Real Estate Properties

During the six months ended June 30, 2015 and 2014, we made improvements to our properties totaling $27.8 million and $47.0 million, respectively.

Properties Held For Sale:

We classify all properties that meet the criteria outlined in the Property, Plant and Equipment Topic of the FASB Accounting Standards Codification (Codification) as held for sale on our condensed consolidated balance sheets. As of June 30, 2015, we classified Illinois Center and 16th and Race Street (together, two properties and three buildings), with a combined 2,698,787 square feet, as held for sale. On August 4, 2015 we sold Illinois Center (see Note 18). The sale of 16th and Race Street is projected to close in the third quarter of 2015, subject to customary closing conditions. There is no certainty that these conditions will be met or that this transaction will close. As of December 31, 2014, we had no properties classified as held for sale.

Summarized balance sheet information for all properties classified as held for sale is as follows (in thousands):



	June 30, 2015
Real estate properties	$	341,263
Acquired real estate leases	13,238
Other assets, net	6,280
Properties held for sale	$	360,781

Accounts payable and accrued expenses	$	12,387
Assumed real estate lease obligations	6,516
Rent collected in advance	113
Security deposits	1,320
Liabilities related to properties held for sale	$	20,336

During March 2014, the former management team ceased to actively market two CBD properties (two buildings) and 29 suburban properties (65 buildings) with a combined 5,641,450 square feet that we had previously classified as held for sale as of December 31, 2013. These properties were not under agreement for sale when our former Trustees were removed in March 2014. These properties were reclassified to properties held and used in operations because they no longer met the requirements under GAAP for classification as held for sale. Operating results for these properties were reclassified from discontinued operations to continuing operations for all periods presented herein. In connection with this reclassification, we reversed previously recorded impairment losses totaling $4.8 million, which included the elimination of estimated costs to sell.

Property Dispositions:

During the six months ended June 30, 2015, we disposed of the following properties (dollars in thousands):



Asset	Date Disposed	Segment	Number of Properties	Number of Buildings	Square Footage	Gross Sales Price		Gain (Loss) on Sale
Properties
11350 North Meridian Street	January 2015	Suburban	1	1	72,264	$	4,200	$	766
333 Laurel Oak Drive(1)	March 2015	Suburban	—	1	27,164	2,450		251
1921 E. Alton Avenue	March 2015	Suburban	1	1	67,846	14,533		4,851
46 Inverness Center Parkway	April 2015	Suburban	—	—	—	2,000		1,857
225 Water Street(2)	May 2015	CBD	1	1	318,997	—		—
Sorrento Valley Business Park	June 2015	Suburban	1	4	105,003	23,500		11,896

Portfolio of properties
7450 Campus Drive	May 2015	Suburban	1	1	77,411
129 Worthington Ridge Road	May 2015	Suburban	1	1	227,500
599 Research Parkway	May 2015	Suburban	1	1	48,249
181 Marsh Hill Road	May 2015	Suburban	1	1	162,036
101 Barnes Road	May 2015	Suburban	1	1	45,755
15 Sterling Drive	May 2015	Suburban	1	1	173,015
35 Thorpe Avenue	May 2015	Suburban	1	1	79,862
50 Barnes Industrial Road North	May 2015	Suburban	1	1	154,255
5-9 Barnes Industrial Road	May 2015	Suburban	1	1	38,006
860 North Main Street	May 2015	Suburban	1	1	31,165
One Barnes Industrial Road South	May 2015	Suburban	1	1	30,170
Village Lane	May 2015	Suburban	1	2	58,185
100 Northfield Drive	May 2015	Suburban	1	1	116,986
905 Meridian Lake Drive	May 2015	Suburban	1	1	74,652
1717 Deerfield Road	May 2015	Suburban	1	1	141,186
1955 West Field Court	May 2015	Suburban	1	1	59,130
5015 S. Water Circle	May 2015	Suburban	1	1	113,524
Adams Place	May 2015	Suburban	1	2	230,259
Cabot Business Park	May 2015	Suburban	1	2	252,755
2300 Crown Colony Drive	May 2015	Suburban	1	1	45,974
Myles Standish Industrial Park	May 2015	Suburban	1	2	74,800
340 Thompson Road	May 2015	Suburban	1	1	25,000
100 South Charles Street	May 2015	CBD	1	1	159,616
6710 Oxon Hill	May 2015	Suburban	1	1	118,336
8800 Queen Avenue South	May 2015	Suburban	1	1	280,822
9800 Sherlard Parkway	May 2015	Suburban	1	1	46,765
Rosedale Corporate Plaza	May 2015	Suburban	1	3	149,116
1000 Shelard Parkway	May 2015	Suburban	1	1	62,499
525 Park Street	May 2015	CBD	1	1	75,636
1900 Meyer Drury Drive	May 2015	Suburban	1	1	65,225
131-165 West Ninth Street	May 2015	Suburban	1	1	75,517
7-9 Vreeland Road	May 2015	Suburban	1	1	155,891
5 Paragon Drive	May 2015	Suburban	1	1	119,089



Asset	Date Disposed	Segment	Number of Properties	Number of Buildings	Square Footage	Gross Sales Price		Gain (Loss) on Sale
1000 Vorhees Drive and 400 Laurel Oak Drive(1)	May 2015	Suburban	1	2	125,415
1601 Veterans Highway	May 2015	Suburban	1	1	63,608
Two Corporate Center Drive	May 2015	Suburban	1	1	291,230
11311 Cornell Park Drive	May 2015	Suburban	1	1	93,413
5300 Kings Island Drive	May 2015	Suburban	1	1	159,421
3 Crown Point Court	May 2015	Suburban	1	1	73,987
515 Pennsylvania Avenue	May 2015	Suburban	1	1	82,000
443 Gulph Road	May 2015	Suburban	1	1	21,000
4350 Northern Pike	May 2015	Suburban	1	1	503,885
Thunderbolt Place	May 2015	Suburban	1	2	100,505
6160 Kempsville Circle	May 2015	Suburban	1	1	129,565
448 Viking Drive	May 2015	Suburban	1	1	75,374
Portfolio of small office and industrial assets			45	53	5,287,790	$	376,000	$	(7,915	)

2501 20th Place South	June 2015	CBD	1	1	125,722
420 20th Street North	June 2015	CBD	1	1	514,893
Inverness Center	June 2015	Suburban	1	4	475,951
701 Poydras Street	June 2015	CBD	1	1	1,256,971
300 North Greene Street	June 2015	CBD	1	1	324,305
1320 Main Street	June 2015	CBD	1	1	334,075
AL, LA, NC, SC office portfolio			6	9	3,031,917	$	417,450	$	41,596

12655 Olive Boulevard	June 2015	Suburban	1	1	98,588
1285 Fern Ridge Parkway	June 2015	Suburban	1	1	66,510
St. Louis portfolio			2	2	165,098	$	14,300	$	(2,338	)

310-314 Invermay Road(3)	April 2015	Suburban	1	1	47,480
253-293 George Town Road(3)	April 2015	Suburban	1	1	143,914
7 Modal Crescent	June 2015	Suburban	1	1	164,160
71-93 Whiteside Road	June 2015	Suburban	1	1	303,488
9-13 Titanium Court	June 2015	Suburban	1	1	69,664
16 Rodborough Road	June 2015	Suburban	1	1	90,525
22 Rodborough Road	June 2015	Suburban	1	1	43,427
127-161 Cherry Lane	June 2015	Suburban	1	1	278,570
310-320 Pitt Street	June 2015	CBD	1	1	313,865
44-46 Mandarin Street	June 2015	Suburban	1	1	226,718
19 Leadership Way	June 2015	Suburban	1	1	76,714
Australia portfolio(4)			11	11	1,758,525	$	232,955	$	(47,804	)
			68	83	10,834,604	$	1,087,388	$	3,160


(1)	This property contains three buildings. We sold one building in March 2015 and two buildings in May 2015.


(2)	Title to this property was transferred to the lender pursuant to a consensual foreclosure in full satisfaction of the mortgage debt with a principal balance of $40.1 million, resulting in a gain on early extinguishment of debt of $17.3 million for the three and six months ended June 30, 2015. See Note 8 for additional information.


(3)	These properties were sold in a separate transaction to a different buyer than other Australian properties.


(4)	The loss on sale includes a $63.2 million cumulative foreign currency translation adjustment reclassified from cumuluative other comprehensive loss due to the disposition of the Australian portfolio.

On June 27, 2014, we sold one CBD property (two buildings) and 13 suburban properties (41 buildings) with a combined 2,784,098 square feet for an aggregate sales price of $215.9 million, excluding mortgage debt repayments and closing costs. In conjunction with this transaction, we recognized a loss on asset impairment of $2.4 million and a loss on early extinguishment of debt of $3.3 million.

Results of operations for properties sold prior to December 31, 2014 are included in discontinued operations in our condensed consolidated statements of operations. Summarized income statement information for properties included in discontinued operations is as follows (in thousands):



	Three Months Ended			Six Months Ended
	June 30, 2014
Rental income	$	6,962		$	14,236
Tenant reimbursements and other income	801			1,323
Total revenues	7,763			15,559

Operating expenses	3,375			6,854
General and administrative	—			3
Total expenses	3,375			6,857
Operating income	4,388			8,702
Interest expense	(274		)	(577		)
Income from discontinued operations	$	4,114		$	8,125