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Real Estate Investments (Tables) | 12 Months Ended
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Dec. 31, 2018
Real Estate Properties [Line Items] |
Gross Carrying Value of Operating Properties | As of December 31, 2018 and 2017, the gross carrying value of the operating properties was as follows (in thousands):
| December 31, |  |  | December 31, |
| 2018 |  |  | 2017 |
Land | $ | 508,363 |  |  | $ | 492,197 |
Building and improvements |  | 3,029,427 |  |  |  | 2,896,113 |
Tenant improvements |  | 415,529 |  |  |  | 444,038 |
Total | $ | 3,953,319 |  |  | $ | 3,832,348 |
Schedule of Purchase Price Allocation | The Company utilized a number of sources in making estimates of fair value for purposes of allocating the acquisition values to tangible and intangible assets acquired. The acquisition values have been allocated as follows (in thousands):
|  | Quarry Lake II |  |  | Austin Venture Portfolio |  |  | Four Tower Bridge |
Acquisition Date |  | 12/19/2018 |  |  | 12/11/2018 |  |  | 01/05/2018 |
Building, land and improvements |  | $ | 35,120 |  |  | $ | 457,390 |  |  | $ | 20,734 |
Intangible assets acquired |  |  | 5,809 |  |  |  | 76,925 |  |  |  | 3,144 |
Below market lease liabilities assumed |  |  | (1,524 | ) |  |  | (13,769 | ) |  |  | (182 | )
Deferred gain (a) |  |  | - |  |  |  | 14,594 |  |  |  | - |
Total unencumbered acquisition value |  | $ | 39,405 |  |  | $ | 535,140 |  |  | $ | 23,696 |
Mortgage debt assumed - at fair value (b) |  |  | - |  |  |  | - |  |  |  | (9,940 | )
Total encumbered acquisition value |  | $ | 39,405 |  |  | $ | 535,140 |  |  | $ | 13,756 |
Total unencumbered acquisition value |  |  | 39,405 |  |  |  | 535,140 |  |  |  | 23,696 |
Mortgage debt assumed - at fair value (b) |  |  | - |  |  |  | - |  |  |  | (9,940 | )
Mortgage debt repaid at settlement (c) |  |  | - |  |  |  | (115,461 | ) |  |  | - |
Investment in unconsolidated real estate ventures |  |  | - |  |  |  | (14,594 | ) |  |  | (3,502 | )
Gain on promoted interest in unconsolidated real estate venture |  |  | - |  |  |  | (28,283 | ) |  |  | - |
Gain on real estate venture transactions |  |  | - |  |  |  | (103,847 | ) |  |  | (11,633 | )
Purchase price reduction for note receivable (d) |  |  | - |  |  |  | (130,742 | ) |  |  | - |
Net working capital assumed |  |  | (368 | ) |  |  | (24,865 | ) |  |  | 1,379 |
Total cash payment at settlement |  | $ | 39,037 |  |  | $ | 117,348 |  |  | $ | - |
Weighted average amortization period of intangible assets |  |  | - |  |  | 5.5 years |  |  | 4.1 years |
Weighted average amortization period of below market liabilities assumed |  | 3.0 years |  |  | 4.6 years |  |  | 4.8 years |
(a) | Represents a deferred gain resulting recognized at settlement, which resulted in a reduction in the acquisition value.
(b) | The outstanding principal balance on mortgage debt for Four Tower Bridge, assumed on January 5, 2018, was $9.7 million.
(c) | On December 11, 2018, the Company assumed $115.5 million of mortgage debt which was repaid in full at settlement.
(d) | Represents a note receivable due from the DRA Austin Venture that represents a purchase price reduction.
The purchase price has been allocated as follows (in thousands):
|  | October 13, 2017 |
Building and improvements |  | $ | 30,583 |
Construction-in-progress |  |  | 672 |
Intangible assets acquired (a) |  |  | 10,575 |
Below market lease liabilities assumed (b) |  |  | (4,055 | )
|  | $ | 37,775 |
(a) | Weighted average amortization period of 7.9 years.
(b) | Weighted average amortization period of 7.0 years.
The purchase price has been allocated as follows (in thousands):
|  | July 28, 2017 |
Building, land and improvements |  | $ | 32,004 |
Intangible assets acquired (a) |  |  | 2,562 |
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.
Schedule of Pro Forma Information | The unaudited pro forma information below summarizes the Company’s combined results of operations for the years ended December 31, 2018 and December 31, 2017, respectively, as though the acquisition of the Austin Venture Portfolio was completed on January 1, 2017. The supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transaction had been completed as set forth above, nor do they purport to represent the Company’s results of operations for future periods (in thousands, except for per share amounts).
|  | December 31, |
|  | 2018 |  |  | 2017 |
Pro forma revenue |  | $ | 602,713 |  |  | $ | 582,244 |
Pro forma net income |  |  | 134,142 |  |  |  | 115,475 |
Pro forma net income available to common shareholders |  |  | 134,142 |  |  |  | 115,475 |
Summary of Gain on Sale for Each Land Parcel | The Company sold the following properties during the twelve-month period ended December 31, 2018 (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 |
December 21, 2018 |  | Subaru National Training Center (a) |  | Camden, NJ |  | Mixed-use |  | 1 |  |  | 83,000 |  |  | $ | 45,300 |  |  | $ | 44,877 |  |  | $ | 2,570 |
December 20, 2018 |  | Rockpoint Portfolio (b) |  | Herndon, VA |  | Office |  | 8 |  |  | 1,293,197 |  |  |  | 312,000 |  |  |  | 262,442 |  |  |  | 397 |
June 21, 2018 |  | 20 East Clementon Road |  | Gibbsboro, NJ |  | Office |  | 1 |  |  | 38,260 |  |  |  | 2,000 |  |  |  | 1,850 |  |  |  | (35 | )
Total Dispositions |  |  |  |  |  |  |  | 10 |  |  | 1,414,457 |  |  | $ | 359,300 |  |  | $ | 309,169 |  |  | $ | 2,932 |
(a) | During the second quarter of 2018, Subaru exercised its purchase option under the lease agreement for the Subaru NSTC and the sale occurred during the fourth quarter of 2018. See Note 2, “Summary of Significant Accounting Policies,” for further discussion of the lease agreement and related revenue recognition.
(b) | On December 20, 2018, the Company contributed a portfolio of eight properties containing an aggregate of 1,293,197 square feet, located in its Metropolitan Washington, D.C. segment (the “Rockpoint Portfolio”) to a newly-formed joint venture (the “Herndon Innovation Center Metro Portfolio Venture, LLC”) for a gross sales price of $312.0 million. The Company and its partner own 15% and 85% interests in the Herndon Innovation Center Metro Portfolio Venture, LLC, respectively. The Herndon Innovation Center Metro Portfolio Venture, LLC funded the acquisition with $265.2 million of cash, which was distributed to the Company at closing. After funding its share of closing costs and working capital contributions of $2.2 million and $0.6 million, respectively, the Company received $262.4 million of cash proceeds at settlement. The Company recorded an impairment charge of $56.9 million for the Rockpoint Portfolio during the third quarter of 2018. The Company recorded a $0.4 million gain on sale, which represents an adjustment to estimated closing costs used to determine the impairment charge in the third quarter of 2018. For further information related to this transaction, see the “Herndon Innovation Center Metro Portfolio Venture, LLC” section in Note 4, “Investment in Unconsolidated Real Estate Ventures.”
The Company sold the following land parcels during the twelve-month period ended December 31, 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 |  |  | $ | 1,515 |  | (a)
January 10, 2018 |  | Westpark Land |  | Durham, NC |  |  | 1 |  |  |  | 13.1 |  |  |  | 485 |  |  |  | 412 |  |  |  | 22 |  |
Total Dispositions |  |  |  |  |  |  | 2 |  |  |  | 19.7 |  |  | $ | 15,056 |  |  | $ | 14,921 |  |  | $ | 1,537 |  |
(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 sales of the three land parcels during 2018 and recorded an aggregate $2.8 million gain. During the quarter ended December 31, 2018, the Company recognized an additional $0.2 million gain. See Note 2, “Summary of Significant Accounting Policies,” for further discussion of the infrastructure improvements and related revenue recognition.
The Company sold the following properties during the twelve-month period ended December 31, 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) |  |
November 22, 2017 |  | 11, 14, 15, 17 and 18 Campus Boulevard (Newtown Square) |  | Newtown Square, PA |  | Office |  | 5 |  |  | 252,802 |  |  | $ | 42,000 |  |  | $ | 40,459 |  |  | $ | 19,642 |  |
October 31, 2017 |  | 630 Allendale Road |  | King of Prussia, PA |  | Office |  | 1 |  |  | 150,000 |  |  |  | 17,500 |  |  |  | 16,580 |  |  |  | 3,605 |  |
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 |  |  |  |  |  |  |  | 20 |  |  | 1,609,811 |  |  | $ | 159,900 |  |  | $ | 142,720 |  |  | $ | 31,135 |  |
(a) | Gain/(Loss) on Sale is net of closing and other transaction related costs.
(b) | As of March 31, 2017, the Company evaluated the recoverability of the carrying value of its properties that triggered assessment under the undiscounted cash flow model. Based on the Company’s evaluation, it was determined that due to the reduction in the Company’s intended hold period of four properties located in the Other segment, the Company would not recover the carrying values of these properties. Accordingly, the Company recorded impairment charges on these properties of $1.0 million at March 31, 2017, which reduced the aggregate carrying values of the properties from $10.2 million to their estimated fair value of $9.2 million. The Company measured these impairments based on a discounted cash flow analysis, using a hold period of 10 years and residual capitalization rates and discount rates of 9.00% and 9.25%, respectively. The results were comparable to indicative pricing in the market. The assumptions used to determine fair value under the income approach are Level 3 inputs in accordance with the fair value hierarchy established by Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurements and Disclosures.” The loss on sale in the table above represents additional closing costs.
(c) | As of December 31, 2016, the Company evaluated the recoverability of the carrying value of its properties that triggered assessment under the undiscounted cash flow model. Based on the Company’s evaluation, it was determined that due to the reduction in the Company’s intended hold period of three properties located in the Other segment, the Company would not recover the carrying values of these properties. Accordingly, the Company recorded impairment charges on these properties of $7.3 million at December 31, 2016, reducing the aggregate carrying values of the properties from $25.8 million to their estimated fair value of $18.5 million. The Company measured these impairments based on a discounted cash flow analysis, using a hold period of 10 years and residual capitalization rates and discount rates of 8.75% and 9.00%, respectively. The results were comparable to indicative pricing in the market. The assumptions used to determine fair value under the income approach are Level 3 inputs in accordance with the fair value hierarchy established by Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurements and Disclosures.” The loss on sale in the table above represents additional 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. On the closing date, the buyer paid $12.0 million in cash. The $9.4 million balance of the purchase is due on (a) January 31, 2020, in the event that the tenant at the Marine Piers does not exercise an option it holds to extend the term of the sublease or (b) January 15, 2024, in the event that the tenant does exercise the option to extend the term of the sublease. 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. Prior to its sale, the Marine Piers had been 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 was 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 sheets. 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 twelve-month period ended December 31, 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 recorded a held for sale impairment charge of $0.3 million, reducing the aggregate carrying value of the land parcel from $5.9 million to its estimated fair value less costs to sell of $5.6 million. The fair value measurement is based on pricing in the purchase and sale agreement for the property. As the pricing in the purchase and sale agreement is unobservable, the Company determined that the input utilized to determine fair value for the 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 land parcel was sold on July 18, 2017.
(b) | The Company has a continuing involvement in this property 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 Company recorded the cash received at settlement as “Deferred income, gains and rent” on the Company’s consolidated balance sheet and the Company will recognize the sale upon completion of infrastructure improvements.
(c) | During the fourth quarter of 2016, the Company recognized a nominal impairment related to this land parcel.
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 |  | 58 |  |  | 3,924,783 |  |  |  | 398,100 |  |  |  | 353,971 |  |  |  | (372 | ) | (d)
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) | 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.
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 December 31, 2018 (in thousands):
| Held for Sale Properties |
| December 31, 2018 |
| Pennsylvania Suburbs - Land (a) |  |  | Other - Land (a) |  |  | Total |
ASSETS HELD FOR SALE |  |  |  |  |  |  |  |  |  |  |
Real estate investments: |  |  |  |  |  |  |  |  |  |  |
Land inventory | $ | 4,254 |  |  | $ | 7,345 |  |  | $ | 11,599 |
Total real estate investments |  | 4,254 |  |  |  | 7,345 |  |  |  | 11,599 |
Total assets held for sale, net | $ | 4,254 |  |  | $ | 7,345 |  |  | $ | 11,599 |
The following is a summary of properties classified as held for sale at December 31, 2016 but which did not meet the criteria to be classified within discontinued operations at December 31, 2016 (in thousands):
| Held for Sale Properties Included in Continuing Operations |
| December 31, 2016 |
| Metropolitan D.C. - Office (a) |  |  | Other Segment - Office (b) |  |  | Other Segment - Land (c) |  |  | Total |
ASSETS HELD FOR SALE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating properties | $ | 21,720 |  |  | $ | 51,871 |  |  | $ | - |  |  | $ | 73,591 |
Accumulated depreciation |  | (11,935 | ) |  |  | (20,981 | ) |  |  | - |  |  |  | (32,916 | )
Operating real estate investments, net |  | 9,785 |  |  |  | 30,890 |  |  |  | - |  |  |  | 40,675 |
Land held for development |  | - |  |  |  | - |  |  |  | 1,043 |  |  |  | 1,043 |
Total real estate investments, net |  | 9,785 |  |  |  | 30,890 |  |  |  | 1,043 |  |  |  | 41,718 |
Total assets held for sale, net | $ | 9,785 |  |  | $ | 30,890 |  |  | $ | 1,043 |  |  | $ | 41,718 |
LIABILITIES HELD FOR SALE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other liabilities | $ | 73 |  |  | $ | 8 |  |  | $ | - |  |  | $ | 81 |
Total liabilities held for sale | $ | 73 |  |  | $ | 8 |  |  | $ | - |  |  | $ | 81 |
(a) | As of December 31, 2016, the Company determined that the sale of three office properties in the Metropolitan 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 carrying value of the properties exceeded their fair value less the anticipated costs of sale. As a result, the Company recognized an impairment loss totaling approximately $3.0 million during the three-month period ended December 31, 2016. The Company measured this impairment based on a discounted cash flow analysis, using a hold period of 10 years and residual capitalization rates and discount rates of 9.00% and 10.00%, 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 December 31, 2016, the Company determined that the sale of two office properties 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 carrying value of the properties exceeded the fair value less the anticipated costs of sale. As a result, the Company recognized an impairment loss totaling approximately $11.5 million during the three-month period ended December 31, 2016. The Company measured this impairment based on a discounted cash flow analysis, using a hold period of 10 years and residual capitalization rates and discount rates of 9.75% and 9.75%, 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.
(c) | As of December 31, 2016, the Company determined that the sale of a land parcel in the Other segment was probable and classified the land parcel as held for sale in accordance with applicable accounting standards for long lived assets. At such date, the carrying value of the land approximated the fair value less the anticipated costs of sale and the Company recorded a nominal impairment. The fair value measurement was based on the pricing in the purchase and sale.

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