Properties Held for Sale and Property Dispositions

Properties Held for Sale

As of December 31, 2017, 600 Lexington Avenue in Manhattan, 115-117 Stevens Avenue in Valhalla, New York, and 1-6 International Drive in Rye Brook, New York were classified as held for sale. During the fourth quarter of 2017, we entered into an agreement to sell the property at 600 Lexington Avenue for a gross asset valuation of $305.0 million. We closed on the sale of 600 Lexington Avenue in January 2018.

During the fourth quarter of 2017, the Company recorded a charge of $17.8 million in connection with the reclassification of 115-117 Stevens Avenue to held for sale, and a charge of $69.1 million in connection with the reclassification of 1-6 International Drive to held for sale. These charges are included in depreciable real estate reserves in the consolidated statement of operations.

The Company classified 16 Court Street in Brooklyn, New York and 125 Chubb Way in Lyndhurst, New Jersey as held for sale as of September 30, 2017; 125 Chubb Way in Lyndhurst, New Jersey and the properties at 680-750 Washington Boulevard in Stamford, Connecticut as held for sale as of June 30, 2017; and 520 White Plains Road in Tarrytown, NY and a 90% interest in 102 Greene Street in New York, NY as held for sale as of March 31, 2017.

Property Dispositions

The following table summarizes the properties sold during the years ended December 31, 2017, 2016, and 2015:



Property	Disposition Date	Property Type	(unaudited) Approximate Usable Square Feet	Sales Price⁽¹⁾ (in millions)		Gain (Loss) on Sale⁽²⁾ (in millions)
1515 Broadway ⁽³⁾	December 2017	Office	1,750,000	$	1,950.0	$	—
125 Chubb Way ⁽⁴⁾	October 2017	Office	278,000	29.5		(26.1		)
16 Court Street	October 2017	Office	317,600	171.0		64.9
680-750 Washington Boulevard ⁽⁵⁾	July 2017	Office	325,000	97.0		(44.2		)
520 White Plains Road ⁽⁶⁾	April 2017	Office	180,000	21.0		(14.6		)
102 Greene Street ⁽⁷⁾	April 2017	Retail	9,200	43.5		4.9
400 East 57th Street	October 2016	Residential	290,482	83.3		23.9
11 Madison Avenue ⁽⁸⁾	August 2016	Office	2,314,000	2,605.0		3.6
500 West Putnam ⁽⁹⁾	July 2016	Office	121,500	41.0		(10.4		)
388 Greenwich	June 2016	Office	2,635,000	2,002.3		206.5
7 International Drive	May 2016	Land	31 Acres	20.0		(6.9		)
248-252 Bedford Avenue	February 2016	Residential	66,611	55.0		15.3
885 Third Avenue ⁽¹⁰⁾	February 2016	Land	607,000	453.0		(8.8		)
140-150 Grand Street ⁽¹¹⁾	December 2015	Office/Development	215,100	32.0		(20.1		)
570 & 574 Fifth Avenue	December 2015	Development	24,327	125.4		24.6
120 West 45th Street	September 2015	Office	440,000	365.0		58.6
131-137 Spring Street ⁽¹²⁾	August 2015	Office	68,342	277.8		101.1
180 Maiden Lane	January 2015	Office	1,090,000	470.0		17.0


(1)	Sales price represents the actual sales price for an entire property or the gross asset valuation for interests in a property.

(2)

The gain on sale for 16 Court Street, 102 Greene Street, 400 East 57th Street, 11 Madison Avenue, 388 Greenwich, 248-252 Bedford Avenue, 570 & 574 Fifth Avenue, 120 West 45th Street, 131-137 Spring Street, and 180 Maiden Lane are net of $2.5 million, $0.9 million, $1.0 million, $0.6 million, $1.6 million, $1.3 million, $4.0 million, $2.0 million, $4.1 million, and $0.8 million in employee compensation accrued in connection with the realization of these investment gains. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.

(3)

In November 2017, the Company sold a 30.13% interest in 1515 Broadway to affiliates of Allianz Real Estate. The sale did not meet the criteria for sale accounting and as a result the property was accounted for under the profit sharing method. The Company achieved sale accounting upon adoption of ASC 610-20 in January 2018 and closed on the sale of an additional 12.87% interest in the property to Allianz in February 2018. See Note 6, "Investments in Unconsolidated Joint Ventures."


(4)	The Company recorded a $26.1 million charge in 2017 that is included in depreciable real estate reserves in the consolidated statement of operations.


(5)	The Company recorded a $44.2 million charge in 2017 that is included in depreciable real estate reserves in the consolidated statement of operations.


(6)	The Company recorded a $14.6 million charge in 2017 that is included in depreciable real estate reserves in the consolidated statement of operations.


(7)	In April 2017, we closed on the sale of a 90% interest 102 Greene Street and had subsequently accounted for our interest in the property as an investment in unconsolidated joint ventures. We sold the remaining 10% interest in September 2017. See Note 6, "Investments in Unconsolidated Joint Ventures."

(8)

In August 2016, we sold a 40% interest in 11 Madison Avenue. The sale did not meet the criteria for sale accounting and, as a result, the property was accounted for under the profit sharing method. In November 2016, the Company obtained consent to the modifications to the mortgage on the property, which resulted in the Company achieving sale accounting on the transaction. See Note 6, "Investments in Unconsolidated Joint Ventures."


(9)	The Company recorded a $10.4 million charge in 2016 that is included in depreciable real estate reserves in the consolidated statement of operations


(10)	In February 2016, we closed on the sale of 885 Third Avenue. The sale did not meet the criteria for sale accounting and as a result the property remained on our consolidated financial statements until the criteria was met in April 2017.


(11)	The Company recorded a $19.2 million charge in 2015 that is included in depreciable real estate reserves in the consolidated statement of operations.


(12)	We sold an 80% interest in 131-137 Spring Street and have subsequently accounted for our interest in the properties as an investment in unconsolidated joint ventures. See Note 6, "Investments in Unconsolidated Joint Ventures."

Discontinued Operations

The Company adopted ASU 2014-08 effective January 1, 2015 which raised the threshold for disposals to qualify as discontinued operations to include only dispositions that represent a strategic shift in an entity’s operations. The guidance was applied prospectively for new disposals. Since adoption no disposals have been deemed to represent strategic shifts in the Company's operations and as a result, the results of operations of all disposals are included in continuing operations for all periods presented. Discontinued operations includes the results of operations of 180 Maiden Lane which was held for sale at December 31, 2014 and sold in January 2015.

The following table summarizes net income from discontinued operations for the years ended December 31, 2017, 2016, and 2015 respectively (in thousands):



	Year Ended December 31,
	2017		2016		2015
Revenues
Rental revenue	$	—	$	—	$	236
Escalation and reimbursement revenues	—		—		(127		)
Other income	—		—		—
Total revenues	—		—		109
Operating expenses	—		—		(631		)
Real estate taxes	—		—		250
Ground rent	—		—		—
Transaction related costs	—		—		(49		)
Interest expense, net of interest income	—		—		109
Amortization of deferred financing costs	—		—		3
Depreciation and amortization	—		—		—
Total expenses	—		—		(318		)
Net income from discontinued operations	$	—	$	—	$	427