NOTES PAYABLE (Tables)

6 Months Ended

Jun. 30, 2017

Notes Payable [Abstract]

Schedule of Long-term Debt Instruments

As of June 30, 2017 and December 31, 2016, the Company’s notes payable consisted of the following (dollars in thousands):

	Book Value as of June 30, 2017			Book Value as of December 31, 2016			Contractual Interest Rate as of June 30, 2017 (1)	Effective Interest Rate as of June 30, 2017 (1)	Payment Type	Maturity Date (2)
Town Center Mortgage Loan	$	75,000		$	75,000		One-month LIBOR + 1.85%	2.87%	Interest Only	03/27/2018
Portfolio Loan (4)	163,460			127,500			One-month LIBOR + 1.90%	2.95%	Interest Only	06/01/2019
RBC Plaza Mortgage Loan	75,647			75,930			One-month LIBOR + 1.80%	2.85%	Principal & Interest	02/01/2018
National Office Portfolio Mortgage Loan (5)	170,602			170,602			One-month LIBOR + 1.50%	2.76%	Interest Only	07/01/2018
500 West Madison Mortgage Loan (6)	235,000			215,000			One-month LIBOR + 1.65%	3.12%	Interest Only	12/16/2018
222 Main Mortgage Loan	100,416			101,343			3.97%	3.97%	Principal & Interest	03/01/2021
Anchor Centre Mortgage Loan	50,000			50,000			One-month LIBOR + 1.50%	3.18%	Interest Only	06/01/2018
171 17th Street Mortgage Loan	83,778			83,778			One-month LIBOR + 1.45%	2.79%	Interest Only(3)	09/01/2018
Reston Square Mortgage Loan	29,800			23,840			One-month LIBOR + 1.50%	3.59%	Interest Only	02/01/2018
Ten Almaden Mortgage Loan	66,555			65,853			One-month LIBOR + 1.65%	3.42%	Interest Only	01/01/2018
Towers at Emeryville Mortgage Loan (7)	153,524			145,379			One-month LIBOR + 1.75%	3.95%	Interest Only	01/15/2018
101 South Hanley Mortgage Loan	40,557			37,502			One-month LIBOR + 1.55%	3.73%	Interest Only(3)	01/01/2020
3003 Washington Boulevard Mortgage Loan	90,378			90,378			One-month LIBOR + 1.55%	3.54%	Interest Only	02/01/2020
Rocklin Corporate Center Mortgage Loan	21,689			20,868			One-month LIBOR + 1.50%	2.55%	Interest Only	06/05/2018
201 17th Street Mortgage Loan	63,950			58,063			One-month LIBOR + 1.40%	2.45%	Interest Only	08/01/2018
CrossPoint at Valley Forge Mortgage Loan	51,000			51,000			One-month LIBOR + 1.50%	3.33%	Interest Only(3)	09/01/2022
The Almaden Mortgage Loan	93,000			93,000			4.20%	4.20%	Interest Only	01/01/2022
Promenade I & II at Eilan Mortgage Loan	37,300			37,300			One-month LIBOR + 1.75%	3.57%	Interest Only	10/01/2022
515 Congress Mortgage Loan	67,500			67,500			One-month LIBOR + 1.70%	2.76%	Interest Only	11/01/2020
201 Spear Street Mortgage Loan	100,000			100,000			One-month LIBOR + 1.66%	2.72%	Interest Only	01/01/2019
Carillon Mortgage Loan	89,306			76,440			One-month LIBOR + 1.65%	3.23%	Interest Only	02/01/2020
3001 Washington Boulevard Mortgage Loan	27,129			27,129			One-month LIBOR + 1.60%	2.66%	Interest Only	02/01/2019
Hardware Village Loan Facility (8)	—			—			(8)	(8)	Interest Only	02/23/2020
Total notes payable principal outstanding	1,885,591			1,793,405
Deferred financing costs, net	(7,725		)	(9,937		)
Total notes payable, net	$	1,877,866		$	1,783,468

_____________________

⁽¹⁾ Contractual interest rate represents the interest rate in effect under the loan as of June 30, 2017. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2017 (consisting of the contractual interest rate and the effect of interest rate swaps and caps, if applicable), using interest rate indices as of June 30, 2017, where applicable. For further information regarding the Company's derivative instruments, see Note 7, “Derivative Instruments.”

⁽²⁾ Represents the maturity date as of June 30, 2017; subject to certain conditions, the maturity dates of certain loans may be extended beyond the dates shown.

⁽³⁾Represents the payment type required under the loan as of June 30, 2017. Certain future monthly payments due under these loans also include amortizing principal payments. For more information on the Company’s contractual obligations under its notes payable, see the five-year maturity table below.

⁽⁴⁾ As of June 30, 2017, the Portfolio Loan was secured by Domain Gateway, the McEwen Building, Gateway Tech Center, the Tower on Lake Carolyn, Park Place Village and Village Center Station. The face amount of the Portfolio Loan is $255.0 million, of which $127.5 million is term debt and $127.5 million is revolving debt. As of June 30, 2017, the outstanding balance under the loan consisted of $127.5 million of term debt and $36.0 million of revolving debt. As of June 30, 2017, an additional $90.5 million of revolving debt remained available for immediate future disbursements, subject to certain conditions set forth in the loan agreement. The remaining $1.0 million of revolving debt is available for future disbursements upon the Company meeting certain financial coverage ratios and subject to certain conditions set forth in the loan agreement. During the remaining term of the Portfolio Loan, the Company has an option, which may be exercised up to two times, to increase the loan amount to a maximum of $350.0 million, of which 50% would be term debt and 50% would be revolving debt, with the addition of one or more properties to secure the Portfolio Loan, subject to certain conditions contained in the loan documents.

⁽⁵⁾ The National Office Portfolio Mortgage Loan is secured by One Washingtonian Center, Preston Commons and Sterling Plaza.

⁽⁶⁾ As of June 30, 2017, $235.0 million of term debt was outstanding and $20.0 million remained available for future disbursements, subject to certain terms and conditions contained in the loan documents.

⁽⁷⁾ As of June 30, 2017, $153.5 million had been disbursed to the Company and $21.5 million remained available for future disbursements, subject to certain conditions contained in the loan documents.

⁽⁸⁾ As of June 30, 2017, $74.0 million was available for future disbursements, subject to certain conditions contained in the loan documents. Subsequent to June 30, 2017, the Hardware Village Joint Venture elected a floating rate of 325 basis points over one-month LIBOR for the Hardware Village Loan Facility.

Schedule of Maturities of Long-term Debt

The following is a schedule of maturities, including principal amortization payments, for all notes payable outstanding as of June 30, 2017 (in thousands):

July 1, 2017 through December 31, 2017	$	1,371
2018	1,027,548
2019	293,170
2020	288,956
2021	93,956
Thereafter	180,590
	$	1,885,591