Acquisitions (Tables)

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment, Schedule of Significant Acquisitions and Disposals [Table Text Block]

The following table summarizes the land dispositions completed during the years ended December 31, 2015 and 2014:



Properties	Submarket	Month of Disposition	Gross Site Acreage (unaudited)	Sales Price⁽¹⁾ (in millions)
2015 Land Disposition
17150 Von Karman ⁽²⁾	Irvine	January	8.5	$	26.0

2014 Land Disposition
10850 Via Frontera ⁽³⁾	Rancho Bernardo	April	21.0	$	33.1

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(1)	Represents gross sales price before the impact of commissions and closing costs.


(2)	This transaction resulted in a gain on sale of $17.3 million.


(3)	This transaction resulted in a gain on sale of $3.5 million.

Office Properties Acquisitions

Business Acquisition [Line Items]

Acquired operating properties from unrelated third parties

During the year ended December 31, 2014, we acquired the five operating office properties, listed below, from unrelated third parties. Unless otherwise noted, we funded these acquisitions with proceeds from the Company’s public offerings of common stock and the Company's at-the-market stock offering program (see Note 11 “Stockholders’ Equity of the Company”), borrowings under the unsecured line of credit (see Note 8 “Secured and Unsecured Debt of the Operating Partnership”), disposition proceeds (see Note 4 “Dispositions and Real Estate Assets Held for Sale” for additional information”), the assumption of existing debt and/or the issuance of common units of the Operating Partnership.



Property	Date of Acquisition	Number of Buildings	Rentable Square Feet (unaudited)	Occupancy as of December 31, 2015 (unaudited)	Purchase Price (in millions) ⁽¹⁾
2014 Acquisitions
401 Terry Ave. N., Seattle, WA	March 13, 2014	1	140,605	100.0%	$	106.1
1310, 1315, 1320-1324, 1325-1327 Chesapeake Terrace, Sunnyvale, CA ⁽²⁾	November 5, 2014	4	266,982	100.0%	100.5
Total ⁽³⁾		5	407,587		$	206.6

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(1)	Excludes acquisition-related costs and non-lease related accrued liabilities assumed. Includes assumed unpaid leasing commissions and tenant improvements.


(2)	As of December 31, 2014, these properties, together the “Chesapeake Commons” project, were temporarily being held in a separate VIE to facilitate potential Section 1031 Exchanges. During January 2015, the Company closed out the Section 1031 Exchange related to this VIE. (See Note 2 “Basis of Presentation and Significant Accounting Policies”).


(3)	The results of operations for the properties acquired during 2014 contributed $7.7 million and $2.8 million to revenues and net income from continuing operations, respectively, for the year ended December 31, 2014.

The related assets, liabilities and results of operations of the acquired properties are included in the consolidated financial statements as of the date of acquisition. Th

following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the respective acquisition dates for our 2014 operating property acquisitions:



Acquisitions	Total 2014 Acquisitions ⁽¹⁾

Assets
Land and improvements	$	81,430
Buildings and improvements ⁽²⁾	114,876
Deferred leasing costs and acquisition-related intangible assets ⁽³⁾	17,259
Total assets acquired	213,565
Liabilities
Deferred revenue and acquisition-related intangible liabilities ⁽⁴⁾	6,990
Accounts payable, accrued expenses and other liabilities	2,029
Total liabilities assumed	9,019
Net assets and liabilities acquired ⁽⁵⁾	$	204,546

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(1)	The purchase price of the two acquisitions completed during the year ended December 31, 2014 were individually less than 5% and in aggregate less than 10% of the Company’s total assets as of December 31, 2014.


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


(3)	Represents in-place leases (approximately $12.3 million with a weighted average amortization period of 7.0 years) and leasing commissions (approximately $4.9 million with a weighted average amortization period of 7.0 years).


(4)	Represents below-market leases (approximately $7.0 million with a weighted average amortization period of 6.1 years).


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