Real Estate Investments

6 Months Ended

Jun. 30, 2021

3. REAL ESTATE INVESTMENTS

As of June 30, 2021 and December 31, 2020, the gross carrying value of the operating properties was as follows (in thousands):


	June 30, 2021		December 31, 2020
Land	$	391,302	$	407,514
Building and improvements	2,596,282		2,665,232
Tenant improvements	405,150		401,363


Total	$	3,392,734	$	3,474,109

Dispositions

On February 2, 2021, the Company contributed its investment in a 99-year prepaid leasehold interest in a one-acre land parcel held for development at 3025 JFK Boulevard in Philadelphia, Pennsylvania to a newly formed joint venture with an unaffiliated third party. The project is part of the Schuylkill Yards master development. The transaction valued the Company's investment in the project at $34.8 million and resulted in deconsolidation of the property and conversion of Brandywine Opportunity Fund, L.P. to a real estate venture ("3025 JFK Venture"). The Company recorded its investment at fair value and recognized a gain of $2.0 million in "Net gain on sale of undepreciated real estate" on the Consolidated Statements of Operations. See Note 4, "Investment in Unconsolidated Real Estate Ventures," for further information.

Held for Sale

As of June 30, 2021 and December 31, 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 such, $7.3 million was classified as “Assets held for sale, net” on the consolidated balance sheets. The Company closed on the sale of the two parcels of land on July 6, 2021 for an aggregate sales price of $8.9 million.