3. REAL ESTATE INVESTMENTS

As of March 31, 2016 and December 31, 2015, the gross carrying value of the Properties was as follows (in thousands):

	March 31,		December 31,
	2016		2015
Land	$	511,977	$	513,268
Building and improvements		2,723,438		2,719,780
Tenant improvements		467,778		459,952
		3,703,193		3,693,000
Assets held for sale - real estate investments (a)		-		794,588
Total	$	3,703,193	$	4,487,588

(a)	Real estate investments related to assets held for sale above represents gross real estate assets and does not include accumulated depreciation or intangible assets on the balance sheets of the properties held for sale.

Dispositions

The Company sold the following office properties during the three-month period ended March 31, 2016 (dollars in thousands):

Disposition Date	Property/Portfolio Name	Location	Number of Properties	Rentable Square Feet		Sales Price		Net Proceeds on Sale		Gain (Loss) on Sale (a)
February 5, 2016	2970 Market Street (Cira Square)	Philadelphia, PA	1		862,692	$	354,000	$	350,150	$	115,828
February 4, 2016	Och-Ziff Portfolio	Various (b)	58		3,924,783		398,100		353,971		(372	)	(c)
Total Dispositions			59		4,787,475	$	752,100	$	704,121	$	115,456

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

(b)	Exhibit 99.2 to Form 8-K filed on February 10, 2016 contains a complete list of the 58 properties. See also Note 4, "Investment in Unconsolidated Real Estate Ventures," for further details of the transactions.

(c)	During the fourth quarter of 2015, the Company recognized an impairment loss totaling approximately $45.4 million on the properties. The loss on sale represents additional closing costs that were not known at settlement.

On January 15, 2016, the Company sold 120 acres of undeveloped land located in Berks county Pennsylvania for a sales price of $0.9 million. The land was classified as held for sale as of December 31, 2015. The carrying value of the land exceeded the fair value less the anticipated costs of sale as of December 31, 2015, therefore the Company recognized an impairment loss of $0.3 million during the fourth quarter of 2015. There was no gain or loss recognized on the sale of the land during the first quarter of 2016.

The sales of the properties and land referenced above do not represent a strategic shift that has a major effect on the Company's operations and financial results. The operating results of these properties remain classified within continuing operations for all periods presented.

Held for Use Impairment

As of March, 31, 2016, the Company evaluated the recoverability of the carrying value of its properties under the undiscounted cash flow model. Based on the analysis, it was determined that due to a reduction in management’s intended hold period, the Company would not recover the carrying value of two properties located in its Metropolitan D.C. segment. Accordingly, the Company recorded an impairment charge of $7.4 million at March 31, 2016 reducing the aggregate carrying values of these properties from $51.9 million to their estimated fair values of $44.5 million. The Company measured these impairments based on a discounted cash flow analysis, using a hold period of 10 years and residual capitalization rates and discount rates of 7.0%. The results were compared to indicative pricing in the market. The assumptions used to determine fair value are Level 3 inputs, respectively, in accordance with the fair value hierarchy established by Accounting Standards Codification (ASC) Topic 820, "Fair Value Measurements and Disclosures.”