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Real Estate
 3 Months Ended
Mar. 31, 2024
Real Estate [Abstract]  
Real Estate
3. Real Estate
BXP
Real estate consisted of the following at March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024December 31, 2023
Land$5,317,032 $5,251,224 
Right of use assets - finance leases401,486 401,680 
Right of use assets - operating leases (1)344,255 324,298 
Land held for future development (2)661,713 697,061 
Buildings and improvements16,689,571 16,607,756 
Tenant improvements3,654,576 3,592,172 
Furniture, fixtures and equipment54,691 53,716 
Construction in progress685,465 547,280 
Total27,808,789 27,475,187 
Less: Accumulated depreciation(7,040,501)(6,881,728)
$20,768,288 $20,593,459 
_______________
(1)See Note 4.
(2)Includes pre-development costs.
BPLP
Real estate consisted of the following at March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024December 31, 2023
Land$5,222,323 $5,156,515 
Right of use assets - finance leases401,486 401,680 
Right of use assets - operating leases (1)344,255 324,298 
Land held for future development (2)661,713 697,061 
Buildings and improvements16,418,015 16,336,200 
Tenant improvements3,654,576 3,592,172 
Furniture, fixtures and equipment54,691 53,716 
Construction in progress685,465 547,280 
Total27,442,524 27,108,922 
Less: Accumulated depreciation(6,915,437)(6,758,361)
$20,527,087 $20,350,561 
_______________
(1)See Note 4.
(2)Includes pre-development costs.
Acquisition
On January 8, 2024, the Company completed the acquisition of its joint venture partner’s 50% economic ownership interest in the joint venture that owns 901 New York Avenue, located in Washington, DC. At acquisition, the total net equity acquired was $20.0 million, which includes $10.0 million in cash that the Company paid for the joint venture partner's 50% economic ownership interest in the joint venture. The property is subject to existing mortgage indebtedness of approximately $207.1 million (See Note 6). The acquisition resulted in the Company recording a gain upon consolidation of approximately $21.8 million, which is the difference between the fair value of the previously held equity method investment immediately prior to the consolidation of $10.0 million, less the Company’s costs basis of approximately $(11.8) million. The gain on consolidation is included within income (loss) from unconsolidated joint ventures in the Consolidated Statement of Operations.
The total net assets acquired is equal to (1) the total net equity acquired of $20.0 million, which includes $10.0 million in cash that the Company paid for the joint venture partner's 50% economic ownership interest in the joint venture. plus (2) $207.1 million of debt assumed, less (3) net working capital acquired of approximately $7.1 million. The following table summarizes the allocation of the fair value of the net assets the Company received at the date of acquisition for 901 New York Avenue (in thousands):
Land and site improvements$65,808 
Building and improvements56,882 
Tenant improvements16,088 
In-place lease intangibles72,621 
Above-market lease intangibles2,757 
Below-market lease intangibles(2,515)
Mortgage note payable adjustment8,374 
Net assets acquired$220,015 
The following table summarizes the estimated annual amortization of the acquired in-place lease intangibles, and the acquired above- and below-market lease intangibles for 901 New York Avenue for the remainder of 2024 and each of the next five succeeding fiscal years (in thousands):
Acquired In-Place Lease Intangibles Acquired Above-Market Lease Intangibles Acquired Below-Market Lease Intangibles
Period from January 8, 2024 through December 31, 2024$10,364 $607 $252 
20259,030 454 257 
20266,494 238 257 
20276,265 201 257 
20286,069 186 257 
20296,076 186 251 
The following table summarizes the weighted-average useful life of the acquired in-place lease intangibles and the acquired above- and below-market lease intangibles for 901 New York Avenue as of the acquisition date (in years):
Acquired In-Place Lease Intangibles Acquired Above-Market Lease Intangibles Acquired Below-Market Lease Intangibles
Weighted-average useful life6.74.09.8
901 New York Avenue contributed approximately $7.9 million of revenue and $2.3 million of net loss to the Company for the period from January 8, 2024 through March 31, 2024. 901 New York Avenue is a premier workplace consisting of approximately 524,000 net rentable square feet.
Development
On February 12, 2024, the Company commenced the development of a residential project at 121 Broadway Street in Cambridge, Massachusetts that is adjacent to its development projects at 290 Binney Street and 300 Binney Street. 121 Broadway will consist of 439 residential units aggregating approximately 492,000 net rentable square feet.
Impairment
At March 31, 2024, the Company evaluated the expected hold period for a portion of its Shady Grove property located in Rockville, Maryland. Based on a shorter-than-expected hold period, the Company reduced the carrying value of a portion of the property that the Company anticipates selling to a third party developer to its estimated fair value at March 31, 2024. As a result, each of BXP and BPLP recognized an impairment loss of approximately
$13.6 million. The Company’s estimated fair value was based on Level 3 inputs as defined in ASC 820 and on a pending offer from a third party.