Property Dispositions and Assets Held for Sale

12 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Property Dispositions and Assets Held for Sale

Property Dispositions

None of Piedmont's property dispositions during the three years ended December 31, 2018 met the criteria to be reported as discontinued operations. The operational results and gain/(loss) on sale of real estate assets are presented as continuing operations in the accompanying consolidated statements of income, unless otherwise indicated below. Details of such properties sold are presented below (in thousands):



Buildings Sold	Location	Date of Sale	Gain/(Loss) on Sale of Real Estate Assets				Net Sales Proceeds
1055 East Colorado Boulevard	Pasadena, California	April 21, 2016	$	29,462			$	60,076
Fairway Center II	Brea, California	April 28, 2016	$	14,406			$	33,062
1901 Main Street	Irvine, California	May 2, 2016	$	29,964			$	63,149	⁽¹⁾
9221 Corporate Boulevard	Rockville, Maryland	July 27, 2016	$	(192	)	⁽²⁾	$	12,035
150 West Jefferson	Detroit, Michigan	July 29, 2016	$	(664	)	⁽²⁾	$	77,844
9200 and 9211 Corporate Boulevard	Rockville, Maryland	September 28, 2016	$	(41	)	⁽²⁾	$	12,519
11695 Johns Creek Parkway	Johns Creek, Georgia	December 22, 2016	$	1,978			$	13,827
Braker Pointe III	Austin, Texas	December 29, 2016	$	18,579			$	48,006
Sarasota Commerce Center II	Sarasota, Florida	June 16, 2017	$	6,493			$	23,090
Two Independence Square	Washington, D.C.	July 5, 2017	$	109,381			$	352,428
8560 Upland Drive	Denver, Colorado	July 27, 2017	$	3,683			$	12,334	⁽³⁾
2017 Disposition Portfolio⁽⁴⁾	Various⁽⁴⁾	January 4, 2018	$	45,275			$	419,644	⁽⁵⁾
800 North Brand Boulevard	Glendale, California	November 29, 2018	$	30,416			$	155,583


⁽¹⁾	Piedmont accepted a secured promissory note from the buyer for $33.0 million of the sales proceeds which was subsequently repaid in full. As such, the full proceeds from the sale of the property are reflected in the accompanying consolidated statements of cash flows as net sales proceeds from the sale of wholly-owned properties.


⁽²⁾	As discussed in Note 7 above, Piedmont recognized an impairment loss prior to, or in conjunction with, the sale of the property. Therefore, loss recognized upon the consummation of the sale consists solely of adjustments made subsequent to the sale for closing cost estimates or post-closing prorations.


⁽³⁾	Property was owned as part of an unconsolidated joint venture. As such, the gain on sale is presented as equity in income/(loss) of unconsolidated joint ventures in the accompanying consolidated statement of income. Amounts shown above reflect Piedmont's approximate 72% ownership.

⁽⁴⁾

The 2017 Disposition Portfolio is comprised of the following properties: Desert Canyon 300 in Phoenix, Arizona; Windy Point I & II in Schaumburg, Illinois; 2300 Cabot Drive in Lisle, Illinois; 1075 West Entrance Drive in Auburn Hills, Michigan; Auburn Hills Corporate Center in Auburn Hills, Michigan; 5301 Maryland Way in Brentwood, Tennessee; Suwanee Gateway One in Suwanee, Georgia; 5601 Hiatus Road in Tamarac, Florida; Piedmont Pointe I & II in Bethesda, Maryland; 1200 Crown Colony Drive in Quincy, Massachusetts; and 2120 West End Avenue in Nashville, Tennessee.


⁽⁵⁾	Piedmont accepted a secured promissory note from the buyer for $3.2 million which was subsequently repaid in full.

Assets Held for Sale

During the fourth quarter of 2018, Piedmont entered into a binding, non-refundable contract with an unrelated third party buyer to sell the One Independence Square building. The sale is expected to close during first quarter 2019. As a result, One Independence Square met the criteria for held for sale classification as of December 31, 2018. Therefore, the appropriate real estate related amounts are reclassified for both December 31, 2018 and 2017 in the accompanying consolidated balance sheets. The amounts classified as held for sale as of December 31, 2017 also include the 2017 Disposition Portfolio, as well as the 800 North Brand Boulevard building, which were sold during the year ended December 31, 2018.

Details of amounts held for sale as of December 31, 2018 and 2017 are presented below (in thousands):



	December 31, 2018		December 31, 2017
Real estate assets held for sale, net:
Land	$	30,562	$	128,668
Building and improvements, less accumulated depreciation of $48,453 and $270,552 as of December 31, 2018, and 2017, respectively	77,936		430,136
Construction in progress	2,054		2,645
Total real estate assets held for sale, net	$	110,552	$	561,449

Other assets held for sale, net:
Straight-line rent receivables	$	10,756	$	44,666
Prepaid expenses and other assets	430		2,067
Deferred lease costs, less accumulated amortization of $2,446 and $20,169 as of December 31, 2018 and 2017, respectively	9,605		37,560
Total other assets held for sale, net	$	20,791	$	84,293

Other liabilities held for sale, net:
Intangible lease liabilities, less accumulated amortization of $0 and $935 as of December 31, 2018 and 2017, respectively	$	—	$	380