Investment in Unconsolidated Real Estate Ventures (Tables)

12 Months Ended

Dec. 31, 2017

Schedule Of Equity Method Investments [Line Items]

Investment in Real Estate Ventures and Share of Real Estate Ventures' Income (Loss)

The Company’s investment in Real Estate Ventures as of December 31, 2017 and 2016, and the Company’s share of the Real Estate Ventures’ income (loss) for the years ended December 31, 2017 and 2016 was as follows (in thousands):

	Ownership	Carrying Amount				Company's Share of Real Estate Venture Income (Loss)						Real Estate Venture Debt at 100%				Current Interest			Debt
	Percentage(a)	2017		2016		2017			2016			2017		2016		Rate			Maturity
Office Properties
Brandywine-AI Venture LLC (b) (h)	50%	$	43,560	$	67,809	$	(4,465	)	$	(5,895	)	$	93,117	$	131,539		3.94	%	(c)
DRA (G&I) Austin (d) (h)	50%		13,972		52,886		(989	)		(1,880	)		249,481		405,734		3.51	%	(e)
MAP Venture (f)	50%		15,450		20,893		(3,443	)		(4,218	)		180,800		180,800	L+6.25%			Feb 2018 (f)
Four Tower Bridge (g)	65%		3,032		2,286		746			602			9,749		9,961		5.20	%	Feb 2021
PJP VII	25%		1,156		980		175			233			4,792		4,956	L+2.65%			Dec 2019
PJP II	30%		604		532		72			97			2,564		2,893		6.12	%	Nov 2023
PJP VI	25%		179		142		38			97			7,370		7,652		6.08	%	Apr 2023
1000 Chesterbrook Blvd. (h)			-		-		-			160			-		-
PJP V (h)			-		-		-			127			-		-
Invesco, L.P. (h)			-		-		-			261			-		-
Coppell Associates			-		-		-			12			-		-
Other
HSRE-BDN I, LLC (d)	50%		17,671		21,228		449			843			110,886		105,000	L+2.25%			Oct 2019
Brandywine 1919 Ventures (d) (i)	50%		22,268		27,462		(194	)		(1,529	)		88,860		79,250	L+1.75%			Oct 2018
TB-BDN Plymouth Apartments (h)			-		12,450		99			119			-		53,967
Development Properties
4040 Wilson (j)	50%		37,179		36,356		(255	)		(270	)		6,664		1,004	L+2.75%			Dec 2021
51 N Street	70%		21,212		20,318		(176	)		(114	)		-		-
1250 First Street Office	70%		17,867		17,304		(149	)		(15	)		-		-
Seven Tower Bridge (g)	20%		471		685		(214	)		(133	)		14,629		14,710		3.17	%	(k)
		$	194,621	$	281,331	$	(8,306	)	$	(11,503	)	$	768,912	$	997,466

(a) Ownership percentage represents the Company’s entitlement to residual distributions after payments of priority returns, where applicable.

(b) See “Brandywine - AI Venture: 7101 Wisconsin Avenue” and “Brandywine - AI Venture: Other Than Temporary Impairment” sections below for information discussing activity that occurred during 2017 relating to this venture.

(c) The debt for these properties is comprised of two fixed rate mortgages: (1) $26.6 million with a 4.65% fixed interest rate due January 1, 2022, and (2) $66.5 million with a 3.22% fixed interest rate due August 1, 2019.

(d) The basis differences associated with these ventures are allocated between cost and the underlying equity in the net assets of the investee and is accounted for as if the entity were consolidated (i.e., allocated to the Company’s relative share of assets and liabilities with an adjustment to recognize equity in earnings for the appropriate depreciation/amortization). The Company increased its ownership interest in the HSRE-BDN I, LLC venture (also referred to as the “evo at Cira South Venture”) to 50% on March 2, 2016. On June 10, 2016, HSRE-BDN I, LLC refinanced its debt.  See “evo at Cira South Venture” section below for further details on these transactions. Also, see “Austin Venture” section below for information discussing this venture’s sale of eight office properties during 2017. Subsequent to December 31, 2017, the Company disposed of its interest in the evo at Cira South Venture. See Note 20, “Subsequent Events,” to the consolidated financial statements for further information.

(e) The debt for these properties includes three mortgages: (1) $133.6 million  that was swapped to a 1.43% fixed rate (for an all-in fixed rate of 3.44% incorporating the 2.01% spread) due November 1, 2018, (2) $28.7 million with a 4.50% fixed interest rate due April 6, 2019 and (3) $87.1 million that was swapped to a 1.36% fixed rate (or all-in fixed rate of 3.36% incorporating the 2.00% spread) due February 10, 2020. On October 18, 2017, the venture sold eight office buildings, seven of which were encumbered by an aggregate of $151.0 million of mortgage debt.

(f) In order to fulfill interest rate protection requirements, a LIBOR interest rate cap of 1.75% was purchased, effective February 3, 2016 and maturing February 9, 2018, for a notional amount of $200.8 million. There are three options to extend the maturity date of the debt for three successive terms, each year representing a separate option. The first option to extend the maturity date has been exercised and extends the maturity date through February 9, 2019. The two remaining unexercised options extend the maturity through February 9, 2021.

(g) Subsequent to December 31, 2017, the Company exchanged its 20% interest in Seven Tower Bridge to acquire the remaining 35% interest in Four Tower Bridge. See Note 20, “Subsequent Events,” to the consolidated financial statements for further information.

(h) On October 18, 2017, the DRA (G&I) Austin venture sold eight office properties in Austin, Texas containing 1,164,496 square feet and encumbered by $151.0 million of mortgage debt for a gross sales price of $333.3 million. On September 14, 2017, the BDN-AI Venture completed the sale of 7101 Wisconsin Avenue, an office property containing 239,904 rentable square feet, located in Bethesda, Maryland, for a gross sales price of $105.7 million. On January 31, 2017, the Company sold its 50% interest in TB-BDN Plymouth Apartments, LP. On September 22, 2016, the Company liquidated its 25% ownership interest in PJP V. On June 30, 2016, the Company liquidated its 50% ownership interest in the venture known as 1000 Chesterbrook. The ownership interest in Invesco, L.P. was sold prior to December 31, 2015, and on August 19, 2016, the Company assigned its residual profits interest to the general partner of Invesco. See below for further detail on these dispositions.

(i) The stated rate for the construction loan is LIBOR + 1.75%. To fulfill interest rate protection requirements, an interest rate cap was purchased at 4.50%.

(j) During the fourth quarter of 2017, 4040 Wilson obtained a secured construction loan with a total borrowing capacity of $150.0 million.

(k) Comprised of two fixed rate mortgages totaling $8.0 million that matured on March 1, 2017, which are currently in default, and accrue interest at a current rate of 7.00%, a $0.7 million 3.00% fixed rate loan through its September 1, 2025 maturity, a $2.0 million 4.00% fixed rate loan with interest only through its February 7, 2018 maturity and a $3.9 million 3.25% fixed rate loan with interest only beginning March 11, 2018 through its March 11, 2020 maturity.

The following is a summary of the financial position of the Real Estate Ventures as of December 31, 2017 and December 31, 2016 (in thousands):

	December 31, 2017								December 31, 2016
	DRA (G&I) Austin		Brandywine-AI Venture LLC		Other		Total		DRA (G&I) Austin		Brandywine-AI Venture LLC		Other		Total
Net property	$	263,557	$	158,960	$	661,448	$	1,083,965	$	493,960	$	229,160	$	733,883	$	1,457,003
Other assets		42,272		24,181		95,479		161,932		82,725		33,205		113,987		229,917
Other liabilities		24,131		4,493		69,083		97,707		40,280		6,440		82,967		129,687
Debt, net		248,700		92,917		424,803		766,420		403,671		131,161		454,906		989,738
Equity (a)		32,998		85,731		263,041		381,770		132,734		124,764		309,997		567,495

(a) This amount includes the effect of the basis difference between the Company’s historical cost basis and the basis recorded at the Real Estate Venture level, which is typically amortized over the life of the related assets and liabilities.  Basis differentials occur from the impairment of investments, purchases of third party interests in existing Real Estate Ventures and upon the transfer of assets that were previously owned by the Company into a Real Estate Venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the Real Estate Venture level.

The following is a summary of results of operations of the Real Estate Ventures in which the Company had interests as of December 31, 2017, 2016 and 2015 (in thousands):

	Twelve-month period ended December 31, 2017
	DRA (G&I) Austin			Brandywine-AI Venture LLC			Other			Total
Revenue	$	85,500		$	29,500		$	101,271		$	216,271
Operating expenses		(35,997	)		(12,298	)		(51,045	)		(99,340	)
Interest expense, net		(13,985	)		(4,707	)		(21,521	)		(40,213	)
Depreciation and amortization		(34,026	)		(11,428	)		(32,986	)		(78,440	)
Loss on extinguishment of debt		(2,613	)		(811	)		-			(3,424	)
Net income (loss)	$	(1,121	)	$	256		$	(4,281	)	$	(5,146	)
Ownership interest %		50	%		50	%	(a)
Company's share of net income (loss)	$	(560	)	$	128		$	(1,432	)	$	(1,864	)
Other-than-temporary impairment (b)		-			(4,844	)		-			(4,844	)
Basis adjustments and other		(429	)		251			(1,420	)		(1,598	)
Equity in loss of Real Estate Ventures	$	(989	)	$	(4,465	)	$	(2,852	)	$	(8,306	)

	Twelve-month period ended December 31, 2016
	DRA (G&I) Austin			Brandywine-AI Venture LLC			Other			Total
Revenue	$	85,749		$	31,047		$	97,656		$	214,452
Operating expenses		(37,643	)		(13,654	)		(51,895	)		(103,192	)
Provision for impairment (c)		-			(10,476	)		-			(10,476	)
Interest expense, net		(15,052	)		(5,825	)		(19,437	)		(40,314	)
Depreciation and amortization		(38,365	)		(12,811	)		(34,562	)		(85,738	)
Net loss (d)	$	(5,311	)	$	(11,719	)	$	(8,238	)	$	(25,268	)
Ownership interest %		50	%		50	%	(a)
Company's share of net loss	$	(2,656	)	$	(5,860	)	$	(3,985	)	$	(12,501	)
Basis adjustments and other		776			(35	)		257			998
Equity in loss of Real Estate Ventures	$	(1,880	)	$	(5,895	)	$	(3,728	)	$	(11,503	)

	Twelve-month period ended December 31, 2015
	DRA (G&I) Austin			Brandywine-AI Venture LLC			Other			Total
Revenue	$	78,367		$	29,428		$	57,133		$	164,928
Operating expenses		(33,194	)		(11,872	)		(25,070	)		(70,136	)
Interest expense, net		(14,025	)		(5,310	)		(15,249	)		(34,584	)
Depreciation and amortization		(36,809	)		(12,678	)		(18,613	)		(68,100	)
Net loss	$	(5,661	)	$	(432	)	$	(1,799	)	$	(7,892	)
Ownership interest %		50	%		50	%	(a)				-
Company's share of net income (loss)	$	(2,831	)	$	(216	)	$	455		$	(2,592	)
Basis adjustments and other		1,596			(13	)		198			1,781
Equity in income (loss) of Real Estate Ventures	$	(1,235	)	$	(229	)	$	653		$	(811	)

(a) The Company’s unconsolidated ownership interests range from 20% to 70%, subject to specified priority allocations of distributable cash in certain of the Real Estate Ventures.

(b) See “Brandywine - AI Venture: Other Than Temporary Impairment” section below.

(c) See “Brandywine - AI Venture: Station Square Impairment” section below.

(d) During the year ended December 31, 2016, there were $7.1 million of acquisition deal costs related to the formation of the MAP Venture.

Schedule of Maturities of Long-term Debt

As of December 31, 2017, the Company’s aggregate scheduled principal payments of debt obligations, excluding amortization of discounts and premiums, are as follows (in thousands):

2018	$	6,601
2019		7,360
2020		86,978
2021		6,099
2022		256,332
Thereafter		1,585,347
Total principal payments		1,948,717
Net unamortized premiums/(discounts)		(6,748	)
Net deferred financing costs		(11,141	)
Outstanding indebtedness	$	1,930,828

Dispositions

The Company sold the following properties during the twelve-month period ended December 31, 2017 (dollars in thousands):

Disposition Date	Property/Portfolio Name	Location	Type	Number of Properties	Rentable Square Feet		Sales Price		Net Proceeds on Sale		Gain/(Loss) on Sale (a)
November 22, 2017	11, 14, 15, 17 and 18 Campus Boulevard (Newtown Square)	Newtown Square, PA	Office	5		252,802	$	42,000	$	40,459	$	19,642
October 31, 2017	630 Allendale Road	King of Prussia, PA	Office	1		150,000		17,500		16,580		3,605
June 27, 2017	Two, Four A, Four B and Five Eves Drive (Evesham Corporate Center)	Marlton, NJ	Office	4		134,794		9,700		8,650		(325	)	(b)
June 12, 2017	7000 Midlantic Drive	Mount Laurel, NJ	Retail	1		10,784		8,200		7,714		1,413
March 30, 2017	200, 210 & 220 Lake Drive East (Woodland Falls)	Cherry Hill, NJ	Office	3		215,465		19,000		17,771		(249	)	(c)
March 15, 2017	Philadelphia Marine Center (Marine Piers)	Philadelphia, PA	Mixed-use	1		181,900		21,400		11,182		6,498		(d)
March 13, 2017	11700, 11710, 11720 & 11740 Beltsville Drive (Calverton)	Beltsville, MD	Office	3		313,810		9,000		8,354		-		(e)
February 2, 2017	1200 & 1220 Concord Avenue (Concord Airport Plaza)	Concord, CA	Office	2		350,256		33,100		32,010		551		(f)
Total Dispositions				20		1,609,811	$	159,900	$	142,720	$	31,135

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

(b) As of March 31, 2017, the Company evaluated the recoverability of the carrying value of its properties that triggered assessment under the undiscounted cash flow model. Based on the Company’s evaluation, it was determined that due to the reduction in the Company’s intended hold period of four properties located in the Other segment, the Company would not recover the carrying values of these properties. Accordingly, the Company recorded impairment charges on these properties of $1.0 million at March 31, 2017, which reduced the aggregate carrying values of the properties from $10.2 million to their estimated fair value of $9.2 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 9.00% and 9.25%, respectively. The results were comparable to indicative pricing in the market. The assumptions used to determine fair value under the income approach are Level 3 inputs in accordance with the fair value hierarchy established by Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurements and Disclosures.” The loss on sale in the table above represents additional closing costs.

(c) As of December 31, 2016, the Company evaluated the recoverability of the carrying value of its properties that triggered assessment under the undiscounted cash flow model. Based on the Company’s evaluation, it was determined that due to the reduction in the Company’s intended hold period of three properties located in the Other segment, the Company would not recover the carrying values of these properties. Accordingly, the Company recorded impairment charges on these properties of $7.3 million at December 31, 2016, reducing the aggregate carrying values of the properties from $25.8 million to their estimated fair value of $18.5 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 8.75% and 9.00%, respectively. The results were comparable to indicative pricing in the market. The assumptions used to determine fair value under the income approach are Level 3 inputs in accordance with the fair value hierarchy established by Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurements and Disclosures.” The loss on sale in the table above represents additional closing costs.

(d) On March 15, 2017, the Company sold its sublease interest in the Piers at Penn’s Landing (the “Marine Piers”), which includes leasehold improvements containing 181,900 net rentable square feet, and a marina, located in Philadelphia, Pennsylvania for an aggregate sales price of $21.4 million. On the closing date, the buyer paid $12.0 million in cash. The $9.4 million balance of the purchase is due on (a) January 31, 2020, in the event that the tenant at the Marine Piers does not exercise an option it holds to extend the term of the sublease or (b) January 15, 2024, in the event that the tenant does exercise the option to extend the term of the sublease. In accordance with ASC 360-20, “Real Estate Sales,” the Company determined that it is appropriate to account for the sales transaction under the cost recovery method. The Company received cash proceeds of $11.2 million, after closing costs and prorations, and the net book value of the Marine Piers was $4.7 million, resulting in a gain on sale of $6.5 million. The remaining gain on sale of $9.4 million will be recognized on the second purchase price installment date. Prior to its sale, the Marine Piers had been classified as mixed-use within the Company’s property count.

(e) During the fourth quarter of 2016, the Company recognized a $3.0 million impairment related to these properties. During the first quarter of 2017, there was a price reduction of $1.7 million under the agreement of sale and an additional impairment of $1.7 million was recognized.

(f) During the fourth quarter of 2016, the Company recognized an $11.5 million impairment related to these properties. This sale was designated as a like-kind exchange under Section 1031 of the Internal Revenue Code (“IRC”) and, as such, the proceeds, totaling $32.0 million after closing costs and prorations, were deposited with a Qualified Intermediary, as defined under the IRC. The proceeds received at closing were recorded as “Other assets” in the Company’s consolidated balance sheets. During the third quarter of 2017, the Company acquired 3000 Market Street in Philadelphia, Pennsylvania using the full balance of the Section 1031 proceeds. See “Acquisition” section above.

The Company sold the following land parcels during the twelve-month period ended December 31, 2017 (dollars in thousands):

Disposition Date	Property/Portfolio Name	Location	Number of Parcels		Acres		Sales Price		Net Proceeds on Sale		Gain on Sale
September 13, 2017	50 E. Swedesford Square	Malvern, PA		1		12.0	$	7,200	$	7,098	$	882
July 18, 2017	Bishop's Gate	Mount Laurel, NJ		1		49.5		6,000		5,640		71	(a)
April 28, 2017	Garza Ranch - Multi-family	Austin, TX		1		8.4		11,800		11,560		-	(b)
February 15, 2017	Gateway Land - Site C	Richmond, VA		1		4.8		1,100		1,043		-	(c)
January 30, 2017	Garza Ranch - Hotel	Austin, TX		1		1.7		3,500		3,277		-	(b)
Total Dispositions				5		76.4	$	29,600	$	28,618	$	953

(a) During the fourth quarter of 2016, the Company recognized an impairment of $3.0 million. During the second quarter of 2017, the Company recorded a held for sale impairment charge of $0.3 million, reducing the aggregate carrying value of the land parcel from $5.9 million to its estimated fair value less costs to sell of $5.6 million. The fair value measurement is based on pricing in the purchase and sale agreement for the property. As the pricing in the purchase and sale agreement is unobservable, the Company determined that the input utilized to determine fair value for the property falls within Level 3 in accordance with the fair value hierarchy established by Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurements and Disclosures.” The land parcel was sold on July 18, 2017.

(b) The Company has a continuing involvement in this property through a completion guaranty, which requires the Company, as developer, to complete certain infrastructure improvements on behalf of the buyers of the land parcels. The Company recorded the cash received at settlement as “Deferred income, gains and rent” on the Company’s consolidated balance sheet and the Company will recognize the sale upon completion of infrastructure improvements. See Note 19, “Commitments and Contingencies” for further discussion of the infrastructure improvements.

(c) During the fourth quarter of 2016, the Company recognized a nominal impairment related to this land parcel.

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

The Company sold the following properties during the twelve-month period ended December 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)
October 13, 2016	620, 640, 660 Allendale Road	King of Prussia, PA	3		156,669	$	12,800	$	12,014	$	2,382
September 1, 2016	1120 Executive Plaza	Mt. Laurel, NJ	1		95,183		9,500		9,241		(18	)	(b)
August 2, 2016	50 East Clementon Road	Gibbsboro, NJ	1		3,080		1,100		1,011		(85	)
May 11, 2016	196/198 Van Buren Street (Herndon Metro Plaza I&II)	Herndon, VA	2		197,225		44,500		43,412		(752	)	(c)
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	58		3,924,783		398,100		353,971		(372	)	(d)
Total Dispositions			66		5,239,632	$	820,000	$	769,799	$	116,983

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

(b) 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 a provision for impairment 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 for the sale of the property. As the pricing in the purchase and sale agreement is unobservable, the Company determined that the inputs utilized to determine fair value for this property falls within Level 3 in accordance with the fair value hierarchy established by Accounting Standards Codification (ASC) Topic 820, "Fair Value Measurements and Disclosures.” The loss on sale represents additional closing costs recognized at closing.

(c) During the three-month period ended March 31, 2016, the Company recognized a provision for impairment totaling approximately $7.4 million on the properties. See “Held for Use Impairment” section below. The loss on sale primarily relates to additional closing costs recognized at closing.

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

The Company sold the following land parcels during the twelve-month period ended December 31, 2016 (dollars in thousands):

Disposition Date	Property/Portfolio Name	Location	Number of Parcels		Acres		Sales Price		Net Proceeds on Sale		Gain on Sale (a)
December 2, 2016	Oakland Lot B	Oakland, CA		1		0.9	$	13,750	$	13,411	$	9,039
August 19, 2016	Highlands Land	Mt. Laurel, NJ		1		2.0		288		284		193
January 15, 2016	Greenhills Land	Reading, PA		1		120.0		900		837		-	(b)
Total Dispositions				3		122.9	$	14,938	$	14,532	$	9,232

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

(b) 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 three-month period ended December 31, 2015. There was no gain or loss recognized on the sale during 2016.

The Company sold the following office properties during the twelve-month period ended December 31, 2015 (dollars in thousands):

Disposition Date	Property/Portfolio Name	Location	Number of Properties	Rentable Square Feet		Sales Price		Net Proceeds on Sale		Gain on Sale (a)
December 31, 2015	5707 Southwest Parkway (Encino Trace)	Austin, TX	2		320,000	$	76,700	$	50,158	$	2,008	(b)
December 29, 2015	Laurel Corporate Center	Mt. Laurel, NJ	6		560,147		56,500		56,253		2,901
December 18, 2015	Carlsbad Properties	Carlsbad, CA	3		196,075		30,400		29,568		-	(c)
December 18, 2015	751-761 Fifth Ave	King of Prussia, PA	1		158,000		4,600		4,245		894
September 29, 2015	1000 Howard Boulevard	Mt. Laurel, NJ	1		105,312		16,500		15,780		4,828
August 13, 2015	Bay Colony Office Park	Wayne, PA	4		247,294		37,500		36,386		269
August 11, 2015	741 First Avenue	King of Prussia, PA	1		77,184		4,900		4,640		372
June 10, 2015	100 Gateway Centre Parkway	Richmond, VA	1		74,991		4,100		3,911		-	(d)
April 24, 2015	Christina & Delaware Corporate Centers	Wilmington, DE	5		485,182		50,100		49,579		1,749
April 9, 2015	Lake Merritt Tower	Oakland, CA	1		204,336		65,000		62,800		-	(e)
January 8, 2015	1000 Atrium Way / 457 Haddonfield Road (Atrium I / Libertyview)	Mt. Laurel, NJ / Cherry Hill, NJ	2		221,405		28,300		26,778		8,981
Total Dispositions			27		2,649,926	$	374,600	$	340,098	$	22,002	(f)

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

(b) On December 31, 2015, the Company contributed two newly constructed four-story, Class A office buildings, commonly known as “Encino Trace,” containing an aggregate of approximately 320,000 square feet in Austin, Texas to one of its existing real estate ventures (the “Austin Venture”) that the Company formed in 2013 with G&I VII Austin Office LLC, an investment vehicle advised by DRA Advisors LLC (“DRA”). When these two properties were contributed to the Austin Venture the Company had incurred a total of $76.7 million of development costs, representing the contribution value.  In conjunction with the contribution: (i) the Austin Venture obtained a $30.0 million mortgage loan; (ii) DRA contributed $25.1 million in net cash to the capital of the Austin Venture, including a $1.8 million working capital contribution; and (iii) the Austin Venture distributed $50.2 million to the Company and credited the Company with a $23.3 million capital contribution to the Austin Venture. In addition to the contribution of the properties, the Company also made a $1.8 million cash contribution to the Austin Venture for working capital. The Company recognized a $2.0 million gain on the contribution. Under the Encino Trace loan agreement, the Austin Venture has the option, subject to certain leasing and loan-to-value requirements, to borrow an additional $29.7 million to fund tenant improvements and leasing commissions.

(c) The Company recorded an impairment loss of $6.3 million for the Carlsbad office properties during the fourth quarter of 2015. As such, there was no gain at disposition for this property.

(d) The Company recorded an impairment loss of $0.8 million for 100 Gateway Centre Parkway during the second quarter of 2015. As such, there was no gain at disposition for this property.

(e) The Company recorded an impairment loss of $1.7 million for Lake Merritt Tower on March 31, 2015. As such, there was no gain at disposition for this property. Sales proceeds were deposited in escrow under Section 1031 of the Internal Revenue Code and applied to purchase the Broadmoor Austin portfolio. Refer to Broadmoor Austin Associates acquisition summary, above, for further details.

(f) Total gain on sale does not include a deferred gain of $0.5 million related to a prior sale.

The Company sold the following land parcels during the twelve-month period ended December 31, 2015 (dollars in thousands):

Disposition Date	Property/Portfolio Name	Location	Number of Parcels		Acres		Sales Price		Net Proceeds on Sale		Gain/(Loss) on Sale (a)
December 18, 2015	Two Christina Centre	Wilmington, DE	1		1.6		$	6,500	$	5,986	$	-		(b)
September 1, 2015	7000 Midlantic	Mt. Laurel, NJ		1		3.5		2,200		1,742		(169	)
August 31, 2015	Four Points	Austin, TX		1		8.6		2,500		2,344		71
August 25, 2015	Two Kaiser Plaza	Oakland, CA		1		1.0		11,100		11,016		3,117
Total Dispositions			4		14.7		$	22,300	$	21,088	$	3,019

(a) Gain/(Loss) on sale includes closing and other transaction related costs.

(b) The Company recorded an impairment loss of $0.3 million for Two Christina Centre during the fourth quarter of 2015. As such, there was no gain/(loss) at disposition for this land parcel.

Unconsolidated Real Estate Ventures [Member]

Schedule Of Equity Method Investments [Line Items]

Schedule of Maturities of Long-term Debt

As of December 31, 2017, the aggregate principal payments of recourse and non-recourse debt payable to third-parties are as follows (in thousands):

2018	$	236,468
2019		390,707
2020		92,679
2021		17,162
2022		25,372
Thereafter		6,524
Total principal payments		768,912
Net deferred financing costs		(2,532	)
Outstanding indebtedness	$	766,380

Austin Joint Venture [Member]

Schedule Of Equity Method Investments [Line Items]

Dispositions

The summary of the transaction is as follows (in thousands);

	October 18, 2017
Gross sales price	$	333,250
Debt principal		(150,968	)
Debt prepayment penalties		(2,120	)
Closing costs and net prorations		(7,420	)
Cash to Austin Venture	$	172,742
Company's ownership interest		50	%
Cash to the Company	$	86,371
Cash to Austin Venture	$	172,742
Austin Venture basis of sold properties		(92,559	)
Austin Venture gain on sale	$	80,183
Company's ownership interest		50	%
Company's share of gain	$	40,092
Company's share of gain	$	40,092
Deferred gain from partial sale		12,072
Gain on real estate venture transactions	$	52,164