Real Estate Assets Held for Sale and Dispositions

3 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Real Estate Assets Held for Sale and Dispositions

Real Estate Assets Held for Sale

As ofMarch 31, 2015, the following operating properties were classified as held for sale:

Location	City/Submarket	Property Type	Number of Buildings	Rentable Square Feet
15050 NE 36th Street	Redmond, WA	Office	1	122,103
San Diego Properties (1)	Sorrento Mesa, CA	Office	9	922,741
Total properties held for sale			10	1,044,844

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(1) The San Diego Properties include the following: 6260 Sequence Drive, 6290 Sequence Drive, 6310 Sequence Drive, 6340 Sequence Drive, 6350 Sequence Drive, 10770 Wateridge Circle, 4921 Directors Place, 6200 Greenwich Drive, and 6220 Greenwich Drive. The properties are being sold in two tranches. The Company completed the sale of the first tranche for gross proceeds of approximately $95.0 million on April 15, 2015.

The Company adopted ASU 2014-08 effective January 1, 2015 (see Note 1). As a result, the ten properties held for sale at March 31, 2015 are included in continuing operations for all periods presented.

The major classes of assets and liabilities of the properties held for sale as of March 31, 2015 were as follows:

Real estate assets and other assets held for sale	(in thousands)
Land and improvements	$	38,706
Buildings and improvements	198,125
Total real estate held for sale	236,831
Accumulated depreciation and amortization	(66,421		)
Total real estate held for sale, net	170,410
Current receivables, net	185
Deferred rent receivables, net	7,285
Deferred leasing costs and acquisition-related intangible assets, net	12,364
Prepaid expenses and other assets, net	507
Real estate and other assets held for sale, net	$	190,751
Liabilities and deferred revenue of real estate assets held for sale
Accounts payable, accrued expenses and other liabilities	$	7,376
Deferred revenue and acquisition-related intangible liabilities, net	1,367
Rents received in advance and tenant security deposits	1,025
Liabilities and deferred revenue of real estate assets held for sale	$	9,768

Land Disposition

During the threemonths ended March 31, 2015, the Company sold a land parcel located at 17150 Von Karman in Irvine, California for a gross sales price of $26.0 million, resulting in a gain on sale of $17.3 million.