Deferred Costs

12 Months Ended

Dec. 31, 2016

Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]

DEFERRED COSTS

5. DEFERRED COSTS

As of December 31, 2016 and 2015, the Company’s deferred costs (assets) were comprised of the following (in thousands):

	December 31, 2016
	Total Cost		Amortization			Deferred Costs, net
Leasing costs	$	146,135	$	(56,942	)	$	89,193
Financing costs - Revolving Credit Facility		3,595		(1,446	)		2,149
Total	$	149,730	$	(58,388	)	$	91,342

	December 31, 2015
	Total Cost		Accumulated Amortization			Deferred Costs, net
Leasing costs	$	165,741	$	(67,342	)	$	98,399
Financing costs - Revolving Credit Facility		3,578		(558	)		3,020
Total	$	169,319	$	(67,900	)	$	101,419

During the years ended December 31, 2016, 2015 and 2014, the Company capitalized internal direct leasing costs of $5.0 million, $6.6 million and $7.1 million, respectively, in accordance with the accounting standard for the capitalization of leasing costs.

Brokerage Commission Payments to Related Party

In May 2015, the Company leased approximately 228,000 square feet of office space (the “2015 Lease”) to a third-party commercial tenant represented by a commercial real estate broker named WDL-EL Real Estate Advisory Group, LLC, which does business as “NorthMarq Advisors” (“NorthMarq”).  Walter D’Alessio, who served until February 17, 2017 as our Chairman and Lead Independent Director, owns a 33.3% membership interest in WDL Real Estate Advisory Group, LLC (“WDL”), which in turn owns a 49% interest in NorthMarq.  Mr. D’Alessio is also a Principal of NorthMarq and Chairman of the Board of the tenant.  

The tenant maintained a long-standing brokerage relationship with NorthMarq that pre-dated the Company’s commencement of discussions as to the 2015 Lease, and NorthMarq acted as the tenant’s exclusive broker in connection with the lease. Consistent with customary practice in the commercial real estate industry, the Company paid the tenant’s brokerage commission in the amount of $4.2 million, with one-half paid to NorthMarq in 2015 upon signing of the lease and the balance paid to NorthMarq in 2016 upon the tenant’s occupancy of the leased premises. As a principal of NorthMarq, Mr. D’Alessio received payments from NorthMarq aggregating approximately $1.0 million in connection with the brokerage commission, with one-half paid in 2015 and the balance paid in 2016.