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Impairment Loss on Real Estate Assets
6 Months Ended
Jun. 30, 2016
Real Estate [Abstract]  
Impairment Loss on Real Estate Assets
Impairment Loss on Real Estate Assets

During the three months ended June 30, 2016, Piedmont entered into a binding contract to sell the 88.2% leased, 150 West Jefferson building located in Detroit, Michigan. As a result, the property was reclassified as held for sale as of June 30, 2016, resulting in the recognition of an impairment loss of approximately $6.0 million during the three months ended June 30, 2016. The impaired loss was calculated as the difference between the carrying value of the asset and the contracted sales price, less estimated selling costs. See Note 9 for further details of amounts classified as held-for-sale in the accompanying consolidated balance sheets related to the 150 West Jefferson building.

Subsequent to June 30, 2016, Piedmont also entered into a binding contract to sell the 9221 Corporate Drive building located in Rockville, Maryland. Although the property did not meet the requirements for held for sale classification as of June 30, 2016, as part of management's quarterly assessment of the recoverability of these assets, Piedmont, using a probability-weighted model heavily weighted towards the short-term sale of the building, determined that the carrying value would not be recovered from the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. As a result, Piedmont recognized a loss on impairment of approximately $2.3 million during the three months ended June 30, 2016 calculated as the difference between the carrying value of the asset as of June 30, 2016 and the anticipated contract sales price, less estimated selling costs. The sales of both the 150 West Jefferson building and the 9221 Corporate Drive building subsequently closed during July 2016.

The fair value measurements used in the evaluation of both of the non-financial assets above are considered to be Level 1 valuations within the fair value hierarchy as defined by GAAP, as there are direct observations and transactions involving the assets by unrelated, third-party purchasers.