Real Estate Investments

6 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

REAL ESTATE INVESTMENTS

3. REAL ESTATE INVESTMENTS

As of June 30, 2019 and December 31, 2018, the gross carrying value of the operating properties was as follows (in thousands):

	June 30, 2019		December 31, 2018
Land	$	487,209	$	486,068
Building and improvements		3,091,570		3,050,122
Tenant improvements		451,826		415,529
Total	$	4,030,605	$	3,951,719

Dispositions

The Company sold the following land parcel and recognized a gain on a property sold in a prior year during the six months ended June 30, 2019 (dollars in thousands):

Disposition Date	Property/Portfolio Name	Location	Number of Parcels		Acres		Sales Price		Net Proceeds on Sale		Gain on Sale
March 15, 2019	9 Presidential Boulevard	Bala Cynwyd, PA		1		2.7	$	5,325	$	5,023	$	751
January 8, 2015	Libertyview	Cherry Hill, NJ		-		-		-		-		500	(a)
Total Dispositions				1		2.7	$	5,325	$	5,023	$	1,251

(a) As of January 2019, the Company will receive an additional $1.0 million of contingent consideration. The Company will recognize this consideration on a cash basis due to uncertainty of collectability. The $1.0 million consideration is payable to the Company in twelve equal installments, of which $0.5 million has been received during the six months ended June 30, 2019.

The sale of land referenced above does not represent a strategic shift that has a major effect on the Company’s operations and financial results. Accordingly, the operating results of the property remain classified within continuing operations for applicable periods presented.

Held for Sale

As of June 30, 2019, the Company determined that the sale of two parcels of land totaling 35.2 acres in the Other segment was probable and classified these properties as held for sale in accordance with applicable accounting standards for long-lived assets. As of June 30, 2019, $7.3 million was reclassified from “Land held for development” to “Assets held for sale, net” on the consolidated balance sheets. As of June 30, 2019, the fair value less the anticipated costs of sale of the properties exceeded the carrying values. As a result, the Company expects to record gains on sale. The fair value measurement is based on the pricing in the purchase and sale agreement for both properties. The disposals of these land parcels do not represent a strategic shift that has a major effect on the operations and financial results of the Company.