Other Assets

6 Months Ended

Jun. 30, 2011

OTHER ASSETS

Other Assets on the Balance Sheets as of June 30, 2011 and December 31, 2010 included the following (in thousands):


	June 30, 2011		December 31, 2010

Investment in Verde Realty	$	5,868	$	9,376
FF&E and leasehold improvements, net of accumulated depreciation of $17,084 and $16,117 in 2011 and 2010, respectively		5,056		4,673
Predevelopment costs and earnest money		1,759		7,039
Lease inducements, net of accumulated amortization of $3,540 and $2,991 in 2011 and 2010, respectively		11,531		11,899
Loan closing costs, net of accumulated amortization of $4,188 and $3,109 in 2011 and 2010, respectively		1,625		2,703
Prepaid expenses and other assets		3,448		2,296
Intangible Assets:
Goodwill		5,430		5,430
Above market leases, net of accumulated amortization of $8,760 and $8,741 in 2011 and 2010, respectively		508		526
In-place leases, net of accumulated amortization of $2,529 and $2,492 in 2011 and 2010, respectively		285		322

	$	35,510	$	44,264

Goodwill relates entirely to the Office reportable segment. Investment in Verde Realty (“Verde”) relates to a cost method investment in a non-public real estate investment trust. During the first quarter of 2011, the Company determined that there were impairment indicators related to its investment in Verde, including Verde’s withdrawal of its proposed initial public offering. The Company estimated the fair value of Verde by calculating discounted future cash flows using Level 3 inputs, such as market capitalization rates, discount rates and other items. The fair value estimate was less than carrying value, and the Company determined the impairment was other-than-temporary in accordance with accounting standards for investments in unconsolidated entities. Accordingly, the Company recorded an impairment loss of $3.5 million.