Discontinued Operations

3 Months Ended

Mar. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Piedmont has classified the results of operations related to the following properties as discontinued operations (in thousands):

Building(s) Sold	Location	Date of Sale	Gain/(Loss) on Sale			Net Sales Proceeds
1111 Durham Avenue	South Plainfield, New Jersey	March 28, 2013	$	(9	)	$	3,752
1200 Enclave Parkway	Houston, Texas	May 1, 2013	$	16,246		$	45,552
350 Spectrum Loop	Colorado Springs, Colorado	November 1, 2013	$	7,959		$	29,676
8700 South Price Road	Tempe, Arizona	December 30, 2013	$	7,096		$	16,691
11107 and 11109 Sunset Hills Road	Reston, Virginia	March 19, 2014	$	(106	)	$	22,322
1441 West Long Lake Road	Troy, Michigan	Held for Sale (1)	N/A			N/A
4685 Investment Drive	Troy, Michigan	Held for Sale (1)	N/A			N/A

⁽¹⁾  During the three months ended March 31, 2014, Piedmont entered into a binding agreement to sell the 1441 West Long Lake Road building located in Troy, Michigan, and the 4685 Investment Drive building located in Troy, Michigan to an unrelated third-party. As a result, Piedmont reclassified the buildings from real estate assets held-for-use to real estate assets held-for-sale on its consolidated balance sheet as of March 31, 2014 and reclassified the operational results of the properties as income from discontinued operations for prior periods to conform with current period presentation. The sale subsequently closed on April 30, 2014.

Sale of 1111 Durham Avenue building

During the quarter ended March 31, 2013, Piedmont sold the 1111 Durham Avenue building in South Plainfield, New Jersey and recorded an impairment charge of $6.4 million based on the difference between carrying value and fair value of the asset at the time it was reclassified from real estate assets held-for-use (at cost) to real estate assets held for sale (at estimated fair value). The fair value measurement used in the evaluation of this non-financial asset was based upon the amount set forth in the purchaser's original letter of intent which approximated the land value of the asset due to the age of construction and lack of near term leasing prospects for the building.

Assets Held for Sale

The details comprising assets held for sale, consisting of the1441 West Long Lake Road building and the 4685 Investment Drive building, are presented below (in thousands):

	March 31, 2014		December 31, 2013
Real estate assets held for sale, net:
Land	$	2,402	$	2,402
Building and improvements, less accumulated depreciation of $6,227 and $7,403 as of March 31, 2014 and December 31, 2013, respectively	10,650		10,575
Intangible lease assets, less accumulated amortization of $363 and $232 as of March 31, 2014 and December 31, 2013, respectively	887		1,018
Total real estate assets held for sale, net	$	13,939	$	13,995
Other assets held for sale, net:
Straight-line rent receivables	$	1,131	$	1,113
Deferred lease costs, less accumulated amortization of $501 and $583 as of March 31, 2014 and December 31, 2013, respectively	2,060		2,206
Total other assets held for sale, net	$	3,191	$	3,319

Income from Discontinued Operations

The details comprising income from discontinued operations are presented below (in thousands):

	Three Months Ended
	March 31, 2014			March 31, 2013
Revenues:
Rental income	$	1,174		$	2,928
Tenant reimbursements	112			434
	1,286			3,362
Expenses:
Property operating costs	505			1,486
Depreciation	83			859
Amortization	223			169
General and administrative	3			1
	814			2,515
Other income/(expense)	(6		)	12
	(6		)	12
Operating income, excluding gain/(loss) on sale	466			859
Impairment loss	—			(6,402		)
Gain/(loss) on sale of real estate assets	(106		)	—
Income/(loss) from discontinued operations	$	360		$	(5,543	)