Real Estate Investments

9 Months Ended

Sep. 30, 2020

3. REAL ESTATE INVESTMENTS

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



	September 30, 2020		December 31, 2019
Land	$	437,617	$	489,702
Building and improvements	2,851,185		3,049,395
Tenant improvements	426,963		467,362
Total	$	3,715,765	$	4,006,459

Acquisitions

The following table summarizes the property acquisitions during the nine months ended September 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

Dispositions

The following table summarizes the property dispositions during the nine months ended September 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
One and Two Commerce Square (b)	July 21, 2020	Philadelphia, PA	Office	1,896,142	$	115,000	$	271,905


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

(b)

The Company sold a preferred equity interest representing a 30% equity interest in two office buildings located in Philadelphia, Pennsylvania, to an unrelated third party for $115.0 million (the "Commerce Square Venture Transaction"), which resulted in deconsolidation of the properties and formation of Brandywine Commerce I LP and Brandywine Commerce II LP (collectively, the "Commerce Square Venture"). The transaction valued the properties at $600.0 million. The Company recorded its investment at fair value and recognized a gain of $271.9 million in "Net gain on disposition of real estate" on the Consolidated Statements of Operations during the three months ended September 30, 2020. See Note 4, ''Investment in Unconsolidated Real Estate Ventures," for further information.

Held for Sale

As of September 30, 2020 and December 31, 2019, 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 such, $7.3 million was classified as “Assets held for sale, net” on the consolidated balance sheets.