Acquisitions (Tables) (Office Properties Acquisitions [Member])

3 Months Ended

Mar. 31, 2013

Office Properties Acquisitions [Member]

Business Acquisition [Line Items]

Acquired operating properties from unrelated third parties

During the three months ended March 31, 2013, we acquired the two operating office properties listed below from an unrelated third party. The acquisition was funded with a portion of the remaining proceeds from the sale of our industrial portfolio that was included in restricted cash at December 31, 2012 and the assumption of existing mortgage debt (see Note 5).

Property	Date of Acquisition	Number of Buildings	Rentable Square Feet	Occupancy as of March 31, 2013	Purchase Price (in millions)(1)
320 Westlake Ave. N. and 321 Terry Ave. N. (2) (3)
Seattle, WA	January 16, 2013	2	320,398	100.0%	$	170.0
Total		2	320,398		$	170.0

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(1) Excludes acquisition-related costs and includes assumed tenant improvements.

(2) We acquired these properties through a new special purpose entity wholly owned by the Finance Partnership.

(3) In connection with this acquisition, we assumed secured debt with an outstanding principal balance of $83.9 million that was recorded at fair value on the acquisition date, resulting in a premium of approximately $11.6 million (see Note 5).

Fair values of assets acquired and liabilities assumed

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

	320 Westlake Ave. N. and 321 Terry Ave. N., Seattle, WA
	(in thousands)
Assets
Land and improvements	$	25,140
Buildings and improvements(1)	142,021
Deferred leasing costs and acquisition-related intangible assets(2)	16,019
Total assets acquired	183,180
Liabilities
Deferred revenue and acquisition-related intangible liabilities(3)	1,570
Secured debt(4)	95,496
Accounts payable, accrued expenses and other liabilities	422
Total liabilities assumed	97,488
Net assets and liabilities acquired(5)	$	85,692

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(1) Represents buildings, building improvements and tenant improvements.

(2) Represents in-place leases (approximately $13.0 million with a weighted average amortization period of 3.9 years), above-market leases (approximately $0.3 million with a weighted average amortization period of 4.6 years), and leasing commissions (approximately $2.7 million with a weighted average amortization period of 3.0 years).

(3) Represents below-market leases (approximately $1.6 million with a weighted average amortization period of 9.2 years).

(4) Represents the mortgage loan, which includes an unamortized premium of approximately $11.6 million at the date of acquisition, assumed in connection with the properties acquired in January 2013 (see Note 5).

(5) Reflects the purchase price net of assumed secured debt and other lease-related obligations.