Real Estate Investments (Tables)

6 Months Ended

Jun. 30, 2020

Real Estate [Abstract]

Gross Carrying Value of Operating Properties

As of June 30, 2020 and December 31, 2019, the gross carrying value of the operating properties was as follows (in thousands):

	June 30, 2020		December 31, 2019
Land	$	435,971	$	489,702
Building and improvements	2,800,024		3,049,395
Tenant improvements	414,526		467,362
Operating properties	$	3,650,521	$	4,006,459
Assets held for sale - real estate investments	327,286		—
Total	$	3,977,807	$	4,006,459

Summary of Properties Acquired

The following table summarizes the property acquisitions during the six months ended June 30, 2020 (dollars in thousands):

Property/Portfolio Name	Acquisition Date	Location	Property Type	Rentable Square Feet/Acres	Purchase Price
145 King of Prussia Road	February 27, 2020	Radnor, PA	Land	7.75 acres	$	11,250

Summary of Properties Sold

The following table summarizes the property dispositions during the six months ended June 30, 2020 (dollars in thousands):

Property/Portfolio Name	Disposition Date	Location	Property Type	Rentable Square Feet/Acres	Sales Price		Gain/(Loss) on Sale (a)
52 East Swedesford Road	March 19, 2020	Malvern, PA	Office	131,077	$	18,000	$	2,336
Keith Valley	June 15, 2020	Horsham, PA	Land	14.0 Acres	$	4,000	$	201

(a) Gain/(Loss) on Sale is net of closing and other transaction related costs.

Summary of Properties Held For Sale

The following is a summary of properties classified as held for sale at June 30, 2020 (in thousands):

	Held for Sale Properties
	June 30, 2020
	Philadelphia - Office (a)			Other - Land (b)		Total
ASSETS HELD FOR SALE
Real estate investments:
Operating properties	$	327,286		$	—	$	327,286
Accumulated depreciation	(59,519		)	—		(59,519		)
Operating real estate investments, net	267,767			—		267,767
Construction-in-progress	1,881			—		1,881
Land held for development, net	—			7,349		7,349
Total real estate investments, net	269,648			7,349		276,997
Deferred costs, net	10,888			—		10,888
Intangible assets, net	12,497			—		12,497
Other assets	101			—		101
Total assets held for sale, net	$	293,134		$	7,349	$	300,483
LIABILITIES HELD FOR SALE
Mortgage notes payable, net	$	220,720		$	—	$	220,720
Deferred income, gains and rent	4,119			—		4,119
Intangible liabilities, net	613			—		613
Other liabilities	541			—		541
Total liabilities held for sale, net	$	225,993		$	—	$	225,993

(a) As of June 30, 2020, the Company determined that the sale of One Commerce Square and Two Commerce Square in the Philadelphia CBD segment, through a real estate venture transaction, was probable and classified these properties as held for sale. The fair value less the anticipated costs of sale of the properties exceeded the carrying values. The fair value of the properties is based on the pricing in the purchase and contribution agreement. See Note 15, ''Subsequent Events" for further information.

(b)

As of June 30, 2020, the Company determined that the sale of two parcels of land within the Other segment totaling 35.2 acres was probable and classified these properties as held for sale. As of June 30, 2020, the fair value less the anticipated costs of sale of the properties exceeded the carrying values. The fair value of the properties is based on the pricing in the purchase and sale agreement.