Acquisition

On March 16, 2022, the Company agreed to acquire a 240-apartment unit multifamily property in Park Ridge, New Jersey, for a purchase price of $130.0 million. The Company has placed an earnest money deposit of $5.0 million in escrow and the transaction is expected to close in the second quarter of 2022.

Real Estate Held for Sale/Discontinued Operations/Dispositions

The Company had discontinued operations related to its former suburban New Jersey office portfolio (collectively, the “Suburban Office Portfolio”) which represented a strategic shift in the Company’s operations in 2019. The Company has sold all but one of those assets. See Note 7: Discontinued Operations.

As of March 31, 2022, the Company identified as held for sale one office property totaling approximately 1.2 million square feet and several developable land parcels, which are located in Jersey City, Morris Township, Wall and Weehawken, New Jersey. The total estimated sales proceeds, net of expected selling costs but before the required paydown of $250.0 million of mortgage encumbering the office property and related costs, are expected to be approximately $683.3 million. The Company may need to pay significant prepayment costs of up to $15.0 million to pay down this mortgage loan which will be expensed when incurred at the time of such paydown. In April 2022, the Company completed the disposition of two of the developable land parcels held for sale at March 31, 2022 for gross sales proceeds of $100.0 million.

The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands):

(a)Expected to be removed with the completion of the sales.

The Company disposed of the following rental property during the three months ended March 31, 2022 (dollars in thousands):

(a)The mortgage loan encumbering the property was repaid at closing, for which the Company incurred costs of $6.3 million. These costs were expensed as loss from extinguishment of debt during the three months ended March 31, 2022.

The Company disposed of the following developable land holdings during the three months ended March 31, 2022 (dollars in thousands):

Impairments on Properties and Land Held and Used

The Company determined that, due to the shortening of its expected hold period for several land parcels, it was necessary to reduce the carrying value of these assets to their estimated fair values. Accordingly, the Company recorded an impairment charge $2.9 million on the land parcels in land and other impairments on the consolidated statement of operations for the three months ended March 31, 2022.