Real Estate Investments (Tables)

6 Months Ended

Jun. 30, 2016

Real Estate Properties [Line Items]

Gross Carrying Value Of Properties

As of June 30, 2016 and December 31, 2015, the gross carrying value of the Properties were as follows (in thousands):

	June 30,		December 31,
	2016		2015
Land	$	497,732	$	513,268
Building and improvements (a)		2,760,572		2,719,780
Tenant improvements (a)		463,101		459,952
		3,721,405		3,693,000
Assets held for sale - real estate investments (b)		17,622		794,588
Total	$	3,739,027	$	4,487,588

(a) The net increase primarily relates to the office component of the FMC Tower at Cira Centre South in Philadelphia, Pennsylvania being placed into service during the three-month period ended June 30, 2016, offset partially by the classification of 1120 Executive Boulevard in Mount Laurel, New Jersey as held for sale as of June 30, 2016.

(b) 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 six-month period ended June 30, 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)
May 11, 2016	196/198 Van Buren Street (Herndon Metro Plaza I&II)	Herndon, VA	2		197,225	$	44,500	$	43,412	$	(752	)	(b)
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 (c)	58		3,924,783		398,100		353,971		(372	)	(d)
Total Dispositions			61		4,984,700	$	796,600	$	747,533	$	114,704

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

(b) During the three-month period ended March 31, 2016, the Company recognized an impairment loss totaling approximately $7.4 million on the properties. The loss on sale represents additional closing costs recognized at settlement.

(c) Exhibit 99.2 to the Company’s Current Report on Form 8-K filed on February 10, 2016 contains a complete list of the 58 properties disposed of in the transactions with Och-Ziff Capital Management. See Note 4, "Investment in Unconsolidated Real Estate Ventures," for further details of the transactions.

(d) During the three-month period ended December 31, 2015, the Company recognized an impairment loss totaling approximately $45.4 million. The loss on sale represents additional closing costs recognized at settlement.

Held for Sale Properties Included in Continuing Operations [Member]

Real Estate Properties [Line Items]

Summary of Properties Classified as Held for Sale but Which did not Meet the Criteria to be Classified within Discontinued Operations

The following is a summary of properties classified as held for sale but which did not meet the criteria to be classified within discontinued operations at June 30, 2016 (in thousands):

	Held for Sale Properties Included in Continuing Operations
	June 30, 2016
	1120 Executive Boulevard (a)			Oakland Lot B (b)			Total
ASSETS HELD FOR SALE
Real estate investments:
Operating properties	$	13,256		$	4,366		$	17,622
Accumulated depreciation		(6,005	)		(4	)		(6,009	)
Operating real estate investments, net		7,251			4,362			11,613
Construction-in-progress		675			-			675
Total real estate investments, net		7,926			4,362			12,288
Other assets		20			-			20
Total assets held for sale, net	$	7,946		$	4,362		$	12,308
LIABILITIES HELD FOR SALE
Other liabilities	$	11		$	-		$	11
Total liabilities held for sale	$	11		$	-		$	11

(a) On June 1, 2016, the Company entered into an agreement to sell an office property containing 95,183 square feet at 1120 Executive Boulevard located in Mount Laurel, New Jersey. As of June 30, 2016, the Company determined that the sale of the property was probable and classified this property as held for sale in accordance with applicable accounting standards for long lived assets. At such date, the carrying value of the property exceeded the fair value less the anticipated costs of sale. As a result, the Company recognized an impairment loss totaling approximately $1.8 million during the three-month period ended June 30, 2016. The fair value measurement was based on the pricing in the purchase and sale agreement. As significant inputs to the model are unobservable, the Company determined that the value determined for this property falls within Level 3 fair value reporting.

(b) During the three-month period ended June 30, 2016, the Company determined that the sale of a property located in Oakland, California, known as Oakland Lot B, was probable and classified it as held for sale in accordance with applicable accounting standards for long lived assets. As the fair value less anticipated costs to sell exceeded the carrying value of the property no impairment loss was recorded. The fair value measurement was based on pricing in the purchase and sale agreement. As the sales price is unobservable, the Company determined that the significant inputs used to value this property falls within Level 3 for fair value reporting.