ACQUISITIONS AND DISPOSITIONS (Tables)

3 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Schedule of Assets Sold and Held for Sale

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 three months ended March 31, 2019:

	(in thousands)
Assets
Investments in real estate, net	$	270,910
Deferred rent receivable and charges, net	32,284
Other intangible assets, net	316
Total assets	$	303,510
Liabilities
Debt, net (1) (2)	$	278,777
Total liabilities	$	278,777

(1) Debt is presented net of deferred loan costs of $1,417,000 and accumulated amortization of $494,000.

(2) A mortgage loan with an outstanding principal balance of $28,200,000 was assumed by the buyer in connection with the sale of our property in San Francisco, California. A mortgage loan with an outstanding principal balance of $46,000,000 was prepaid in connection with the sale of our property in Washington, D.C. that was collateral for the loan. Mortgage loans with an aggregate outstanding principal balance of $205,500,000 were legally defeased in connection with the sale of the March Oakland Properties that were collateral for the loans.

Property	Asset Type	Date of Sale	Square Feet	Sales Price		Transaction Costs		Gain on Sale
				(in thousands)
March Oakland Properties, Oakland, CA (1)	Office / Parking Garage	March 1, 2019	975,596	$	512,016	$	8,971	$	289,779
830 1st Street, Washington, D.C.	Office	March 1, 2019	247,337	116,550		2,438		45,710
260 Townsend Street, San Francisco, CA	Office	March 14, 2019	66,682	66,000		2,539		42,092
				$	694,566	$	13,948	$	377,581

(1) The "March Oakland Properties" consist of 1901 Harrison Street, 2100 Franklin Street, 2101 Webster Street, and 2353 Webster Street Parking Garage.

The following is the detail of the carrying amounts of assets and liabilities for the office properties that are classified as held for sale on our consolidated balance sheets as of March 31, 2019 and December 31, 2018:

	March 31, 2019		December 31, 2018
	(in thousands)
Assets
Investments in real estate, net (1)	$	48,253	$	17,123
Cash and cash equivalents	745		755
Accounts receivable, net	137		41
Deferred rent receivable and charges, net (2)	8,743		4,009
Other intangible assets, net (3)	—		220
Other assets	338		27
Total assets held for sale, net	$	58,216	$	22,175
Liabilities
Debt, net (4)	$	39,292	$	28,018
Accounts payable and accrued expenses	1,592		370
Due to related parties	204		81
Other liabilities	773		297
Total liabilities associated with assets held for sale, net	$	41,861	$	28,766

(1) Investments in real estate of $64,363,000 and $24,832,000 at March 31, 2019 and December 31, 2018, respectively, are presented net of accumulated depreciation of $16,110,000 and $7,709,000, respectively.

(2) Deferred rent receivable and charges consist of deferred rent receivable of $5,650,000 and deferred leasing costs of $4,370,000 net of accumulated amortization of $1,277,000 at March 31, 2019. Deferred rent receivable and charges consist of deferred rent receivable of $2,909,000 and deferred leasing costs of $1,669,000 net of accumulated amortization of $569,000 at December 31, 2018.

(3) Other intangible assets, net, at December 31, 2018 represent acquired in-place leases of $1,778,000, which are presented net of accumulated amortization of $1,558,000.

(4) Debt includes the outstanding principal balance of 1333 Broadway of $39,500,000, net of deferred loan costs of $287,000 and accumulated amortization of $79,000 at March 31, 2019. At December 31, 2018, debt includes the outstanding principal balance of 260 Townsend Street of $28,200,000, net of deferred loan costs of $243,000 and accumulated amortization of $61,000.

Schedule of Asset Acquisitions

Property	Asset Type	Date of Acquisition	Square Feet	Purchase 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 was 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 Fair Value of Net Assets Acquired

The fair value of the net assets acquired for the aforementioned acquisition during the three months ended March 31, 2018 are as follows:

	(in thousands)
Land	$	52,199
Land improvements	756
Buildings and improvements	74,522
Tenant improvements	1,451
Acquired in-place leases (1)	7,003
Acquired above-market leases (1)	109
Acquired below-market leases (1)	(3,992		)
Net assets acquired	$	132,048

(1) Acquired in-place leases, above-market leases, and below-market leases have weighted average amortization periods of 3 years, 2 years, and 3 years, respectively.