (c) |  |  | (9,940 | )
Total encumbered acquisition value |  | $ | 13,756 |
Total unencumbered acquisition value |  |  | 23,696 |
Mortgage debt assumed - at fair value (c) |  |  | (9,940 | )
Investment in unconsolidated real estate ventures |  |  | (3,502 | )
Net working capital assumed |  |  | 1,379 |
Gain on real estate venture transactions |  | $ | 11,633 |
(a)Weighted average amortization period of 4.1 years. (b)Weighted average amortization period of 4.8 years. (c)The outstanding principal balance on mortgage debt assumed at January 5, 2018 was $9.7 million.
Summary of Gain on Sale for Each Land Parcel | The Company sold the following office property during the nine-month period ended September 30, 2018 (dollars in thousands):
Disposition Date |  | Property/Portfolio Name |  | Location |  | Type |  | Number of Properties |  | Rentable Square Feet |  |  | Sales Price |  |  | Net Proceeds on Sale |  |  | Loss on Sale |  |
June 21, 2018 |  | 20 East Clementon Road |  | Gibbsboro, NJ |  | Office |  | 1 |  |  | 38,260 |  |  | $ | 2,000 |  |  | $ | 1,850 |  |  | $ | (35 | ) |
Total Dispositions |  |  |  |  |  |  |  | 1 |  |  | 38,260 |  |  | $ | 2,000 |  |  | $ | 1,850 |  |  | $ | (35 | ) |
The Company sold the following land parcels during the nine-month period ended September 30, 2018 (dollars in thousands):
Disposition Date |  | Property/Portfolio Name |  | Location |  | Number of Parcels |  |  | Acres |  |  | Sales Price |  |  | Net Proceeds on Sale |  |  | Gain on Sale |  |
March 16, 2018 |  | Garza Ranch - Office |  | Austin, TX |  |  | 1 |  |  |  | 6.6 |  |  | $ | 14,571 |  |  | $ | 14,509 |  |  | $ | 1,424 |  | (a)
January 10, 2018 |  | Westpark Land |  | Durham, NC |  |  | 1 |  |  |  | 13.1 |  |  |  | 485 |  |  |  | 412 |  |  |  | 22 |  |
Total Dispositions |  |  |  |  |  |  | 2 |  |  |  | 19.7 |  |  | $ | 15,056 |  |  | $ | 14,921 |  |  | $ | 1,446 |  |
(a) | As of March 31, 2018, the Company had not transferred control to the buyer of this land parcel, or two other parcels at this site which were sold during 2017, because of a completion guarantee which required 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 sheets. During the three months ended June 30, 2018, the infrastructure improvements were substantially completed, at which time the Company transferred control of the land parcels. As a result, the Company then recognized the sale. See Note 2, “Basis of Presentation,” for further discussion of the infrastructure improvements and related revenue recognition.
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, 2018 (in thousands):
| Held for Sale Properties Included in Continuing Operations |
| September 30, 2018 |
| Metropolitan Washington, D.C. - Office (a) |  |  | Pennsylvania Suburbs - Land (b) |  |  | Other - Land (b) |  |  | Total |
ASSETS HELD FOR SALE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating properties | $ | 396,072 |  |  | $ | - |  |  | $ | - |  |  | $ | 396,072 |
Accumulated depreciation |  | (112,600 | ) |  |  | - |  |  |  | - |  |  |  | (112,600 | )
Operating real estate investments, net |  | 283,472 |  |  |  | - |  |  |  | - |  |  |  | 283,472 |
Construction-in-progress |  | 1,748 |  |  |  | - |  |  |  | - |  |  |  | 1,748 |
Land inventory |  | - |  |  |  | 4,254 |  |  |  | 7,321 |  |  |  | 11,575 |
Total real estate investments |  | 285,220 |  |  |  | 4,254 |  |  |  | 7,321 |  |  |  | 296,795 |
Other assets |  | 399 |  |  |  | - |  |  |  | - |  |  |  | 399 |
Total assets held for sale, net | $ | 285,619 |  |  | $ | 4,254 |  |  | $ | 7,321 |  |  | $ | 297,194 |
LIABILITIES HELD FOR SALE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other liabilities | $ | 826 |  |  | $ | - |  |  | $ | - |  |  | $ | 826 |
Total liabilities held for sale | $ | 826 |  |  | $ | - |  |  | $ | - |  |  | $ | 826 |
| (a) | As of September 30, 2018, the Company determined that the sale of eight office properties, containing 1,293,197 rentable square feet, in the Metropolitan Washington, D.C. segment, was probable and classified these properties as held for sale in accordance with applicable accounting standards for long-lived assets. At such date, the $366.0 million carrying value of the properties exceeded the estimated $309.1 million fair value less the anticipated costs of sale. As a result, the Company recognized an impairment loss totaling approximately $56.9 million during the three-month period ended September 30, 2018. The Company measured this impairment based on a discounted cash flow analysis, using a hold period of ten years and residual capitalization rates and discount rates of 7.47% and 8.60%, respectively. The results were comparable to indicative pricing in the market. As significant inputs to the model are unobservable, the Company determined that the value determined for this property falls within Level 3 fair value reporting.
| (b) | As of September 30, 2018, the Company determined that the sale of one land parcel in the Pennsylvania Suburbs segment and two parcels of land in the Other segment was probable and classified these properties as held for sale in accordance with applicable accounting standards for long-lived assets. At such date, the fair value less the anticipated costs of sale of the properties exceeded the carrying values. As a result, the Company expects to record gains on sale. The fair value measurement will be based on the pricing in the purchase and sale agreements.

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