Acquisition, Disposals and Assets Held for Sale (Notes)

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

Acquisitions, Dispositions and Assets Held for Sale

Acquisitions

In December 2019, we acquired F1RST Residences, a 325-unit multifamily asset in the Ballpark submarket of Washington, D.C. with approximately 21,000 square feet of street level retail, for $160.5 million through a like-kind exchange agreement with a third-party intermediary. See Note 7 for additional information. The multifamily portion of the building was 91.7% occupied as of December 31, 2019. Transaction costs related to the asset acquisition of $4.7 million were included in the cost of the acquisition.

During the year ended December 31, 2018, we purchased a land parcel and the remaining interest in the West Half real estate venture for an aggregate purchase price of $28.0 million.

Dispositions

The following is a summary of disposition activity for the year ended December 31, 2019:



Date Disposed	Assets	Segment	Location	Total Square Feet	Gross Sales Price		Cash Proceeds from Sale		Gain on Sale of Real Estate
					(In thousands)
February 4, 2019	Commerce Executive / Commerce Metro Land ^{(1) (2)}	Commercial / Other	Reston, Virginia	388,562	$	114,950	$	117,676	$	39,033
July 31, 2019	1600 K Street	Commercial	Washington, D.C.	82,653	43,000		40,134		8,088
December 18, 2019	Vienna Retail	Commercial	Vienna, Virginia	8,584	7,400		7,005		4,514
				479,799	$	165,350	$	164,815	51,635
December 12, 2019	Central Place Tower ⁽³⁾	Commercial	Arlington, Virginia						53,356
Total									$	104,991

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⁽¹⁾	The sale also included 894,000 square feet of estimated potential development density. The sale was part of a like-kind exchange. See Note 7 for additional information.


⁽²⁾	Cash proceeds include the reimbursement of $4.0 million of tenant improvement costs and leasing commissions paid by us prior to the closing.


⁽³⁾	Represents the gain, net of certain liabilities, on the sale of a 50.0% interest in the entity that owns Central Place Tower and the remeasurement of our remaining 50.0% interest to fair value. See Note 6 for additional information.

During the year ended December 31, 2018, we sold four commercial assets, a future development asset and the out-of-service portion of a multifamily asset for an aggregate gross sales price of $427.4 million, resulting in gains on sale of real estate of $52.2 million.

Assets Held for Sale

As of December 31, 2019 and 2018, we had certain real estate properties that were classified as held for sale. The amounts included in "Assets held for sale" in our balance sheets primarily represent the carrying value of real estate. The following is a summary of assets held for sale:



Assets	Segment	Location	Total Square Feet		Assets Held for Sale		Liabilities Related to Assets Held for Sale
				(In thousands)
December 31, 2019
Pen Place ⁽¹⁾	Other	Arlington, Virginia	—		$	73,895	$	—
Metropolitan Park ⁽¹⁾	Other	Arlington, Virginia	—		94,517		—
			—		$	168,412	$	—

December 31, 2018
Commerce Executive / Commerce Metro Land ⁽²⁾	Commercial	Reston, Virginia	388,562		$	78,981	$	3,717

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⁽¹⁾

In March 2019, we entered into agreements for the sale of Pen Place and Metropolitan Park, land sites having an aggregate estimated potential development density of up to approximately 4.1 million square feet, for approximately $293.9 million, subject to customary closing conditions. In January 2020, we sold the Metropolitan Park land sites to Amazon for the gross sales price of $155.0 million, which represents an $11.0 million increase over the previously estimated contract value as the result of an increase in the approved development density on the sites. The sale was part of a like-kind exchange. See Note 7 for additional information.


⁽²⁾	As noted above, we sold Commerce Executive/Commerce Metro Land in February 2019.