ACQUISITIONS AND DISPOSITIONS (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Schedule of asset acquisitions

	Asset	Date of		Purchase
Property	Type	Acquisition	Square Feet	Price (1)
				(in thousands)
1130 Howard Street, San Francisco, CA	Office	December 29, 2017	21,194	$	17,717

(1) Transaction costs that were capitalized and assumption of liabilities totaled $1,915,000, which are excluded from the purchase price above.

	Asset	Date of		Purchase
Property	Type	Acquisition	Square Feet	Price (1)
				(in thousands)
9460 Wilshire Boulevard, Beverly Hills, CA	Office	January 18, 2018	91,750	$	132,000

(1) In December 2017, at the time we entered into the purchase and sale agreement, we made a $20,000,000 non-refundable deposit to an escrow account that is included in other assets on our consolidated balance sheet at December 31, 2017. Transaction costs that were capitalized in connection with the acquisition of this property totaled $48,000, which are not included in the purchase price above.

Schedule of assets sold and held for sale

The following is the detail of the carrying amounts of assets and liabilities for the office property in San Francisco, California that is classified as held for sale on our consolidated balance sheet as of December 31, 2018:

	(in thousands)
Assets
Investments in real estate, net (1)	$	17,123
Cash and cash equivalents	755
Accounts receivable, net	41
Deferred rent receivable and charges, net	4,009
Other intangible assets, net (2)	220
Other assets	27
Total assets held for sale, net	$	22,175
Liabilities
Debt, net (3)	$	28,018
Accounts payable and accrued expenses	370
Due to related parties	81
Other liabilities	297
Total liabilities associated with assets held for sale, net	$	28,766

(1) Investments in real estate of $24,832,000 are presented net of accumulated depreciation of $7,709,000.

(2) Other intangible assets, net, represent acquired in-place leases of $1,778,000, which are presented net of accumulated amortization of $1,558,000.

(3) Debt includes the outstanding principal balance of 260 Townsend Street of $28,200,000. Debt is presented net of deferred loan costs of $243,000 and the accumulated amortization of $61,000.

Property	Asset Type	Date of Sale	Rooms	Sales Price		Transaction Costs		Gain on Sale
				(in thousands)
Courtyard Oakland, Oakland, CA	Hotel	February 2, 2016	162	$	43,800	$	1,026	$	24,739
LAX Holiday Inn, Los Angeles, CA	Hotel	July 19, 2016	405	$	52,500	$	706	$	14,927

Property	Asset Type	Date of Sale	Square Feet or Units (1)	Sales Price		Transaction Costs			Gain on Sale
				(in thousands)
211 Main Street, San Francisco, CA	Office	March 28, 2017	417,266	$	292,882	$	2,943	(2)	$	187,734
3636 McKinney Avenue, Dallas, TX	Multifamily	May 30, 2017	103	$	20,000	$	1,320	(2)	$	5,488
3839 McKinney Avenue, Dallas, TX	Multifamily	May 30, 2017	75	$	14,100	$	938	(2)	$	4,224
200 S College Street, Charlotte, NC	Office	June 8, 2017	567,865	$	148,500	$	833		$	45,906
980 9th and 1010 8th Street, Sacramento, CA	Office & Parking Garage	June 20, 2017	485,926	$	120,500	$	1,119		$	34,559
4649 Cole Avenue, Dallas, TX	Multifamily	June 23, 2017	334	$	64,000	$	3,311	(2)	$	25,836
800 N Capitol Street, Washington, D.C.	Office	August 31, 2017	311,593	$	119,750	$	2,388		$	34,456
7083 Hollywood Boulevard, Los Angeles, CA (3)	Office	September 21, 2017	82,193	$	42,300	$	584		$	23,670
47 E 34th Street, New York, NY	Multifamily	September 26, 2017	110	$	80,000	$	3,157		$	16,556
370 L'Enfant Promenade, Washington, D.C. (4)	Office	October 17, 2017	409,897	$	126,680	$	2,451		$	2,994
4200 Scotland Street, Houston, TX (3)	Multifamily	December 15, 2017	308	$	64,025	$	597		$	20,314

(1) Reflects the square footage of office properties and number of units of multifamily properties.

(2) Includes a prepayment penalty incurred in connection with the prepayment of the mortgage on the property in the amount of $1,508,000 at 211 Main Street, $1,143,000 at 3636 McKinney Avenue, $758,000 at 3839 McKinney Avenue, and $2,812,000 at 4649 Cole Avenue (Note 8).

(3) A mortgage collateralized by this property was assumed by the buyer in connection with our sale of the property (Note 8).

(4) In August 2017, we negotiated an agreement with an unrelated third-party for the sale of this property. We determined the book value of this property exceeded its estimated fair value less costs to sell, and as such, an impairment charge of $13,100,000 was recognized at such time for the year ended December 31, 2017 (Note 2). Our determination of fair value was based on the sales price negotiated with the third-party buyer.

The following is the detail of the carrying amounts of assets and liabilities at the time of the sales of the properties that occurred during the years ended December 31, 2018, 2017 and 2016:

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Assets
Investments in real estate, net	$	—	$	631,740	$	54,374
Deferred rent receivable and charges, net	—		34,071		—
Other intangible assets, net	—		11,283		528
Other assets	—		38		—
Total assets	$	—	$	677,132	$	54,902
Liabilities
Debt, net (1)	$	—	$	115,037	$	—
Other liabilities	—		14,029		—
Intangible liabilities, net	—		1,800		—
Total liabilities	$	—	$	130,866	$	—

(1) Net of $665,000 of premium on assumed mortgage. Debt of $50,260,000 was assumed by certain buyers in connection with sales of certain properties.

The following is the detail of the carrying value of assets and liabilities at the time of sale of our commercial real estate lending subsidiary that was sold in December 2016:

	(in thousands)
Assets (1)
Commercial real estate loans, net	$	52,822
Cash and cash equivalents	821
Restricted cash	1,076
Accounts receivable, net	684
Other assets	23
Total assets held for sale, net	$	55,426
Liabilities (1)
Debt	$	25,941
Accounts payable and accrued expenses	503
Other liabilities	1,395
Total liabilities associated with assets held for sale	27,839
Carrying value	$	27,587

(1) Management estimated that the fair value of the assets held for sale and the liabilities associated with assets held for sale approximated their carrying value at the time of the sale. Management's estimate of the fair value of the commercial real estate loans was determined with assistance from an independent third-party valuation firm.

The following is the detail of income from operations of assets held for sale classified as discontinued operations on the consolidated statements of operations:

	Year Ended December 31,
	2016
	(in thousands)
Revenue - Interest and other income	$	6,389
Expenses:
Interest expense	1,944
Fees to related party	550
General and administrative	42
Total expenses	2,536
Income from operations of assets held for sale	3,853
Gain on disposition of assets held for sale	—
Net income from discontinued operations	$	3,853

Schedule of the fair value of the assets acquired and liabilities assumed

The fair value of the net assets acquired for the aforementioned acquisitions during the years ended December 31, 2018, 2017 and 2016 are as follows:

	Year Ended December 31,
	2018 (1)			2017 (1)			2016
	(in thousands)
Land	$	52,199		$	8,290		$	—
Land improvements	756			—			—
Buildings and improvements	74,522			10,109			—
Tenant improvements	1,451			371			—
Acquired in-place leases (2)	7,003			1,184			—
Acquired above-market leases (3)	109			37			—
Acquired below-market leases (4)	(3,992		)	(360		)	—
Net assets acquired	$	132,048		$	19,631		$	—

(1) The purchase price of the acquisitions completed during the years ended December 31, 2018 and 2017 were less than 10% of our total assets as of the most recent annual consolidated financial statements filed at or prior to the date of acquisition.

(2) Acquired in-place leases have a weighted average amortization period of 3 years and 5 years for the 2018 and 2017 acquisitions, respectively.

(3) Acquired above-market leases have a weighted average amortization period of 2 years and 7 years, respectively, for the 2018 and 2017 acquisitions.

(4) Acquired below-market leases have a weighted average amortization period of 3 years and 2 years, respectively, for the 2018 and 2017 acquisitions.