Recent Transactions (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
|---|
| Real Estate Properties [Line Items] |
|
| Schedule Of Properties Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentable |
|
|
|
|
Acquisition |
|
|
Property |
# of |
Square Feet/ |
|
|
Acquisition |
|
Date |
Property Address |
Location |
Type |
Bldgs. |
Apartment Units |
|
|
Cost |
|
02/06/19 |
99 Wood Avenue (a) |
Iselin, New Jersey |
Office |
1 |
271,988 |
|
$ |
61,858 |
|
04/01/19 |
Soho Lofts (a) |
Jersey City, New Jersey |
Multi-family |
1 |
377 |
|
|
264,578 |
|
09/26/19 |
Liberty Towers (b) |
Jersey City, New Jersey |
Multi-family |
1 |
648 |
|
|
410,483 |
|
|
|
|
|
|
|
|
|
|
|
Total Acquisitions |
|
|
|
3 |
|
|
$ |
736,919 |
|
|
|
(a) |
This acquisition was funded using funds available with the Company's qualified intermediary from prior property sales proceeds and through borrowing under the Company's unsecured revolving credit facility. |
(b) |
This acquisition was funded through borrowings under the Company's unsecured revolving credit facility and a new $232 million mortgage loan collateralized by the property. |
|
| Schedule Of Acquisition Cost Allocated To Net Assets Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99 Wood Avenue |
|
|
|
Soho Lofts Apartments |
|
|
|
Liberty Towers |
|
|
Total |
Land and leasehold interest |
|
$ |
9,261 |
|
|
$ |
27,601 |
|
|
$ |
66,670 |
|
$ |
103,532 |
Buildings and improvements and other assets |
|
|
45,576 |
|
|
|
231,663 |
|
|
|
330,935 |
|
|
608,174 |
Above market lease values |
|
|
431 |
(a) |
|
|
- |
|
|
|
56 |
(c) |
|
487 |
In-place lease values |
|
|
8,264 |
(a) |
|
|
5,480 |
(b) |
|
|
13,462 |
(c) |
|
27,206 |
|
|
|
63,532 |
|
|
|
264,744 |
|
|
|
411,123 |
|
|
739,399 |
Less: Below market lease values |
|
|
(1,674) |
(a) |
|
|
(166) |
(b) |
|
|
(640) |
(c) |
|
(2,480) |
Net assets recorded upon acquisition |
|
$ |
61,858 |
|
|
$ |
264,578 |
|
|
$ |
410,483 |
|
$ |
736,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Above market, in-place and below market lease values are being amortized over a weighted-average term of 4.3 years. |
(b) In-place and below market lease values are being amortized over a weighted-average term of 0.8 years. |
(c) Above market, in-place and below market lease values are being amortized over a weighted-average term of 0.5 years. |
|
| Schedule Of Properties Which Commenced Initial Operations |
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
In Service |
|
|
Property |
# of |
|
|
Development |
Date |
Property |
Location |
Type |
Apartment Units |
|
|
Costs Incurred |
03/01/20 |
Emery at Overlook Ridge |
Malden, MA |
Multi-Family |
326 |
|
$ |
103,993 |
Totals |
|
|
|
326 |
|
$ |
103,993 |
2019
|
|
|
|
|
|
|
|
|
|
|
|
# of |
|
|
Total |
In Service |
|
|
Property |
Apartment Units/ |
|
|
Development |
Date |
Property |
Location |
Type |
Rooms |
|
|
Costs Incurred |
07/09/19 |
Autograph Collection By Marriott (Phase II) |
Weehawken, NJ |
Hotel |
208 |
|
$ |
105,477 |
Totals |
|
|
|
208 |
|
$ |
105,477 |
|
| Schedule Of Net Assets Recorded Upon Consolidation |
2020
On March 12, 2020, the Company, acquired its equity partner's 80 percent interest in Port Imperial North Retail L.L.C., a ground floor retail space totaling 30,745 square feet located at Port Imperial, West New York, New Jersey for $13.3 million in cash (funded through borrowing under the Company’s unsecured credit facility.) The results of the transaction increased the Company’s interest to 100 percent. Upon the acquisition, the Company consolidated the joint venture, a voting interest entity. As an acquisition of the remaining interests in the venture which owns the Port Imperial North Retail L.L.C., the Company accounted for the transaction as an asset acquisition under a cost accumulation model, and as such no gain on change of control of interest was recognized in consolidation, resulting in total consolidated net assets of $15.0 million, which are allocated as follows:
|
|
|
|
|
Port Imperial North Retail L.L.C. |
Land and leasehold interests |
$ |
4,305 |
Buildings and improvements and other assets, net |
|
8,912 |
In-place lease values (a) |
|
1,503 |
Above/Below market lease value, net (a) |
|
313 |
|
|
|
Net assets recorded upon consolidation |
$ |
15,033 |
|
|
|
(a) In-place and below market lease values are being amortized over a weighted-average term of 7.5 years. |
2019
On January 31, 2019, the Company, which held a 24.27 percent subordinated interest in the unconsolidated joint venture, Marbella Tower Urban Renewal Associates South LLC, a 311-unit multi-family operating property located in Jersey City, New Jersey, acquired its equity partner’s 50 percent preferred controlling interest for $77.5 million in cash. The property was subject to a mortgage loan that had a principal balance of $74.7 million. The acquisition was funded primarily using available cash. Concurrently with the closing, the joint venture repaid in full the property’s $74.7 million mortgage loan and obtained a new loan collateralized by the property in the amount of $117 million, which bears interest at 4.2 percent and matures in August 2026. The Company received $43.3 million in distribution from the loan proceeds which was used to acquire the equity partner’s 50 percent interest. As the result of the acquisition, the Company increased its ownership of the property from a 24.27 percent subordinated interest to a 74.27 percent controlling interest. In accordance with ASC 810, Consolidation, the Company evaluated the acquisition and determined that the entity meets the criteria of a VIE. As such, the Company consolidated the asset upon acquisition and accordingly, remeasured its equity interests, as required by the FASB’s consolidation guidance, at fair value (based upon the income approach using current rental rates and market cap rates and discount rates). As a result, the Company recorded a gain on change of control of interests of $13.8 million (a non-cash item) in the year ended December 31, 2019, in which the Company accounted for the transaction as a VIE that is not a business in accordance with ASC 810-10-30-4. Additional non-cash items included in the acquisition were the Company’s carrying value of its interest in the joint venture of $15.3 million and the noncontrolling interest’s fair value of $13.7 million. See Note 9: Mortgages, Loans Payable and Other Obligations.
|
|
|
|
|
Marbella II |
Land and leasehold interests |
$ |
36,595 |
Buildings and improvements and other assets, net |
|
153,974 |
In-place lease values (a) |
|
4,611 |
Less: Below market lease values (a) |
|
(80) |
|
|
195,100 |
Less: Debt |
|
(117,000) |
Net assets |
|
78,100 |
Less: Noncontrolling interests |
|
(13,722) |
Net assets recorded upon consolidation |
$ |
64,378 |
|
|
|
(a) In-place and below market lease values are being amortized over a weighted-average term of 6.2 months. |
|
| Schedule Of Property Disposals |
Real Estate Held for Sale/Discontinued Operations/Dispositions
2020
On December 19, 2019, the Company announced that its Board had determined to sell the Company’s entire suburban New Jersey office portfolio totaling approximately 6.6 million square feet, which excludes the Company’s office properties in Jersey City and Hoboken, New Jersey, (collectively, the “Suburban Office Portfolio”). As the decision to sell the Suburban Office Portfolio represented a strategic shift in the Company’s operations, these properties’ results (other than a property classified as held for sale) are being classified as discontinued operations for all periods presented herein. As of December 31, 2020, the Company determined that a 350,000 square foot office property in the Suburban Office Portfolio, located in Holmdel, New Jersey no longer met the held for sale criteria. The property had originally been classified as held for sale as of December 31, 2019. The reclassified property has an aggregate book value of $19.8 million as of December 31, 2020, net of accumulated depreciation of $10.5 million (including catch-up depreciation). $2.8 million of previously recorded valuation allowance was reversed upon the reclassification of the asset from held for sale at December 31, 2020, and the corresponding property’s results and valuation allowance are also reclassified out of discontinued operations to continuing operations for all periods presented. See Note 7: Discontinued Operations.
In late 2019 through December 31, 2020, the Company completed the sale of 20 of these suburban office properties, totaling 3.2 million square feet, for net sales proceeds of $377.4 million. As of December 31, 2020, the Company has identified as held for sale 16 office properties (comprised of six identified disposal groups) in the Suburban Office Portfolio, totaling 3.0 million square feet (of which the Company currently has 15 properties totaling 2.8 million square feet under contract for sale for aggregate gross proceeds of $652.4 million). As a result of a signed contract to dispose of a portfolio of four of the properties in an identified disposal group of assets held for sale, the Company may need to pay for significant costs to defease the mortgage loan encumbering the properties, which will be expensed when incurred at the time of such defeasance. See Note 10: Mortgages, loans payable and other obligations. In January 2021, the Company completed the sale of one of the properties held for sale, which was a 149,600 square foot office property, for a gross sales price of $38 million. See Note 7: Discontinued Operations.
The Company plans to complete the sale of substantially all of its remaining Suburban Office Portfolio properties in 2021, and to use the available sales proceeds to pay down its corporate-level, unsecured indebtedness. However, the Company cannot predict whether or to what extent the timing of these sales and the expected amount may be impacted by the ongoing coronavirus pandemic (“COVID-19”). After the completion of the Suburban Office Portfolio sales, the Company’s holdings will consist of its waterfront class A office portfolio and its multi-family rental portfolio, and related development projects and land holdings.
Additionally, the Company also identified a retail pad leased to others and several developable land parcels as held for sale as of December 31, 2020. The properties are located in Parsippany, Madison, Short Hills, Edison and Red Bank, New Jersey. As a result of recent sales contract amendments and after considering the current market conditions as a result of the challenging economic climate with the current worldwide COVID-19 pandemic, the Company determined that the carrying value of six of the remaining held for sale properties (comprised of three disposal groups), and several land parcels held for sale was not expected to be recovered from estimated net sales proceeds, and accordingly, during the year ended December 31, 2020, recognized an unrealized loss allowance of $15.7 million for the properties ($14 million of which are from discontinued operations), respectively, and also recorded land and other impairments of $9.5 million. As of December 31, 2020, the Company determined that two developable land parcels located in Parsippany, New Jersey were no longer being held for sale. The properties had originally been classified as held for sale as of December 31, 2019. The reclassified properties had an aggregate book value of $11.3 million.
The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
|
|
|
Portfolio (a) |
|
|
Held for Sale |
|
|
Total |
Land |
|
$ |
87,815 |
|
$ |
76,396 |
|
$ |
164,211 |
Building & Other |
|
|
737,669 |
|
|
42,202 |
|
|
779,871 |
Less: Accumulated depreciation |
|
|
(161,040) |
|
|
(7,991) |
|
|
(169,031) |
Less: Cumulative unrealized losses on property held for sale |
|
|
(77,357) |
|
|
(40,731) |
|
|
(118,088) |
Real estate held for sale, net |
|
$ |
587,087 |
|
$ |
69,876 |
|
$ |
656,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
Other assets and liabilities |
|
|
Portfolio (a) |
|
|
Held for Sale |
|
|
Total |
Unbilled rents receivable, net (b) |
|
$ |
17,216 |
|
$ |
2,102 |
|
$ |
19,318 |
Deferred charges, net (b) |
|
|
15,320 |
|
|
661 |
|
|
15,981 |
Total intangibles, net (b) |
|
|
26,069 |
|
|
- |
|
|
26,069 |
Total deferred charges & other assets, net |
|
|
42,513 |
|
|
665 |
|
|
43,178 |
Mortgages & loans payable, net (b) |
|
|
123,768 |
|
|
- |
|
|
123,768 |
Total below market liability (b) |
|
|
6,538 |
|
|
- |
|
|
6,538 |
Accounts payable, accrued exp & other liability |
|
|
16,972 |
|
|
80 |
|
|
17,052 |
Unearned rents/deferred rental income (b) |
|
|
8,422 |
|
|
217 |
|
|
8,639 |
|
|
|
|
|
|
|
|
|
|
(a) Classified as discontinued operations at December 31, 2020 for all periods presented. See Note 7: Discontinued Operations. |
(b) Expected to be removed with the completion of the sales. |
The Company disposed of the following rental properties during the year ended December 31, 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
Gains |
|
|
|
|
|
|
Rentable |
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
|
(losses)/ |
|
Disposition |
|
|
# of |
|
Square |
|
Property |
|
Sales |
|
|
Carrying |
|
|
Unrealized |
|
Unrealized |
|
Date |
Property/Address |
Location |
Bldgs. |
|
Feet/Units |
|
Type |
|
Proceeds |
|
|
Value |
|
|
Losses, net |
|
Losses, net |
|
03/17/20 |
One Bridge Plaza |
Fort Lee, New Jersey |
1 |
|
200,000 |
|
Office |
$ |
35,065 |
|
$ |
17,743 |
|
$ |
- |
$ |
17,322 |
|
07/22/20 |
3 Giralda Farms (a) |
Madison, New Jersey |
1 |
|
141,000 |
|
Office |
|
7,510 |
|
|
9,534 |
|
|
- |
|
(2,024) |
|
09/15/20 |
Morris portfolio (b) |
Parsippany and Madison, New Jersey |
10 |
|
1,448,420 |
|
Office |
|
155,116 |
|
|
175,772 |
|
|
- |
|
(20,656) |
|
09/18/20 |
325 Columbia Turnpike |
Florham Park, New Jersey |
1 |
|
168,144 |
|
Office |
|
24,276 |
|
|
8,020 |
|
|
- |
|
16,256 |
|
09/24/20 |
9 Campus Drive (c) |
Parsippany, New Jersey |
1 |
|
156,945 |
|
Office |
|
20,678 |
|
|
22,162 |
|
|
- |
|
(1,484) |
|
10/21/20 |
3&5 Vaughn Drive |
Princeton, New Jersey |
1 |
|
98,500 |
|
Office |
|
7,282 |
|
|
5,754 |
|
|
- |
|
1,528 |
|
11/18/20 |
7 Campus Drive (d) |
Parsippany, New Jersey |
1 |
|
154,395 |
|
Office |
|
12,278 |
|
|
11,804 |
|
|
- |
|
474 |
|
12/03/20 |
581 Main Street |
Woodbridge, New Jersey |
1 |
|
200,000 |
|
Office |
|
58,400 |
|
|
43,113 |
|
|
- |
|
15,287 |
|
12/22/20 |
500 College Road (e) |
Princeton, New Jersey |
1 |
|
158,235 |
|
Office |
|
4,582 |
|
|
6,044 |
|
|
- |
|
(1,462) |
|
12/23/20 |
5/10 Dennis St and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and 100 Hiram Sq |
New Brunswick, New Jersey |
2 |
|
200 units |
|
Multi-Family |
|
45,567 |
|
|
38,404 |
|
|
7,163 |
|
- |
|
Sub-total |
|
|
20 |
|
2,725,639 |
|
|
|
370,754 |
|
|
338,350 |
|
|
7,163 |
|
25,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on real estate held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
(1,682) |
|
(14,040) |
|
Totals |
|
|
20 |
|
2,725,639 |
|
|
$ |
370,754 |
|
$ |
338,350 |
|
$ |
5,481 |
$ |
11,201 |
|
|
|
(a) |
The Company recorded valuation allowances of $2.0 million on the held for sale property during the year ended December 31, 2020 and of $16.7 million during the year ended December 31, 2019. |
(b) |
The Company recorded valuation allowances of $21.6 million on the held for sale properties during the year ended December 31, 2020 and of $32.5 million during the year ended December 31, 2019. |
(c) |
The Company recorded a valuation allowance of $3.5 million on this property during the year ended December 31, 2019. |
(d) |
The Company recorded valuation allowance of $6.0 million on the held for sale property during the year ended December 31, 2019. |
(e) |
The Company recorded valuation allowance of $1.9 million on the held for sale property during the year ended December 31, 2020. |
The Company disposed of the following developable land holdings during the year ended December 31, 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
|
|
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
Disposition |
|
|
|
|
|
Sales |
|
|
Carrying |
|
|
Unrealized |
Date |
Property Address |
Location |
|
|
|
Proceeds |
|
|
Value |
|
|
Losses, net |
01/03/20 |
230 & 250 Half Mile Road |
Middletown, New Jersey |
|
|
$ |
7,018 |
|
$ |
2,969 |
|
$ |
4,049 |
03/27/20 |
Capital Office Park land |
Greenbelt, Maryland |
|
|
|
8,974 |
|
|
8,210 |
|
|
764 |
12/18/20 |
14 & 16 Skyline Drive |
Mount Pleasant, New York |
|
|
|
2,925 |
|
|
1,951 |
|
|
974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
$ |
18,917 |
|
$ |
13,130 |
|
$ |
5,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
On December 19, 2019, the Company announced that, based on the recommendations of the Shareholder Value Committee, its Board had determined to sell the Suburban Office Portfolio. As the decision to sell the Suburban Office Portfolio represented a strategic shift in the Company’s operations, the portfolio’s results are being classified as discontinued operations for all periods presented herein. See Note 7: Discontinued Operations.
During the year ended December 31, 2019, the Company completed the sale of two of these suburban office properties, totaling 497,000 square feet, for net sales proceeds of $52.2 million. As of December 31, 2019, the Company identified as held for sale the remaining 35 office properties (comprised of 12 identified disposal groups) in the Suburban Office Portfolio, totaling 6.1 million square feet. See Note 7: Discontinued Operations.
Additionally, the Company also identified a retail pad leased to others and several developable land parcels as held for sale as of December 31, 2019. The properties are located in Fort Lee, Parsippany, Madison, Short Hills, Edison, Red Bank and Florham Park. The Company determined that the carrying value of 21 of the properties (comprised of six disposal groups) and several land parcels held for sale was not expected to be recovered from estimated net sales proceeds, and accordingly, during the year ended December 31, 2019, recognized an unrealized loss allowance of $174.1 million ($137.9 million of which are from discontinued operations, for the properties and land and other impairments of $32.4 million.
The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
|
|
|
Portfolio (a) |
|
|
Held for Sale |
|
|
Total |
Land |
|
$ |
147,590 |
|
$ |
87,663 |
|
$ |
235,253 |
Building & Other |
|
|
1,263,738 |
|
|
54,392 |
|
|
1,318,130 |
Less: Accumulated depreciation |
|
|
(401,212) |
|
|
(11,573) |
|
|
(412,785) |
Less: Cumulative unrealized losses on property held for sale |
|
|
(137,876) |
|
|
(36,225) |
|
|
(174,101) |
Real estate held for sale, net |
|
$ |
872,240 |
|
$ |
94,257 |
|
$ |
966,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
Other assets and liabilities |
|
|
Portfolio (a) |
|
|
Held for Sale |
|
|
Total |
Unbilled rents receivable, net (b) |
|
$ |
30,188 |
|
$ |
1,956 |
|
$ |
32,144 |
Deferred charges, net (b) |
|
|
32,900 |
|
|
1,432 |
|
|
34,332 |
Total intangibles, net (b) |
|
|
33,095 |
|
|
- |
|
|
33,095 |
Total deferred charges & other assets, net |
|
|
68,684 |
|
|
1,730 |
|
|
70,414 |
Mortgages & loans payable, net (b) |
|
|
123,650 |
|
|
- |
|
|
123,650 |
Total below market liability (b) |
|
|
8,833 |
|
|
- |
|
|
8,833 |
Accounts payable, accrued exp & other liability |
|
|
21,025 |
|
|
1,792 |
|
|
22,817 |
Unearned rents/deferred rental income (b) |
|
|
2,952 |
|
|
- |
|
|
2,952 |
|
|
|
|
|
|
|
|
|
|
(a) Classified as discontinued operations at December 31, 2019 for all periods presented. See Note 7: Discontinued Operations. |
(b) Expected to be removed with the completion of the sales. |
The Company disposed of the following rental properties during the year ended December 31, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
Gains |
|
|
|
|
|
|
Rentable |
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
|
(losses)/ |
|
Disposition |
|
|
# of |
|
Square |
|
Property |
|
Sales |
|
|
Carrying |
|
|
Unrealized |
|
Unrealized |
|
Date |
Property/Address |
Location |
Bldgs. |
|
Feet/Units |
|
Type |
|
Proceeds |
|
|
Value |
|
|
Losses, net |
|
Losses, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
01/11/19 |
721 Route 202-206 South (a) |
Bridgewater, New Jersey |
1 |
|
192,741 |
|
Office |
$ |
5,651 |
|
$ |
5,410 |
|
$ |
241 |
$ |
- |
|
01/16/19 |
Park Square Apartments (b) |
Rahway, New Jersey |
1 |
|
159 |
units |
Multi-family |
|
34,045 |
|
|
34,032 |
|
|
13 |
|
- |
|
01/22/19 |
2115 Linwood Avenue |
Fort Lee, New Jersey |
1 |
|
68,000 |
|
Office |
|
15,197 |
|
|
7,433 |
|
|
7,764 |
|
- |
|
02/27/19 |
201 Littleton Road (c) |
Morris Plains, New Jersey |
1 |
|
88,369 |
|
Office |
|
4,842 |
|
|
4,937 |
|
|
(95) |
|
- |
|
03/13/19 |
320 & 321 University Avenue |
Newark, New Jersey |
2 |
|
147,406 |
|
Office |
|
25,552 |
|
|
18,456 |
|
|
7,096 |
|
- |
|
03/29/19 |
Flex portfolio (d) |
New York and Connecticut |
56 |
|
3,148,512 |
|
Office/Flex |
|
470,348 |
|
|
214,758 |
|
|
255,590 |
|
- |
|
06/18/19 |
650 From Road (e) |
Paramus, New Jersey |
1 |
|
348,510 |
|
Office |
|
37,801 |
|
|
40,046 |
|
|
(2,245) |
|
- |
|
10/18/19 |
3600 Route 66 (h) |
Neptune, New Jersey |
1 |
|
180,000 |
|
Office |
|
25,237 |
|
|
17,246 |
|
|
- |
|
7,991 |
|
10/23/19 |
Chase & Alterra Portfolio (f) |
Revere and Malden, Massachusetts |
3 |
|
1,386 |
units |
Multi-family |
|
406,817 |
|
|
293,030 |
|
|
113,787 |
|
- |
|
12/06/19 |
5 Wood Hollow Road (g) (h) |
Parsippany, New Jersey |
1 |
|
317,040 |
|
Office |
|
26,937 |
|
|
33,226 |
|
|
- |
|
(6,289) |
(i) |
Sub-total |
|
|
68 |
|
4,490,578 |
|
|
|
1,052,427 |
|
|
668,574 |
|
|
382,151 |
|
1,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on real estate held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
(39,049) |
|
(135,052) |
(i) |
Totals |
|
|
68 |
|
4,490,578 |
|
|
$ |
1,052,427 |
|
$ |
668,574 |
|
$ |
343,102 |
$ |
(133,350) |
|
|
|
(a) |
The Company recorded a valuation allowance of $9.3 million on this property during the year ended December 31, 2018. |
(b) |
The Company recorded a valuation allowance of $6.3 million on this property during the year ended December 31, 2018. |
(c) |
The Company recorded a valuation allowance of $3.6 million on this property during the year ended December 31, 2018. |
(d) |
As part of the consideration from the buyer, who is a noncontrolling interest unitholder of the Operating Partnership, 301,638 Common Units were redeemed by the Company at fair market value of $6.6 million as purchase consideration received for two of the properties disposed of in this transaction, which was a non-cash portion of this sales transaction. The Company used the net cash received at closing to repay approximately $119.9 million of borrowings under the unsecured revolving credit facility and to repay $90 million of its $350 million unsecured term loan. The Company also utilized $217.4 million of these proceeds on April 1, 2019 to acquire a 377-unit multi-family property located in Jersey City, New Jersey. |
(e) |
The Company recorded a valuation allowance of $0.9 million on this property during the year ended December 31, 2018. |
(f) |
Proceeds from the sale, which were net of $235.8 million of in-place mortgages assumed by the buyer, were used primarily to repay outstanding borrowings under the Company's revolving credit facility that were drawn to fund a portion of the Company's purchase of Liberty Towers. The assumed mortgages were a non-cash portion of this sales transaction. |
(g) |
The net sale proceeds were held by a qualified intermediary, which is noncash and recorded in deferred charges, goodwill and other assets as of December 31, 2019. See Note 5: Deferred Charges, Goodwill and Other Assets, Net – to the Financial Statements. The Company recorded an impairment charge of $5.8 million at June 30, 2019 before the property was identified as held for sale on September 30, 2019. |
(h) |
These pertain to properties classified as discontinued operations. (See Note 7: Discontinued Operations – to the Financial Statements) |
(i) |
These include impairments recorded on three properties before they were classified as discontinued operations. |
The Company disposed of the following developable land holdings during the year ended December 31, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
|
|
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
Disposition |
|
|
|
|
|
Sales |
|
|
Carrying |
|
|
Unrealized |
Date |
Property Address |
Location |
|
|
|
Proceeds |
|
|
Value |
|
|
Losses, net |
04/30/19 |
Overlook Ridge |
Revere, Massachusetts |
|
|
$ |
685 |
|
$ |
415 |
|
$ |
270 |
09/20/19 |
Overlook Ridge |
Revere, Massachusetts |
|
|
|
1,135 |
|
|
839 |
|
|
296 |
11/08/19 |
150 Monument Street |
Bala Cynwd, Pennsylvania |
(a) |
|
|
8,374 |
|
|
7,874 |
|
|
500 |
12/19/19 |
51 Washington Street |
Conshohocken, Pennsylvania |
(b) |
|
|
8,189 |
|
|
8,732 |
|
$ |
(543) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
$ |
18,383 |
|
$ |
17,860 |
|
$ |
523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Company recorded a land impairment charge of $10.9 million on this land parcel during the year ended December 31, 2018. |
(b) The Company recorded a land impairment charge of $13.6 million on this land parcel during the year ended December 31, 2018. The Company recorded |
additional land impairment charges of $2.7 million on this land parcel during the year ended December 31, 2019 prior to its disposition. |
|
| Mack-Cali Realty LP [Member] |
|
| Real Estate Properties [Line Items] |
|
| Schedule Of Properties Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentable |
|
|
|
|
Acquisition |
|
|
Property |
# of |
Square Feet/ |
|
|
Acquisition |
|
Date |
Property Address |
Location |
Type |
Bldgs. |
Apartment Units |
|
|
Cost |
|
02/06/19 |
99 Wood Avenue (a) |
Iselin, New Jersey |
Office |
1 |
271,988 |
|
$ |
61,858 |
|
04/01/19 |
Soho Lofts (a) |
Jersey City, New Jersey |
Multi-family |
1 |
377 |
|
|
264,578 |
|
09/26/19 |
Liberty Towers (b) |
Jersey City, New Jersey |
Multi-family |
1 |
648 |
|
|
410,483 |
|
|
|
|
|
|
|
|
|
|
|
Total Acquisitions |
|
|
|
3 |
|
|
$ |
736,919 |
|
|
|
(a) |
This acquisition was funded using funds available with the Company's qualified intermediary from prior property sales proceeds and through borrowing under the Company's unsecured revolving credit facility. |
(b) |
This acquisition was funded through borrowings under the Company's unsecured revolving credit facility and a new $232 million mortgage loan collateralized by the property. |
|
| Schedule Of Acquisition Cost Allocated To Net Assets Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99 Wood Avenue |
|
|
|
Soho Lofts Apartments |
|
|
|
Liberty Towers |
|
|
Total |
Land and leasehold interest |
|
$ |
9,261 |
|
|
$ |
27,601 |
|
|
$ |
66,670 |
|
$ |
103,532 |
Buildings and improvements and other assets |
|
|
45,576 |
|
|
|
231,663 |
|
|
|
330,935 |
|
|
608,174 |
Above market lease values |
|
|
431 |
(a) |
|
|
- |
|
|
|
56 |
(c) |
|
487 |
In-place lease values |
|
|
8,264 |
(a) |
|
|
5,480 |
(b) |
|
|
13,462 |
(c) |
|
27,206 |
|
|
|
63,532 |
|
|
|
264,744 |
|
|
|
411,123 |
|
|
739,399 |
Less: Below market lease values |
|
|
(1,674) |
(a) |
|
|
(166) |
(b) |
|
|
(640) |
(c) |
|
(2,480) |
Net assets recorded upon acquisition |
|
$ |
61,858 |
|
|
$ |
264,578 |
|
|
$ |
410,483 |
|
$ |
736,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Above market, in-place and below market lease values are being amortized over a weighted-average term of 4.3 years. |
(b) In-place and below market lease values are being amortized over a weighted-average term of 0.8 years. |
(c) Above market, in-place and below market lease values are being amortized over a weighted-average term of 0.5 years. |
|
| Schedule Of Properties Which Commenced Initial Operations |
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
In Service |
|
|
Property |
# of |
|
|
Development |
Date |
Property |
Location |
Type |
Apartment Units |
|
|
Costs Incurred |
03/01/20 |
Emery at Overlook Ridge |
Malden, MA |
Multi-Family |
326 |
|
$ |
103,993 |
Totals |
|
|
|
326 |
|
$ |
103,993 |
2019
|
|
|
|
|
|
|
|
|
|
|
|
# of |
|
|
Total |
In Service |
|
|
Property |
Apartment Units/ |
|
|
Development |
Date |
Property |
Location |
Type |
Rooms |
|
|
Costs Incurred |
07/09/19 |
Autograph Collection By Marriott (Phase II) |
Weehawken, NJ |
Hotel |
208 |
|
$ |
105,477 |
Totals |
|
|
|
208 |
|
$ |
105,477 |
|
| Schedule Of Net Assets Recorded Upon Consolidation |
2020
On March 12, 2020, the Company, acquired its equity partner's 80 percent interest in Port Imperial North Retail L.L.C., a ground floor retail space totaling 30,745 square feet located at Port Imperial, West New York, New Jersey for $13.3 million in cash (funded through borrowing under the Company’s unsecured credit facility.) The results of the transaction increased the Company’s interest to 100 percent. Upon the acquisition, the Company consolidated the joint venture, a voting interest entity. As an acquisition of the remaining interests in the venture which owns the Port Imperial North Retail L.L.C., the Company accounted for the transaction as an asset acquisition under a cost accumulation model, and as such no gain on change of control of interest was recognized in consolidation, resulting in total consolidated net assets of $15.0 million, which are allocated as follows:
|
|
|
|
|
Port Imperial North Retail L.L.C. |
Land and leasehold interests |
$ |
4,305 |
Buildings and improvements and other assets, net |
|
8,912 |
In-place lease values (a) |
|
1,503 |
Above/Below market lease value, net (a) |
|
313 |
|
|
|
Net assets recorded upon consolidation |
$ |
15,033 |
|
|
|
(a) In-place and below market lease values are being amortized over a weighted-average term of 7.5 years. |
2019
On January 31, 2019, the Company, which held a 24.27 percent subordinated interest in the unconsolidated joint venture, Marbella Tower Urban Renewal Associates South LLC, a 311-unit multi-family operating property located in Jersey City, New Jersey, acquired its equity partner’s 50 percent preferred controlling interest for $77.5 million in cash. The property was subject to a mortgage loan that had a principal balance of $74.7 million. The acquisition was funded primarily using available cash. Concurrently with the closing, the joint venture repaid in full the property’s $74.7 million mortgage loan and obtained a new loan collateralized by the property in the amount of $117 million, which bears interest at 4.2 percent and matures in August 2026. The Company received $43.3 million in distribution from the loan proceeds which was used to acquire the equity partner’s 50 percent interest. As the result of the acquisition, the Company increased its ownership of the property from a 24.27 percent subordinated interest to a 74.27 percent controlling interest. In accordance with ASC 810, Consolidation, the Company evaluated the acquisition and determined that the entity meets the criteria of a VIE. As such, the Company consolidated the asset upon acquisition and accordingly, remeasured its equity interests, as required by the FASB’s consolidation guidance, at fair value (based upon the income approach using current rental rates and market cap rates and discount rates). As a result, the Company recorded a gain on change of control of interests of $13.8 million (a non-cash item) in the year ended December 31, 2019, in which the Company accounted for the transaction as a VIE that is not a business in accordance with ASC 810-10-30-4. Additional non-cash items included in the acquisition were the Company’s carrying value of its interest in the joint venture of $15.3 million and the noncontrolling interest’s fair value of $13.7 million. See Note 9: Mortgages, Loans Payable and Other Obligations.
|
|
|
|
|
Marbella II |
Land and leasehold interests |
$ |
36,595 |
Buildings and improvements and other assets, net |
|
153,974 |
In-place lease values (a) |
|
4,611 |
Less: Below market lease values (a) |
|
(80) |
|
|
195,100 |
Less: Debt |
|
(117,000) |
Net assets |
|
78,100 |
Less: Noncontrolling interests |
|
(13,722) |
Net assets recorded upon consolidation |
$ |
64,378 |
|
|
|
(a) In-place and below market lease values are being amortized over a weighted-average term of 6.2 months. |
|
| Schedule Of Property Disposals |
Real Estate Held for Sale/Discontinued Operations/Dispositions
2020
On December 19, 2019, the Company announced that its Board had determined to sell the Company’s entire suburban New Jersey office portfolio totaling approximately 6.6 million square feet, which excludes the Company’s office properties in Jersey City and Hoboken, New Jersey, (collectively, the “Suburban Office Portfolio”). As the decision to sell the Suburban Office Portfolio represented a strategic shift in the Company’s operations, these properties’ results (other than a property classified as held for sale) are being classified as discontinued operations for all periods presented herein. As of December 31, 2020, the Company determined that a 350,000 square foot office property in the Suburban Office Portfolio, located in Holmdel, New Jersey no longer met the held for sale criteria. The property had originally been classified as held for sale as of December 31, 2019. The reclassified property has an aggregate book value of $19.8 million as of December 31, 2020, net of accumulated depreciation of $10.5 million (including catch-up depreciation). $2.8 million of previously recorded valuation allowance was reversed upon the reclassification of the asset from held for sale at December 31, 2020, and the corresponding property’s results and valuation allowance are also reclassified out of discontinued operations to continuing operations for all periods presented. See Note 7: Discontinued Operations.
In late 2019 through December 31, 2020, the Company completed the sale of 20 of these suburban office properties, totaling 3.2 million square feet, for net sales proceeds of $377.4 million. As of December 31, 2020, the Company has identified as held for sale 16 office properties (comprised of six identified disposal groups) in the Suburban Office Portfolio, totaling 3.0 million square feet (of which the Company currently has 15 properties totaling 2.8 million square feet under contract for sale for aggregate gross proceeds of $652.4 million). As a result of a signed contract to dispose of a portfolio of four of the properties in an identified disposal group of assets held for sale, the Company may need to pay for significant costs to defease the mortgage loan encumbering the properties, which will be expensed when incurred at the time of such defeasance. See Note 10: Mortgages, loans payable and other obligations. In January 2021, the Company completed the sale of one of the properties held for sale, which was a 149,600 square foot office property, for a gross sales price of $38 million. See Note 7: Discontinued Operations.
The Company plans to complete the sale of substantially all of its remaining Suburban Office Portfolio properties in 2021, and to use the available sales proceeds to pay down its corporate-level, unsecured indebtedness. However, the Company cannot predict whether or to what extent the timing of these sales and the expected amount may be impacted by the ongoing coronavirus pandemic (“COVID-19”). After the completion of the Suburban Office Portfolio sales, the Company’s holdings will consist of its waterfront class A office portfolio and its multi-family rental portfolio, and related development projects and land holdings.
Additionally, the Company also identified a retail pad leased to others and several developable land parcels as held for sale as of December 31, 2020. The properties are located in Parsippany, Madison, Short Hills, Edison and Red Bank, New Jersey. As a result of recent sales contract amendments and after considering the current market conditions as a result of the challenging economic climate with the current worldwide COVID-19 pandemic, the Company determined that the carrying value of six of the remaining held for sale properties (comprised of three disposal groups), and several land parcels held for sale was not expected to be recovered from estimated net sales proceeds, and accordingly, during the year ended December 31, 2020, recognized an unrealized loss allowance of $15.7 million for the properties ($14 million of which are from discontinued operations), respectively, and also recorded land and other impairments of $9.5 million. As of December 31, 2020, the Company determined that two developable land parcels located in Parsippany, New Jersey were no longer being held for sale. The properties had originally been classified as held for sale as of December 31, 2019. The reclassified properties had an aggregate book value of $11.3 million.
The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
|
|
|
Portfolio (a) |
|
|
Held for Sale |
|
|
Total |
Land |
|
$ |
87,815 |
|
$ |
76,396 |
|
$ |
164,211 |
Building & Other |
|
|
737,669 |
|
|
42,202 |
|
|
779,871 |
Less: Accumulated depreciation |
|
|
(161,040) |
|
|
(7,991) |
|
|
(169,031) |
Less: Cumulative unrealized losses on property held for sale |
|
|
(77,357) |
|
|
(40,731) |
|
|
(118,088) |
Real estate held for sale, net |
|
$ |
587,087 |
|
$ |
69,876 |
|
$ |
656,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
Other assets and liabilities |
|
|
Portfolio (a) |
|
|
Held for Sale |
|
|
Total |
Unbilled rents receivable, net (b) |
|
$ |
17,216 |
|
$ |
2,102 |
|
$ |
19,318 |
Deferred charges, net (b) |
|
|
15,320 |
|
|
661 |
|
|
15,981 |
Total intangibles, net (b) |
|
|
26,069 |
|
|
- |
|
|
26,069 |
Total deferred charges & other assets, net |
|
|
42,513 |
|
|
665 |
|
|
43,178 |
Mortgages & loans payable, net (b) |
|
|
123,768 |
|
|
- |
|
|
123,768 |
Total below market liability (b) |
|
|
6,538 |
|
|
- |
|
|
6,538 |
Accounts payable, accrued exp & other liability |
|
|
16,972 |
|
|
80 |
|
|
17,052 |
Unearned rents/deferred rental income (b) |
|
|
8,422 |
|
|
217 |
|
|
8,639 |
|
|
|
|
|
|
|
|
|
|
(a) Classified as discontinued operations at December 31, 2020 for all periods presented. See Note 7: Discontinued Operations. |
(b) Expected to be removed with the completion of the sales. |
The Company disposed of the following rental properties during the year ended December 31, 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
Gains |
|
|
|
|
|
|
Rentable |
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
|
(losses)/ |
|
Disposition |
|
|
# of |
|
Square |
|
Property |
|
Sales |
|
|
Carrying |
|
|
Unrealized |
|
Unrealized |
|
Date |
Property/Address |
Location |
Bldgs. |
|
Feet/Units |
|
Type |
|
Proceeds |
|
|
Value |
|
|
Losses, net |
|
Losses, net |
|
03/17/20 |
One Bridge Plaza |
Fort Lee, New Jersey |
1 |
|
200,000 |
|
Office |
$ |
35,065 |
|
$ |
17,743 |
|
$ |
- |
$ |
17,322 |
|
07/22/20 |
3 Giralda Farms (a) |
Madison, New Jersey |
1 |
|
141,000 |
|
Office |
|
7,510 |
|
|
9,534 |
|
|
- |
|
(2,024) |
|
09/15/20 |
Morris portfolio (b) |
Parsippany and Madison, New Jersey |
10 |
|
1,448,420 |
|
Office |
|
155,116 |
|
|
175,772 |
|
|
- |
|
(20,656) |
|
09/18/20 |
325 Columbia Turnpike |
Florham Park, New Jersey |
1 |
|
168,144 |
|
Office |
|
24,276 |
|
|
8,020 |
|
|
- |
|
16,256 |
|
09/24/20 |
9 Campus Drive (c) |
Parsippany, New Jersey |
1 |
|
156,945 |
|
Office |
|
20,678 |
|
|
22,162 |
|
|
- |
|
(1,484) |
|
10/21/20 |
3&5 Vaughn Drive |
Princeton, New Jersey |
1 |
|
98,500 |
|
Office |
|
7,282 |
|
|
5,754 |
|
|
- |
|
1,528 |
|
11/18/20 |
7 Campus Drive (d) |
Parsippany, New Jersey |
1 |
|
154,395 |
|
Office |
|
12,278 |
|
|
11,804 |
|
|
- |
|
474 |
|
12/03/20 |
581 Main Street |
Woodbridge, New Jersey |
1 |
|
200,000 |
|
Office |
|
58,400 |
|
|
43,113 |
|
|
- |
|
15,287 |
|
12/22/20 |
500 College Road (e) |
Princeton, New Jersey |
1 |
|
158,235 |
|
Office |
|
4,582 |
|
|
6,044 |
|
|
- |
|
(1,462) |
|
12/23/20 |
5/10 Dennis St and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and 100 Hiram Sq |
New Brunswick, New Jersey |
2 |
|
200 units |
|
Multi-Family |
|
45,567 |
|
|
38,404 |
|
|
7,163 |
|
- |
|
Sub-total |
|
|
20 |
|
2,725,639 |
|
|
|
370,754 |
|
|
338,350 |
|
|
7,163 |
|
25,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on real estate held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
(1,682) |
|
(14,040) |
|
Totals |
|
|
20 |
|
2,725,639 |
|
|
$ |
370,754 |
|
$ |
338,350 |
|
$ |
5,481 |
$ |
11,201 |
|
|
|
(a) |
The Company recorded valuation allowances of $2.0 million on the held for sale property during the year ended December 31, 2020 and of $16.7 million during the year ended December 31, 2019. |
(b) |
The Company recorded valuation allowances of $21.6 million on the held for sale properties during the year ended December 31, 2020 and of $32.5 million during the year ended December 31, 2019. |
(c) |
The Company recorded a valuation allowance of $3.5 million on this property during the year ended December 31, 2019. |
(d) |
The Company recorded valuation allowance of $6.0 million on the held for sale property during the year ended December 31, 2019. |
(e) |
The Company recorded valuation allowance of $1.9 million on the held for sale property during the year ended December 31, 2020. |
The Company disposed of the following developable land holdings during the year ended December 31, 2020 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
|
|
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
Disposition |
|
|
|
|
|
Sales |
|
|
Carrying |
|
|
Unrealized |
Date |
Property Address |
Location |
|
|
|
Proceeds |
|
|
Value |
|
|
Losses, net |
01/03/20 |
230 & 250 Half Mile Road |
Middletown, New Jersey |
|
|
$ |
7,018 |
|
$ |
2,969 |
|
$ |
4,049 |
03/27/20 |
Capital Office Park land |
Greenbelt, Maryland |
|
|
|
8,974 |
|
|
8,210 |
|
|
764 |
12/18/20 |
14 & 16 Skyline Drive |
Mount Pleasant, New York |
|
|
|
2,925 |
|
|
1,951 |
|
|
974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
$ |
18,917 |
|
$ |
13,130 |
|
$ |
5,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
On December 19, 2019, the Company announced that, based on the recommendations of the Shareholder Value Committee, its Board had determined to sell the Suburban Office Portfolio. As the decision to sell the Suburban Office Portfolio represented a strategic shift in the Company’s operations, the portfolio’s results are being classified as discontinued operations for all periods presented herein. See Note 7: Discontinued Operations.
During the year ended December 31, 2019, the Company completed the sale of two of these suburban office properties, totaling 497,000 square feet, for net sales proceeds of $52.2 million. As of December 31, 2019, the Company identified as held for sale the remaining 35 office properties (comprised of 12 identified disposal groups) in the Suburban Office Portfolio, totaling 6.1 million square feet. See Note 7: Discontinued Operations.
Additionally, the Company also identified a retail pad leased to others and several developable land parcels as held for sale as of December 31, 2019. The properties are located in Fort Lee, Parsippany, Madison, Short Hills, Edison, Red Bank and Florham Park. The Company determined that the carrying value of 21 of the properties (comprised of six disposal groups) and several land parcels held for sale was not expected to be recovered from estimated net sales proceeds, and accordingly, during the year ended December 31, 2019, recognized an unrealized loss allowance of $174.1 million ($137.9 million of which are from discontinued operations, for the properties and land and other impairments of $32.4 million.
The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
|
|
|
Portfolio (a) |
|
|
Held for Sale |
|
|
Total |
Land |
|
$ |
147,590 |
|
$ |
87,663 |
|
$ |
235,253 |
Building & Other |
|
|
1,263,738 |
|
|
54,392 |
|
|
1,318,130 |
Less: Accumulated depreciation |
|
|
(401,212) |
|
|
(11,573) |
|
|
(412,785) |
Less: Cumulative unrealized losses on property held for sale |
|
|
(137,876) |
|
|
(36,225) |
|
|
(174,101) |
Real estate held for sale, net |
|
$ |
872,240 |
|
$ |
94,257 |
|
$ |
966,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
Other assets and liabilities |
|
|
Portfolio (a) |
|
|
Held for Sale |
|
|
Total |
Unbilled rents receivable, net (b) |
|
$ |
30,188 |
|
$ |
1,956 |
|
$ |
32,144 |
Deferred charges, net (b) |
|
|
32,900 |
|
|
1,432 |
|
|
34,332 |
Total intangibles, net (b) |
|
|
33,095 |
|
|
- |
|
|
33,095 |
Total deferred charges & other assets, net |
|
|
68,684 |
|
|
1,730 |
|
|
70,414 |
Mortgages & loans payable, net (b) |
|
|
123,650 |
|
|
- |
|
|
123,650 |
Total below market liability (b) |
|
|
8,833 |
|
|
- |
|
|
8,833 |
Accounts payable, accrued exp & other liability |
|
|
21,025 |
|
|
1,792 |
|
|
22,817 |
Unearned rents/deferred rental income (b) |
|
|
2,952 |
|
|
- |
|
|
2,952 |
|
|
|
|
|
|
|
|
|
|
(a) Classified as discontinued operations at December 31, 2019 for all periods presented. See Note 7: Discontinued Operations. |
(b) Expected to be removed with the completion of the sales. |
The Company disposed of the following rental properties during the year ended December 31, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
Gains |
|
|
|
|
|
|
Rentable |
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
|
(losses)/ |
|
Disposition |
|
|
# of |
|
Square |
|
Property |
|
Sales |
|
|
Carrying |
|
|
Unrealized |
|
Unrealized |
|
Date |
Property/Address |
Location |
Bldgs. |
|
Feet/Units |
|
Type |
|
Proceeds |
|
|
Value |
|
|
Losses, net |
|
Losses, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
01/11/19 |
721 Route 202-206 South (a) |
Bridgewater, New Jersey |
1 |
|
192,741 |
|
Office |
$ |
5,651 |
|
$ |
5,410 |
|
$ |
241 |
$ |
- |
|
01/16/19 |
Park Square Apartments (b) |
Rahway, New Jersey |
1 |
|
159 |
units |
Multi-family |
|
34,045 |
|
|
34,032 |
|
|
13 |
|
- |
|
01/22/19 |
2115 Linwood Avenue |
Fort Lee, New Jersey |
1 |
|
68,000 |
|
Office |
|
15,197 |
|
|
7,433 |
|
|
7,764 |
|
- |
|
02/27/19 |
201 Littleton Road (c) |
Morris Plains, New Jersey |
1 |
|
88,369 |
|
Office |
|
4,842 |
|
|
4,937 |
|
|
(95) |
|
- |
|
03/13/19 |
320 & 321 University Avenue |
Newark, New Jersey |
2 |
|
147,406 |
|
Office |
|
25,552 |
|
|
18,456 |
|
|
7,096 |
|
- |
|
03/29/19 |
Flex portfolio (d) |
New York and Connecticut |
56 |
|
3,148,512 |
|
Office/Flex |
|
470,348 |
|
|
214,758 |
|
|
255,590 |
|
- |
|
06/18/19 |
650 From Road (e) |
Paramus, New Jersey |
1 |
|
348,510 |
|
Office |
|
37,801 |
|
|
40,046 |
|
|
(2,245) |
|
- |
|
10/18/19 |
3600 Route 66 (h) |
Neptune, New Jersey |
1 |
|
180,000 |
|
Office |
|
25,237 |
|
|
17,246 |
|
|
- |
|
7,991 |
|
10/23/19 |
Chase & Alterra Portfolio (f) |
Revere and Malden, Massachusetts |
3 |
|
1,386 |
units |
Multi-family |
|
406,817 |
|
|
293,030 |
|
|
113,787 |
|
- |
|
12/06/19 |
5 Wood Hollow Road (g) (h) |
Parsippany, New Jersey |
1 |
|
317,040 |
|
Office |
|
26,937 |
|
|
33,226 |
|
|
- |
|
(6,289) |
(i) |
Sub-total |
|
|
68 |
|
4,490,578 |
|
|
|
1,052,427 |
|
|
668,574 |
|
|
382,151 |
|
1,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on real estate held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
(39,049) |
|
(135,052) |
(i) |
Totals |
|
|
68 |
|
4,490,578 |
|
|
$ |
1,052,427 |
|
$ |
668,574 |
|
$ |
343,102 |
$ |
(133,350) |
|
|
|
(a) |
The Company recorded a valuation allowance of $9.3 million on this property during the year ended December 31, 2018. |
(b) |
The Company recorded a valuation allowance of $6.3 million on this property during the year ended December 31, 2018. |
(c) |
The Company recorded a valuation allowance of $3.6 million on this property during the year ended December 31, 2018. |
(d) |
As part of the consideration from the buyer, who is a noncontrolling interest unitholder of the Operating Partnership, 301,638 Common Units were redeemed by the Company at fair market value of $6.6 million as purchase consideration received for two of the properties disposed of in this transaction, which was a non-cash portion of this sales transaction. The Company used the net cash received at closing to repay approximately $119.9 million of borrowings under the unsecured revolving credit facility and to repay $90 million of its $350 million unsecured term loan. The Company also utilized $217.4 million of these proceeds on April 1, 2019 to acquire a 377-unit multi-family property located in Jersey City, New Jersey. |
(e) |
The Company recorded a valuation allowance of $0.9 million on this property during the year ended December 31, 2018. |
(f) |
Proceeds from the sale, which were net of $235.8 million of in-place mortgages assumed by the buyer, were used primarily to repay outstanding borrowings under the Company's revolving credit facility that were drawn to fund a portion of the Company's purchase of Liberty Towers. The assumed mortgages were a non-cash portion of this sales transaction. |
(g) |
The net sale proceeds were held by a qualified intermediary, which is noncash and recorded in deferred charges, goodwill and other assets as of December 31, 2019. See Note 5: Deferred Charges, Goodwill and Other Assets, Net – to the Financial Statements. The Company recorded an impairment charge of $5.8 million at June 30, 2019 before the property was identified as held for sale on September 30, 2019. |
(h) |
These pertain to properties classified as discontinued operations. (See Note 7: Discontinued Operations – to the Financial Statements) |
(i) |
These include impairments recorded on three properties before they were classified as discontinued operations. |
The Company disposed of the following developable land holdings during the year ended December 31, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
|
|
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
Disposition |
|
|
|
|
|
Sales |
|
|
Carrying |
|
|
Unrealized |
Date |
Property Address |
Location |
|
|
|
Proceeds |
|
|
Value |
|
|
Losses, net |
04/30/19 |
Overlook Ridge |
Revere, Massachusetts |
|
|
$ |
685 |
|
$ |
415 |
|
$ |
270 |
09/20/19 |
Overlook Ridge |
Revere, Massachusetts |
|
|
|
1,135 |
|
|
839 |
|
|
296 |
11/08/19 |
150 Monument Street |
Bala Cynwd, Pennsylvania |
(a) |
|
|
8,374 |
|
|
7,874 |
|
|
500 |
12/19/19 |
51 Washington Street |
Conshohocken, Pennsylvania |
(b) |
|
|
8,189 |
|
|
8,732 |
|
$ |
(543) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
$ |
18,383 |
|
$ |
17,860 |
|
$ |
523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Company recorded a land impairment charge of $10.9 million on this land parcel during the year ended December 31, 2018. |
(b) The Company recorded a land impairment charge of $13.6 million on this land parcel during the year ended December 31, 2018. The Company recorded |
additional land impairment charges of $2.7 million on this land parcel during the year ended December 31, 2019 prior to its disposition. |
|