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Real Estate Properties
12 Months Ended
Dec. 31, 2018
Real Estate [Abstract]  
Real Estate Properties
Real Estate Properties
Acquisitions and Expenditures
In October 2016, we purchased a parcel of land adjacent to our Research Park property in Austin, Texas for $2.8 million. We did not make any acquisitions during the years ended December 31, 2018 or 2017.
During the years ended December 31, 2018, 2017, and 2016, we made improvements, excluding tenant-funded improvements, to our properties totaling $56.3 million, $55.0 million and $110.7 million, respectively.
We committed $98.7 million for expenditures related to 1.1 million square feet of leases executed during 2018. Committed but unspent tenant related obligations are leasing commissions and tenant improvements. Based on existing leases as of December 31, 2018, committed but unspent tenant related obligations were $86.6 million.
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 consolidated balance sheets. As of December 31, 2018, we did not have any properties classified as held for sale. As of December 31, 2017, we classified 1600 Market Street as held for sale.

Summarized balance sheet information for 1600 Market Street is as follows (in thousands):
 
December 31, 2017
Real estate properties
$
76,066

Rents receivable, net of allowance for doubtful accounts of $5
13,270

Other assets, net
8,352

Assets held for sale
$
97,688

 
 
Accounts payable and accrued expenses
$
1,021

Rent collected in advance
408

Security deposits
411

Liabilities related to properties held for sale
$
1,840



Property Dispositions:

During the year ended December 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 (Loss) 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

 
107,790

5073, 5075, & 5085 S. Syracuse Street
 
March 2018
 
1

 
1

 
248,493

 
115,186

 
42,762

1601 Dry Creek Drive
 
May 2018
 
1

 
1

 
552,865

 
68,500

 
26,979

777 East Eisenhower Parkway
 
August 2018
 
1

 
1

 
290,530

 
29,500

 
5,308

8750 Bryn Mawr Avenue
 
September 2018
 
1

 
2

 
636,078

 
141,000

 
15,194

97 Newberry Road
 
December 2018
 
1

 
1

 
289,386

 
7,100

 
(1,174
)
 
 
 
 
7

 
9

 
4,404,797

 
$
1,031,286

 
$
251,458


(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 was $110.6 million, $9.3 million and $12.2 million for the years ended December 31, 2018, 2017 and 2016, respectively.

During the year ended December 31, 2017, we sold the following properties (dollars in thousands):
Asset
 
Date Sold
 
Number of
Properties
 
Number of
Buildings
 
Square
Footage
 
Gross Sales Price
 
Gain (Loss) on Sale
Properties
 
 
 
 
 
 
 
 
 
 
 
 
111 Market Place
 
January 2017
 
1

 
1

 
589,380

 
$
60,100

 
$
(5,968
)
Cabot Business Park Land
 
March 2017
 

 

 

 
575

 
(57
)
Parkshore Plaza
 
April 2017
 
1

 
4

 
271,072

 
40,000

 
(2,460
)
25 S. Charles Street
 
April 2017
 
1

 
1

 
359,254

 
24,500

 
(3,487
)
802 Delaware Avenue
 
May 2017
 
1

 
1

 
240,780

 
34,000

 
9,099

1500 Market Street
 
July 2017
 
1

 
1

 
1,759,193

 
328,000

 
38,585

6600 North Military Trail
 
August 2017
 
1

 
3

 
639,825

 
132,050

 
(14,175
)
789 East Eisenhower Parkway(1)
 
December 2017
 

 
1

 
130,961

 
24,942

 
1,242

33 Stiles Lane
 
December 2017
 
1

 
1

 
175,301

 
10,500

 
2,163

625 Crane Street (Land)
 
December 2017
 

 

 

 
307

 
249

Mineral Rights
 
December 2017
 

 

 

 
200

 
169

 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolios of properties
 
 
 
 
 
 
 
 
 
 
 
 
4515 Seton Center Parkway
 
March 2017
 
1

 
1

 
117,265

 
 
 
 
4516 Seton Center Parkway
 
March 2017
 
1

 
1

 
120,559

 
 
 
 
Seton Center
 
 
 
2

 
2

 
237,824

 
$
52,450

 
$
22,479

 
 
 
 
 
 
 
 
 
 
 
 
 
Cherrington Corporate Center
 
December 2017
 
1

 
7

 
454,700

 
 
 
 
Foster Plaza
 
December 2017
 
1

 
8

 
727,743

 
 
 
 
Pittsburgh Portfolio
 
 
 
2

 
15

 
1,182,443

 
$
71,000

 
$
(33,048
)
 
 
 
 
 
 
 
 
 
 
 
 
 
820 W. Diamond
 
July 2017
 
1

 
1

 
134,933

 
 
 
 
Danac Stiles Business Park
 
July 2017
 
1

 
3

 
276,637

 
 
 
 
411 Farwell Avenue
 
July 2017
 
1

 
1

 
422,727

 
 
 
 
2250 Pilot Knob Road
 
July 2017
 
1

 
1

 
87,183

 
 
 
 
4700 Belleview Avenue
 
July 2017
 
1

 
1

 
80,615

 
 
 
 
Five Property Portfolio
 
 
 
5

 
7

 
1,002,095

 
$
84,000

 
$
702

 
 
 
 
16

 
37

 
6,588,128

 
$
862,624

 
$
15,493


(1)
We sold one building in a property containing two buildings. 
During the year ended December 31, 2016, we sold 30 properties (62 buildings) with a combined 7,972,692 square feet for an aggregate gross sales price of $1.3 billion, excluding credits and closing costs.
Lease Payments
Our real estate properties are generally leased on gross lease and modified gross lease bases pursuant to non-cancelable, fixed term operating leases expiring between 2019 and 2037. These gross leases and modified gross leases require us to pay all or some property operating expenses and to provide all or some property management services. A portion of these property operating expenses are reimbursed by the tenants.
The future minimum lease payments, excluding tenant reimbursement revenue, scheduled to be received by us during the current terms of our leases as of December 31, 2018 are as follows (in thousands):
2019
$
109,888

2020
96,309

2021
104,279

2022
95,128

2023
86,299

Thereafter
567,547

 
$
1,059,450


One of our real estate properties that we sold in 2016, 111 River Street in Hoboken, New Jersey, was subject to a ground lease. The amount of ground lease expense included in operating expenses during the year ended December 31, 2016, totaled $0.9 million. Ground lease expense includes percentage rent.