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Acquisitions (Tables)
6 Months Ended
Jun. 30, 2011
Acquisitions [Abstract]  
Acquired operating properties from unrelated third parties
 
                                         
                        Percentage
       
                        Occupied
       
                  Rentable
    as of
    Purchase
 
    Property
  Date of
  Number of
    Square
    June 30,
    Price
 
Property   Type   Acquisition   Buildings     Feet     2011     (in millions)(1)  
 
250 Brannan Street San Francisco, CA
  Office   January 28, 2011     1       90,742       76.7 %   $ 33.0  
10210, 10220, and 10230 NE Points Drive; 3933 Lake Washington Boulevard NE Kirkland, WA(2)
  Office   April 21, 2011     4       279,924       87.3 %     100.1  
10770 Wateridge Circle San Diego, CA
  Office   May 12, 2011     1       174,310       97.5 %     32.7  
601 108th Avenue N.E.
Bellevue, WA
  Office   June 3, 2011     1       488,470       89.8 %     215.0  
4040 Civic Center Drive San Rafael, CA
  Office   June 9, 2011     1       126,787       93.1 %     32.2  
                                         
Total
            8       1,160,233             $ 413.0  
                                         
 
 
(1) Excludes acquisition-related costs.
 
(2) In connection with this acquisition, we assumed secured debt with an outstanding principal balance of $30.0 million and a premium of $1.0 million as a result of recording this debt at fair value on the acquisition date (see Note 5).
 
Fair values of assets acquired and liabilities assumed
 
                         
    601 108th Avenue
    All Other
       
    N.E., Bellevue, WA(1)     Acquisitions(2)     Total  
    (in thousands)  
 
Assets
                       
Land(3)
  $     $ 36,740     $ 36,740  
Buildings and improvements(4)
    214,095       143,545       357,640  
Undeveloped land
          2,560       2,560  
Deferred leasing costs and acquisition-related intangible assets(5)
    13,790       17,500       31,290  
                         
Total assets acquired
    227,885       200,345       428,230  
                         
Liabilities
                       
Deferred revenue and acquisition-related intangible liabilities(6)
    12,850       1,390       14,240  
Secured debt(7)
          30,997       30,997  
Accounts payable, accrued expenses and other liabilities
    2,380       2,059       4,439  
                         
Total liabilities assumed
    15,230       34,446       49,676  
                         
Net assets and liabilities acquired(8)
  $ 212,655     $ 165,899     $ 378,554  
                         
 
 
(1) The purchase of 601 108th Avenue N.E., Bellevue, WA, represents the largest acquisition and 52.1% of the total aggregate purchase price of the properties acquired during the six months ended June 30, 2011.
 
(2) The purchase price of all other acquisitions completed during the six months ended June 30, 2011 were individually less than 5% and in aggregate less than 10% of the Company’s total assets as of December 31, 2010.
 
(3) In connection with the acquisition of 601 108th Avenue N.E., Bellevue, WA,, we assumed the lessee obligations under a noncancellable ground lease that is scheduled to expire in November 2093 (see Notes 3 and 11).
 
(4) Represents buildings, building improvements, and tenant improvements.
 
(5) Represents in-place leases (approximately $18.9 million with a weighted average amortization period of 4.1 years), above-market leases (approximately $6.6 million with a weighted average amortization period of 4.5 years), and unamortized leasing commissions (approximately $5.7 million with a weighted average amortization period of 2.8 years).
 
(6) Represents below-market leases (approximately $9.0 million with a weighted average amortization period of 4.3 years) and an above-market ground lease obligation (approximately $5.2 million with a weighted average amortization period of 82.5 years), under which we are the lessee.
 
(7) Represents the mortgage loan, which includes an unamortized premium of approximately $1.0 million, assumed in connection with the properties acquired in April 2011 (see Note 5).
 
(8) Reflects the purchase price net of assumed secured debt and other lease-related obligations.