| Schedule Of Purchase Price Allocation |
The purchase prices were allocated to the net assets acquired during the year ended December 31, 2015, as follows (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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City
|
|
|
|
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Parsippany
|
|
Edison
|
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Square
|
|
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Land
|
$
|
5,590
|
$
|
5,542
|
$
|
4,380
|
|
|
Buildings and improvements
|
|
4,710
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|
40,762
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|
-
|
|
|
Furniture, fixtures and equipment
|
|
-
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|
-
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|
-
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Above market leases (1)
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2,097
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-
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In-place lease values (1)
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-
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4,699
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-
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|
|
|
|
|
|
|
|
|
|
|
Net cash paid at acquisition
|
$
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10,300
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$
|
53,100
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$
|
4,380
|
|
(1)In-place lease values will be amortized over four years or less, and above market leases will be amortized over 10 years or less.
The purchase price was allocated to the net assets acquired, as follows during the year ended December 30, 2014 (in thousands):
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|
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|
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Andover
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|
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Place
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|
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Land
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$
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8,535
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|
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Buildings and improvements
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27,609
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|
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Furniture, fixtures and equipment
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|
459
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In-place lease values (1)
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1,118
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|
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37,721
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|
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Less: Below market lease values (1)
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(25)
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Net cash paid at acquisition
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$
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37,696
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(1)In-place lease values and below market lease values will be amortized over one year or less.
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| Schedule Of Real Estate Properties Sold And Disposed |
2015
The Company disposed of the following office properties during the year ended December 31, 2015 (dollars in thousands):
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Rentable
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|
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Net
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Net
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Disposition
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# of
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Square
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|
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Sales
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|
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Book
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|
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Realized
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|
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Date
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Property/Address
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Location
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Bldgs.
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Feet
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|
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Proceeds
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Value
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|
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Gain (loss)
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|
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01/15/15
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1451 Metropolitan Ave
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West Deptford, New Jersey
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1
|
21,600
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|
$
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1,072
|
|
$
|
929
|
|
$
|
143
|
|
|
05/27/15
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10 Independence Blvd
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Warren, New Jersey
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1
|
120,528
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18,351
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(a)
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|
15,114
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|
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3,237
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06/11/15
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4 Sylvan Way
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Parsippany, New Jersey
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1
|
105,135
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|
|
15,961
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(a)
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|
9,522
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|
|
6,439
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06/26/15
|
14 Sylvan Way
|
Parsippany, New Jersey
|
1
|
203,506
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|
|
79,977
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|
|
55,253
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|
|
24,724
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|
|
07/21/15
|
210 Clay Ave
|
Lyndhurst, New Jersey
|
1
|
121,203
|
|
|
14,766
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(a)
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|
5,202
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|
|
9,564
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|
|
08/24/15
|
5 Becker Farm Rd
|
Roseland, New Jersey
|
1
|
118,343
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|
|
18,129
|
(a)
|
|
8,975
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|
|
9,154
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|
|
|
|
|
|
|
|
|
|
|
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|
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Totals
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|
|
6
|
690,315
|
|
$
|
148,256
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(f)
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$
|
94,995
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$
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53,261
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(a) The Company transferred the deeds for these properties to the lender in satisfaction of its mortgage loan obligations totaling $59.7 million. The Company recorded an impairment charge of $25.2 million during the year ended December 31, 2013 as it estimated that the carrying value of the properties may not be recoverable over their anticipated holding periods.
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2014
The Company sold the following office properties during the year ended December 31, 2014 (dollars in thousands):
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|
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|
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|
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Rentable
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|
|
Net
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|
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Net
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|
|
|
|
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Sale
|
|
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# of
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Square
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|
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Sales
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|
|
Book
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|
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Realized
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|
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Date
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Property/Address
|
Location
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Bldgs.
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Feet
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|
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Proceeds
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|
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Value
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|
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Gain
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|
|
04/23/14
|
22 Sylvan Way
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Parsippany, New Jersey
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1
|
249,409
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|
$
|
94,897
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$
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60,244
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$
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34,653
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06/23/14
|
30 Knightsbridge Road (a)
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Piscataway, New Jersey
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4
|
680,350
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|
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54,641
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|
|
52,361
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|
2,280
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06/23/14
|
470 Chestnut Ridge Road (a) (b)
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Woodcliff Lake, New Jersey
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1
|
52,500
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7,195
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7,109
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|
86
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06/23/14
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530 Chestnut Ridge Road (a) (b)
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Woodcliff Lake, New Jersey
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1
|
57,204
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|
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6,299
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6,235
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|
|
64
|
|
|
06/27/14
|
400 Rella Boulevard
|
Suffern, New York
|
1
|
180,000
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|
|
27,539
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|
|
10,938
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|
|
16,601
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06/30/14
|
412 Mount Kemble Avenue (a)
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Morris Township, New Jersey
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1
|
475,100
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|
|
44,751
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|
43,851
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|
|
900
|
|
|
07/29/14
|
17-17 Route 208 North (a) (b)
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Fair Lawn, New Jersey
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1
|
143,000
|
|
|
11,835
|
|
|
11,731
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|
|
104
|
|
|
08/20/14
|
555, 565, 570 Taxter Road (a)
|
Elmsford, New York
|
3
|
416,108
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|
|
41,057
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|
|
41,057
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|
|
-
|
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08/20/14
|
200, 220 White Plains Road (a)
|
Tarrytown, New York
|
2
|
178,000
|
|
|
12,619
|
|
|
12,619
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|
|
-
|
|
|
08/20/14
|
1266 East Main Street (a) (b)
|
Stamford, Connecticut
|
1
|
179,260
|
|
|
18,406
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|
|
18,246
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|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
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Totals
|
|
16
|
2,610,931
|
|
$
|
319,239
|
|
$
|
264,391
|
|
$
|
54,848
|
|
(a)The Company completed the sale of these properties for approximately $221 million, comprised of: $192.5 million in cash from a combination of affiliates of Keystone Property Group’s (“Keystone Entities”) senior and pari-passu equity and mortgage financing; Company subordinated equity interests in each of the properties sold with capital accounts aggregating $21.2 million; and Company pari-passu equity interests in five of the properties sold aggregating $7.3 million. Net sale proceeds from the sale aggregated $196.8 million which was comprised of the $221 million gross sales price less the subordinated equity interests of $21.2 million and $3 million in closing costs. The purchasers of these properties are unconsolidated joint ventures formed between the Company and the Keystone Entities. The senior and pari-passu equity will receive a 15 percent internal rate of return (“IRR”) after which the subordinated equity will receive a 10 percent IRR and then all distributable cash flow will be split equally between the Keystone Entities and the Company. See Note 4: Investments in Unconsolidated Joint Ventures. In connection with certain of these partial sale transactions, because the buyer received a preferential return on certain of the ventures for which the Company received subordinated equity interests, the Company only recognized profit to the extent that they received net proceeds in excess of their entire carrying value of the properties, effectively reflecting their retained subordinated equity interest at zero.
(b)The Company recorded an impairment charge of $20.8 million on these properties at December 31, 2013 as it estimated that the carrying value of the properties may not be recoverable over their anticipated holding periods.
|
| Summary Of Income (Loss) From Properties Disposed |
|
|
|
|
|
|
|
|
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|
|
|
|
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|
Years Ended December 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
Total revenues
|
|
$
|
9,137
|
|
$
|
53,975
|
|
$
|
79,379
|
|
Operating and other expenses
|
|
|
(5,532)
|
|
|
(24,311)
|
|
|
(34,835)
|
|
Depreciation and amortization
|
|
|
(11,700)
|
|
|
(9,955)
|
|
|
(20,927)
|
|
Interest expense
|
|
|
(7,008)
|
|
|
(10,369)
|
|
|
(9,784)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from properties disposed of
|
|
$
|
(15,103)
|
|
$
|
9,340
|
|
$
|
13,833
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments
|
|
|
-
|
|
|
-
|
|
|
(79,378)
|
|
Realized gains on dispositions
|
|
|
53,261
|
|
|
54,848
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income (loss) from properties disposed of
|
|
$
|
38,158
|
|
$
|
64,188
|
|
$
|
(65,545)
|
|