Real Estate (Notes)

12 Months Ended

Dec. 31, 2021

A summary of our real estate investments is as follows (in thousands):


	Retail		Office		Multifamily		Mixed-Use		Total
December 31, 2021
Land	$	254,016	$	284,263	$	72,668	$	76,635	$	687,582
Buildings	527,262		1,270,131		393,713		129,226		2,320,332
Land improvements	47,425		14,269		7,764		2,606		72,064
Tenant improvements	89,520		218,639		—		2,366		310,525
Furniture, fixtures, and equipment	1,098		5,003		18,039		15,416		39,556
Construction in progress (1)	7,160		87,340		4,448		364		99,312
	926,481		1,879,645		496,632		226,613		3,529,371
Accumulated depreciation	(335,374)		(343,433)		(115,317)		(53,266)		(847,390)
Net real estate	$	591,107	$	1,536,212	$	381,315	$	173,347	$	2,681,981
December 31, 2020
Land	$	254,016	$	225,238	$	72,668	$	76,635	$	628,557
Buildings	526,522		1,137,711		392,224		128,477		2,184,934
Land improvements	47,425		11,672		7,346		2,606		69,049
Tenant improvements	88,326		186,423		—		1,890		276,639
Furniture, fixtures, and equipment	1,069		3,236		16,480		15,651		36,436
Construction in progress (1)	5,170		43,595		1,831		663		51,259
	922,528		1,607,875		490,549		225,922		3,246,874
Accumulated depreciation	(314,610)		(290,768)		(100,745)		(48,017)		(754,140)
Net real estate	$	607,918	$	1,317,107	$	389,804	$	177,905	$	2,492,734

(1) Land related to held for development and construction in progress is included in the Held for Development and Construction in Progress classifications on the consolidated balance sheets.

Dispositions

On May 22, 2019, we sold Solana Beach – Highway 101. The property is located in Solana Beach, California and was previously included in our retail segment. The sales price of this property was approximately $9.4 million, less costs to sell, and resulted in net proceeds to us of approximately $9.4 million. Accordingly, we recorded a gain on sale of approximately $0.0 million, $0.0 million and $0.6 million for the years ended December 31, 2021, 2020, and 2019, respectively.

Property Asset Acquisitions

On June 20, 2019, we acquired La Jolla Commons, consisting of two office towers totaling approximately 724,000 square feet, an entitled development parcel and two parking structures, located in San Diego, California. The acquisition was classified as an asset acquisition with a purchase price of approximately $525 million, less seller credits of (i) approximately $11.5 million for speculative lease-up, (ii) approximately $4.2 million for assumed contractual liabilities (iii) and approximately $1.7 million for closing prorations, excluding closing costs of approximately $0.2 million. The property was acquired with proceeds from an underwritten public offering and borrowings under the company's Second Amended and Restated Credit Facility.

On July 7, 2021, we acquired Eastgate Office Park, consisting of an approximately 280,000 square feet, multi-tenant office campus in Bellevue, Washington. The purchase price was approximately $125 million, excluding closing costs of approximately $0.2 million. The property was acquired with cash on hand.

On September 10, 2021, we acquired Corporate Campus East III in Bellevue, Washington, consisting of an approximately 161,000 square feet, multi-tenant office campus. The purchase price was approximately $84 million, less seller credits of (i) approximately $1.1 million of future rent abatement (ii) approximately $2.1 million of contractual tenant improvements and closing costs of approximately $0.1 million. The property was acquired with cash on hand.

The financial information set forth below summarizes the company’s purchase price allocation for each of Eastgate Office Park and Corporate Campus East III during the year ended December 31, 2021 (in thousands):


	Eastgate Office Park		Corporate Campus East III
Land	$	35,822	$	23,203
Building	76,692		52,234
Land improvements	1,740		667
Furniture, fixtures, and equipment	4,305		3,091
Total real estate	118,559		79,195
Lease intangibles	7,023		5,341
Prepaid expenses and other assets	8		13
Assets acquired	$	125,590	$	84,549
Accounts payable and accrued expenses	$	(31)	$	(9)
Security deposits payable	(513)		(310)
Other liabilities and deferred credits	(535)		(3,844)
Liabilities assumed	$	(1,079)	$	(4,163)

The value allocated to lease intangibles is amortized over the related lease term as depreciation and amortization

expense in the statement of comprehensive income. The remaining weighted average amortization period as of December 31,

2021, is 3.2 years and 5.2 years for Eastgate Office Park and Corporate Campus East III, respectively.

The following table summarizes the operating results for each of Eastgate Office Park and Corporate Campus East III

included in the company's historical consolidated statement of operations for the period of acquisition through December 31,

2021 (in thousands):


	Eastgate Office Park		Corporate Campus East III		Total
Revenues	$	5,139	$	1,909	$	7,048
Operating expenses	$	(5,235)	$	(2,131)	$	(7,366)
Operating loss	$	(96)	$	(222)	$	(318)
Net loss attributable to American Assets Trust, Inc.	$	(99)	$	(222)	$	(321)