Notes Payable (Tables)

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The following table sets forth information as of March 31, 2013 with respect to our outstanding indebtedness.

	Outstanding
Debt	March 31, 2013		December 31, 2012		Interest Rate(1)	Maturity Date
Unsecured Revolving Credit Facility	$	—	$	55,000	LIBOR+1.55% to 2.20%	8/3/2016
Mortgage loan secured by 625 Second Street(2)	33,700		33,700		5.85%	2/1/2014
Mortgage loan secured by 6922 Hollywood Boulevard(3)	41,081		41,243		5.58%	1/1/2015
Mortgage loan secured by 275 Brannan(4)	3,830		138		LIBOR+2.00%	10/5/2015
Mortgage loan secured by Sunset Gower/Sunset Bronson(5)	92,000		92,000		LIBOR+3.50%	2/11/2016
Mortgage loan secured by 901 Market(6)	49,600		49,600		LIBOR+2.25%	10/31/2016
Mortgage loan secured by Rincon Center(7)	107,197		107,492		5.134%	5/1/2018
Mortgage loan secured by First Financial(8)	43,000		43,000		4.58%	2/1/2022
Mortgage loan secured by 10950 Washington(9)	29,605		29,711		5.316%	3/11/2022
Mortgage loan secured by Pinnacle I	129,000		129,000		3.954%	11/7/2022
Subtotal	$	529,013	$	580,884
Unamortized loan premium, net(10)	1,010		1,201
Total	$	530,023	$	582,085

__________________ 

(1) Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed, excluding the amortization of loan fees and costs.

(2) This loan was assumed on September 1, 2011 in connection with the closing of our acquisition of the 625 Second Street property.

(3) This loan was assumed on November 22, 2011 in connection with the closing of our acquisition of the 6922 Hollywood Boulevard property.

(4) On October 5, 2012, we obtained a loan for our 275 Brannan property pursuant to which we have the ability to draw up to $15,000 for budgeted base building, tenant improvements, and other costs associated with the renovation and lease-up of that property.

(5) On February 11, 2011, we closed a five-year term loan totaling $92 million with Wells Fargo Bank, N.A., secured by our Sunset Gower and Sunset Bronson media and entertainment properties. The loan bears interest at a rate equal to one-month LIBOR plus 3.50%. $37.0 million of the loan was subject to an interest rate contract, which swaps one-month LIBOR to a fixed rate of 0.75% through April 30, 2011. On March 16, 2011, we purchased an interest rate cap in order to cap one-month LIBOR at 3.715% with respect to $50.0 million of the loan through its maturity on February 11, 2016. On January 11, 2012 we purchased an interest rate cap in order to cap one-month LIBOR at 2.00% with respect to $42.0 million of the loan through its maturity on February 11, 2016. Beginning with the payment due February 1, 2014, monthly debt service will include principal payments based on a 30-year amortization schedule, for total annual debt amortization of $1,113.

(6) On October 29, 2012, we obtained a loan for our 901 Market property pursuant to which we borrowed $49,600 upon closing, with the ability to draw up to an additional $11,900 for budgeted base building, tenant improvements, and other costs associated with the renovation and lease-up of that property.

(7) On April 29, 2011, we closed a seven-year term loan totaling $110.0 million with JPMorgan Chase Bank, National Association, secured by our Rincon Center property. The loan bears interest at a fixed annual rate of 5.134%. 

(8) The loan bears interest only for the first two years. Beginning with the payment due March 1, 2014, monthly debt service will include principal payments based on a 30-year amortization schedule, for total annual debt service of $2,639.

(9) On February 11, 2012, we closed a 10-year term loan totaling $30.0 million with Cantor Commercial Real Estate Lending, L.P., secured by our 10950 Washington property. The loan bears interest at a fixed annual rate of 5.316% and will mature on March 11, 2022.

(10) Represents unamortized amount of the non-cash mark-to-market adjustment on debt associated with 625 Second Street and 6922 Hollywood Boulevard.

Schedule of Maturities of Long-term Debt

The minimum future annual principal payments due on our secured and unsecured notes payable at March 31, 2013, excluding the non-cash loan premium amortization, were as follows (in thousands):

2013 (nine months ending December 31, 2013)	$	2,236
2014	38,787
2015	47,400
2016	142,081
2017	3,456
2018	102,107
Thereafter	192,946
Total	$	529,013