Real Estate Properties

3 Months Ended

Mar. 31, 2018

During the three months ended March 31, 2018 and 2017, we made improvements, excluding tenant-funded improvements, to our properties totaling $12.9 million and $14.2 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 ASC as held for sale on our condensed consolidated balance sheets. As of December 31, 2017, we classified 1600 Market Street as held for sale. This property was sold in February 2018. As of March 31, 2018, we classified the following property as held for sale:



Asset	Number of Properties	Number of Buildings	Square Footage
1601 Dry Creek Drive	1	1	552,865

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



	March 31, 2018		December 31, 2017
Real estate properties	$	24,786	$	76,066
Rents receivable	7,245		13,270
Other assets, net	6,851		8,352
Assets held for sale	$	38,882	$	97,688

Accounts payable and accrued expenses	$	1,099	$	1,021
Rent collected in advance	1		408
Security deposits	53		411
Liabilities related to properties held for sale	$	1,153	$	1,840

Property Dispositions:

During the three months ended March 31, 2018, we sold the following properties (dollars in thousands):



Asset	Date Sold	Number of Properties	Number of Buildings	Square Footage	Gross Sales Price		Gain on Sale
Properties
1600 Market Street	February 2018	1	1	825,968	$	160,000	$	54,599
600 West Chicago Avenue(1)	February 2018	1	2	1,561,477	510,000		107,830
5073, 5075, & 5085 S. Syracuse Street	March 2018	1	1	248,493	115,186		42,762
		3	4	2,635,938	$	785,186	$	205,191

(1)

The sale of this property did not represent a strategic shift under ASC Topic 205. However, the sale does represent an individually significant disposition. The operating results of this property are included in continued operations for all periods presented through the date of sale. Net income for this property for the three months ended March 31, 2018 and 2017 was $110.0 million and $2.7 million, respectively.