Impairment Loss on Real Estate Assets

6 Months Ended

Jun. 30, 2017

Piedmont recorded impairment loss on real estate assets for the three and six months ended June 30, 2017 and 2016, respectively, as follows (in thousands):



	Three Months Ended				Six Months Ended
	2017		2016		2017		2016
150 West Jefferson⁽¹⁾	$	—	$	8,259	$	—	$	8,259
9221 Corporate Boulevard ⁽²⁾	—		2,691		—		2,691
Total impairment loss on real estate assets⁽³⁾	$	—	$	10,950	$	—	$	10,950


⁽¹⁾	Piedmont recognized an impairment loss on real estate assets based upon the difference between the carrying value of the asset and the anticipated contract 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 $2.7 million during the six months ended June 30, 2016 calculated as the difference between the carrying value of the asset and the anticipated contract sales price, less estimated selling costs.


⁽³⁾	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.