Impairment Loss on Real Estate Assets (Tables)

12 Months Ended

Dec. 31, 2016

Details of Impairment of Long-Lived Assets Held and Used by Asset

Piedmont recorded impairment loss on real estate assets for the years ended December 31, 2016, 2015, and 2014 (in thousands):



	2016		2015		2014
Eastpoint I & II ⁽¹⁾	$	—	$	5,354	$	—
2 Gatehall Drive ⁽¹⁾	—		34,815		—
150 West Jefferson ⁽¹⁾	5,972		—		—
9221 Corporate Boulevard ⁽²⁾	2,336		—		—
9200 and 9211 Corporate Boulevard ⁽³⁾	22,590		—		—
Total impairment loss on real estate assets ⁽⁴⁾	$	30,898	$	40,169	$	—


⁽¹⁾	Piedmont recognized an impairment loss on real estate assets based upon the difference between the carrying value of the asset and the contracted sales price, less estimated selling costs.

⁽²⁾

Piedmont, using a probability-weighted model heavily weighted towards the short-term sale of the 9221 Corporate Boulevard building in Rockville, Maryland, 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 year ended December 31, 2016 calculated as the difference between the carrying value of the asset and the anticipated contract sales price, less estimated selling costs.

⁽³⁾

Piedmont elected to sell its remaining two assets and exit the Rockville, Maryland sub-market of Washington, D.C, after selling the 9221 Corporate Boulevard building in July 2016 (mentioned above). Upon management's change in its hold period assumption for the assets from a long-term hold to a near-term sale, Piedmont recognized an impairment loss of approximately $22.6 million. The impairment loss was calculated as the difference between the carrying value of the asset and the anticipated contracted sales price, less estimated selling costs.


⁽⁴⁾	The fair value measurements used in the evaluation 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.

Details of amounts held for sale as of December 31, 2015 are presented below (in thousands):



	December 31, 2016		December 31, 2015
Real estate assets held for sale, net:
Land	$	—	$	9,759
Building and improvements, less accumulated depreciation of $0 and $32,162 as of December 31, 2016, and 2015, respectively	—		66,840
Construction in progress	—		15
Total real estate assets held for sale, net	$	—	$	76,614

Other assets held for sale, net:
Straight-line rent receivables	$	—	$	4,729
Prepaid expenses and other assets	—		66
Deferred lease costs, less accumulated amortization of $0 and $1,162 as of December 31, 2016 and 2015, respectively	—		3,695
Total other assets held for sale, net	$	—	$	8,490