Recent Transactions |
12 Months Ended |
|---|---|
Dec. 31, 2021 | |
| Recent Transactions [Line Items] | |
| Recent Transactions | 3. RECENT TRANSACTIONS Properties Commencing Initial Operations The following properties commenced initial operations during the years ended December 31, 2021 and 2020 (dollars in thousands): 2021 TotalIn Service Property# of DevelopmentDatePropertyLocationTypeApartment Units Costs Incurred03/01/21The Upton (a)Short Hills, NJMultifamily193 $ 101,26907/01/21Riverhouse 9 at Port Imperial (b)Weehawken, NJMultifamily313 164,633Totals 506 $ 265,902 (a)As of December 31, 2021, all apartment units are in service. The development costs included approximately $2.9 million in land costs.(b)As of December 31, 2021, all apartment units are in service. The development costs included approximately $2.7 million in land costs. Additionally, a land lease located in Parsippany, New Jersey also commenced initial operations during the first quarter 2021. Development costs incurred amounted to $5.1 million. This land lease was sold by the Company during 2021. 2020 TotalIn Service Property# of DevelopmentDatePropertyLocationTypeApartment Units Costs Incurred03/01/20Emery at Overlook RidgeMalden, MAMultifamily326 $ 103,993Totals 326 $ 103,993 Consolidations 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 $15.0 million, which were allocated as follows: Port Imperial North Retail L.L.C.Land and leasehold interests$ 4,305Buildings and improvements and other assets, net 8,912In-place lease values (a) 1,503Above/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. Real Estate Held for Sale/Discontinued Operations/Dispositions 2021 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 had excluded 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 single property not qualified to be classified as held for sale) are being classified as discontinued operations for all periods presented herein. See Note 7: Discontinued Operations. In late 2019 through December 31, 2021, the Company completed the sale of all but one of its 37 properties in its Suburban Office Portfolio, totaling 6.3 million square feet, for net sales proceeds of $1.0 billion. As of December 31, 2021, the Company identified as held for sale two office properties totaling approximately 1.8 million square feet to be sold separately, which are located in Jersey City and Hoboken, New Jersey. The total estimated sales proceeds, net of expected selling costs but before the required aggregate paydown of $400 million of mortgages encumbering the properties and related costs, are expected to be approximately $575 million. The Company may need to pay significant prepayment costs of approximately $20 million to pay down these mortgage loans which will be expensed when incurred at the time of such paydown. In January 2022, the Company completed the disposition of one of the office properties held for sale at December 31, 2021 for gross sales proceeds of $210 million and the paydown of the $150 million mortgage encumbering the property. Additionally, the Company also identified several developable land parcels as held for sale as of December 31, 2021. As a result of recent sales contracts in place and after considering the current market conditions due to the challenging economic climate with the current worldwide COVID-19 pandemic, the Company determined that the carrying value of 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, 2021, recognized land impairments of $10.2 million. The Company also recognized an unrealized gain of $3.7 million during the year ended December 31, 2021 (reversing cumulative held for sale loss allowances recognized) for a held for sale land parcel that was previously impaired when the Company entered into a contract to sell the land parcel. The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands): Assets Held for Sale Land$ 159,968 Building & Other 618,216 Less: Accumulated depreciation (159,538) Real estate held for sale, net$ 618,646 Assets Other assets and liabilities Held for Sale Unbilled rents receivable, net (a)$ 30,526 Deferred charges, net (a) 16,056 Total intangibles, net (a) 31,155 Total deferred charges & other assets, net (b) 69,410 Mortgages & loans payable, net (a) (397,953) Total below market liability (a) (24,098) Accounts payable, accrued exp & other liability (c) (49,648) Unearned rents/deferred rental income (a) (5,831) (a)Expected to be removed with the completion of the sales.(b)Includes $19.2 million of right of use assets expected to be removed with the completion of the sales.(c)Includes $20.5 million of right of use liabilities expected to be removed with the completion of the sales. The Company disposed of the following rental properties during the year ended December 31, 2021 (dollars in thousands): Discontinued Operations: Realized Realized Gains Gains Rentable Net Net (Losses)/ (losses)/ Disposition # of Square Property Sales Carrying Unrealized Unrealized DateProperty/AddressLocationBldgs. Feet Type Proceeds Value Losses, net Losses, net 01/13/21100 Overlook CenterPrinceton, New Jersey1 149,600 Office$34,724(a)$26,488 $ - $ 8,236 03/25/21Metropark portfolio (b)Edison and Iselin, New Jersey4 926,656 Office 247,351 233,826 - 13,525 04/20/21Short Hills portfolio (c)Short Hills, New Jersey4 828,413 Office 248,664 245,800 - 2,864 06/11/21Red Bank portfolioRed Bank, New Jersey5 659,490 Office 80,730 78,364 - 2,366 06/30/21Retail land leasesHanover and Parsippany, New Jersey - - Land Lease 41,957 37,951 4,006 - 07/26/217 Giralda FarmsMadison, New Jersey1 236,674 Office 28,182 30,143 - (1,961) 10/20/214 Gatehall DriveParsippany, New Jersey1 248,480 Office 24,239 23,717 - 522 12/16/21Retail land lease Unit BHanover, New Jersey - - Land Lease 5,423 6,407 (984) - Totals 16 3,049,313 $711,270 $682,696 $ 3,022 $ 25,552 (a)As part of the consideration from the buyer, a related party, 678,302 Common Units were redeemed by the Company at a book value of $10.5 million, which was a non-cash portion of this sales transaction. The balance of the proceeds was received in cash and used to repay the Company's borrowings on its revolving credit facility. See Note 17: Noncontrolling Interests in Subsidiaries - Noncontrolling Interests in Operating Partnership.(b)Includes $10 million of seller financing provided to the buyers of the Metropark portfolio. See Note 5: Deferred charges, goodwill and other assets, net.(c)The mortgage loan encumbering three of the properties was defeased at closing, for which the Company incurred costs of $22.6 million. These costs were expensed as loss from extinguishment of debt. The Company disposed of the following developable land holdings during the year ended December 31, 2021 (dollars in thousands): Realized Gains Net Net (losses)/Disposition Sales Carrying UnrealizedDateProperty AddressLocation Proceeds Value Losses, net05/24/21Horizon common areaHamilton, New Jersey $745 $634 $ 11112/22/21346/360 University AveNewark, New Jersey 4,266 2,262 2,004 Totals $5,011 $2,896 $2,115 2020 As of December 31, 2020, the Company had 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 had 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 paid significant costs to defease the mortgage loan encumbering the properties, which was expensed when incurred at the time of such defeasance in 2021. See Note 10: Mortgages, loans payable and other obligations. 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. 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 were 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 due to 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 TotalLand $ 87,815 $ 76,396 $ 164,211Building & Other 737,669 42,202 779,871Less: 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 TotalUnbilled rents receivable, net (b) $ 17,216 $ 2,102 $ 19,318Deferred charges, net (b) 15,320 661 15,981Total intangibles, net (b) 26,069 - 26,069Total deferred charges & other assets, net 42,513 665 43,178Mortgages & 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, 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, 2020 (dollars in thousands): Discontinued Operations: Realized Realized Gains Gains Rentable Net Net (Losses)/ (losses)/ Disposition # of Square Property Sales Carrying Unrealized Unrealized DateProperty/AddressLocationBldgs. Feet/Units Type Proceeds Value Losses, net Losses, net 03/17/20One Bridge PlazaFort Lee, New Jersey1 200,000 Office$35,065 $17,743 $ - $17,322 07/22/203 Giralda Farms (a)Madison, New Jersey1 141,000 Office 7,510 9,534 - (2,024) 09/15/20Morris portfolio (b)Parsippany and Madison, New Jersey10 1,448,420 Office 155,116 175,772 - (20,656) 09/18/20325 Columbia TurnpikeFlorham Park, New Jersey1 168,144 Office 24,276 8,020 - 16,256 09/24/209 Campus Drive (c)Parsippany, New Jersey1 156,945 Office 20,678 22,162 - (1,484) 10/21/203&5 Vaughn DrivePrinceton, New Jersey1 98,500 Office 7,282 5,754 - 1,528 11/18/207 Campus Drive (d)Parsippany, New Jersey1 154,395 Office 12,278 11,804 - 474 12/03/20581 Main StreetWoodbridge, New Jersey1 200,000 Office 58,400 43,113 15,287 12/22/20500 College Road (e)Princeton, New Jersey1 158,235 Office 4,582 6,044 (1,462) 12/23/205/10 Dennis St and 100 Hiram SqNew Brunswick, New Jersey2 200 units Multifamily 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 UnrealizedDateProperty AddressLocation Proceeds Value Losses, net01/03/20230 & 250 Half Mile RoadMiddletown, New Jersey $7,018 $2,969 $ 4,04903/27/20Capital Office Park landGreenbelt, Maryland 8,974 8,210 76412/18/2014 & 16 Skyline DriveMount Pleasant, New York 2,925 1,951 974 Totals $18,917 $13,130 $5,787 Impairments on Properties and Land Held and Used 2021 The Company determined that, due to the shortening of its expected hold period for one office property and its 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 of $6.0 million on the office asset, which is included in property impairments on the consolidated statement of operations for the year ended December 31, 2021 and $14.3 million on the land parcels in land and other impairments on the consolidated statement of operations for the year ended December 31, 2021. Additionally, the Company determined that, due to the shortening of its expected hold period and as a result of the adverse effect the COVID-19 pandemic has had, and continues to have, on its hotel operations, the Company evaluated the recoverability of the carrying values of its two adjacent hotel properties and determined that it was necessary to reduce the carrying values of its two hotel assets located in Weehawken, New Jersey to their estimated fair values. Accordingly, the Company recorded an impairment charge of $7.4 million on these hotels at December 31, 2021, which is included in property impairments on the consolidated statement of operations for the year ended December 31, 2021. 2020 The Company determined that, due to the shortening of its expected hold period and as a result of the adverse effect the COVID-19 pandemic has had, and continues to have, on its hotel operations, the Company evaluated the recoverability of the carrying values of its two adjacent hotel properties and determined that it was necessary to reduce the carrying values of its two hotel assets located in Weehawken, New Jersey to their estimated fair values. One of these hotels had closed its rooms from March 2020 to May 2021. Accordingly, the Company recorded an impairment charge of $36.6 million on these hotels at September 30, 2020, which is included in property impairments on the consolidated statement of operations for the year ended December 31, 2020. The Company also evaluated the recoverability of the carrying values of its land parcels and determined that it was necessary to reduce the carrying values of three held-and-used land parcels to their estimated fair values and recorded land and other impairment charges of $7.3 million for the year ended December 31, 2020. Unconsolidated Joint Venture Activity 2021 On April 29, 2021, the Company sold its interest in the 12 Vreeland Road joint venture for a gross sales price of approximately $2 million, with no gain or loss on the transaction. On September 1, 2021, the Company sold its interest in the Offices at Crystal Lake joint venture to its venture partner for $1.9 million and recorded a loss on the sale of approximately $1.9 million in the year ended December 31, 2021. 2020 On December 31, 2020, the Crystal House Apartment Investors LLC, an unconsolidated joint venture property located in Arlington, Virginia sold its sole apartment property for an aggregate sales price of $376.6 million. The Company received $62.7 million for its share of net sale proceeds from the joint venture and realized its share of the gain on the property sale from the unconsolidated joint venture of $35.1 million. On December 17, 2020, the Company sold its interest in the Hillsborough 206 Holdings joint venture which owns developable land located in Hillsborough, New Jersey for a sale price of $2.1 million, and realized a gain on sale from unconsolidated joint ventures of $0.1 million. |
| VERIS RESIDENTIAL, L.P. [Member] | |
| Recent Transactions [Line Items] | |
| Recent Transactions | 3. RECENT TRANSACTIONS Properties Commencing Initial Operations The following properties commenced initial operations during the years ended December 31, 2021 and 2020 (dollars in thousands): 2021 TotalIn Service Property# of DevelopmentDatePropertyLocationTypeApartment Units Costs Incurred03/01/21The Upton (a)Short Hills, NJMultifamily193 $ 101,26907/01/21Riverhouse 9 at Port Imperial (b)Weehawken, NJMultifamily313 164,633Totals 506 $ 265,902 (a)As of December 31, 2021, all apartment units are in service. The development costs included approximately $2.9 million in land costs.(b)As of December 31, 2021, all apartment units are in service. The development costs included approximately $2.7 million in land costs. Additionally, a land lease located in Parsippany, New Jersey also commenced initial operations during the first quarter 2021. Development costs incurred amounted to $5.1 million. This land lease was sold by the Company during 2021. 2020 TotalIn Service Property# of DevelopmentDatePropertyLocationTypeApartment Units Costs Incurred03/01/20Emery at Overlook RidgeMalden, MAMultifamily326 $ 103,993Totals 326 $ 103,993 Consolidations 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 $15.0 million, which were allocated as follows: Port Imperial North Retail L.L.C.Land and leasehold interests$ 4,305Buildings and improvements and other assets, net 8,912In-place lease values (a) 1,503Above/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. Real Estate Held for Sale/Discontinued Operations/Dispositions 2021 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 had excluded 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 single property not qualified to be classified as held for sale) are being classified as discontinued operations for all periods presented herein. See Note 7: Discontinued Operations. In late 2019 through December 31, 2021, the Company completed the sale of all but one of its 37 properties in its Suburban Office Portfolio, totaling 6.3 million square feet, for net sales proceeds of $1.0 billion. As of December 31, 2021, the Company identified as held for sale two office properties totaling approximately 1.8 million square feet to be sold separately, which are located in Jersey City and Hoboken, New Jersey. The total estimated sales proceeds, net of expected selling costs but before the required aggregate paydown of $400 million of mortgages encumbering the properties and related costs, are expected to be approximately $575 million. The Company may need to pay significant prepayment costs of approximately $20 million to pay down these mortgage loans which will be expensed when incurred at the time of such paydown. In January 2022, the Company completed the disposition of one of the office properties held for sale at December 31, 2021 for gross sales proceeds of $210 million and the paydown of the $150 million mortgage encumbering the property. Additionally, the Company also identified several developable land parcels as held for sale as of December 31, 2021. As a result of recent sales contracts in place and after considering the current market conditions due to the challenging economic climate with the current worldwide COVID-19 pandemic, the Company determined that the carrying value of 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, 2021, recognized land impairments of $10.2 million. The Company also recognized an unrealized gain of $3.7 million during the year ended December 31, 2021 (reversing cumulative held for sale loss allowances recognized) for a held for sale land parcel that was previously impaired when the Company entered into a contract to sell the land parcel. The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands): Assets Held for Sale Land$ 159,968 Building & Other 618,216 Less: Accumulated depreciation (159,538) Real estate held for sale, net$ 618,646 Assets Other assets and liabilities Held for Sale Unbilled rents receivable, net (a)$ 30,526 Deferred charges, net (a) 16,056 Total intangibles, net (a) 31,155 Total deferred charges & other assets, net (b) 69,410 Mortgages & loans payable, net (a) (397,953) Total below market liability (a) (24,098) Accounts payable, accrued exp & other liability (c) (49,648) Unearned rents/deferred rental income (a) (5,831) (a)Expected to be removed with the completion of the sales.(b)Includes $19.2 million of right of use assets expected to be removed with the completion of the sales.(c)Includes $20.5 million of right of use liabilities expected to be removed with the completion of the sales. The Company disposed of the following rental properties during the year ended December 31, 2021 (dollars in thousands): Discontinued Operations: Realized Realized Gains Gains Rentable Net Net (Losses)/ (losses)/ Disposition # of Square Property Sales Carrying Unrealized Unrealized DateProperty/AddressLocationBldgs. Feet Type Proceeds Value Losses, net Losses, net 01/13/21100 Overlook CenterPrinceton, New Jersey1 149,600 Office$34,724(a)$26,488 $ - $ 8,236 03/25/21Metropark portfolio (b)Edison and Iselin, New Jersey4 926,656 Office 247,351 233,826 - 13,525 04/20/21Short Hills portfolio (c)Short Hills, New Jersey4 828,413 Office 248,664 245,800 - 2,864 06/11/21Red Bank portfolioRed Bank, New Jersey5 659,490 Office 80,730 78,364 - 2,366 06/30/21Retail land leasesHanover and Parsippany, New Jersey - - Land Lease 41,957 37,951 4,006 - 07/26/217 Giralda FarmsMadison, New Jersey1 236,674 Office 28,182 30,143 - (1,961) 10/20/214 Gatehall DriveParsippany, New Jersey1 248,480 Office 24,239 23,717 - 522 12/16/21Retail land lease Unit BHanover, New Jersey - - Land Lease 5,423 6,407 (984) - Totals 16 3,049,313 $711,270 $682,696 $ 3,022 $ 25,552 (a)As part of the consideration from the buyer, a related party, 678,302 Common Units were redeemed by the Company at a book value of $10.5 million, which was a non-cash portion of this sales transaction. The balance of the proceeds was received in cash and used to repay the Company's borrowings on its revolving credit facility. See Note 17: Noncontrolling Interests in Subsidiaries - Noncontrolling Interests in Operating Partnership.(b)Includes $10 million of seller financing provided to the buyers of the Metropark portfolio. See Note 5: Deferred charges, goodwill and other assets, net.(c)The mortgage loan encumbering three of the properties was defeased at closing, for which the Company incurred costs of $22.6 million. These costs were expensed as loss from extinguishment of debt. The Company disposed of the following developable land holdings during the year ended December 31, 2021 (dollars in thousands): Realized Gains Net Net (losses)/Disposition Sales Carrying UnrealizedDateProperty AddressLocation Proceeds Value Losses, net05/24/21Horizon common areaHamilton, New Jersey $745 $634 $ 11112/22/21346/360 University AveNewark, New Jersey 4,266 2,262 2,004 Totals $5,011 $2,896 $2,115 2020 As of December 31, 2020, the Company had 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 had 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 paid significant costs to defease the mortgage loan encumbering the properties, which was expensed when incurred at the time of such defeasance in 2021. See Note 10: Mortgages, loans payable and other obligations. 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. 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 were 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 due to 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 TotalLand $ 87,815 $ 76,396 $ 164,211Building & Other 737,669 42,202 779,871Less: 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 TotalUnbilled rents receivable, net (b) $ 17,216 $ 2,102 $ 19,318Deferred charges, net (b) 15,320 661 15,981Total intangibles, net (b) 26,069 - 26,069Total deferred charges & other assets, net 42,513 665 43,178Mortgages & 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, 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, 2020 (dollars in thousands): Discontinued Operations: Realized Realized Gains Gains Rentable Net Net (Losses)/ (losses)/ Disposition # of Square Property Sales Carrying Unrealized Unrealized DateProperty/AddressLocationBldgs. Feet/Units Type Proceeds Value Losses, net Losses, net 03/17/20One Bridge PlazaFort Lee, New Jersey1 200,000 Office$35,065 $17,743 $ - $17,322 07/22/203 Giralda Farms (a)Madison, New Jersey1 141,000 Office 7,510 9,534 - (2,024) 09/15/20Morris portfolio (b)Parsippany and Madison, New Jersey10 1,448,420 Office 155,116 175,772 - (20,656) 09/18/20325 Columbia TurnpikeFlorham Park, New Jersey1 168,144 Office 24,276 8,020 - 16,256 09/24/209 Campus Drive (c)Parsippany, New Jersey1 156,945 Office 20,678 22,162 - (1,484) 10/21/203&5 Vaughn DrivePrinceton, New Jersey1 98,500 Office 7,282 5,754 - 1,528 11/18/207 Campus Drive (d)Parsippany, New Jersey1 154,395 Office 12,278 11,804 - 474 12/03/20581 Main StreetWoodbridge, New Jersey1 200,000 Office 58,400 43,113 15,287 12/22/20500 College Road (e)Princeton, New Jersey1 158,235 Office 4,582 6,044 (1,462) 12/23/205/10 Dennis St and 100 Hiram SqNew Brunswick, New Jersey2 200 units Multifamily 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 UnrealizedDateProperty AddressLocation Proceeds Value Losses, net01/03/20230 & 250 Half Mile RoadMiddletown, New Jersey $7,018 $2,969 $ 4,04903/27/20Capital Office Park landGreenbelt, Maryland 8,974 8,210 76412/18/2014 & 16 Skyline DriveMount Pleasant, New York 2,925 1,951 974 Totals $18,917 $13,130 $5,787 Impairments on Properties and Land Held and Used 2021 The Company determined that, due to the shortening of its expected hold period for one office property and its 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 of $6.0 million on the office asset, which is included in property impairments on the consolidated statement of operations for the year ended December 31, 2021 and $14.3 million on the land parcels in land and other impairments on the consolidated statement of operations for the year ended December 31, 2021. Additionally, the Company determined that, due to the shortening of its expected hold period and as a result of the adverse effect the COVID-19 pandemic has had, and continues to have, on its hotel operations, the Company evaluated the recoverability of the carrying values of its two adjacent hotel properties and determined that it was necessary to reduce the carrying values of its two hotel assets located in Weehawken, New Jersey to their estimated fair values. Accordingly, the Company recorded an impairment charge of $7.4 million on these hotels at December 31, 2021, which is included in property impairments on the consolidated statement of operations for the year ended December 31, 2021. 2020 The Company determined that, due to the shortening of its expected hold period and as a result of the adverse effect the COVID-19 pandemic has had, and continues to have, on its hotel operations, the Company evaluated the recoverability of the carrying values of its two adjacent hotel properties and determined that it was necessary to reduce the carrying values of its two hotel assets located in Weehawken, New Jersey to their estimated fair values. One of these hotels had closed its rooms from March 2020 to May 2021. Accordingly, the Company recorded an impairment charge of $36.6 million on these hotels at September 30, 2020, which is included in property impairments on the consolidated statement of operations for the year ended December 31, 2020. The Company also evaluated the recoverability of the carrying values of its land parcels and determined that it was necessary to reduce the carrying values of three held-and-used land parcels to their estimated fair values and recorded land and other impairment charges of $7.3 million for the year ended December 31, 2020. Unconsolidated Joint Venture Activity 2021 On April 29, 2021, the Company sold its interest in the 12 Vreeland Road joint venture for a gross sales price of approximately $2 million, with no gain or loss on the transaction. On September 1, 2021, the Company sold its interest in the Offices at Crystal Lake joint venture to its venture partner for $1.9 million and recorded a loss on the sale of approximately $1.9 million in the year ended December 31, 2021. 2020 On December 31, 2020, the Crystal House Apartment Investors LLC, an unconsolidated joint venture property located in Arlington, Virginia sold its sole apartment property for an aggregate sales price of $376.6 million. The Company received $62.7 million for its share of net sale proceeds from the joint venture and realized its share of the gain on the property sale from the unconsolidated joint venture of $35.1 million. On December 17, 2020, the Company sold its interest in the Hillsborough 206 Holdings joint venture which owns developable land located in Hillsborough, New Jersey for a sale price of $2.1 million, and realized a gain on sale from unconsolidated joint ventures of $0.1 million. |