Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 25, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Hudson Pacific Properties, Inc. | ||
Entity Central Index Key | 1482512 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 79,845,880 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1.40 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
REAL ESTATE ASSETS | ||
Land | $620,805 | $570,671 |
Building and improvements | 1,284,602 | 1,199,242 |
Tenant improvements | 116,317 | 99,625 |
Furniture and fixtures | 13,721 | 14,383 |
Property under development | 135,850 | 69,104 |
Total real estate held for investment | 2,171,295 | 1,953,025 |
Accumulated depreciation and amortization | -134,657 | -108,411 |
Investment in real estate, net | 2,036,638 | 1,844,614 |
Cash and cash equivalents | 17,753 | 30,356 |
Restricted cash | 14,244 | 13,929 |
Accounts receivable, net | 16,247 | 8,862 |
Notes receivable | 28,268 | 0 |
Straight-line rent receivables | 33,006 | 19,715 |
Deferred leasing costs and lease intangibles, net | 102,023 | 108,402 |
Deferred finance costs, net | 8,723 | 8,113 |
Interest rate contracts | 3 | 192 |
Goodwill | 8,754 | 8,754 |
Prepaid expenses and other assets | 6,692 | 5,094 |
Assets associated with real estate held for sale | 68,534 | 83,245 |
TOTAL ASSETS | 2,340,885 | 2,131,276 |
LIABILITIES AND EQUITY | ||
Notes payable | 918,059 | 888,308 |
Accounts payable and accrued liabilities | 36,844 | 26,118 |
Below-market leases, net | 40,969 | 45,184 |
Security deposits | 6,257 | 5,677 |
Prepaid rent | 8,600 | 7,524 |
Interest rate contracts | 1,750 | 0 |
Liabilities associated with real estate held for sale | 43,214 | 45,124 |
TOTAL LIABILITIES | 1,055,693 | 1,017,935 |
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Preferred stock, $0.01 par value, 10,000,000 authorized; 8.375% series B cumulative redeemable preferred stock, $25.00 liquidation preference, 5,800,000 shares outstanding at December 31, 2014 and 2013, respectively | 145,000 | 145,000 |
Common stock, $0.01 par value, 490,000,000 authorized, 66,797,816 shares and 57,230,199 shares outstanding at December 31, 2014 and 2013, respectively | 668 | 572 |
Additional paid-in capital | 1,070,833 | 903,984 |
Accumulated other comprehensive deficit | -2,443 | -997 |
Accumulated deficit | -34,884 | -45,113 |
Total Hudson Pacific Properties, Inc. stockholders’ equity | 1,179,174 | 1,003,446 |
TOTAL EQUITY | 1,275,015 | 1,102,866 |
TOTAL LIABILITIES AND EQUITY | 2,340,885 | 2,131,276 |
6.25% Series A Cumulative Redeemable Preferred Units of the Operating Partnership | ||
LIABILITIES AND EQUITY | ||
6.25% series A cumulative redeemable preferred units of the Operating Partnership | 10,177 | 10,475 |
Non-controlling Interest—Members in Consolidated Entities | ||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Non-controlling interest | 42,990 | 45,683 |
Non-controlling Common Units in the Operating Partnership | ||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Non-controlling interest | 52,851 | 53,737 |
TOTAL EQUITY | 52,851 | 53,737 |
Hudson Pacific Partners, L.P. | ||
REAL ESTATE ASSETS | ||
Land | 620,805 | 570,671 |
Building and improvements | 1,284,602 | 1,199,242 |
Tenant improvements | 116,317 | 99,625 |
Furniture and fixtures | 13,721 | 14,383 |
Property under development | 135,850 | 69,104 |
Total real estate held for investment | 2,171,295 | 1,953,025 |
Accumulated depreciation and amortization | -134,657 | -108,411 |
Investment in real estate, net | 2,036,638 | 1,844,614 |
Cash and cash equivalents | 17,753 | 30,356 |
Restricted cash | 14,244 | 13,929 |
Accounts receivable, net | 16,247 | 8,862 |
Notes receivable | 28,268 | 0 |
Straight-line rent receivables | 33,006 | 19,715 |
Deferred leasing costs and lease intangibles, net | 102,023 | 108,402 |
Deferred finance costs, net | 8,723 | 8,113 |
Interest rate contracts | 3 | 192 |
Goodwill | 8,754 | 8,754 |
Prepaid expenses and other assets | 6,692 | 5,094 |
Assets associated with real estate held for sale | 68,534 | 83,245 |
TOTAL ASSETS | 2,340,885 | 2,131,276 |
LIABILITIES AND EQUITY | ||
Notes payable | 918,059 | 888,308 |
Accounts payable and accrued liabilities | 36,844 | 26,118 |
Below-market leases, net | 40,969 | 45,184 |
Security deposits | 6,257 | 5,677 |
Prepaid rent | 8,600 | 7,524 |
Interest rate contracts | 1,750 | 0 |
Liabilities associated with real estate held for sale | 43,214 | 45,124 |
TOTAL LIABILITIES | 1,055,693 | 1,017,935 |
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
TOTAL LIABILITIES AND EQUITY | 2,340,885 | 2,131,276 |
8.375% series B cumulative redeemable preferred units, 5,800,000 units issued and outstanding at December 31, 2014 and 2013, respectively ($25.00 per unit liquidation preference,) | 145,000 | 145,000 |
Common units, 69,180,379 and 59,612,762 issued and outstanding at December 31, 2014 and 2013, respectively | 1,087,025 | 912,183 |
Total Hudson Pacific Properties, Inc. Capital | 1,232,025 | 1,057,183 |
Non-controlling interest—members in Consolidated Entities | 42,990 | 45,683 |
TOTAL CAPITAL | 1,275,015 | 1,102,866 |
Hudson Pacific Partners, L.P. | 6.25% Series A Cumulative Redeemable Preferred Units of the Operating Partnership | ||
LIABILITIES AND EQUITY | ||
6.25% series A cumulative redeemable preferred units of the Operating Partnership | $10,177 | $10,475 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Common Stock: | ||
Common Stock, par value | $0.01 | 0.01 |
Common Stock, shares authorized | 490,000,000 | 490,000,000 |
Common Stock, shares outstanding | 66,797,816 | 57,230,199 |
Series A Cumulative Redeemable Preferred Units of the Operating Partnership | ||
Temporary Equity, dividend rate percentage | 6.25% | 6.25% |
Preferred Stock: | ||
Series B Cumulative Redeemable Preferred Stock, Dividend Rate Percentage | 6.25% | |
Series B Cumulative Redeemable Preferred Stock, Liquidation Preference Per Share | $25 | |
Series B Preferred Stock | ||
Preferred Stock: | ||
Series B Cumulative Redeemable Preferred Stock, Par Value Per Share | $0.01 | 0.01 |
Series B Cumulative Redeemable Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Series B Cumulative Redeemable Preferred Stock, Shares Outstanding | 5,800,000 | 5,800,000 |
Series B Cumulative Redeemable Preferred Stock, Dividend Rate Percentage | 8.38% | 8.38% |
Series B Cumulative Redeemable Preferred Stock, Liquidation Preference Per Share | $25 | 25 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Total revenues | $253,415 | $205,558 | $160,461 |
Operating expenses | |||
Operating expenses | 104,269 | 87,583 | 74,939 |
General and administrative | 28,253 | 19,952 | 16,497 |
Depreciation and amortization | 72,216 | 70,063 | 54,758 |
Total operating expenses | 204,738 | 177,598 | 146,194 |
Income from operations | 48,677 | 27,960 | 14,267 |
Other expense (income) | |||
Interest expense | 25,932 | 25,470 | 19,071 |
Interest income | -30 | -272 | -306 |
Acquisition-related expenses | 4,641 | 1,446 | 1,051 |
Other income | -14 | -99 | -92 |
Total other expense (income) | 30,529 | 26,545 | 19,724 |
Income (loss) from continuing operations before gain on sale of real estate | 18,148 | 1,415 | -5,457 |
Gain on sale of real estate | 5,538 | 0 | 0 |
Income (loss) from continuing operations | 23,686 | 1,415 | -5,457 |
(Loss) income from discontinued operations | -164 | 1,571 | 451 |
Impairment loss from discontinued operations | 0 | ||
Impairment loss from discontinued operations | 0 | -5,580 | |
Net (loss) income from discontinued operations | -164 | -4,009 | 451 |
Net income (loss) | 23,522 | -2,594 | -5,006 |
Net income attributable to preferred stock and units | -12,785 | -12,893 | -12,924 |
Net income attributable to restricted shares | -274 | -300 | -295 |
Net (income) loss attributable to non-controlling interest in consolidated entities | -149 | 321 | 21 |
Net (income) loss attributable to common units in the Operating Partnership | -359 | 633 | 1,014 |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | 9,955 | -14,833 | -17,190 |
Net loss (income) from continuing operations attributable to common stockholders’ per share— basic and diluted | $0.15 | ($0.20) | ($0.42) |
Net (loss) income from discontinued operations per share— basic and diluted | $0 | ($0.07) | $0.01 |
Net income (loss) attributable to common stockholders’ per share—basic (in USD per share) | $0.15 | ($0.27) | ($0.41) |
Net income (loss) attributable to common stockholders’ per share—diluted (in USD per share) | $0.15 | ($0.27) | ($0.41) |
Weighted average shares of common stock outstanding—basic (in shares) | 65,792,447 | 55,182,647 | 41,640,691 |
Weighted average shares of common stock outstanding—diluted (in shares) | 66,509,447 | 55,182,647 | 41,640,691 |
Net income (loss) from continuing operations attributable to common unitholders | $0.15 | ($0.20) | ($0.42) |
Net income (loss) income from discontinued operations | $0 | ($0.07) | $0.01 |
Net income (loss) attributable to common unitholders per unit—basic | $0.15 | ($0.27) | ($0.41) |
Net income (loss) attributable to common unitholders per unit—diluted | $0.15 | ($0.27) | ($0.41) |
Weighted average shares of common units outstanding—basic | 68,175,010 | 57,565,210 | 44,104,771 |
Weighted average shares of common units outstanding—diluted | 68,721,339 | 57,565,210 | 44,104,771 |
Office | |||
Revenues | |||
Rental | 156,806 | 124,839 | 88,459 |
Tenant recoveries | 34,509 | 25,870 | 22,029 |
Parking and other | 22,471 | 14,732 | 9,840 |
Total revenues | 213,786 | 165,441 | 120,328 |
Operating expenses | |||
Operating expenses | 78,372 | 63,434 | 50,599 |
Media & Entertainment | |||
Revenues | |||
Rental | 22,138 | 23,003 | 23,598 |
Tenant recoveries | 1,128 | 1,807 | 1,598 |
Other property-related revenue | 15,751 | 15,072 | 14,733 |
Parking and other | 612 | 235 | 204 |
Total revenues | 39,629 | 40,117 | 40,133 |
Operating expenses | |||
Operating expenses | 25,897 | 24,149 | 24,340 |
Hudson Pacific Partners, L.P. | |||
Revenues | |||
Total revenues | 253,415 | 205,558 | 160,461 |
Operating expenses | |||
General and administrative | 28,253 | 19,952 | 16,497 |
Depreciation and amortization | 72,216 | 70,063 | 54,758 |
Total operating expenses | 204,738 | 177,598 | 146,194 |
Income from operations | 48,677 | 27,960 | 14,267 |
Other expense (income) | |||
Interest expense | 25,932 | 25,470 | 19,071 |
Interest income | -30 | -272 | -306 |
Acquisition-related expenses | 4,641 | 1,446 | 1,051 |
Other income | -14 | -99 | -92 |
Total other expense (income) | 30,529 | 26,545 | 19,724 |
Income (loss) from continuing operations before gain on sale of real estate | 18,148 | 1,415 | -5,457 |
Gain on sale of real estate | 5,538 | 0 | 0 |
Income (loss) from continuing operations | 23,686 | 1,415 | -5,457 |
(Loss) income from discontinued operations | -164 | 1,571 | 451 |
Impairment loss from discontinued operations | 0 | -5,580 | 0 |
Impairment loss from discontinued operations | 5,538 | ||
Net (loss) income from discontinued operations | -164 | -4,009 | 451 |
Net income (loss) | 23,522 | -2,594 | -5,006 |
Net (income) loss attributable to non-controlling interest in consolidated entities | -149 | 321 | 21 |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | 23,373 | -2,273 | -4,985 |
Preferred distributions | -12,785 | -12,893 | -12,924 |
Net income attributable to restricted shares | -274 | -300 | -295 |
Net income (loss) available to common unitholders | 10,314 | -15,466 | -18,204 |
Hudson Pacific Partners, L.P. | Office | |||
Revenues | |||
Rental | 156,806 | 124,839 | 88,459 |
Tenant recoveries | 34,509 | 25,870 | 22,029 |
Parking and other | 22,471 | 14,732 | 9,840 |
Total revenues | 213,786 | 165,441 | 120,328 |
Operating expenses | |||
Operating expenses | 78,372 | 63,434 | 50,599 |
Hudson Pacific Partners, L.P. | Media & Entertainment | |||
Revenues | |||
Rental | 22,138 | 23,003 | 23,598 |
Tenant recoveries | 1,128 | 1,807 | 1,598 |
Other property-related revenue | 15,751 | 15,072 | 14,733 |
Parking and other | 612 | 235 | 204 |
Total revenues | 39,629 | 40,117 | 40,133 |
Operating expenses | |||
Operating expenses | 25,897 | 24,149 | 24,340 |
Series A [Member] | Hudson Pacific Partners, L.P. | |||
Other expense (income) | |||
Preferred distributions | -641 | -749 | -780 |
Series B Preferred Stock | Hudson Pacific Partners, L.P. | |||
Other expense (income) | |||
Preferred distributions | ($12,144) | ($12,144) | ($12,144) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income (loss) | $23,522 | ($2,594) | ($5,006) |
Other comprehensive income (loss): cash flow hedge adjustment | -1,499 | 303 | -429 |
Comprehensive income (loss) | 22,023 | -2,291 | -5,435 |
Comprehensive income attributable to preferred stock and units | -12,785 | -12,893 | -12,924 |
Comprehensive income attributable to restricted shares | -274 | -300 | -295 |
Comprehensive (income) loss attributable to non-controlling interest in consolidated real estate entities | -149 | 321 | 21 |
Comprehensive (income) loss attributable to common units in the Operating Partnership | -306 | 620 | 1,039 |
Comprehensive income (loss) attributable to Hudson Pacific Properties, Inc. stockholders | 8,509 | -14,543 | -17,594 |
Hudson Pacific Partners, L.P. | |||
Net income (loss) | 23,522 | -2,594 | -5,006 |
Other comprehensive income (loss): cash flow hedge adjustment | -1,499 | 303 | -429 |
Comprehensive income (loss) | 22,023 | -2,291 | -5,435 |
Comprehensive (income) loss attributable to non-controlling interest in consolidated real estate entities | -149 | 321 | 21 |
Comprehensive (income) loss attributable to common units in the Operating Partnership | -149 | 321 | 21 |
Comprehensive income (loss) attributable to Hudson Pacific Properties, Inc. stockholders | $8,815 | ($15,163) | ($18,633) |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common Stock | Series B Cumulative Redeemable Preferred Stock | Common Stock | Common Stock | Series B Cumulative Redeemable Preferred Stock | Series B Cumulative Redeemable Preferred Stock | Additional Paid in Capital | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Deficit) Income | Non-controlling Common Units in the Operating Partnership | Non-controlling Interests- Members in Consolidated Entities |
In Thousands, except Share data, unless otherwise specified | Common Stock | ||||||||||||
Beginning balance at Dec. 31, 2011 | $688,669 | $338 | $87,500 | $552,043 | ($13,685) | ($883) | $63,356 | $0 | |||||
Beginning balance (in shares) at Dec. 31, 2011 | 33,840,854 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Contributions | 1,481 | 1,481 | |||||||||||
Shares of stock sold (in shares) | 13,225,000 | ||||||||||||
Proceeds from sale of common stock, net of underwriters’ discount | 190,798 | 57,500 | 132 | 57,500 | 190,666 | ||||||||
Common stock issuance transaction costs | -1,870 | -727 | -1,870 | -727 | |||||||||
Issuance of unrestricted stock (in shares) | 7,094 | ||||||||||||
Issuance of restricted stock (in shares) | 268,060 | ||||||||||||
Issuance of restricted stock | 2 | -2 | |||||||||||
Forfeiture of restricted stock (in shares) | -1,474 | ||||||||||||
Stock repurchased (in shares) | -71,180 | ||||||||||||
Shares repurchased | -1,385 | 0 | -1,385 | ||||||||||
Declared Dividend | -35,343 | -12,144 | -21,972 | -1,227 | |||||||||
Amortization of stock-based compensation | 4,314 | 4,314 | |||||||||||
Net income (loss) | -5,786 | 12,144 | -16,895 | -1,014 | -21 | ||||||||
Cash Flow Hedge Adjustment | -429 | -404 | -25 | ||||||||||
Exchange of Non-controlling Interests — Common units in the Operating Partnership for common stock (in shares) | 228,378 | ||||||||||||
Exchange of Non-controlling Interests — Common units in the Operating Partnership for common stock | 3 | 5,538 | -5,541 | ||||||||||
Ending balance at Dec. 31, 2012 | 897,222 | 475 | 145,000 | 726,605 | -30,580 | -1,287 | 55,549 | 1,460 | |||||
Ending balance (in shares) at Dec. 31, 2012 | 47,496,732 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Contributions | 45,704 | 45,704 | |||||||||||
Distributions | -1,160 | -1,160 | |||||||||||
Shares of stock sold (in shares) | 9,812,644 | ||||||||||||
Proceeds from sale of common stock, net of underwriters’ discount | 202,542 | 98 | 202,444 | ||||||||||
Common stock issuance transaction costs | -577 | -577 | |||||||||||
Issuance of unrestricted stock (in shares) | 5,756 | ||||||||||||
Issuance of restricted stock (in shares) | 44,219 | ||||||||||||
Issuance of restricted stock | 0 | 0 | |||||||||||
Forfeiture of restricted stock (in shares) | -3,415 | ||||||||||||
Stock repurchased (in shares) | -125,737 | ||||||||||||
Shares repurchased | -2,756 | -1 | -2,755 | ||||||||||
Declared Dividend | -41,751 | -12,144 | -28,415 | -1,192 | |||||||||
Amortization of stock-based compensation | 6,682 | 6,682 | |||||||||||
Net income (loss) | -3,343 | 12,144 | -14,533 | -633 | -321 | ||||||||
Cash Flow Hedge Adjustment | 303 | 290 | 13 | ||||||||||
Ending balance at Dec. 31, 2013 | 1,102,866 | 572 | 145,000 | 903,984 | -45,113 | -997 | 53,737 | 45,683 | |||||
Ending balance (in shares) at Dec. 31, 2013 | 57,230,199 | 57,230,199 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Distributions | -2,842 | -2,842 | |||||||||||
Shares of stock sold (in shares) | 9,563,500 | ||||||||||||
Proceeds from sale of common stock, net of underwriters’ discount | 197,468 | 96 | 197,372 | ||||||||||
Common stock issuance transaction costs | -1,599 | -1,599 | |||||||||||
Issuance of unrestricted stock (in shares) | 6,922 | ||||||||||||
Stock repurchased (in shares) | -2,805 | ||||||||||||
Shares repurchased | -3,129 | 0 | -3,129 | ||||||||||
Declared Dividend | -47,110 | -12,144 | -33,774 | -1,192 | |||||||||
Amortization of stock-based compensation | 7,979 | 7,979 | |||||||||||
Net income (loss) | 22,881 | 12,144 | 10,229 | 359 | 149 | ||||||||
Cash Flow Hedge Adjustment | -1,499 | -1,446 | -53 | ||||||||||
Ending balance at Dec. 31, 2014 | $1,275,015 | $668 | $145,000 | $1,070,833 | ($34,884) | ($2,443) | $52,851 | $42,990 | |||||
Ending balance (in shares) at Dec. 31, 2014 | 66,797,816 | 66,797,816 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $23,522 | ($2,594) | ($5,006) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 72,216 | 70,852 | 57,024 |
Amortization of deferred financing costs and loan premium, net | 949 | 486 | 1,126 |
Amortization of stock-based compensation | 7,559 | 6,454 | 4,212 |
Straight-line rent receivables | -13,362 | -10,383 | -3,365 |
Amortization of above-market leases | 2,026 | 2,542 | 3,757 |
Amortization of below-market leases | -7,661 | -8,570 | -7,321 |
Amortization of lease incentive costs | 425 | 36 | 91 |
Bad debt expense (recovery) | -97 | 959 | 724 |
Amortization of ground lease intangible | 248 | 247 | 247 |
Amortization of discount and net origination fees on notes receivable | -156 | 0 | 0 |
Change in operating assets and liabilities: | |||
Restricted cash | -333 | 807 | -4,801 |
Accounts receivable | -7,375 | 3,557 | -4,203 |
Deferred leasing costs and lease intangibles | -12,266 | -24,213 | -5,496 |
Prepaid expenses and other assets | -1,602 | -803 | 323 |
Accounts payable and accrued liabilities | 3,114 | 957 | 4,554 |
Security deposits | 485 | -500 | 232 |
Prepaid rent | 1,014 | -3,867 | 723 |
Net cash provided by operating activities | 63,168 | 41,547 | 42,821 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Additions to investment property | -123,298 | -87,153 | -27,150 |
Property acquisitions | -113,580 | -389,883 | -392,320 |
Acquisition of notes receivable | -28,112 | 0 | -4,000 |
Proceeds from sale of real estate | 18,629 | 52,994 | 0 |
Net cash used in investing activities | -246,361 | -424,042 | -423,470 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from notes payable | 448,972 | 444,927 | 326,738 |
Payments of notes payable | -417,508 | -202,122 | -143,761 |
Proceeds from issuance of common stock | 197,468 | 202,542 | 190,798 |
Common stock issuance transaction costs | -1,599 | -577 | -727 |
Proceeds from issuance of Series B cumulative redeemable preferred stock | 0 | 0 | 57,500 |
Series B stock issuance transaction costs | 0 | 0 | -1,870 |
Dividends paid to common stock and unit holders | -34,966 | -29,607 | -23,199 |
Dividends paid to preferred stock and unit holders | -12,785 | -12,893 | -12,924 |
Redemption of 6.25% series A cumulative redeemable preferred units | -298 | -2,000 | 0 |
Distribution to non-controlling member in consolidated real estate entity | -2,842 | -1,160 | 0 |
Repurchase of vested restricted stock | -3,129 | -2,756 | -1,385 |
Payment of loan costs | -2,723 | -2,407 | -5,322 |
Net cash provided by financing activities | 170,590 | 393,947 | 385,848 |
Net (decrease) increase in cash and cash equivalents | -12,603 | 11,452 | 5,199 |
Cash and cash equivalents—beginning of period | 30,356 | 18,904 | |
Cash and cash equivalents—end of period | 17,753 | 30,356 | 18,904 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||
Cash paid for interest, net of amounts capitalized | 32,107 | 28,894 | 18,586 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Accounts payable and accrued liabilities for investment in property | -4,720 | -2,554 | -751 |
Assumption of secured debt in connection with property acquisitions (Notes 3 and 6) | 0 | 102,299 | 0 |
Assumption of other assets and liabilities in connection property acquisitions, net (Note 3) | 0 | 45,704 | 1,481 |
Non-controlling interest in consolidated real estate entity (Note 3) | 0 | -2,423 | -889 |
Hudson Pacific Partners, L.P. | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | 23,522 | -2,594 | -5,006 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 72,216 | 70,852 | 57,024 |
Amortization of deferred financing costs and loan premium, net | 949 | 486 | 1,126 |
Amortization of stock-based compensation | 7,559 | 6,454 | 4,212 |
Straight-line rent receivables | -13,362 | -10,383 | -3,365 |
Amortization of above-market leases | 2,026 | 2,542 | 3,757 |
Amortization of below-market leases | -7,661 | -8,570 | -7,321 |
Amortization of lease incentive costs | 425 | 36 | 91 |
Bad debt expense (recovery) | -97 | 959 | 724 |
Amortization of ground lease intangible | 248 | 247 | 247 |
Amortization of discount and net origination fees on notes receivable | -156 | 0 | 0 |
Gain / Loss on real estate | 5,580 | 0 | |
Change in operating assets and liabilities: | |||
Restricted cash | -333 | 807 | -4,801 |
Accounts receivable | -7,375 | 3,557 | -4,203 |
Deferred leasing costs and lease intangibles | -12,266 | -24,213 | -5,496 |
Prepaid expenses and other assets | -1,602 | -803 | 323 |
Accounts payable and accrued liabilities | 3,114 | 957 | 4,554 |
Security deposits | 485 | -500 | 232 |
Prepaid rent | 1,014 | -3,867 | 723 |
Net cash provided by operating activities | 63,168 | 41,547 | 42,821 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Additions to investment property | -123,298 | -87,153 | -27,150 |
Property acquisitions | -113,580 | -389,883 | -392,320 |
Acquisition of notes receivable | -28,112 | 0 | -4,000 |
Proceeds from sale of real estate | 18,629 | 52,994 | 0 |
Net cash used in investing activities | -246,361 | -424,042 | -423,470 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from notes payable | 448,972 | 444,927 | 326,738 |
Payments of notes payable | -417,508 | -202,122 | -143,761 |
Proceeds from issuance of common stock | 197,468 | 202,542 | 190,798 |
Common stock issuance transaction costs | -1,599 | -577 | -727 |
Proceeds from issuance of Series B cumulative redeemable preferred stock | 0 | 0 | 57,500 |
Series B stock issuance transaction costs | 0 | 0 | -1,870 |
Dividends paid to common stock and unit holders | -34,966 | -29,607 | -23,199 |
Dividends paid to preferred stock and unit holders | -12,785 | -12,893 | -12,924 |
Redemption of 6.25% series A cumulative redeemable preferred units | -298 | -2,000 | 0 |
Distribution to non-controlling member in consolidated real estate entity | -2,842 | -1,160 | 0 |
Repurchase of vested restricted stock | -3,129 | -2,756 | -1,385 |
Payment of loan costs | -2,723 | -2,407 | -5,322 |
Net cash provided by financing activities | 170,590 | 393,947 | 385,848 |
Net (decrease) increase in cash and cash equivalents | -12,603 | 11,452 | 5,199 |
Cash and cash equivalents—beginning of period | 30,356 | 18,904 | 13,705 |
Cash and cash equivalents—end of period | 17,753 | 30,356 | 18,904 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | |||
Cash paid for interest, net of amounts capitalized | 32,107 | 28,894 | 18,586 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Accounts payable and accrued liabilities for investment in property | -4,720 | -2,554 | -751 |
Assumption of secured debt in connection with property acquisitions (Notes 3 and 6) | 0 | 102,299 | 0 |
Assumption of other assets and liabilities in connection property acquisitions, net (Note 3) | 0 | -2,423 | -889 |
Non-controlling interest in consolidated real estate entity (Note 3) | $0 | $45,704 | $1,481 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization |
Hudson Pacific Properties, Inc. (which is referred to in these financial statements as the “Company,” “we,” “us,” or “our”) is a Maryland corporation formed on November 9, 2009 that did not have any meaningful operating activity until the consummation of our initial public offering and the related acquisition of our predecessor and certain other entities on June 29, 2010 (“IPO”). | |
Since the completion of the IPO, the concurrent private placement, and the related formation transactions, we have been a fully integrated, self-administered, and self-managed real estate investment trust (“REIT”). Through our controlling interest in Hudson Pacific Properties, L.P. ("our operating partnership" or the “Operating Partnership” and is also referred to in these financial statements as the "Company", "we", "us", or "our") and its subsidiaries, we own, manage, lease, acquire and develop real estate, consisting primarily of office and media and entertainment properties. As of December 31, 2014, we owned a portfolio of 26 office properties and two media and entertainment properties. These properties are located in California and Washington. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||||||||||||
Basis of Presentation | ||||||||||||||||||
The accompanying consolidated financial statements of the Company are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements of the Company include the consolidated financial position and results of operations of the Company, the Operating Partnership and all of our wholly owned and controlled subsidiaries. The consolidated financial statements of the Operating Partnership include the consolidated financial position and results of operations of the Operating Partnership, and all wholly owned and controlled subsidiaries of the Operating Partnership. All intercompany balances and transactions have been eliminated in the consolidated financial statements. | ||||||||||||||||||
Certain prior period amounts in the consolidated financial statements have been reclassified to reflect properties held for sale. | ||||||||||||||||||
Any reference to the number of properties and square footage are unaudited and outside the scope of our independent registered public accounting firm’s audit of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. | ||||||||||||||||||
Use of Estimates | ||||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, its accrued liabilities, and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. | ||||||||||||||||||
Investment in Real Estate Properties | ||||||||||||||||||
The properties are carried at cost less accumulated depreciation and amortization. The Company assigns the cost of an acquisition, including the assumption of liabilities, to the acquired tangible assets and identifiable intangible assets and liabilities based on their estimated fair values in accordance with GAAP. The Company assesses fair value based on estimated cash flow projections that utilize discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it was vacant. | ||||||||||||||||||
Acquisition-related expenses associated with acquisition of operating properties are expensed in the period incurred. | ||||||||||||||||||
The Company records acquired “above and below” market leases at fair value using discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, legal and other related costs. | ||||||||||||||||||
The Company capitalizes direct construction and development costs, including predevelopment costs, interest, property taxes, insurance and other costs directly related and essential to the acquisition, development or construction of a real estate project. Indirect development costs, including salaries and benefits, office rent, and associated costs for those individuals directly responsible for and who spend their time on development activities are also capitalized and allocated to the projects to which they relate. Capitalized personnel costs were approximately $3.1 million and $1.9 million for the years ended December 31, 2014 and 2013, respectively. Interest is capitalized on the construction in progress at a rate equal to the Company’s weighted average cost of debt. Capitalized interest was approximately $6.9 million and $4.6 million for the years ended December 31, 2014 and 2013, respectively. Construction and development costs are capitalized while substantial activities are ongoing to prepare an asset for its intended use. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of tenant improvements but no later than one year after cessation of major construction activity. Costs incurred after a project is substantially complete and ready for its intended use, or after development activities have ceased, are expensed as they are incurred. Costs previously capitalized related to abandoned acquisitions or developments are charged to earnings. Expenditures for repairs and maintenance are expensed as they are incurred. | ||||||||||||||||||
The Company computes depreciation using the straight-line method over the estimated useful lives of 39 years for building and improvements, 15 years for land improvements, 5 or 7 years for furniture and fixtures and equipment, and over the shorter of asset life or life of the lease for tenant improvements. Above- and below-market lease intangibles are amortized to revenue over the remaining non-cancellable lease terms and bargain renewal periods, if applicable. Other in-place lease intangibles are amortized to expense over the remaining non-cancellable lease term. Depreciation is discontinued when a property is identified as held for sale. | ||||||||||||||||||
Impairment of Long-Lived Assets | ||||||||||||||||||
The Company assesses the carrying value of real estate assets and related intangibles whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value of the properties. Properties held for sale are recorded at the lower of cost or estimated fair value less cost to sell. The Company recorded $5.6 million of impairment charges related to a property that it sold during the year ended December 31, 2013 with no comparable charge for the year ended December 31, 2014. There was one property held for sale at December 31, 2014 and no properties held for sale at December 31, 2013. | ||||||||||||||||||
Goodwill | ||||||||||||||||||
Goodwill represents the excess of acquisition cost over the fair value of net tangible and identifiable intangible assets acquired and liabilities assumed in business combinations. Our goodwill balance as of December 31, 2014 and 2013, respectively, was $8.8 million. We do not amortize this asset but instead analyze it on an annual basis for impairment. No impairment indicators have been noted during the years ended December 31, 2014 and 2013. | ||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||
Cash and cash equivalents are defined as cash on hand and in banks, plus all short-term investments with a maturity of three months or less when purchased. | ||||||||||||||||||
The Company maintains some of its cash in bank deposit accounts that, at times, may exceed the federally insured limit. No losses have been experienced related to such accounts. | ||||||||||||||||||
Restricted Cash | ||||||||||||||||||
Restricted cash consists of amounts held by lenders to provide for future real estate taxes and insurance expenditures, repairs and capital improvements reserves, general and other reserves and security deposits. | ||||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||||||||||
Accounts receivable consist of amounts due for monthly rents and other charges. The Company maintains an allowance for doubtful accounts for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments. The Company monitors the liquidity and creditworthiness of its tenants and operators on an ongoing basis. This evaluation considers industry and economic conditions, property performance, credit enhancements and other factors. For straight-line rent amounts, the Company’s assessment is based on amounts estimated to be recoverable over the term of the lease. At December 31, 2014 and 2013, respectively, the Company has reserved $0.6 million and $0.3 million of straight-line receivables. The Company evaluates the collectability of accounts receivable based on a combination of factors. The allowance for doubtful accounts is based on specific identification of uncollectible accounts and the Company’s historical collection experience. The Company recognizes an allowance for doubtful accounts based on the length of time the receivables are past due, the current business environment and the Company’s historical experience. Historical experience has been within management’s expectations. The Company recognized $(97), $959 and $724 of bad debt (recovery) expense for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||
The following summarizes our accounts receivable net of allowance for doubtful accounts as of: | ||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||
Accounts receivable | $ | 17,287 | $ | 9,898 | ||||||||||||||
Allowance for doubtful accounts | (1,040 | ) | (1,036 | ) | ||||||||||||||
Accounts receivable, net | $ | 16,247 | $ | 8,862 | ||||||||||||||
Notes Receivable | ||||||||||||||||||
On August 19, 2014, the Company entered into a loan participation agreement for a loan with a maximum principal of $140.0 million. The Company’s share was 23.77%, or $33.3 million. The note receivable is secured by a real estate property, has a balance of $28.5 million as of December 31, 2014, bears interest at 11.0% and matures on August 18, 2016. Interest is payable monthly with the principal due at maturity. The Company received a $0.4 million commitment fee as a result of this transaction. The balance as of December 31, 2014, net of the commitment fee, was $28.3 million and was classified as a Note Receivable on the Consolidated Balance Sheets. | ||||||||||||||||||
Revenue Recognition | ||||||||||||||||||
The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: | ||||||||||||||||||
• | whether the lease stipulates how and on what a tenant improvement allowance may be spent; | |||||||||||||||||
• | whether the tenant or landlord retains legal title to the improvements at the end of the lease term; | |||||||||||||||||
• | whether the tenant improvements are unique to the tenant or general-purpose in nature; and | |||||||||||||||||
• | whether the tenant improvements are expected to have any residual value at the end of the lease. | |||||||||||||||||
Certain leases provide for additional rents contingent upon a percentage of the tenant’s revenue in excess of specified base amounts or other thresholds. Such revenue is recognized when actual results reported by the tenant, or estimates of tenant results, exceed the base amount or other thresholds. Such revenue is recognized only after the contingency has been removed (when the related thresholds are achieved), which may result in the recognition of rental revenue in periods subsequent to when such payments are received. | ||||||||||||||||||
Other property-related revenue is revenue that is derived from the tenants’ use of lighting, equipment rental, parking, power, HVAC and telecommunications (phone and Internet). Other property-related revenue is recognized when these items are provided. | ||||||||||||||||||
Tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. | ||||||||||||||||||
The Company recognizes gains on sales of properties upon the closing of the transaction with the purchaser. Gains on properties sold are recognized using the full accrual method when (i) the collectability of the sales price is reasonably assured, (ii) the Company is not obligated to perform significant activities after the sale, (iii) the initial investment from the buyer is sufficient and (iv) other profit recognition criteria have been satisfied. Gains on sales of properties may be deferred in whole or in part until the requirements for gain recognition have been met. | ||||||||||||||||||
Deferred Financing Costs | ||||||||||||||||||
Deferred financing costs are amortized over the term of the respective loan. | ||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||
The Company manages interest rate risk associated with borrowings by entering into interest rate derivative contracts. The Company recognizes all derivatives on the consolidated balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value and the changes in fair value are reflected as income or expense. If the derivative is a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in other comprehensive income (loss), which is a component of equity. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. | ||||||||||||||||||
The Company held three interest rate contracts as of December 31, 2014 and 2013, all of which have been accounted for as cash flow hedges as more fully described in note 6 below. | ||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||
Accounting Standard Codification, or ASC, Topic 718, Compensation—Stock Compensation (referred to as ASC Topic 718), requires us to recognize an expense for the fair value of equity-based compensation awards. Grants of stock options, restricted stock, restricted stock units and performance units under our equity incentive award plans are accounted for under ASC Topic 718. | ||||||||||||||||||
Income Taxes | ||||||||||||||||||
Our property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entity that owns the 1455 Market Street property, a REIT) for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities. | ||||||||||||||||||
We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with our taxable year ended December 31, 2010. To qualify as a REIT, we are required to distribute at least 90% of our net taxable income, excluding net capital gains, to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided that we continue to qualify for taxation as a REIT, we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders. If we fail to qualify as a REIT in any taxable year, and are unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. | ||||||||||||||||||
We have elected, together with one of our subsidiaries, to treat such subsidiary as a taxable REIT subsidiary (“TRS”) for federal income tax purposes. Certain activities that we may undertake, such as non-customary services for our tenants and holding assets that we cannot hold directly, will be conducted by a TRS. A TRS is subject to federal and, where applicable, state income taxes on its net income. | ||||||||||||||||||
The Company is subject to the statutory requirements of the states in which it conducts business. | ||||||||||||||||||
The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of December 31, 2014, the Company has not established a liability for uncertain tax positions. | ||||||||||||||||||
The REIT and its TRS file income tax returns with the U.S. federal government and various state and local jurisdictions. The REIT and the TRS are no longer subject to tax examinations by tax authorities for years prior to 2011. Generally, The Company has assessed its tax positions for all open years, which includes 2011 to 2014, and concluded that there are no material uncertainties to be recognized. | ||||||||||||||||||
Fair Value of Assets and Liabilities | ||||||||||||||||||
Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: | ||||||||||||||||||
• | Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; | |||||||||||||||||
• | Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and | |||||||||||||||||
• | Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||||||
When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. | ||||||||||||||||||
Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. | ||||||||||||||||||
The Company considers the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market). | ||||||||||||||||||
The Company considers the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. | ||||||||||||||||||
The Company’s interest rate contract agreements are classified as Level 2 and their fair value is derived from estimated values obtained from observable market data for similar instruments. | ||||||||||||||||||
As of December 31, 2014, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: | ||||||||||||||||||
Interest Rate Derivative | Number of Instruments | Notional Amount | ||||||||||||||||
Interest Rate Caps | 2 | $92.0 million | ||||||||||||||||
Interest Rate Swaps | 1 | $64.5 million | ||||||||||||||||
Non-designated Hedges | ||||||||||||||||||
For the years ended December 31, 2014 and 2013, all of the Company’s derivatives were designated as cash flow hedges. | ||||||||||||||||||
Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet | ||||||||||||||||||
The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of December 31, 2014 and 2013. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets. | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Fair Value as of | Fair Value as of | |||||||||||||||||
Balance Sheet Location | December 31, 2014 | December 31, 2013 | Balance Sheet Location | December 31, 2014 | December 31, 2013 | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Interest rate products | Interest rate contracts | $ | 3 | $ | 192 | Interest rate contracts | $ | 1,750 | — | |||||||||
Total | $ | 3 | $ | 192 | 1,750 | — | ||||||||||||
Tabular Disclosure of the Effect of Derivative Instruments on the Income Statement | ||||||||||||||||||
The tables below present the effect of the Company’s derivative financial instruments on the Statement of Operations for the years ended December 31, 2014 and 2013. | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Beginning Balance of OCI related to interest rate contracts | $ | 1,162 | $ | 1,465 | $ | 1,036 | ||||||||||||
Unrealized Loss Recognized in OCI Due to Change in Fair Value of interest rate contracts | 1,939 | (121 | ) | 457 | ||||||||||||||
Loss Reclassified from OCI into Income (as Interest Expense) | (440 | ) | (182 | ) | (28 | ) | ||||||||||||
Net Change in OCI | $ | 1,499 | $ | (303 | ) | $ | 429 | |||||||||||
Ending Balance of Accumulated OCI Related to Derivatives | $ | 2,661 | $ | 1,162 | $ | 1,465 | ||||||||||||
Allocation of OCI, non-controlling interests | (218 | ) | (165 | ) | (178 | ) | ||||||||||||
Accumulated other comprehensive deficit | $ | 2,443 | $ | 997 | $ | 1,287 | ||||||||||||
Credit-Risk-Related Contingent Features | ||||||||||||||||||
As of December 31, 2014, the Company had one derivatives that was in a net liability position. | ||||||||||||||||||
Recently Issued Accounting Literature | ||||||||||||||||||
Changes to GAAP are established by the FASB in the form of ASUs. We consider the applicability and impact of all ASUs. Recently issued ASUs not listed below are not expected to have a material impact on our consolidated financial position and results of operations, because either the ASU is not applicable or the impact is expected to be immaterial. | ||||||||||||||||||
On June 19, 2014, the FASB issued their final standard to amend the accounting guidance for stock compensation tied to performance targets (ASU No. 2014-12). The issue is the result of a consensus of the FASB Emerging Issues Task Force (Issue No. 13-D). The standard requires that a performance target that could be achieved after the requisite service period be treated as a performance condition, and as a result, this type of performance condition may delay expense recognition until achievement of the performance target is probable. The ASU is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015, and early adoption is permitted. The Company will adopt the guidance effective January 1, 2016 and the guidance is not expected to have a material impact on our consolidated financial statements or notes to our consolidated financial statements. | ||||||||||||||||||
On May 28, 2014, the FASB issued their final standard on revenue from contracts with customers. The guidance specifically notes that lease contracts with customers are a scope exception. The standard (ASU No. 2014-09) outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. The ASU is effective for annual reporting periods (including interim periods) beginning after December 15, 2016, and early adoption is not permitted. The Company will adopt the guidance effective January 1, 2017 and is currently assessing the impact on our consolidated financial statements and notes to our consolidated financial statements. | ||||||||||||||||||
On April 10, 2014, the FASB issued final guidance to change the criteria for reporting discontinued operations while enhancing disclosures in this area (ASU No. 2014-08). Under the new guidance, only disposals representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The guidance also expands the disclosure requirements for discontinued operations and adds new disclosures for individually significant dispositions that do not qualify as discontinued operations. The guidance will be applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The guidance is effective for annual financial statements with fiscal years beginning on or after December 15, 2014 with early adoption permitted for disposals or classifications as held for sale that have not been reported in financial statements previously issued or available for issuance. As of January 1, 2014, we have early adopted the amended guidance and it resulted in the sale of Tierrasanta and the First Financial properties held for sale, not meeting the definition of a discontinued operation. As a result, the Company did not reclassify the properties' operations including the $5.5 million gain on sale of real estate into discontinued operations for the years ended December 31, 2014, 2013 and 2012. |
Investment_in_Real_Estate
Investment in Real Estate | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||
Investment in Real Estate | Investment in Real Estate | |||||||||||||||||||||||
A summary of the activity of our investment in real estate including investment in real estate held for sale (First Financial, Tierrasanta and City Plaza) is as follows: | ||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Investment in real estate | ||||||||||||||||||||||||
Beginning balance | $ | 2,035,330 | $ | 1,475,955 | $ | 1,060,504 | ||||||||||||||||||
Acquisitions | 114,008 | 538,322 | 390,370 | |||||||||||||||||||||
Improvements, capitalized costs | 128,018 | 89,707 | 27,901 | |||||||||||||||||||||
Disposal | (37,615 | ) | (9,638 | ) | (2,820 | ) | ||||||||||||||||||
Cost of property sold | — | (59,016 | ) | — | ||||||||||||||||||||
Ending Balance | $ | 2,239,741 | $ | 2,035,330 | $ | 1,475,955 | ||||||||||||||||||
Reclassification to assets associated with real estate held for sale | (68,446 | ) | (82,305 | ) | — | |||||||||||||||||||
Total Investment in real estate | $ | 2,171,295 | $ | 1,953,025 | $ | 1,475,955 | ||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||
Beginning balance | $ | (116,342 | ) | $ | (85,184 | ) | $ | (53,329 | ) | |||||||||||||||
Additions | (50,044 | ) | (41,454 | ) | (34,675 | ) | ||||||||||||||||||
Deletions | 23,825 | 10,296 | 2,820 | |||||||||||||||||||||
Ending Balance | $ | (142,561 | ) | $ | (116,342 | ) | $ | (85,184 | ) | |||||||||||||||
Reclassification to assets associated with real estate held for sale | 7,904 | 7,931 | — | |||||||||||||||||||||
Total Accumulated depreciation | $ | (134,657 | ) | $ | (108,411 | ) | $ | (85,184 | ) | |||||||||||||||
Acquisitions | ||||||||||||||||||||||||
On December 6, 2014, the Company entered into an asset purchase agreement to acquire the EOP Northern California Portfolio from Blackstone Real Estate Partners V and VI ("Blackstone"). The EOP Northern California Portfolio consists of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout the San Francisco Peninsula, Redwood Shores, Palo Alto Silicon Valley and San Jose Airport submarkets. The total consideration to be paid for the EOP Northern California Portfolio before certain credits, proration, and closing costs will be a cash payment equal to $1.75 billion and equity consideration totaling 63,474,791 shares of our common stock or common units of limited partnership interest in the Operating Partnership. The Company expects the transaction to close in late first quarter or early second quarter subject to customary closing conditions, including the receipt of the requisite stockholder approval for the equity issued in connection with the transaction. | ||||||||||||||||||||||||
During 2014, we acquired the following properties: Merrill Place, 3402 Pico Blvd., and 12655 Jefferson. The results of operations for each of these acquisitions are included in our consolidated statements of operations from the date of acquisition. The following table represents our purchase price accounting for each of these acquisitions: | ||||||||||||||||||||||||
Merrill Place | 3402 Pico Blvd. | 12655 Jefferson | ||||||||||||||||||||||
Date of Acquisition | 12-Feb-14 | 28-Feb-14 | 17-Oct-14 | Total | ||||||||||||||||||||
Consideration paid | ||||||||||||||||||||||||
Cash consideration | $ | 57,034 | $ | 18,546 | $ | 38,000 | $ | 113,580 | ||||||||||||||||
Total consideration | $ | 57,034 | $ | 18,546 | $ | 38,000 | $ | 113,580 | ||||||||||||||||
Allocation of consideration paid | ||||||||||||||||||||||||
Investment in real estate, net | $ | 57,508 | $ | 18,500 | $ | 38,000 | $ | 114,008 | ||||||||||||||||
Above-market leases | 173 | — | — | 173 | ||||||||||||||||||||
Deferred leasing costs and lease intangibles, net | 3,163 | — | — | 3,163 | ||||||||||||||||||||
Below-market leases | (3,315 | ) | — | — | (3,315 | ) | ||||||||||||||||||
Other (liabilities) asset assumed, net | (495 | ) | 46 | — | (449 | ) | ||||||||||||||||||
Total consideration paid | $ | 57,034 | $ | 18,546 | $ | 38,000 | $ | 113,580 | ||||||||||||||||
During 2013, we acquired the following properties: 3401 Exposition, Pinnacle II, the Seattle Portfolio, and 1861 Bundy. The results of operations for each of these acquisitions are included in our consolidated statements of operations from the date of acquisition. The following table represents our purchase price accounting for each of these acquisitions: | ||||||||||||||||||||||||
3401 Exposition | Pinnacle II | Seattle Portfolio | 1861 Bundy | |||||||||||||||||||||
Date of Acquisition | May 22, 2013 | June 14, 2013 | July 31, 2013 | September 26, 2013 | Total | |||||||||||||||||||
Consideration paid | ||||||||||||||||||||||||
Cash consideration | $ | 8,489 | $ | 1,505 | $ | 368,389 | $ | 11,500 | $ | 389,883 | ||||||||||||||
Notes Receivable | 4,000 | — | — | — | 4,000 | |||||||||||||||||||
Debt Assumed | 13,233 | 89,066 | — | — | 102,299 | |||||||||||||||||||
Non-controlling interest in consolidated real estate entity | — | 45,704 | — | — | 45,704 | |||||||||||||||||||
Total consideration | $ | 25,722 | $ | 136,275 | $ | 368,389 | $ | 11,500 | $ | 541,886 | ||||||||||||||
Allocation of consideration paid | ||||||||||||||||||||||||
Investment in real estate, net | $ | 25,439 | $ | 134,289 | $ | 367,094 | $ | 11,500 | $ | 538,322 | ||||||||||||||
Deferred leasing costs and lease intangibles, net | — | 12,637 | 21,619 | — | 34,256 | |||||||||||||||||||
Fair market unfavorable debt value | — | (5,820 | ) | — | — | (5,820 | ) | |||||||||||||||||
Below-market leases | — | (7,783 | ) | (14,666 | ) | — | (22,449 | ) | ||||||||||||||||
Other (liabilities) asset assumed, net | 283 | 2,952 | (5,658 | ) | — | (2,423 | ) | |||||||||||||||||
Total consideration paid | $ | 25,722 | $ | 136,275 | $ | 368,389 | $ | 11,500 | $ | 541,886 | ||||||||||||||
During 2012, we acquired the following properties: 10900 Washington, 901 Market Street, Element LA (Olympic Bundy), 1455 Gordon Street and Pinnacle I. The results of operations for each of these acquisitions are included in our consolidated statements of operations from the date of acquisition. The following table represents our purchase price accounting for each of these acquisitions: | ||||||||||||||||||||||||
10900 Washington | 901 Market | Element LA | 1455 Gordon Street | Pinnacle I | ||||||||||||||||||||
Date of Acquisition | April 5, 2012 | June 1, 2012 | September 5, 2012 | September 21, 2012 | November 8, 2012 | Total | ||||||||||||||||||
Consideration paid | ||||||||||||||||||||||||
Cash consideration | $ | 2,605 | $ | 90,871 | $ | 88,436 | $ | 2,385 | $ | 208,023 | $ | 392,320 | ||||||||||||
Non-controlling interest in consolidated real estate entity | — | — | — | — | 1,481 | 1,481 | ||||||||||||||||||
Total consideration | $ | 2,605 | $ | 90,871 | $ | 88,436 | $ | 2,385 | $ | 209,504 | $ | 393,801 | ||||||||||||
Allocation of consideration paid | ||||||||||||||||||||||||
Investment in real estate, net | $ | 2,600 | $ | 97,187 | $ | 88,024 | $ | 2,384 | $ | 200,175 | $ | 390,370 | ||||||||||||
Above-market leases | — | — | — | — | 167 | 167 | ||||||||||||||||||
Leases in place | — | 2,968 | 1,325 | 96 | 11,710 | 16,099 | ||||||||||||||||||
Other lease intangibles | — | 548 | 46 | 22 | 3,456 | 4,072 | ||||||||||||||||||
Below-market leases | — | (10,249 | ) | (666 | ) | (27 | ) | (5,076 | ) | (16,018 | ) | |||||||||||||
Other (liabilities) asset assumed, net | 5 | 417 | (293 | ) | (90 | ) | (928 | ) | (889 | ) | ||||||||||||||
Total consideration paid | $ | 2,605 | $ | 90,871 | $ | 88,436 | $ | 2,385 | $ | 209,504 | $ | 393,801 | ||||||||||||
The table below shows the pro forma financial information for the years ended December 31, 2014 and 2013 as if these properties had been acquired as of January 1, 2013. | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Total revenues | $ | 253,924 | $ | 224,102 | ||||||||||||||||||||
Net loss | $ | 23,540 | $ | (5,620 | ) | |||||||||||||||||||
Dispositions | ||||||||||||||||||||||||
On December 29, 2014, the Company entered into a purchase and sale agreement to sell its First Financial office property for $89.0 million (before certain credits, prorations, and closing costs). As a result, the Company has reclassified First Financial's assets and liabilities to held for sale as of December 31, 2014 and 2013. The transaction is subject to assumption of an existing $42.4 million loan and is expected to close in the first quarter of 2015. Pursuant to the Company's adoption of ASU No. 2014-08, the Company has not presented the operating results in net income (loss) from discontinued operations. | ||||||||||||||||||||||||
On July 16, 2014, the Company sold its Tierrasanta property for $19.5 million (before certain credits, prorations, and closing costs) and therefore, reclassified Tierrasanta's assets and liabilities to held for sale at July 16, 2014 and December 31, 2013. Pursuant to the Company's adoption of ASU No. 2014-08, the Company has not presented the operating results in net income (loss) from discontinued operations. | ||||||||||||||||||||||||
On May 31, 2013, the Company entered into an agreement to sell its City Plaza property for approximately $56.0 million (before certain credits, prorations, and closing costs). The transaction closed on July 12, 2013. The transaction resulted in an approximately $5.6 million impairment loss. The Company reclassified City Plaza’s results of operations for the years ended December 31, 2014, 2013 and 2012 to discontinued operations on its consolidated statements of operations. | ||||||||||||||||||||||||
The following table sets forth the discontinued operations for the years ended December 31, 2014, 2013 and 2012 for the City Plaza: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Total office revenues | $ | — | $ | 4,321 | $ | 5,695 | ||||||||||||||||||
Office operating expenses | (164 | ) | (1,961 | ) | (2,978 | ) | ||||||||||||||||||
Depreciation and amortization | — | (789 | ) | (2,266 | ) | |||||||||||||||||||
Income from discontinued operations | $ | (164 | ) | $ | 1,571 | $ | 451 | |||||||||||||||||
The following table summarizes the components that comprise the assets and liabilities associated with real estate held for sale as of December 31, 2014 and 2013: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investment in real estate, net | $ | 60,542 | $ | 74,374 | ||||||||||||||||||||
Restricted cash | 2,839 | 2,821 | ||||||||||||||||||||||
Straight-line rent receivables | 2,151 | 1,997 | ||||||||||||||||||||||
Deferred leasing costs and lease intangibles, net | 2,457 | 3,693 | ||||||||||||||||||||||
Other | 545 | 360 | ||||||||||||||||||||||
Assets associated with real estate held for sale | $ | 68,534 | $ | 83,245 | ||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Notes payable | $ | 42,449 | $ | 43,000 | ||||||||||||||||||||
Accounts payable and accrued liabilities | 322 | 1,393 | ||||||||||||||||||||||
Other | 443 | 731 | ||||||||||||||||||||||
Liabilities associated with real estate held for sale | 43,214 | 45,124 | ||||||||||||||||||||||
Equity | 25,320 | 38,121 | ||||||||||||||||||||||
Total liabilities and equity associated with real estate held for sale | $ | 68,534 | $ | 83,245 | ||||||||||||||||||||
Deferred_Leasing_Costs_and_Lea
Deferred Leasing Costs and Lease Intangibles, net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Deferred Leasing Costs and Lease Intangibles, net | Deferred Leasing Costs and Lease Intangibles, net | |||||||
The following summarizes our deferred leasing costs and lease intangibles as of: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Above-market leases | $ | 10,891 | $ | 14,869 | ||||
Leases in place | 60,130 | 83,793 | ||||||
Below-market ground leases | 7,513 | 7,513 | ||||||
Other lease intangibles | 26,731 | 35,651 | ||||||
Lease buy-out costs | 4,597 | 3,107 | ||||||
Deferred leasing costs | 38,912 | 28,270 | ||||||
$ | 148,774 | $ | 173,203 | |||||
Accumulated amortization | (46,751 | ) | (64,801 | ) | ||||
Deferred leasing costs and lease intangibles, net | $ | 102,023 | $ | 108,402 | ||||
Below-market leases | 57,420 | 67,284 | ||||||
Accumulated accretion | (16,451 | ) | (22,100 | ) | ||||
Below-market leases, net | $ | 40,969 | $ | 45,184 | ||||
During the years ended December 31, 2014, 2013 and 2012, the Company recognized $20.9 million, $24.4 million, and $19.8 million, respectively, of amortization expense related to lease costs and in-place leases, and amortized $2.0 million, $2.5 million, and $3.8 million respectively, of above-market leases against rental revenue. As of December 31, 2014 and 2013, the weighted-average amortization period for lease intangibles was 6.17 years and 7.78 years, respectively. | ||||||||
As of December 31, 2014, the estimated aggregate amortization of deferred leasing costs and lease intangible assets, net for each of the next five years and thereafter are as follows: | ||||||||
Year ended | Deferred leasing costs and lease intangibles, net | |||||||
2015 | $ | 19,096 | ||||||
2016 | 17,289 | |||||||
2017 | 14,087 | |||||||
2018 | 12,334 | |||||||
2019 | 10,976 | |||||||
Thereafter | 28,241 | |||||||
$ | 102,023 | |||||||
During the years ended December 31, 2014, 2013 and 2012, the Company amortized $7.7 million, $8.6 million, and $7.3 million, respectively of below-market leases in rental revenue. As of December 31, 2014 and 2013, the weighted-average amortization period for below-market leases was 6.54 years and 7.23 years, respectively. | ||||||||
As of December 31, 2014 the estimated amortization of below-market leases, net for each of the next five years and thereafter are as follows: | ||||||||
Year ended | Below Market Lease | |||||||
2015 | $ | 7,158 | ||||||
2016 | 6,798 | |||||||
2017 | 6,334 | |||||||
2018 | 5,609 | |||||||
2019 | 5,311 | |||||||
Thereafter | 9,759 | |||||||
$ | 40,969 | |||||||
Prepaid_Expense_and_Other_Asse
Prepaid Expense and Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Prepaid Expense and Other Assets | Prepaid Expenses and Other Assets | ||||||||
Prepaid expenses and other assets consisted of the following as of: | |||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Prepaid insurance | $ | 3,025 | $ | 2,677 | |||||
Prepaid property taxes | 427 | 5 | |||||||
Corporate furniture, fixtures and equipment, net of accumulated depreciation of $207 and $629 respectively | 1,405 | 490 | |||||||
Trade name, net of accumulated amortization of $751 and $649, respectively | 271 | 372 | |||||||
Other | 1,564 | 1,626 | |||||||
Reclassification to assets associated with real estate held for sale | — | (76 | ) | ||||||
$ | 6,692 | $ | 5,094 | ||||||
Trade name is being amortized over a 10-year period from the date of acquisition of our Sunset Gower property on August 17, 2007. |
Notes_Payable
Notes Payable | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Notes Payable | Notes Payable | |||||||||||
The following table sets forth information as of December 31, 2014 with respect to our outstanding indebtedness (in thousands). | ||||||||||||
Outstanding as of | ||||||||||||
Debt | December 31, 2014 | December 31, 2013 | Interest Rate(1) | Maturity | ||||||||
Date | ||||||||||||
Unsecured revolving credit facility - new | $ | 130,000 | $ | — | LIBOR+1.15% to 1.55% | 9/23/18 | ||||||
Unsecured revolving credit facility | — | 155,000 | LIBOR+1.55% to 2.20% | N/A | ||||||||
Unsecured term loan | 150,000 | — | LIBOR+1.30% to 1.90% | 9/23/19 | ||||||||
Mortgage loan secured by 3401 Exposition Boulevard(2) | — | 13,233 | LIBOR+3.80% | N/A | ||||||||
Mortgage loan secured by 6922 Hollywood Boulevard(3) | — | 40,396 | 5.58% | N/A | ||||||||
Mortgage loan secured by 275 Brannan | 15,000 | 15,000 | LIBOR+2.00% | 10/5/15 | ||||||||
Mortgage loan secured by Pinnacle II(4) | 87,421 | 88,540 | 6.31% | 9/6/16 | ||||||||
Mortgage loan secured by 901 Market(5) | 49,600 | 49,600 | LIBOR+2.25% | 10/31/16 | ||||||||
Mortgage loan secured by Element LA(6) | 59,490 | 566 | LIBOR+1.95% | 11/1/17 | ||||||||
Mortgage loan secured by Sunset Gower/Sunset Bronson(7) | 97,000 | 97,000 | LIBOR+2.25% | 2/11/18 | ||||||||
Mortgage loan secured by Rincon Center(8) | 104,126 | 105,853 | 5.13% | 5/1/18 | ||||||||
Mortgage loan secured by First & King(9) | — | 95,000 | LIBOR+1.60% | N/A | ||||||||
Mortgage loan secured by Met Park North(10) | 64,500 | 64,500 | LIBOR+1.55% | 8/1/20 | ||||||||
Mortgage loan secured by 10950 Washington(11) | 28,866 | 29,300 | 5.32% | 3/11/22 | ||||||||
Mortgage loan secured by Pinnacle I(12) | 129,000 | 129,000 | 3.95% | 11/7/22 | ||||||||
Subtotal | $ | 915,003 | $ | 882,988 | ||||||||
Unamortized loan premium, net(13) | 3,056 | 5,320 | ||||||||||
Total | $ | 918,059 | $ | 888,308 | ||||||||
Mortgage loan on real estate held for sale: | ||||||||||||
Mortgage loan secured by First Financial(14) | $ | 42,449 | $ | 43,000 | 4.58% | 2/1/22 | ||||||
$ | 960,508 | $ | 931,308 | |||||||||
__________________ | ||||||||||||
-1 | Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed, excluding the amortization of loan fees and costs. | |||||||||||
-2 | This loan was assumed on May 22, 2013 in connection with the closing of our acquisition of the 3401 Exposition Boulevard property. This loan was paid off during 2014. | |||||||||||
-3 | This loan was assumed on November 22, 2011 in connection with the closing of our acquisition of the 6922 Hollywood Boulevard property. This loan was paid off during 2014. | |||||||||||
-4 | This loan was assumed on June 14, 2013 in connection with the contribution of the Pinnacle II building to the Company’s joint venture with M. David Paul & Associates/Worthe Real Estate Group. This loan bore interest only for the first five years. Beginning with the payment due October 6, 2011, monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule. | |||||||||||
-5 | On October 29, 2012, we obtained a loan for our 901 Market property pursuant to which we borrowed $49.6 million upon closing, with the ability to draw up to an additional $11.9 million for budgeted base building, tenant improvements, and other costs associated with the renovation and lease-up of that property. | |||||||||||
-6 | On November 24, 2014 we amended our construction loan for Element LA to, among other things, increase availability from $65.5 million to $102.4 million for budgeted site-work, construction of a parking garage, base building, tenant improvement, and leasing commission costs associated with the renovation and lease-up of the property. | |||||||||||
-7 | On March 16, 2011, we purchased an interest rate cap in order to cap one-month LIBOR at 3.715% with respect to $50.0 million of the loan through February 11, 2016. On January 11, 2012 we purchased an interest rate cap in order to cap one-month LIBOR at 2.00% with respect to $42.0 million of the loan through February 11, 2016. Effective August 22, 2013, the terms of this loan were amended to increase the outstanding balance from $92.0 million to $97.0 million, reduce the interest rate from LIBOR plus 3.50% to LIBOR plus 2.25%, and extend the maturity date from February 11, 2016 to February 11, 2018. | |||||||||||
-8 | This loan is amortizing based on a 30-year amortization schedule. | |||||||||||
-9 | This loan was paid off during 2014. | |||||||||||
-10 | This loan bears interest only at a rate equal to one-month LIBOR plus 1.55%. The full loan amount is subject to an interest rate contract that swapped one-month LIBOR to a fixed rate of 2.1644% through the loan's maturity on August 1, 2020. | |||||||||||
-11 | This loan is amortizing based on a 30-year amortization schedule. | |||||||||||
-12 | This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30-year amortization schedule. | |||||||||||
-13 | Represents unamortized amount of the non-cash mark-to-market adjustment on debt associated with Pinnacle II. | |||||||||||
-14 | Beginning with the payment made March 1, 2014, monthly debt service includes principal payments based on a 30-year amortization schedule, for total annual debt service of $2.6 million. This note has been recorded as part of the liabilities associated with real estate held for sale (see note 3). | |||||||||||
The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, such as in the case of the project financing for our Sunset Gower and Sunset Bronson properties, our separate property-owning subsidiaries are not obligors of or under the debt of their respective affiliates and each property-owning subsidiary’s separate liabilities do not constitute obligations of its respective affiliates. | ||||||||||||
The minimum future annual principal payments due on our secured and unsecured notes payable at December 31, 2014, excluding the non-cash loan premium amortization and the $42.4 million mortgage loan secured by First Financial, were as follows (in thousands): | ||||||||||||
Year ended | Annual Principal Payments | |||||||||||
2015 | $ | 18,323 | ||||||||||
2016 | 138,199 | |||||||||||
2017 | 62,195 | |||||||||||
2018 | 328,320 | |||||||||||
2019 | 152,885 | |||||||||||
Thereafter | 215,081 | |||||||||||
Total | $ | 915,003 | ||||||||||
Senior Unsecured Revolving Credit Facility | ||||||||||||
On September 23, 2014, the Company amended and restated its $250.0 million unsecured revolving credit facility to increase the unsecured revolving credit facility from $250.0 million to $300.0 million, extend the term of that facility to September 23, 2018, and add a five-year, $150.0 million unsecured term loan facility with a group of lenders for which Wells Fargo Bank, N.A. acts as administrative agent, and Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner and Smith Incorporated act as joint lead arrangers, and Bank of America, N.A. and Barclays Bank PLC, act as joint syndication agents, and Keybank, N.A., acts as documentation agent. | ||||||||||||
The $150.0 million unsecured term loan facility was fully drawn by the Company on the closing date to repay a $95.0 million loan secured by the Company’s 505 First Street and 83 King properties, with the remaining $55.0 million used to repay amounts outstanding under the Company’s prior unsecured revolving facility. | ||||||||||||
The Operating Partnership continues to be the borrower under the new facility, and the Company and all subsidiaries that own unencumbered properties will continue to provide guaranties unless the Company obtains and maintains a credit rating of at least BBB- from S&P or Baa3 from Moody’s, in which case such guaranties are not required except under limited circumstances. Subject to the satisfaction of certain conditions and lender commitments, the Company may increase the availability of either or both of the unsecured revolving credit facility or term loan facility so long as the aggregate commitments under both facilities do not exceed $700.0 million. | ||||||||||||
Under the unsecured revolving credit facility, the Company may elect to pay interest at a rate equal to either LIBOR plus 115 to 155 basis points per annum or a specified base rate plus 15 to 55 basis points per annum, depending on the Company’s leverage ratio. Under the term loan facility, the Company may elect to pay interest at a rate equal to either LIBOR plus 130 to 190 basis points per annum or a specified base rate plus 30 to 90 basis points per annum, again depending on the Company’s leverage ratio. If the Company obtains a credit rating for its senior unsecured long term indebtedness, it may make an irrevocable election to change the interest rate for the unsecured revolving credit facility to a rate equal to either LIBOR plus 87.5 to 165 basis points per annum or the specified base rate plus 0 to 65 basis points per annum, and for the term loan facility equal to either LIBOR plus 90 to 190 basis points per annum or the specified base rate plus 0 to 90 basis points per annum, in each case depending on the credit rating. | ||||||||||||
The unsecured revolving credit facility is subject to a facility fee in an amount equal to the Company’s revolving credit commitments (whether or not utilized) multiplied by a rate per annum equal to 20 to 35 basis points, depending on the Company’s leverage ratio, or, if the Company makes the credit rating election, in an amount equal to the aggregate amount of its revolving credit commitments multiplied by a rate per annum equal to 12.5 to 30 basis points, depending upon the credit rating. Unused amounts of the facility are no longer subject to a separate fee. | ||||||||||||
The Company’s ability to borrow under the facility remains subject to ongoing compliance with a number of customary restrictive covenants. In addition to these covenants, the facility also includes certain limitations on dividend payouts and distributions, limits on certain types of investments outside of the Company’s primary business, and other customary affirmative and negative covenants. | ||||||||||||
As of December 31, 2014, the Company was in compliance with its unsecured revolving credit facility’s financial covenants. As of December 31, 2014, we had total borrowing capacity of approximately $300.0 million under our unsecured revolving credit facility, $130.0 million of which had been drawn. | ||||||||||||
Repayment Guaranties | ||||||||||||
Sunset Gower and Sunset Bronson Loan | ||||||||||||
In connection with the $97.0 million loan secured by our Sunset Gower and Sunset Bronson properties, we have guaranteed in favor of and promised to pay to the lender 19.5% of the principal payable under the loan in the event the borrower, a wholly-owned entity of our Operating Partnership, does not do so. |
Interest_Rate_Contracts
Interest Rate Contracts | 12 Months Ended |
Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Contracts | Interest Rate Contracts |
On February 11, 2011, we closed a five-year term loan totaling $92.0 million with Wells Fargo Bank, N.A., secured by our Sunset Gower and Sunset Bronson media and entertainment campuses. The loan bears interest at a rate equal to one-month LIBOR plus 3.50%. On March 16, 2011, we purchased an interest rate cap in order to cap one-month LIBOR at 3.715% on $50.0 million of the loan through its maturity on February 11, 2016. On January 11, 2012, we purchased an interest rate cap in order to cap one-month LIBOR at 2.00% with respect to $42.0 million of the loan through its maturity on February 11, 2016. We designated each of these interest rate cap contracts as a cash flow hedge for accounting purposes. | |
Effective August 22, 2013, the terms of this loan were amended to, among other changes, increase the outstanding balance from $92.0 million to $97.0 million and extend the maturity date from February 11, 2016 to February 11, 2018. The interest rate contracts described above were not changed in connection with this loan amendment. | |
On July 31, 2013, we closed a seven-year loan totaling $64.5 million with Union Bank, N.A., secured by our Met Park North property. The loan bears interest at a rate equal to one-month LIBOR plus 1.55%. The full loan is subject to an interest rate contract that swapped one-month LIBOR to a fixed rate of 2.1644% through the loan’s maturity on August 1, 2020. | |
The combined fair market value of the interest rate caps at December 31, 2014 and 2013 was $0.003 million and $0.192 million, respectively. The fair market value of the interest rate swap at December 31, 2014 was a $1.75 million liability. |
Future_Minimum_Base_Rents_and_
Future Minimum Base Rents and Future Minimum Lease Payments | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Future Minimum Base Rents and Lease Payments Future Minimum Rents [Abstract] | ||||||||||||
Future Minimum Base Rents and Future Minimum Lease Payments | Future Minimum Base Rents and Future Minimum Lease Payments | |||||||||||
Our properties are leased to tenants under operating leases with initial term expiration dates ranging from 2015 to 2020. Approximate future combined minimum rentals (excluding tenant reimbursements for operating expenses and without regard to cancellation options) for properties at December 31, 2014 are presented below for the years/periods ended December 31. The table below does not include rents under leases at our media and entertainment properties with terms of one year or less. | ||||||||||||
Future minimum base rents under our operating leases in each of the next five years and thereafter are as follows (in thousands): | ||||||||||||
Year Ended | Non-cancelable | Subject to early termination options | Total | |||||||||
2015 | $ | 170,355 | $ | 826 | $ | 171,181 | ||||||
2016 | 168,323 | 3,437 | 171,760 | |||||||||
2017 | 152,138 | 6,971 | 159,109 | |||||||||
2018 | 139,835 | 9,628 | 149,463 | |||||||||
2019 | 123,690 | 10,749 | 134,439 | |||||||||
Thereafter | 539,180 | 19,527 | 558,707 | |||||||||
Total | $ | 1,293,521 | $ | 51,138 | $ | 1,344,659 | ||||||
Future Minimum Lease Payments | ||||||||||||
In conjunction with the acquisition of the Sunset Gower property, our subsidiary, SGS Realty II, LLC, assumed a ground lease agreement (expiring March 31, 2060) with a related party for a portion of the land. As a result of the March 2011 rent adjustment, monthly rent increased to $31, whereas the monthly rent totaled $14 at the time of acquisition. The rental rate is subject to adjustment again in March 2018 and every seven years thereafter. | ||||||||||||
In conjunction with the acquisition of the Del Amo Office building, our subsidiary, Hudson Del Amo Office, LLC, assumed a ground sublease (expiring June 30, 2049) with an unrelated party. Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. | ||||||||||||
In conjunction with the acquisition of the 9300 Wilshire Boulevard building, our subsidiary, Hudson 9300 Wilshire, LLC, assumed a ground lease (expiring August 14, 2032) with an unrelated party. Minimum rent under the ground lease is $75 per year (additional rent under this lease of 6% of gross rentals less minimum rent, as defined in such lease, is not included in this amount). | ||||||||||||
In conjunction with the acquisition of the 222 Kearny Street building, our subsidiary, Hudson 222 Kearny, LLC, assumed a ground lease (expiring June 14, 2054) with an unrelated party. Minimum rent under the ground lease is the greater of $975 per year or 20.0% of the first $8,000 of the tenant’s “Operating Income” during any “Lease Year,” as such terms are defined in the ground lease. The table below reflects the $975 per year lease payment. | ||||||||||||
The following table provides information regarding our future minimum lease payments at December 31, 2014 under these lease agreements. | ||||||||||||
Year Ended | Future Minimum Lease Payments | |||||||||||
2015 | $ | 1,417 | ||||||||||
2016 | 1,417 | |||||||||||
2017 | 1,417 | |||||||||||
2018 | 1,417 | |||||||||||
2019 | 1,417 | |||||||||||
Thereafter | 49,408 | |||||||||||
Total | $ | 56,493 | ||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||
The carrying values of cash and cash equivalents, restricted cash, receivables, payables, and accrued liabilities are reasonable estimates of fair value because of the short-term maturities of these instruments. Fair values for notes payable are estimates based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs. The estimated fair values of interest-rate contract/cap arrangements were derived from estimated values based on observable market data for similar instruments. | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Value | Value | |||||||||||||||
Notes payable | $ | 960,508 | $ | 969,259 | $ | 931,308 | $ | 940,435 | ||||||||
Notes receivable | 28,268 | 28,268 | — | — | ||||||||||||
Derivative assets, disclosed as “Interest rate contracts” | 3 | 3 | 192 | 192 | ||||||||||||
Derivative liabilities, disclosed as “Interest rate contracts” | 1,750 | 1,750 | — | — | ||||||||||||
Equity
Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Equity | Equity | ||||||||||||||||
Non-controlling Interests | |||||||||||||||||
Common units in the Operating Partnership | |||||||||||||||||
Common units in the Operating Partnership consisted of 2,382,563 common units of partnership interests, or common units, not owned by us. Common units and shares of our common stock have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the Operating Partnership. Investors who own common units have the right to cause the Operating Partnership to redeem any or all of their common units for cash equal to the then-current market value of one share of common stock or, at our election, issue shares of our common stock in exchange for common units on a one-for-one basis. In February 2012, one of our common unit holders required us to redeem 155,878 common units, and in December 2012, one of our common unit holders required us to redeem 72,500 common units. In both cases, we elected, in accordance with our limited partnership agreement, to issue shares of our common stock in exchange for the common units to satisfy the redemption notice. Accordingly, our outstanding common units decreased from 2,610,941 common units outstanding to the current 2,382,563 common units outstanding, with a corresponding increase to our outstanding common stock as of the date of such exchanges, as reflected in the consolidated statements of equity under the caption “—Exchange of Non-Controlling Interest of Common Units in the Operating Partnership for Common Stock.” | |||||||||||||||||
Non-controlling interest—members in consolidated entities | |||||||||||||||||
Non-controlling interest—members in consolidated entities refers to our joint venture partner, Media Center Partners, LLC, with which we entered into a joint venture, Hudson MC Partners, LLC (the “Pinnacle JV”), to acquire The Pinnacle, a two-building (Pinnacle I and Pinnacle II), 625,640 square-foot office property located in Burbank, California. As of December 31, 2014, we own a 65.0% in the Pinnacle JV. As of December 31, 2012 and until the acquisition by the Pinnacle JV of the 231,864 square-foot Pinnacle II building on June 14, 2013, we owned a 98.25% interest in the Pinnacle JV, which owns the 393,776 square-foot Pinnacle I building. | |||||||||||||||||
6.25% series A cumulative redeemable preferred units of the Operating Partnership | |||||||||||||||||
6.25% series A cumulative redeemable preferred units of the Operating Partnership are 407,066 series A preferred units of partnership interest in the Operating Partnership, or series A preferred units, that are not owned by the Company. These series A preferred units are entitled to preferential distributions at a rate of 6.25% per annum on the liquidation preference of $25.00 per unit and became convertible at the option of the holder into common units or redeemable into cash or, at the Company's election, exchangeable for registered shares of common stock, after June 29, 2013. In October 2013, one of our series A preferred unit holders required us to redeem 80,000 series A preferred units. We elected to redeem these units for cash equal to the liquidation preference of $25.00 per unit. As a result of this redemption, our outstanding series A preferred units decreased from 419,014 units outstanding to 407,066 units outstanding. For a description of the conversion and redemption rights of the series A preferred units, please see “Description of the Partnership Agreement of Hudson Pacific Properties, L.P.—Material Terms of Our Series A Preferred Units” in our June 23, 2010 Prospectus. | |||||||||||||||||
8.375% Series B cumulative redeemable preferred stock | |||||||||||||||||
8.375% series B cumulative redeemable preferred stock are 5,800,000 shares of 8.375% preferred stock, with a liquidation preference of $25.00 per share, $0.01 par value per share. In December 2010, we completed the public offering of 3,500,000 share of our series B preferred stock (including 300,000 shares of series B preferred stock issued and sold pursuant to the exercise of the underwriters’ option to purchase additional shares in part). Total proceeds from the offering, after deducting underwriting discount, were approximately $83.9 million (before transaction costs). On January 23, 2012, we completed the public offering of 2,300,000 of our series B cumulative preferred stock (including 300,000 shares of series B preferred stock issued and sold pursuant to the exercise of the underwriters’ option to purchase additional shares in full). Total proceeds from the offering, after deducting underwriting discount, were approximately $57.5 million (before transaction costs). | |||||||||||||||||
Dividends on our series B preferred stock are cumulative from the date of original issue and payable quarterly on or about the last calendar day of each March, June, September and December, at the rate of 8.375% per annum of its $25.00 per share liquidation preference (equivalent to $2.0938 per share per annum). If, following a change of control of the Company, either our series B preferred stock (or any preferred stock of the surviving entity that is issued in exchange for our series B preferred stock) or the common stock of the surviving entity, as applicable, is not listed on the New York Stock Exchange, or NYSE, or quoted on the NASDAQ Stock Market, or NASDAQ (or listed or quoted on a successor exchange or quotation system), holders of our series B preferred stock will be entitled to receive cumulative cash dividends from, and including, the first date on which both the change of control occurred and either our series B preferred stock (or any preferred stock of the surviving entity that is issued in exchange for our series B preferred stock) or the common stock of the surviving entity, as applicable, is not so listed or quoted, at the increased rate of 12.375% per annum per share of the liquidation preference of our series B preferred stock (equivalent to $3.09375 per annum per share) for as long as either our series B preferred stock (or any preferred stock of the surviving entity that is issued in exchange for our series B preferred stock) or the common stock of the surviving entity, as applicable, is not so listed or quoted. Except in instances relating to preservation of our qualification as a REIT or in connection with a change of control of the Company, our series B preferred stock is not redeemable prior to December 10, 2015. On and after December 10, 2015, we may redeem our series B preferred stock in whole, at any time, or in part, from time to time, for cash at a redemption price of $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. If at any time following a change of control either our series B preferred stock (or any preferred stock of the surviving entity that is issued in exchange for our series B preferred stock) or the common stock of the surviving entity, as applicable, is not listed on the NYSE or quoted on NASDAQ (or listed or quoted on a successor exchange or quotation system), we will have the option to redeem our series B preferred stock, in whole but not in part, within 90 days after the first date on which both the change of control has occurred and either our series B preferred stock (or any preferred stock of the surviving entity that is issued in exchange for our series B preferred stock) or the common stock of the surviving entity, as applicable, is not so listed or quoted, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to, but not including, the redemption date. Our series B preferred stock has no maturity date and will remain outstanding indefinitely unless redeemed by us, and it is not subject to any sinking fund or mandatory redemption and is not convertible into any of our other securities. For a full description of the Series B cumulative redeemable preferred stock, please see “Description of our Preferred Stock” in our December 7, 2010 Prospectus. | |||||||||||||||||
May 2012 Common Stock Offering | |||||||||||||||||
On May 18, 2012, we completed the public offering of 13,225,000 shares of common stock and the exercise of the underwriters’ option to purchase an additional 1,725,000 shares of our common stock at the public offering price of $15.00 per share. Funds affiliated with Farallon Capital Management, L.L.C. acquired 2,000,000 of the shares of common stock offered in this offering. | |||||||||||||||||
Total proceeds from the public offering, after underwriters’ discount, were approximately $190.8 million (before transaction costs). | |||||||||||||||||
February 2013 Common Stock Offering | |||||||||||||||||
On February 12, 2013, we completed the public offering of 8,000,000 shares of common stock and the exercise of the underwriters’ option to purchase an additional 1,200,000 shares of our common stock at the public offering price of $21.50 per share. | |||||||||||||||||
Total proceeds from the public offering, after underwriters’ discount, were approximately $189.9 million (before transaction costs). | |||||||||||||||||
January 2014 Common Stock Offering | |||||||||||||||||
On January 28, 2014, we completed the public offering of 8,250,000 shares of common stock and the exercise of the underwriters’ option to purchase an additional 1,237,500 shares of our common stock at the public offering price of $21.50 per share, less the underwriting discount. | |||||||||||||||||
Total proceeds from the public offering, after underwriters’ discount, were approximately $195.8 million (before transaction costs). | |||||||||||||||||
At-the-Market, or ATM, program | |||||||||||||||||
During the fourth quarter of 2012, we instituted a new At-the-Market, or ATM, program permitting sales of up to $125.0 million of stock. During the year ended December 31, 2014, we sold 76,000 shares of common stock at prices ranging from $21.92 to $22.07 per share under this ATM program. During the year ended December 31, 2013, we sold 612,644 shares of common stock at prices ranging from $20.55 to $22.27 per share under this ATM program. A cumulative total of $14.5 million has been sold as of December 31, 2014. | |||||||||||||||||
Exchange of Common Units for Common Stock | |||||||||||||||||
In February 2012, we elected to issue 155,878 shares of our common stock in exchange for a corresponding number of | |||||||||||||||||
common units to satisfy the common unit redemption notice of Glenborough Fund XIV, L.P. | |||||||||||||||||
In December 2012, we elected to issue 72,500 shares of our common stock in exchange for a corresponding number of common units to satisfy the common unit redemption notice of Howard S. Stern. | |||||||||||||||||
Dividends | |||||||||||||||||
During the year ended December 31, 2014, we declared dividends on our common stock and non-controlling common partnership interests of $0.500 per share and unit. We also declared dividends on our series A preferred partnership interests of $1.5625 per unit. In addition, we declared dividends on our series B preferred shares of $2.09375 per share. The fourth quarter 2014 dividends were declared on December 19, 2014 and paid to holders of record on December 30, 2014. | |||||||||||||||||
Taxability of Dividends | |||||||||||||||||
Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, and compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation. | |||||||||||||||||
The Company’s dividends related to its common stock (CUSIP #444097109) and described above under “Dividends,” will be classified for United States federal income tax purposes as follows (unaudited): | |||||||||||||||||
Ordinary Dividends | |||||||||||||||||
Record Date | Payment Date | Distributions per Share | Total | Non-qualified | Qualified | Return of Capital | |||||||||||
3/21/14 | 3/31/14 | $ | 0.125 | $ | 0.05647 | $ | 0.05647 | $ | — | $ | 0.06853 | ||||||
6/20/14 | 6/30/14 | 0.125 | 0.05647 | 0.05647 | — | 0.06853 | |||||||||||
9/20/14 | 9/30/14 | 0.125 | 0.05647 | 0.05647 | — | 0.06853 | |||||||||||
12/19/14 | 12/30/14 | 0.125 | 0.05647 | 0.05647 | — | 0.06853 | |||||||||||
Total | $ | 0.5 | $ | 0.22588 | $ | 0.22588 | $ | — | $ | 0.27412 | |||||||
100 | % | 45.176 | % | 54.824 | % | ||||||||||||
The Company’s dividends related to its 8.375% Series B Cumulative Preferred Stock (CUSIP #444097208) and described above under “Dividends,” will be classified for United States federal income tax purposes as follows (unaudited): | |||||||||||||||||
Ordinary Dividends | |||||||||||||||||
Record Date | Payment Date | Distributions per Share | Total | Non-qualified | Qualified | ||||||||||||
3/21/14 | 3/31/14 | $ | 0.52344 | $ | 0.52344 | $ | 0.52344 | $ | — | ||||||||
6/20/14 | 6/30/14 | 0.52344 | 0.52344 | 0.52344 | — | ||||||||||||
9/20/14 | 9/30/14 | 0.52344 | 0.52344 | 0.52344 | — | ||||||||||||
12/19/14 | 12/30/14 | 0.52344 | 0.52344 | 0.52344 | — | ||||||||||||
Total | $ | 2.09376 | $ | 2.09376 | $ | 2.09376 | $ | — | |||||||||
Stock-Based Compensation | |||||||||||||||||
The Board of Directors awards restricted shares to non-employee board members on an annual basis as part of such board members’ annual compensation and to newly elected non-employee board members in accordance with our Board of Directors compensation program. The share-based awards are generally issued in the second quarter, and the individual share awards vest in equal annual installments over the applicable service vesting period, which is three years. | |||||||||||||||||
In addition, the Board of Directors awards restricted shares to employees on an annual basis as part of the employees’ annual compensation. The share-based awards are generally issued in the fourth quarter, and the individual share awards vest in equal annual installments over the applicable service vesting period, which is three years. These awards are generally subject to a two-year hold upon vesting. | |||||||||||||||||
The following table summarizes the restricted share activity for the year ended December 31, 2014 and status of all unvested restricted share awards to our non-employee board members and employees at December 31, 2014: | |||||||||||||||||
Non-vested Shares | Shares | Weighted-Average Grant-Date Fair Value | |||||||||||||||
Balance at December 31, 2012 | 632,344 | $ | 17.12 | ||||||||||||||
Granted | 263,039 | 22.16 | |||||||||||||||
Vested | (350,788 | ) | 16.5 | ||||||||||||||
Canceled | (3,415 | ) | 16.09 | ||||||||||||||
Balance at December 31, 2013 | 541,180 | $ | 19.98 | ||||||||||||||
Granted | 281,491 | 29.38 | |||||||||||||||
Vested | (275,051 | ) | 16.83 | ||||||||||||||
Canceled | (3,913 | ) | 20.44 | ||||||||||||||
Balance at December 31, 2014 | 543,707 | $ | 26.43 | ||||||||||||||
Year Ended December 31, | Non-Vested Shares Issued | Weighted Average Grant - dated Fair Value | Vested Shares | Total Vest-Date Fair Value (in thousands) | |||||||||||||
2014 | 281,491 | $ | 29.38 | (275,051 | ) | $ | 9,794 | ||||||||||
2013 | 263,039 | 22.16 | (350,788 | ) | 7,664 | ||||||||||||
2012 | 268,060 | 20.33 | (262,908 | ) | 5,096 | ||||||||||||
We recognize the total compensation expense for time-vested shares on a straight-line basis over the vesting period based on the fair value of the award on the date of grant. | |||||||||||||||||
Hudson Pacific Properties, Inc. Outperformance Programs | |||||||||||||||||
In each of 2012, 2013 and 2014, the Compensation Committee of our Board of Directors adopted a Hudson Pacific Properties, Inc. Outperformance Program (individually, the “2012 OPP,” the “2013 OPP” and the “2014 OPP” and, together, the “OPPs”). Participants in the 2012 OPP, 2013 OPP and 2014 OPP may earn, in the aggregate, up to $10 million, $11 million and $12 million, respectively, of stock-settled awards based on our Total stockholder Return, or TSR, for the three-year period beginning January 1 of the year in which the applicable OPP was adopted and ending December 31 of 2014, 2015 or 2016, respectively. | |||||||||||||||||
Under each OPP, participants will be entitled to share in a performance pool with a value, subject to the applicable dollar-denominated cap described above, equal to the sum of: (i) 4% of the amount by which our TSR during the applicable performance period exceeds 9% simple annual TSR (the “absolute TSR component”), plus (ii) 4% of the amount by which our TSR during the applicable performance period exceeds that of the SNL Equity REIT Index (determined on a percentage basis that is then multiplied by the sum of (A) our market capitalization on that date, plus (B) the aggregate per share dividend over the applicable performance period through such date) (the “relative TSR component”), except that the relative TSR component will be reduced on a linear basis from 100% to zero percent for absolute TSR ranging from 7% to zero percent simple annual TSR over the applicable performance period. In addition, the relative TSR component may be a negative value equal to 4% of the amount by which we underperform the SNL Equity REIT Index by more than 3% per year during the applicable performance period (if any). | |||||||||||||||||
With respect to the 2012 OPP, if we attain pro-rated TSR performance goals during 2012 and/or 2013 that yield hypothetical bonus pools of up to $2 million for 2012 performance and/or up to $4 million for combined 2012/2013 performance, stock awards issued under the final bonus pool at the end of the applicable performance period will cover a number of shares in the aggregate at least equal to the number of shares that would have been subject to stock awards issued at the end of 2012 or 2013 (whichever is greater) based on our TSR performance and common stock price for such prior years (subject to reduction to comply with the $10 million bonus pool limitation). Similarly, with respect to the 2013 OPP , if we attain pro-rated TSR performance goals during 2013 and/or 2014 that yield hypothetical bonus pools of up to $2 million for 2013 performance and/or up to $4 million for combined 2013/2014 performance, stock awards issued under the final bonus pool at the end of the applicable performance period will cover a number of shares in the aggregate at least equal to the number of shares that would have been subject to stock awards issued at the end of 2013 or 2014 (whichever is greater) based on our TSR performance and common stock price for such prior years (subject to reduction to comply with the $11 million bonus pool limitation). | |||||||||||||||||
At the end of the applicable three-year performance period, participants who remain employed with us will be paid their percentage interest in the bonus pool as stock awards based on the value of our common stock at the end of the performance period. Half of each such participant’s bonus pool interest will be paid in fully vested shares of our common stock and the other half will be paid in RSUs that vest in equal annual installments over the two years immediately following the applicable performance period (based on continued employment) and which carry tandem dividend equivalent rights. However, if the applicable performance period is terminated in connection with a change in control, OPP awards will be paid entirely in fully vested shares of our common stock immediately prior to the change in control. In addition to these share/RSU payments, each OPP award entitles its holder to a cash payment equal to the aggregate dividends that would have been paid during the applicable performance period on the total number of shares and RSUs ultimately issued or granted in respect of such OPP award, had such shares and RSUs been outstanding throughout the performance period. | |||||||||||||||||
If a participant’s employment is terminated without “cause,” for “good reason” or due to the participant’s death or disability during the applicable performance period (referred to as qualifying terminations), the participant will be paid his or her OPP award at the end of the performance period entirely in fully vested shares (except for the performance period dividend equivalent, which will be paid in cash at the end of the performance period). Any such payment will be pro-rated in the case of a termination without “cause” or for “good reason” by reference to the participant’s period of employment during the applicable performance period. If we experience a change in control or a participant experiences a qualifying termination of employment, in either case, after the end of the applicable performance period, any unvested RSUs that remain outstanding will accelerate and vest in full upon such event. | |||||||||||||||||
The cost of the 2012 OPP, the 2013 OPP and the 2014 OPP (approximately $3.49 million, $4.14 million and $3.21 million, respectively, subject to a forfeiture adjustment equal to 6%, 6% and 10%, respectively, of the total cost) will be amortized through the final vesting period under a graded vesting expense recognition schedule. | |||||||||||||||||
The 2012 OPP, 2013 OPP and 2014 OPP were valued, in accordance with ASC 718, at an aggregate of approximately $3.49 million, $4.14 million and $3.21 million, respectively, utilizing a Monte Carlo simulation to estimate the probability of the performance vesting conditions being satisfied. The Monte Carlo simulation used a statistical formula underlying the Black-Scholes and binomial formulas and such simulation was run 100,000 times. For each simulation, the payoff is calculated at the settlement date, which is then discounted to the award date at a risk-free interest rate. The average of the values over all simulations is the expected value of the unit on the award date. Assumptions used in the valuations included (1) factors associated with the underlying performance of the Company’s stock price and total stockholder return over the term of the performance awards including total stock return volatility and risk-free interest and (2) factors associated with the relative performance of the Company’s stock price and total stockholder return when compared to the SNL Equity REIT Index. The valuation was performed in a risk-neutral framework, so no assumption was made with respect to an equity risk premium. The fair value of the OPP awards is based on the sum of: (1) the present value of the expected payoff to the awards on the measurement date, if the TSR over the applicable measurement period exceeds performance hurdles of the absolute and the relative TSR components; and (2) the present value of the distributions payable on the awards. The ultimate reward realized on account of the OPP awards by the holders of the awards is contingent on the TSR achieved on the measurement date, both in absolute terms and relative to the TSR of the SNL Equity REIT Index. The per unit fair value of each 2012 OPP award, 2013 OPP award and 2014 OPP award was estimated on the date of grant using the following assumptions in the Monte Carlo valuation: expected price volatility for the Company and the SNL Equity REIT index of 36% and 35%, 33% and 25%, and 28% and 26%, respectively; a risk-free rate of 0.40%, 0.38% and 0.77%, respectively; and total dividend payments over the measurement period of $1.62, $1.50 and $1.50, respectively, per share. | |||||||||||||||||
For the years ended December 31, 2014 and 2013, $7,979 and $6,682, respectively, of non-cash compensation expense for all stock compensation was recognized as additional paid-in capital, of which $7,559 and $6,454, respectively, was included in general and administrative expenses, with the remaining $420 and $228, respectively, of stock compensation capitalized to tenant improvements and deferred leasing costs and lease intangibles, net. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
Effective July 31, 2012, we consented to the assignment of a lease with a tenant of our 222 Kearny Street property to its subtenant, FJM Investments, LLC. The lease comprises approximately 3,707 square feet of the property’s space and had an initial lease term through May 31, 2014. The lease was extended to May 31, 2015. The monthly rental obligation under the lease for the remaining period is $0.012 million, the base rent component. FJM Investments, LLC was co-founded by and is co-owned by one of our independent directors, Robert M. Moran, Jr. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Legal | |
From time to time, the Company is party to various lawsuits, claims and other legal proceedings arising out of, or incident to, our ordinary course of business. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. As of December 31, 2014, the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote. | |
Concentrations | |
As of December 31, 2014, the majority of the Company’s properties were located in California, which exposes the Company to greater economic risks than if it owned a more geographically dispersed portfolio. Further, for the years ended December 31, 2014 and 2013, approximately 16% and 20%, respectively, of the Company’s revenues were derived from tenants in the media and entertainment industry, which makes the Company susceptible to demand for rental space in such industry. Consequently, the Company is subject to the risks associated with an investment in real estate with a concentration of tenants in that industry. | |
Other | |
As of December 31, 2014, the Company has commitments to tenants to deliver space totaling $45.2 million. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment Reporting | Segment Reporting | |||||||||||
The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reporting segments: (i) office properties, and (ii) media and entertainment properties. The Company evaluates performance based upon property net operating income from continuing operations (“NOI”) of the combined properties in each segment. NOI is not a measure of operating results or cash flows from operating activities as measured by GAAP, is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. All companies may not calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental financial measure to net income because it helps both investors and management to understand the core operations of the Company’s properties. The Company defines NOI as operating revenues (including rental revenues, other property-related revenue, tenant recoveries and other operating revenues), less property-level operating expenses (which includes external management fees and property-level general and administrative expenses). NOI excludes corporate general and administrative expenses, depreciation and amortization, impairments, gain/loss on sale of real estate, interest expense, acquisition-related expenses and other non-operating items. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources. | ||||||||||||
Summary information for the reportable segments for the year ended December 31, 2014 is as follows: | ||||||||||||
Office Properties | Media and Entertainment | Total | ||||||||||
Properties | ||||||||||||
Revenue | $ | 213,786 | $ | 39,629 | $ | 253,415 | ||||||
Operating expenses | 78,372 | 25,897 | 104,269 | |||||||||
Net operating income | $ | 135,414 | $ | 13,732 | $ | 149,146 | ||||||
Summary information for the reportable segments for the year ended December 31, 2013 is as follows: | ||||||||||||
Office Properties | Media and Entertainment | Total | ||||||||||
Properties | ||||||||||||
Revenue | $ | 165,441 | $ | 40,117 | $ | 205,558 | ||||||
Operating expenses | 63,434 | 24,149 | 87,583 | |||||||||
Net operating income | $ | 102,007 | $ | 15,968 | $ | 117,975 | ||||||
Summary information for the reportable segments for the year ended December 31, 2012 is as follows: | ||||||||||||
Office Properties | Media and Entertainment | Total | ||||||||||
Properties | ||||||||||||
Revenue | $ | 120,328 | $ | 40,133 | $ | 160,461 | ||||||
Operating expenses | 50,599 | 24,340 | 74,939 | |||||||||
Net operating income | $ | 69,729 | $ | 15,793 | $ | 85,522 | ||||||
The following is reconciliation from NOI to reported net income, the most direct comparable financial measure calculated and presented in accordance with GAAP: | ||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||
Net operating income | $ | 149,146 | $ | 117,975 | $ | 85,522 | ||||||
General and administrative | (28,253 | ) | (19,952 | ) | (16,497 | ) | ||||||
Depreciation and amortization | (72,216 | ) | (70,063 | ) | (54,758 | ) | ||||||
Interest expense | (25,932 | ) | (25,470 | ) | (19,071 | ) | ||||||
Interest income | 30 | 272 | 306 | |||||||||
Acquisition-related expenses | (4,641 | ) | (1,446 | ) | (1,051 | ) | ||||||
Other expense | 14 | 99 | 92 | |||||||||
Income (loss) from continuing operations before gain on sale of real estate | $ | 18,148 | $ | 1,415 | $ | (5,457 | ) | |||||
There were no inter-segment sales or transfers during either of the years ended December 31, 2014 and 2013. |
Quarterly_Financial_Informatio
Quarterly Financial Information (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited) | |||||||||||||||
Three months ended | ||||||||||||||||
December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | |||||||||||||
Total revenues | $ | 68,787 | $ | 68,155 | $ | 62,129 | $ | 55,596 | ||||||||
Income from operations | 11,640 | 12,622 | 13,195 | 11,220 | ||||||||||||
Net (loss) income from discontinued operations | — | (38 | ) | (60 | ) | (66 | ) | |||||||||
Net income (loss) | 885 | 11,415 | 6,689 | 4,533 | ||||||||||||
Net (loss) income attributable to Hudson Pacific Properties, Inc. stockholders’ | $ | (2,290 | ) | $ | 7,620 | $ | 3,365 | $ | 1,260 | |||||||
Net loss (income) from continuing operations attributable to common stockholders’ per share— basic and diluted | $ | (0.03 | ) | $ | 0.11 | $ | 0.05 | $ | 0.02 | |||||||
Net (loss) income from discontinued operations per share— basic and diluted | $ | — | $ | — | $ | — | $ | — | ||||||||
Net loss attributable to common stockholders’ per share— basic and diluted | $ | (0.03 | ) | $ | 0.11 | $ | 0.05 | $ | 0.02 | |||||||
Weighted average shares of common stock outstanding— basic and diluted | 66,512,651 | 66,506,179 | 66,485,639 | 63,625,751 | ||||||||||||
Three months ended | ||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | |||||||||||||
Total revenues | $ | 57,417 | $ | 53,348 | $ | 47,390 | $ | 47,403 | ||||||||
Income from operations | 10,407 | 5,170 | 7,314 | 3,668 | ||||||||||||
Net (loss) income from discontinued operations | (37 | ) | (155 | ) | (4,552 | ) | 735 | |||||||||
Net income (loss) | 3,269 | (2,752 | ) | (3,428 | ) | 317 | ||||||||||
Net loss attributable to Hudson Pacific Properties, Inc. stockholders’ | $ | (83 | ) | $ | (5,694 | ) | $ | (6,184 | ) | $ | (2,872 | ) | ||||
Net loss (income) from continuing operations attributable to common stockholders’ per share— basic and diluted | $ | — | $ | (0.10 | ) | $ | (0.03 | ) | $ | (0.07 | ) | |||||
Net (loss) income from discontinued operations per share— basic and diluted | $ | — | $ | — | $ | (0.08 | ) | $ | 0.01 | |||||||
Net loss attributable to common stockholders’ per share— basic and diluted | $ | — | $ | (0.10 | ) | $ | (0.11 | ) | $ | (0.06 | ) | |||||
Weighted average shares of common stock outstanding— basic and diluted | 56,271,285 | 56,144,099 | 56,075,747 | 52,184,280 | ||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
1455 Market Street Joint Venture | |
On January 7, 2015, we entered into a joint venture with Canada Pension Plan Investment Board ("CPPIB"), through which CPPIB purchased a 45% interest in our 1455 Market Street office property for a purchase price of $219.2 million (before certain credits, proration and closing costs). | |
. | |
January 2015 Common Stock Offering | |
On January 20, 2015, we completed the public offering of 11,000,000 shares of common stock and the exercise of the underwriters’ over-allotment option to purchase an additional 1,650,000 shares of our common stock at the public offering price of $31.75 per share. Total proceeds from the public offering, after underwriters’ discount, were approximately $385.2 million (before transaction costs). | |
Hudson Pacific Properties, Inc. 2015 Outperformance Program | |
The Compensation Committee adopted the 2015 Outperformance Program ("OPP") under our 2010 Incentive Award Plan. The OPP authorizes grants of incentive awards linked to our absolute and relative total stockholder return ("TSR") over the performance period beginning on January 1, 2015 and ending on the earlier to occur of December 31, 2017 or the date on which we experience a change in control. Each OPP award confers a percentage participation right in a dollar-denominated, stock-settled bonus pool, as well as certain dividend equivalent rights. Upon adoption of the OPP, the Compensation Committee granted Victor J. Coleman, Mark T. Lammas, Christopher Barton and Alex Vouvalides, each of whom is a named executive officer, OPP awards of 22.4%, 12%, 8% and 10%, respectively. | |
Under the OPP, a bonus pool of up to (but not exceeding) $15 million will be determined at the end of the performance period as the sum of: (i) 4% of the amount by which our TSR during the performance period exceeds 9% simple annual TSR (the absolute TSR component), plus (ii) 4% of the amount by which our TSR performance exceeds that of the SNL Equity REIT Index (on a percentage basis) over the performance period (the relative TSR component), except that the relative TSR component will be reduced on a linear basis from 100% to 0% for absolute TSR performance ranging from 7% to 0% simple annual TSR over the performance period. In addition, the relative TSR component may be a negative value equal to 4% of the amount by which we underperform the SNL Equity REIT Index by more than 3% per year during the performance period (if any). The target bonus pool is equal to $3.6 million, which would be attained if the Company achieves during the performance period (i) a TSR is equal to that of the SNL Equity REIT Index and (ii) a 10.5% simple annual TSR. | |
At the end of the three-year performance period, participants who remain employed with us will be paid their percentage interest in the bonus pool as stock awards based on the value of our common stock at the end of the performance period. Half of each such participant’s bonus pool interest will be paid in fully vested shares of our common stock and the other half will be paid in restricted stock units (RSUs) that vest in equal annual installments over the two years immediately following the performance period (based on continued employment) and carry tandem dividend equivalent rights. However, if the performance period is terminated prior to December 31, 2017 in connection with a change in control, OPP awards will be paid entirely in fully vested shares of our common stock immediately prior to the change in control. In addition to these share/RSU payments, each OPP award entitles its holder to a cash payment equal to the aggregate dividends that would have been paid during the performance period on the total number of shares and RSUs ultimately issued or granted in respect of such OPP award, had such shares and RSUs been outstanding throughout the performance period. | |
If a participant’s employment is terminated without “cause,” for “good reason” or due to the participant’s death or disability during the performance period (referred to as qualifying terminations), the participant will be paid his or her OPP award at the end of the performance period entirely in fully vested shares (except for the performance period dividend equivalent, which will be paid in cash at the end of the performance period). Any such payment will be pro-rated in the case of a termination without “cause” or for “good reason” by reference to the participant’s period of employment during the performance period. If we experience a change in control or a participant experiences a qualifying termination of employment, in either case, after December 31, 2017, any unvested RSUs that remain outstanding will accelerate and vest in full upon such event. |
Schedule_III_Consolidated_Real
Schedule III - Consolidated Real Estate and Accumulated Depreciation | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule III Consolidated Real Estate and Accumulated Depreciation | Schedule III - Consolidated Real Estate and Accumulated Depreciation | ||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Initial Costs | Cost Capitalized Subsequent to Acquisition | Gross Carrying Amount at | Accumulated Depreciation at December 31, 2014 | Year Built / Renovated | Year Acquired | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Property name | Encumbrances at December, 31 2014 | Land | Building & Improvements | Improvements | Carrying Costs | Land | Building & All Improvements | Total | |||||||||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||||||||||||||||
Technicolor Building(1) | $ | — | $ | 6,599 | $ | 27,187 | $ | 25,460 | $ | 3,088 | $ | 6,599 | $ | 55,735 | $ | 62,334 | $ | (13,316 | ) | 2008 | 2007 | ||||||||||||||||||||
875 Howard Street Property(1) | — | 18,058 | 41,046 | 12,436 | 1,180 | 18,058 | 54,662 | 72,720 | (12,408 | ) | Various | 2007 | |||||||||||||||||||||||||||||
Del Amo | — | — | 18,000 | 1,167 | — | — | 19,167 | 19,167 | (2,656 | ) | 1986 | 2010 | |||||||||||||||||||||||||||||
9300 Wilshire | — | — | 10,718 | 696 | — | — | 11,414 | 11,414 | (1,427 | ) | 1965/2001 | 2010 | |||||||||||||||||||||||||||||
222 Kearny(1) | — | 7,563 | 23,793 | 2,768 | — | 7,563 | 26,561 | 34,124 | (3,349 | ) | Various | 2010 | |||||||||||||||||||||||||||||
Rincon Center | 104,126 | 58,251 | 110,656 | 11,763 | — | 58,251 | 122,419 | 180,670 | (14,755 | ) | 1985 | 2010 | |||||||||||||||||||||||||||||
1455 Market(1) | — | 41,226 | 34,990 | 25,934 | — | 41,226 | 60,924 | 102,150 | (1,419 | ) | 1977 | 2010 | |||||||||||||||||||||||||||||
10950 Washington | 28,866 | 17,979 | 25,110 | 416 | — | 17,979 | 25,526 | 43,505 | (3,329 | ) | Various | 2010 | |||||||||||||||||||||||||||||
604 Arizona(1) | — | 5,620 | 14,745 | 1,384 | — | 5,620 | 16,129 | 21,749 | (1,385 | ) | 1950 | 2011 | |||||||||||||||||||||||||||||
275 Brannan Street | 15,000 | 4,187 | 8,063 | 14,026 | 1,115 | 4,187 | 23,204 | 27,391 | (1,811 | ) | 1906 | 2011 | |||||||||||||||||||||||||||||
625 Second Street(1) | — | 10,744 | 42,650 | (70 | ) | — | 10,744 | 42,580 | 53,324 | (4,267 | ) | 1905 | 2011 | ||||||||||||||||||||||||||||
6922 Hollywood | — | 16,608 | 72,392 | 3,835 | — | 16,608 | 76,227 | 92,835 | (7,551 | ) | 1965 | 2011 | |||||||||||||||||||||||||||||
10900 Washington | — | 1,400 | 1,200 | 735 | — | 1,400 | 1,935 | 3,335 | (209 | ) | 1,973 | 2012 | |||||||||||||||||||||||||||||
901 Market Street | 49,600 | 17,882 | 79,305 | 13,719 | — | 17,882 | 93,024 | 110,906 | (6,300 | ) | 1912/1985 | 2012 | |||||||||||||||||||||||||||||
Element LA | 59,490 | 79,769 | 19,755 | 69,529 | 9,225 | 79,769 | 98,509 | 178,278 | (113 | ) | 1949 | 2012, 2013 | |||||||||||||||||||||||||||||
Pinnacle I | 129,000 | 28,518 | 171,657 | 3,976 | — | 28,518 | 175,633 | 204,151 | (10,961 | ) | 2002 | 2012 | |||||||||||||||||||||||||||||
Pinnacle II | 87,421 | 15,430 | 115,537 | 208 | — | 15,430 | 115,745 | 131,175 | (5,298 | ) | 2005 | 2013 | |||||||||||||||||||||||||||||
3401 Exposition | — | 14,120 | 11,319 | 9,953 | 1,028 | 14,120 | 22,300 | 36,420 | (81 | ) | 1961 | 2013 | |||||||||||||||||||||||||||||
First & King | — | 35,899 | 184,437 | 5,619 | — | 35,899 | 190,056 | 225,955 | (7,751 | ) | 1904/2009 | 2013 | |||||||||||||||||||||||||||||
Met Park North | 64,500 | 28,996 | 71,768 | 499 | — | 28,996 | 72,267 | 101,263 | (3,011 | ) | 2000 | 2013 | |||||||||||||||||||||||||||||
Northview | — | 4,803 | 41,191 | 151 | — | 4,803 | 41,342 | 46,145 | (2,354 | ) | 1991 | 2013 | |||||||||||||||||||||||||||||
3402 Pico | — | 16,410 | 2,136 | 1,066 | 627 | 16,410 | 3,829 | 20,239 | — | 1950 | 2014 | ||||||||||||||||||||||||||||||
Merrill Place | 27,684 | 29,824 | 1,539 | 2 | 27,684 | 31,365 | 59,049 | (1,307 | ) | Various | 2014 | ||||||||||||||||||||||||||||||
Jefferson | 6,040 | 31,960 | 73 | — | 6,040 | 32,033 | 38,073 | — | 1985 | 2014 | |||||||||||||||||||||||||||||||
Icon | — | — | — | 13,121 | 84 | — | 13,205 | 13,205 | — | Ongoing | 2008 | ||||||||||||||||||||||||||||||
Initial Costs | Cost Capitalized subsequent to Acquisition | Gross Carrying Amount at | Accumulated Depreciation at December 31, 2014(3) | Year Built / Renovated | Year Acquired | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Property name | Encumbrances at December, 31 2014 | Land | Building & Improvements | Improvements | Carrying Costs | Land | Building & All Improvements | Total | |||||||||||||||||||||||||||||||||
Media & Entertainment | |||||||||||||||||||||||||||||||||||||||||
Sunset Gower(2) | 97,000 | 79,321 | 64,697 | 15,685 | 139 | 79,321 | 80,521 | 159,842 | (15,856 | ) | Various | 2007, 2011, 2012 | |||||||||||||||||||||||||||||
Sunset Bronson(2) | — | 77,698 | 32,374 | 11,682 | 122 | 77,698 | 44,178 | 121,876 | (13,743 | ) | Various | 2008 | |||||||||||||||||||||||||||||
Total | $ | 635,003 | $ | 620,805 | $ | 1,286,510 | $ | 247,370 | $ | 16,610 | $ | 620,805 | $ | 1,550,490 | $ | 2,171,295 | $ | (134,657 | ) | ||||||||||||||||||||||
Real estate held for sale: | |||||||||||||||||||||||||||||||||||||||||
First Financial | 42,449 | 8,115 | 52,137 | 8,194 | — | 8,115 | 60,331 | 68,446 | (7,904 | ) | 1986 | 2010 | |||||||||||||||||||||||||||||
$ | 677,452 | $ | 628,920 | $ | 1,338,647 | $ | 255,564 | $ | 16,610 | $ | 628,920 | $ | 1,610,821 | $ | 2,239,741 | $ | (142,561 | ) | |||||||||||||||||||||||
______________________________ | |||||||||||||||||||||||||||||||||||||||||
-1 | These properties are secured under our line of credit, which, as of December 31, 2014, has an outstanding balance of $130,000. | ||||||||||||||||||||||||||||||||||||||||
-2 | Effective August 22, 2013, the terms of this loan were amended to increase the outstanding balance from $92,000 to $97,000, reduce the interest rate from LIBOR plus 3.50% to LIBOR plus 2.25%, and extend the maturity date from February 11, 2016 to February 11, 2018. | ||||||||||||||||||||||||||||||||||||||||
-3 | The Company computes depreciation using the straight-line method over the estimated useful lives of 39 years for building and improvements, 15 years for land improvements, and over the shorter of asset life or life of the lease for tenant improvements. | ||||||||||||||||||||||||||||||||||||||||
The aggregate gross cost of property included above for federal income tax purposes approximated $2.2 billion, unaudited as of December 31, 2014. | |||||||||||||||||||||||||||||||||||||||||
The following table reconciles the historical cost of total real estate held for investment and accumulated depreciation from January 1, 2012 to December 31, 2014: | |||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||
Total Investment in real estate, beginning of year | $ | 2,035,330 | $ | 1,475,955 | $ | 1,060,504 | |||||||||||||||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||||||||||||||||||
Acquisitions | 114,008 | 538,322 | 390,370 | ||||||||||||||||||||||||||||||||||||||
Improvements, capitalized costs | 128,018 | 89,707 | 27,901 | ||||||||||||||||||||||||||||||||||||||
Total additions during period | 242,026 | 628,029 | 418,271 | ||||||||||||||||||||||||||||||||||||||
Deductions during period | |||||||||||||||||||||||||||||||||||||||||
Disposal (fully depreciated assets and early terminations) | (23,977 | ) | (9,638 | ) | (2,820 | ) | |||||||||||||||||||||||||||||||||||
Cost of property sold | (13,638 | ) | (59,016 | ) | — | ||||||||||||||||||||||||||||||||||||
Total deductions during period | (37,615 | ) | (68,654 | ) | (2,820 | ) | |||||||||||||||||||||||||||||||||||
Ending balance, before reclassification to assets associated with real estate held for sale | 2,239,741 | 2,035,330 | 1,475,955 | ||||||||||||||||||||||||||||||||||||||
Reclassification to assets associated with real estate held for sale | (68,446 | ) | (82,305 | ) | — | ||||||||||||||||||||||||||||||||||||
Total Investment in real estate, end of year | $ | 2,171,295 | $ | 1,953,025 | $ | 1,475,955 | |||||||||||||||||||||||||||||||||||
Total accumulated depreciation, beginning of year | $ | (116,342 | ) | $ | (85,184 | ) | $ | (53,329 | ) | ||||||||||||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||||||||||||||||||
Depreciation of real estate | (50,044 | ) | (41,454 | ) | (34,675 | ) | |||||||||||||||||||||||||||||||||||
Total additions during period | (50,044 | ) | (41,454 | ) | (34,675 | ) | |||||||||||||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||||||||||||||||||
Deletions | 22,310 | 4,837 | 2,820 | ||||||||||||||||||||||||||||||||||||||
Write-offs due to sale | 1,515 | 5,459 | — | ||||||||||||||||||||||||||||||||||||||
Total deductions during period | 23,825 | 10,296 | 2,820 | ||||||||||||||||||||||||||||||||||||||
Ending balance, before reclassification to assets associated with real estate held for sale | (142,561 | ) | (116,342 | ) | $ | (85,184 | ) | ||||||||||||||||||||||||||||||||||
Reclassification to assets associated with real estate held for sale | 7,904 | 7,931 | — | ||||||||||||||||||||||||||||||||||||||
Total accumulated depreciation, end of year | $ | (134,657 | ) | $ | (108,411 | ) | $ | (85,184 | ) |
Schedule_IV_Mortgage_Loans_on_
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||
Mortgage Loans on Real Estate, by Loan Disclosure | Schedule IV - Mortgage Loan on Real Estate | ||||||||||||||||||
December 31, 2014 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Description | Interest Rate | Final Maturity Date | Periodic Payment Terms | Prior Liens | Face Amount of Mortgage | Carrying Amount of Mortgage | Principal Amount of Loans Subject to Delinquent Principal or Interest | ||||||||||||
Subordinated debt: | |||||||||||||||||||
Office - Los Angeles, CA | 11% | 8/18/16 | Interest Only | — | $ | 28,528 | $ | 28,268 | — | ||||||||||
Total | $ | 28,528 | $ | 28,268 | |||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, its accrued liabilities, and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. | ||
Investment in Real Estate Properties | Investment in Real Estate Properties | |
The properties are carried at cost less accumulated depreciation and amortization. The Company assigns the cost of an acquisition, including the assumption of liabilities, to the acquired tangible assets and identifiable intangible assets and liabilities based on their estimated fair values in accordance with GAAP. The Company assesses fair value based on estimated cash flow projections that utilize discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it was vacant. | ||
Acquisition-related expenses associated with acquisition of operating properties are expensed in the period incurred. | ||
The Company records acquired “above and below” market leases at fair value using discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, legal and other related costs. | ||
The Company capitalizes direct construction and development costs, including predevelopment costs, interest, property taxes, insurance and other costs directly related and essential to the acquisition, development or construction of a real estate project. Indirect development costs, including salaries and benefits, office rent, and associated costs for those individuals directly responsible for and who spend their time on development activities are also capitalized and allocated to the projects to which they relate. Capitalized personnel costs were approximately $3.1 million and $1.9 million for the years ended December 31, 2014 and 2013, respectively. Interest is capitalized on the construction in progress at a rate equal to the Company’s weighted average cost of debt. Capitalized interest was approximately $6.9 million and $4.6 million for the years ended December 31, 2014 and 2013, respectively. Construction and development costs are capitalized while substantial activities are ongoing to prepare an asset for its intended use. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of tenant improvements but no later than one year after cessation of major construction activity. Costs incurred after a project is substantially complete and ready for its intended use, or after development activities have ceased, are expensed as they are incurred. Costs previously capitalized related to abandoned acquisitions or developments are charged to earnings. Expenditures for repairs and maintenance are expensed as they are incurred. | ||
Depreciation | The Company computes depreciation using the straight-line method over the estimated useful lives of 39 years for building and improvements, 15 years for land improvements, 5 or 7 years for furniture and fixtures and equipment, and over the shorter of asset life or life of the lease for tenant improvements. Above- and below-market lease intangibles are amortized to revenue over the remaining non-cancellable lease terms and bargain renewal periods, if applicable. Other in-place lease intangibles are amortized to expense over the remaining non-cancellable lease term. Depreciation is discontinued when a property is identified as held for sale. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | |
The Company assesses the carrying value of real estate assets and related intangibles whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value of the properties. Properties held for sale are recorded at the lower of cost or estimated fair value less cost to sell. | ||
Goodwill | Goodwill | |
Goodwill represents the excess of acquisition cost over the fair value of net tangible and identifiable intangible assets acquired and liabilities assumed in business combinations. Our goodwill balance as of December 31, 2014 and 2013, respectively, was $8.8 million. We do not amortize this asset but instead analyze it on an annual basis for impairment. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents are defined as cash on hand and in banks, plus all short-term investments with a maturity of three months or less when purchased. | ||
The Company maintains some of its cash in bank deposit accounts that, at times, may exceed the federally insured limit. No losses have been experienced related to such accounts. | ||
Restricted Cash | Restricted Cash | |
Restricted cash consists of amounts held by lenders to provide for future real estate taxes and insurance expenditures, repairs and capital improvements reserves, general and other reserves and security deposits. | ||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts | |
Accounts receivable consist of amounts due for monthly rents and other charges. The Company maintains an allowance for doubtful accounts for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments. The Company monitors the liquidity and creditworthiness of its tenants and operators on an ongoing basis. This evaluation considers industry and economic conditions, property performance, credit enhancements and other factors. For straight-line rent amounts, the Company’s assessment is based on amounts estimated to be recoverable over the term of the lease. At December 31, 2014 and 2013, respectively, the Company has reserved $0.6 million and $0.3 million of straight-line receivables. The Company evaluates the collectability of accounts receivable based on a combination of factors. The allowance for doubtful accounts is based on specific identification of uncollectible accounts and the Company’s historical collection experience. The Company recognizes an allowance for doubtful accounts based on the length of time the receivables are past due, the current business environment and the Company’s historical experience. Historical experience has been within management’s expectations. | ||
Revenue Recognition | Revenue Recognition | |
The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: | ||
• | whether the lease stipulates how and on what a tenant improvement allowance may be spent; | |
• | whether the tenant or landlord retains legal title to the improvements at the end of the lease term; | |
• | whether the tenant improvements are unique to the tenant or general-purpose in nature; and | |
• | whether the tenant improvements are expected to have any residual value at the end of the lease. | |
Certain leases provide for additional rents contingent upon a percentage of the tenant’s revenue in excess of specified base amounts or other thresholds. Such revenue is recognized when actual results reported by the tenant, or estimates of tenant results, exceed the base amount or other thresholds. Such revenue is recognized only after the contingency has been removed (when the related thresholds are achieved), which may result in the recognition of rental revenue in periods subsequent to when such payments are received. | ||
Other property-related revenue is revenue that is derived from the tenants’ use of lighting, equipment rental, parking, power, HVAC and telecommunications (phone and Internet). Other property-related revenue is recognized when these items are provided. | ||
Tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. | ||
The Company recognizes gains on sales of properties upon the closing of the transaction with the purchaser. Gains on properties sold are recognized using the full accrual method when (i) the collectability of the sales price is reasonably assured, (ii) the Company is not obligated to perform significant activities after the sale, (iii) the initial investment from the buyer is sufficient and (iv) other profit recognition criteria have been satisfied. Gains on sales of properties may be deferred in whole or in part until the requirements for gain recognition have been met. | ||
Deferred Financing Costs | Deferred Financing Costs | |
Deferred financing costs are amortized over the term of the respective loan. | ||
Derivative Financial Instruments | Derivative Financial Instruments | |
The Company manages interest rate risk associated with borrowings by entering into interest rate derivative contracts. The Company recognizes all derivatives on the consolidated balance sheet at fair value. Derivatives that are not hedges are adjusted to fair value and the changes in fair value are reflected as income or expense. If the derivative is a hedge, depending on the nature of the hedge, changes in the fair value of derivatives are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in other comprehensive income (loss), which is a component of equity. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. | ||
Stock Based Compensation | Stock-Based Compensation | |
Accounting Standard Codification, or ASC, Topic 718, Compensation—Stock Compensation (referred to as ASC Topic 718), requires us to recognize an expense for the fair value of equity-based compensation awards. Grants of stock options, restricted stock, restricted stock units and performance units under our equity incentive award plans are accounted for under ASC Topic 718. | ||
Income Taxes | Income Taxes | |
Our property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entity that owns the 1455 Market Street property, a REIT) for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities. | ||
We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with our taxable year ended December 31, 2010. To qualify as a REIT, we are required to distribute at least 90% of our net taxable income, excluding net capital gains, to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided that we continue to qualify for taxation as a REIT, we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders. If we fail to qualify as a REIT in any taxable year, and are unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. | ||
We have elected, together with one of our subsidiaries, to treat such subsidiary as a taxable REIT subsidiary (“TRS”) for federal income tax purposes. Certain activities that we may undertake, such as non-customary services for our tenants and holding assets that we cannot hold directly, will be conducted by a TRS. A TRS is subject to federal and, where applicable, state income taxes on its net income. | ||
The Company is subject to the statutory requirements of the states in which it conducts business. | ||
The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of December 31, 2014, the Company has not established a liability for uncertain tax positions. | ||
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities | |
Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: | ||
• | Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; | |
• | Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and | |
• | Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. | |
When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. | ||
Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. | ||
The Company considers the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market). | ||
The Company considers the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. | ||
The Company’s interest rate contract agreements are classified as Level 2 and their fair value is derived from estimated values obtained from observable market data for similar instruments. | ||
Recently Issued Accounting Literature | Recently Issued Accounting Literature | |
Changes to GAAP are established by the FASB in the form of ASUs. We consider the applicability and impact of all ASUs. Recently issued ASUs not listed below are not expected to have a material impact on our consolidated financial position and results of operations, because either the ASU is not applicable or the impact is expected to be immaterial. | ||
On June 19, 2014, the FASB issued their final standard to amend the accounting guidance for stock compensation tied to performance targets (ASU No. 2014-12). The issue is the result of a consensus of the FASB Emerging Issues Task Force (Issue No. 13-D). The standard requires that a performance target that could be achieved after the requisite service period be treated as a performance condition, and as a result, this type of performance condition may delay expense recognition until achievement of the performance target is probable. The ASU is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015, and early adoption is permitted. The Company will adopt the guidance effective January 1, 2016 and the guidance is not expected to have a material impact on our consolidated financial statements or notes to our consolidated financial statements. | ||
On May 28, 2014, the FASB issued their final standard on revenue from contracts with customers. The guidance specifically notes that lease contracts with customers are a scope exception. The standard (ASU No. 2014-09) outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. The ASU is effective for annual reporting periods (including interim periods) beginning after December 15, 2016, and early adoption is not permitted. The Company will adopt the guidance effective January 1, 2017 and is currently assessing the impact on our consolidated financial statements and notes to our consolidated financial statements. | ||
On April 10, 2014, the FASB issued final guidance to change the criteria for reporting discontinued operations while enhancing disclosures in this area (ASU No. 2014-08). Under the new guidance, only disposals representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The guidance also expands the disclosure requirements for discontinued operations and adds new disclosures for individually significant dispositions that do not qualify as discontinued operations. The guidance will be applied prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The guidance is effective for annual financial statements with fiscal years beginning on or after December 15, 2014 with early adoption permitted for disposals or classifications as held for sale that have not been reported in financial statements previously issued or available for issuance. As of January 1, 2014, we have early adopted the amended guidance and it resulted in the sale of Tierrasanta and the First Financial properties held for sale, not meeting the definition of a discontinued operation. As a result, the Company did not reclassify the properties' operations including the $5.5 million gain on sale of real estate into discontinued operations for the years ended December 31, 2014, 2013 and 2012. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||
Schedule of Accounts Receivable Net of Allowance for Uncollectible Tenant Receivables | The following summarizes our accounts receivable net of allowance for doubtful accounts as of: | |||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||
Accounts receivable | $ | 17,287 | $ | 9,898 | ||||||||||||||
Allowance for doubtful accounts | (1,040 | ) | (1,036 | ) | ||||||||||||||
Accounts receivable, net | $ | 16,247 | $ | 8,862 | ||||||||||||||
Schedule of Interest Rate Derivatives | As of December 31, 2014, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: | |||||||||||||||||
Interest Rate Derivative | Number of Instruments | Notional Amount | ||||||||||||||||
Interest Rate Caps | 2 | $92.0 million | ||||||||||||||||
Interest Rate Swaps | 1 | $64.5 million | ||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of December 31, 2014 and 2013. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets. | |||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Fair Value as of | Fair Value as of | |||||||||||||||||
Balance Sheet Location | December 31, 2014 | December 31, 2013 | Balance Sheet Location | December 31, 2014 | December 31, 2013 | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Interest rate products | Interest rate contracts | $ | 3 | $ | 192 | Interest rate contracts | $ | 1,750 | — | |||||||||
Total | $ | 3 | $ | 192 | 1,750 | — | ||||||||||||
Schedule of Derivative Instruments, Gain (Loss) on the Income Statement | The tables below present the effect of the Company’s derivative financial instruments on the Statement of Operations for the years ended December 31, 2014 and 2013. | |||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Beginning Balance of OCI related to interest rate contracts | $ | 1,162 | $ | 1,465 | $ | 1,036 | ||||||||||||
Unrealized Loss Recognized in OCI Due to Change in Fair Value of interest rate contracts | 1,939 | (121 | ) | 457 | ||||||||||||||
Loss Reclassified from OCI into Income (as Interest Expense) | (440 | ) | (182 | ) | (28 | ) | ||||||||||||
Net Change in OCI | $ | 1,499 | $ | (303 | ) | $ | 429 | |||||||||||
Ending Balance of Accumulated OCI Related to Derivatives | $ | 2,661 | $ | 1,162 | $ | 1,465 | ||||||||||||
Allocation of OCI, non-controlling interests | (218 | ) | (165 | ) | (178 | ) | ||||||||||||
Accumulated other comprehensive deficit | $ | 2,443 | $ | 997 | $ | 1,287 | ||||||||||||
Investment_in_Real_Estate_Tabl
Investment in Real Estate (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||
Schedule of Real Estate Investment Property | A summary of the activity of our investment in real estate including investment in real estate held for sale (First Financial, Tierrasanta and City Plaza) is as follows: | |||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Investment in real estate | ||||||||||||||||||||||||
Beginning balance | $ | 2,035,330 | $ | 1,475,955 | $ | 1,060,504 | ||||||||||||||||||
Acquisitions | 114,008 | 538,322 | 390,370 | |||||||||||||||||||||
Improvements, capitalized costs | 128,018 | 89,707 | 27,901 | |||||||||||||||||||||
Disposal | (37,615 | ) | (9,638 | ) | (2,820 | ) | ||||||||||||||||||
Cost of property sold | — | (59,016 | ) | — | ||||||||||||||||||||
Ending Balance | $ | 2,239,741 | $ | 2,035,330 | $ | 1,475,955 | ||||||||||||||||||
Reclassification to assets associated with real estate held for sale | (68,446 | ) | (82,305 | ) | — | |||||||||||||||||||
Total Investment in real estate | $ | 2,171,295 | $ | 1,953,025 | $ | 1,475,955 | ||||||||||||||||||
Accumulated depreciation | ||||||||||||||||||||||||
Beginning balance | $ | (116,342 | ) | $ | (85,184 | ) | $ | (53,329 | ) | |||||||||||||||
Additions | (50,044 | ) | (41,454 | ) | (34,675 | ) | ||||||||||||||||||
Deletions | 23,825 | 10,296 | 2,820 | |||||||||||||||||||||
Ending Balance | $ | (142,561 | ) | $ | (116,342 | ) | $ | (85,184 | ) | |||||||||||||||
Reclassification to assets associated with real estate held for sale | 7,904 | 7,931 | — | |||||||||||||||||||||
Total Accumulated depreciation | $ | (134,657 | ) | $ | (108,411 | ) | $ | (85,184 | ) | |||||||||||||||
Schedule of Business Acquisitions, by Acquisition | During 2014, we acquired the following properties: Merrill Place, 3402 Pico Blvd., and 12655 Jefferson. The results of operations for each of these acquisitions are included in our consolidated statements of operations from the date of acquisition. The following table represents our purchase price accounting for each of these acquisitions: | |||||||||||||||||||||||
Merrill Place | 3402 Pico Blvd. | 12655 Jefferson | ||||||||||||||||||||||
Date of Acquisition | 12-Feb-14 | 28-Feb-14 | 17-Oct-14 | Total | ||||||||||||||||||||
Consideration paid | ||||||||||||||||||||||||
Cash consideration | $ | 57,034 | $ | 18,546 | $ | 38,000 | $ | 113,580 | ||||||||||||||||
Total consideration | $ | 57,034 | $ | 18,546 | $ | 38,000 | $ | 113,580 | ||||||||||||||||
Allocation of consideration paid | ||||||||||||||||||||||||
Investment in real estate, net | $ | 57,508 | $ | 18,500 | $ | 38,000 | $ | 114,008 | ||||||||||||||||
Above-market leases | 173 | — | — | 173 | ||||||||||||||||||||
Deferred leasing costs and lease intangibles, net | 3,163 | — | — | 3,163 | ||||||||||||||||||||
Below-market leases | (3,315 | ) | — | — | (3,315 | ) | ||||||||||||||||||
Other (liabilities) asset assumed, net | (495 | ) | 46 | — | (449 | ) | ||||||||||||||||||
Total consideration paid | $ | 57,034 | $ | 18,546 | $ | 38,000 | $ | 113,580 | ||||||||||||||||
During 2013, we acquired the following properties: 3401 Exposition, Pinnacle II, the Seattle Portfolio, and 1861 Bundy. The results of operations for each of these acquisitions are included in our consolidated statements of operations from the date of acquisition. The following table represents our purchase price accounting for each of these acquisitions: | ||||||||||||||||||||||||
3401 Exposition | Pinnacle II | Seattle Portfolio | 1861 Bundy | |||||||||||||||||||||
Date of Acquisition | May 22, 2013 | June 14, 2013 | July 31, 2013 | September 26, 2013 | Total | |||||||||||||||||||
Consideration paid | ||||||||||||||||||||||||
Cash consideration | $ | 8,489 | $ | 1,505 | $ | 368,389 | $ | 11,500 | $ | 389,883 | ||||||||||||||
Notes Receivable | 4,000 | — | — | — | 4,000 | |||||||||||||||||||
Debt Assumed | 13,233 | 89,066 | — | — | 102,299 | |||||||||||||||||||
Non-controlling interest in consolidated real estate entity | — | 45,704 | — | — | 45,704 | |||||||||||||||||||
Total consideration | $ | 25,722 | $ | 136,275 | $ | 368,389 | $ | 11,500 | $ | 541,886 | ||||||||||||||
Allocation of consideration paid | ||||||||||||||||||||||||
Investment in real estate, net | $ | 25,439 | $ | 134,289 | $ | 367,094 | $ | 11,500 | $ | 538,322 | ||||||||||||||
Deferred leasing costs and lease intangibles, net | — | 12,637 | 21,619 | — | 34,256 | |||||||||||||||||||
Fair market unfavorable debt value | — | (5,820 | ) | — | — | (5,820 | ) | |||||||||||||||||
Below-market leases | — | (7,783 | ) | (14,666 | ) | — | (22,449 | ) | ||||||||||||||||
Other (liabilities) asset assumed, net | 283 | 2,952 | (5,658 | ) | — | (2,423 | ) | |||||||||||||||||
Total consideration paid | $ | 25,722 | $ | 136,275 | $ | 368,389 | $ | 11,500 | $ | 541,886 | ||||||||||||||
During 2012, we acquired the following properties: 10900 Washington, 901 Market Street, Element LA (Olympic Bundy), 1455 Gordon Street and Pinnacle I. The results of operations for each of these acquisitions are included in our consolidated statements of operations from the date of acquisition. The following table represents our purchase price accounting for each of these acquisitions: | ||||||||||||||||||||||||
10900 Washington | 901 Market | Element LA | 1455 Gordon Street | Pinnacle I | ||||||||||||||||||||
Date of Acquisition | April 5, 2012 | June 1, 2012 | September 5, 2012 | September 21, 2012 | November 8, 2012 | Total | ||||||||||||||||||
Consideration paid | ||||||||||||||||||||||||
Cash consideration | $ | 2,605 | $ | 90,871 | $ | 88,436 | $ | 2,385 | $ | 208,023 | $ | 392,320 | ||||||||||||
Non-controlling interest in consolidated real estate entity | — | — | — | — | 1,481 | 1,481 | ||||||||||||||||||
Total consideration | $ | 2,605 | $ | 90,871 | $ | 88,436 | $ | 2,385 | $ | 209,504 | $ | 393,801 | ||||||||||||
Allocation of consideration paid | ||||||||||||||||||||||||
Investment in real estate, net | $ | 2,600 | $ | 97,187 | $ | 88,024 | $ | 2,384 | $ | 200,175 | $ | 390,370 | ||||||||||||
Above-market leases | — | — | — | — | 167 | 167 | ||||||||||||||||||
Leases in place | — | 2,968 | 1,325 | 96 | 11,710 | 16,099 | ||||||||||||||||||
Other lease intangibles | — | 548 | 46 | 22 | 3,456 | 4,072 | ||||||||||||||||||
Below-market leases | — | (10,249 | ) | (666 | ) | (27 | ) | (5,076 | ) | (16,018 | ) | |||||||||||||
Other (liabilities) asset assumed, net | 5 | 417 | (293 | ) | (90 | ) | (928 | ) | (889 | ) | ||||||||||||||
Total consideration paid | $ | 2,605 | $ | 90,871 | $ | 88,436 | $ | 2,385 | $ | 209,504 | $ | 393,801 | ||||||||||||
Business Acquisition, Pro Forma Information | The table below shows the pro forma financial information for the years ended December 31, 2014 and 2013 as if these properties had been acquired as of January 1, 2013. | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Total revenues | $ | 253,924 | $ | 224,102 | ||||||||||||||||||||
Net loss | $ | 23,540 | $ | (5,620 | ) | |||||||||||||||||||
Discontinued Operations, Held-for-sale [Member] | ||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||
Schedule of Real Estate Held for Sale | The following table sets forth the discontinued operations for the years ended December 31, 2014, 2013 and 2012 for the City Plaza: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Total office revenues | $ | — | $ | 4,321 | $ | 5,695 | ||||||||||||||||||
Office operating expenses | (164 | ) | (1,961 | ) | (2,978 | ) | ||||||||||||||||||
Depreciation and amortization | — | (789 | ) | (2,266 | ) | |||||||||||||||||||
Income from discontinued operations | $ | (164 | ) | $ | 1,571 | $ | 451 | |||||||||||||||||
Disposal Group, Not Discontinued Operations [Member] | ||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||
Schedule of Real Estate Held for Sale | The following table summarizes the components that comprise the assets and liabilities associated with real estate held for sale as of December 31, 2014 and 2013: | |||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investment in real estate, net | $ | 60,542 | $ | 74,374 | ||||||||||||||||||||
Restricted cash | 2,839 | 2,821 | ||||||||||||||||||||||
Straight-line rent receivables | 2,151 | 1,997 | ||||||||||||||||||||||
Deferred leasing costs and lease intangibles, net | 2,457 | 3,693 | ||||||||||||||||||||||
Other | 545 | 360 | ||||||||||||||||||||||
Assets associated with real estate held for sale | $ | 68,534 | $ | 83,245 | ||||||||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Notes payable | $ | 42,449 | $ | 43,000 | ||||||||||||||||||||
Accounts payable and accrued liabilities | 322 | 1,393 | ||||||||||||||||||||||
Other | 443 | 731 | ||||||||||||||||||||||
Liabilities associated with real estate held for sale | 43,214 | 45,124 | ||||||||||||||||||||||
Equity | 25,320 | 38,121 | ||||||||||||||||||||||
Total liabilities and equity associated with real estate held for sale | $ | 68,534 | $ | 83,245 | ||||||||||||||||||||
Deferred_Leasing_Costs_and_Lea1
Deferred Leasing Costs and Lease Intangibles, net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Schedule of Finite-Lived Intangible Assets and Liabilities | The following summarizes our deferred leasing costs and lease intangibles as of: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Above-market leases | $ | 10,891 | $ | 14,869 | ||||
Leases in place | 60,130 | 83,793 | ||||||
Below-market ground leases | 7,513 | 7,513 | ||||||
Other lease intangibles | 26,731 | 35,651 | ||||||
Lease buy-out costs | 4,597 | 3,107 | ||||||
Deferred leasing costs | 38,912 | 28,270 | ||||||
$ | 148,774 | $ | 173,203 | |||||
Accumulated amortization | (46,751 | ) | (64,801 | ) | ||||
Deferred leasing costs and lease intangibles, net | $ | 102,023 | $ | 108,402 | ||||
Below-market leases | 57,420 | 67,284 | ||||||
Accumulated accretion | (16,451 | ) | (22,100 | ) | ||||
Below-market leases, net | $ | 40,969 | $ | 45,184 | ||||
Schedule of Future Amortization Expense | As of December 31, 2014, the estimated aggregate amortization of deferred leasing costs and lease intangible assets, net for each of the next five years and thereafter are as follows: | |||||||
Year ended | Deferred leasing costs and lease intangibles, net | |||||||
2015 | $ | 19,096 | ||||||
2016 | 17,289 | |||||||
2017 | 14,087 | |||||||
2018 | 12,334 | |||||||
2019 | 10,976 | |||||||
Thereafter | 28,241 | |||||||
$ | 102,023 | |||||||
Schedule of Estimated Amortization Income | As of December 31, 2014 the estimated amortization of below-market leases, net for each of the next five years and thereafter are as follows: | |||||||
Year ended | Below Market Lease | |||||||
2015 | $ | 7,158 | ||||||
2016 | 6,798 | |||||||
2017 | 6,334 | |||||||
2018 | 5,609 | |||||||
2019 | 5,311 | |||||||
Thereafter | 9,759 | |||||||
$ | 40,969 | |||||||
Prepaid_Expense_and_Other_Asse1
Prepaid Expense and Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Components of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consisted of the following as of: | ||||||||
December 31, 2014 | December 31, 2013 | ||||||||
Prepaid insurance | $ | 3,025 | $ | 2,677 | |||||
Prepaid property taxes | 427 | 5 | |||||||
Corporate furniture, fixtures and equipment, net of accumulated depreciation of $207 and $629 respectively | 1,405 | 490 | |||||||
Trade name, net of accumulated amortization of $751 and $649, respectively | 271 | 372 | |||||||
Other | 1,564 | 1,626 | |||||||
Reclassification to assets associated with real estate held for sale | — | (76 | ) | ||||||
$ | 6,692 | $ | 5,094 | ||||||
Notes_Payable_Tables
Notes Payable (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of Long-term Debt Instruments | The following table sets forth information as of December 31, 2014 with respect to our outstanding indebtedness (in thousands). | |||||||||||
Outstanding as of | ||||||||||||
Debt | December 31, 2014 | December 31, 2013 | Interest Rate(1) | Maturity | ||||||||
Date | ||||||||||||
Unsecured revolving credit facility - new | $ | 130,000 | $ | — | LIBOR+1.15% to 1.55% | 9/23/18 | ||||||
Unsecured revolving credit facility | — | 155,000 | LIBOR+1.55% to 2.20% | N/A | ||||||||
Unsecured term loan | 150,000 | — | LIBOR+1.30% to 1.90% | 9/23/19 | ||||||||
Mortgage loan secured by 3401 Exposition Boulevard(2) | — | 13,233 | LIBOR+3.80% | N/A | ||||||||
Mortgage loan secured by 6922 Hollywood Boulevard(3) | — | 40,396 | 5.58% | N/A | ||||||||
Mortgage loan secured by 275 Brannan | 15,000 | 15,000 | LIBOR+2.00% | 10/5/15 | ||||||||
Mortgage loan secured by Pinnacle II(4) | 87,421 | 88,540 | 6.31% | 9/6/16 | ||||||||
Mortgage loan secured by 901 Market(5) | 49,600 | 49,600 | LIBOR+2.25% | 10/31/16 | ||||||||
Mortgage loan secured by Element LA(6) | 59,490 | 566 | LIBOR+1.95% | 11/1/17 | ||||||||
Mortgage loan secured by Sunset Gower/Sunset Bronson(7) | 97,000 | 97,000 | LIBOR+2.25% | 2/11/18 | ||||||||
Mortgage loan secured by Rincon Center(8) | 104,126 | 105,853 | 5.13% | 5/1/18 | ||||||||
Mortgage loan secured by First & King(9) | — | 95,000 | LIBOR+1.60% | N/A | ||||||||
Mortgage loan secured by Met Park North(10) | 64,500 | 64,500 | LIBOR+1.55% | 8/1/20 | ||||||||
Mortgage loan secured by 10950 Washington(11) | 28,866 | 29,300 | 5.32% | 3/11/22 | ||||||||
Mortgage loan secured by Pinnacle I(12) | 129,000 | 129,000 | 3.95% | 11/7/22 | ||||||||
Subtotal | $ | 915,003 | $ | 882,988 | ||||||||
Unamortized loan premium, net(13) | 3,056 | 5,320 | ||||||||||
Total | $ | 918,059 | $ | 888,308 | ||||||||
Mortgage loan on real estate held for sale: | ||||||||||||
Mortgage loan secured by First Financial(14) | $ | 42,449 | $ | 43,000 | 4.58% | 2/1/22 | ||||||
$ | 960,508 | $ | 931,308 | |||||||||
__________________ | ||||||||||||
-1 | Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed, excluding the amortization of loan fees and costs. | |||||||||||
-2 | This loan was assumed on May 22, 2013 in connection with the closing of our acquisition of the 3401 Exposition Boulevard property. This loan was paid off during 2014. | |||||||||||
-3 | This loan was assumed on November 22, 2011 in connection with the closing of our acquisition of the 6922 Hollywood Boulevard property. This loan was paid off during 2014. | |||||||||||
-4 | This loan was assumed on June 14, 2013 in connection with the contribution of the Pinnacle II building to the Company’s joint venture with M. David Paul & Associates/Worthe Real Estate Group. This loan bore interest only for the first five years. Beginning with the payment due October 6, 2011, monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule. | |||||||||||
-5 | On October 29, 2012, we obtained a loan for our 901 Market property pursuant to which we borrowed $49.6 million upon closing, with the ability to draw up to an additional $11.9 million for budgeted base building, tenant improvements, and other costs associated with the renovation and lease-up of that property. | |||||||||||
-6 | On November 24, 2014 we amended our construction loan for Element LA to, among other things, increase availability from $65.5 million to $102.4 million for budgeted site-work, construction of a parking garage, base building, tenant improvement, and leasing commission costs associated with the renovation and lease-up of the property. | |||||||||||
-7 | On March 16, 2011, we purchased an interest rate cap in order to cap one-month LIBOR at 3.715% with respect to $50.0 million of the loan through February 11, 2016. On January 11, 2012 we purchased an interest rate cap in order to cap one-month LIBOR at 2.00% with respect to $42.0 million of the loan through February 11, 2016. Effective August 22, 2013, the terms of this loan were amended to increase the outstanding balance from $92.0 million to $97.0 million, reduce the interest rate from LIBOR plus 3.50% to LIBOR plus 2.25%, and extend the maturity date from February 11, 2016 to February 11, 2018. | |||||||||||
-8 | This loan is amortizing based on a 30-year amortization schedule. | |||||||||||
-9 | This loan was paid off during 2014. | |||||||||||
-10 | This loan bears interest only at a rate equal to one-month LIBOR plus 1.55%. The full loan amount is subject to an interest rate contract that swapped one-month LIBOR to a fixed rate of 2.1644% through the loan's maturity on August 1, 2020. | |||||||||||
-11 | This loan is amortizing based on a 30-year amortization schedule. | |||||||||||
-12 | This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30-year amortization schedule. | |||||||||||
-13 | Represents unamortized amount of the non-cash mark-to-market adjustment on debt associated with Pinnacle II. | |||||||||||
-14 | Beginning with the payment made March 1, 2014, monthly debt service includes principal payments based on a 30-year amortization schedule, for total annual debt service of $2.6 million. This note has been recorded as part of the liabilities associated with real estate held for sale (see note 3). | |||||||||||
Schedule of Maturities of Long-term Debt | The minimum future annual principal payments due on our secured and unsecured notes payable at December 31, 2014, excluding the non-cash loan premium amortization and the $42.4 million mortgage loan secured by First Financial, were as follows (in thousands): | |||||||||||
Year ended | Annual Principal Payments | |||||||||||
2015 | $ | 18,323 | ||||||||||
2016 | 138,199 | |||||||||||
2017 | 62,195 | |||||||||||
2018 | 328,320 | |||||||||||
2019 | 152,885 | |||||||||||
Thereafter | 215,081 | |||||||||||
Total | $ | 915,003 | ||||||||||
Future_Minimum_Base_Rents_and_1
Future Minimum Base Rents and Future Minimum Lease Payments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Future Minimum Base Rents and Lease Payments Future Minimum Rents [Abstract] | ||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | The table below does not include rents under leases at our media and entertainment properties with terms of one year or less. | |||||||||||
Future minimum base rents under our operating leases in each of the next five years and thereafter are as follows (in thousands): | ||||||||||||
Year Ended | Non-cancelable | Subject to early termination options | Total | |||||||||
2015 | $ | 170,355 | $ | 826 | $ | 171,181 | ||||||
2016 | 168,323 | 3,437 | 171,760 | |||||||||
2017 | 152,138 | 6,971 | 159,109 | |||||||||
2018 | 139,835 | 9,628 | 149,463 | |||||||||
2019 | 123,690 | 10,749 | 134,439 | |||||||||
Thereafter | 539,180 | 19,527 | 558,707 | |||||||||
Total | $ | 1,293,521 | $ | 51,138 | $ | 1,344,659 | ||||||
Schedule of Future Minimum Lease Payments | The following table provides information regarding our future minimum lease payments at December 31, 2014 under these lease agreements. | |||||||||||
Year Ended | Future Minimum Lease Payments | |||||||||||
2015 | $ | 1,417 | ||||||||||
2016 | 1,417 | |||||||||||
2017 | 1,417 | |||||||||||
2018 | 1,417 | |||||||||||
2019 | 1,417 | |||||||||||
Thereafter | 49,408 | |||||||||||
Total | $ | 56,493 | ||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | The estimated fair values of interest-rate contract/cap arrangements were derived from estimated values based on observable market data for similar instruments. | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Value | Value | |||||||||||||||
Notes payable | $ | 960,508 | $ | 969,259 | $ | 931,308 | $ | 940,435 | ||||||||
Notes receivable | 28,268 | 28,268 | — | — | ||||||||||||
Derivative assets, disclosed as “Interest rate contracts” | 3 | 3 | 192 | 192 | ||||||||||||
Derivative liabilities, disclosed as “Interest rate contracts” | 1,750 | 1,750 | — | — | ||||||||||||
Equity_Tables
Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Schedule of Dividends | The Company’s dividends related to its common stock (CUSIP #444097109) and described above under “Dividends,” will be classified for United States federal income tax purposes as follows (unaudited): | ||||||||||||||||
Ordinary Dividends | |||||||||||||||||
Record Date | Payment Date | Distributions per Share | Total | Non-qualified | Qualified | Return of Capital | |||||||||||
3/21/14 | 3/31/14 | $ | 0.125 | $ | 0.05647 | $ | 0.05647 | $ | — | $ | 0.06853 | ||||||
6/20/14 | 6/30/14 | 0.125 | 0.05647 | 0.05647 | — | 0.06853 | |||||||||||
9/20/14 | 9/30/14 | 0.125 | 0.05647 | 0.05647 | — | 0.06853 | |||||||||||
12/19/14 | 12/30/14 | 0.125 | 0.05647 | 0.05647 | — | 0.06853 | |||||||||||
Total | $ | 0.5 | $ | 0.22588 | $ | 0.22588 | $ | — | $ | 0.27412 | |||||||
100 | % | 45.176 | % | 54.824 | % | ||||||||||||
The Company’s dividends related to its 8.375% Series B Cumulative Preferred Stock (CUSIP #444097208) and described above under “Dividends,” will be classified for United States federal income tax purposes as follows (unaudited): | |||||||||||||||||
Ordinary Dividends | |||||||||||||||||
Record Date | Payment Date | Distributions per Share | Total | Non-qualified | Qualified | ||||||||||||
3/21/14 | 3/31/14 | $ | 0.52344 | $ | 0.52344 | $ | 0.52344 | $ | — | ||||||||
6/20/14 | 6/30/14 | 0.52344 | 0.52344 | 0.52344 | — | ||||||||||||
9/20/14 | 9/30/14 | 0.52344 | 0.52344 | 0.52344 | — | ||||||||||||
12/19/14 | 12/30/14 | 0.52344 | 0.52344 | 0.52344 | — | ||||||||||||
Total | $ | 2.09376 | $ | 2.09376 | $ | 2.09376 | $ | — | |||||||||
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the restricted share activity for the year ended December 31, 2014 and status of all unvested restricted share awards to our non-employee board members and employees at December 31, 2014: | ||||||||||||||||
Non-vested Shares | Shares | Weighted-Average Grant-Date Fair Value | |||||||||||||||
Balance at December 31, 2012 | 632,344 | $ | 17.12 | ||||||||||||||
Granted | 263,039 | 22.16 | |||||||||||||||
Vested | (350,788 | ) | 16.5 | ||||||||||||||
Canceled | (3,415 | ) | 16.09 | ||||||||||||||
Balance at December 31, 2013 | 541,180 | $ | 19.98 | ||||||||||||||
Granted | 281,491 | 29.38 | |||||||||||||||
Vested | (275,051 | ) | 16.83 | ||||||||||||||
Canceled | (3,913 | ) | 20.44 | ||||||||||||||
Balance at December 31, 2014 | 543,707 | $ | 26.43 | ||||||||||||||
Year Ended December 31, | Non-Vested Shares Issued | Weighted Average Grant - dated Fair Value | Vested Shares | Total Vest-Date Fair Value (in thousands) | |||||||||||||
2014 | 281,491 | $ | 29.38 | (275,051 | ) | $ | 9,794 | ||||||||||
2013 | 263,039 | 22.16 | (350,788 | ) | 7,664 | ||||||||||||
2012 | 268,060 | 20.33 | (262,908 | ) | 5,096 | ||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Segment Reporting Information, by Segment | Summary information for the reportable segments for the year ended December 31, 2014 is as follows: | |||||||||||
Office Properties | Media and Entertainment | Total | ||||||||||
Properties | ||||||||||||
Revenue | $ | 213,786 | $ | 39,629 | $ | 253,415 | ||||||
Operating expenses | 78,372 | 25,897 | 104,269 | |||||||||
Net operating income | $ | 135,414 | $ | 13,732 | $ | 149,146 | ||||||
Summary information for the reportable segments for the year ended December 31, 2013 is as follows: | ||||||||||||
Office Properties | Media and Entertainment | Total | ||||||||||
Properties | ||||||||||||
Revenue | $ | 165,441 | $ | 40,117 | $ | 205,558 | ||||||
Operating expenses | 63,434 | 24,149 | 87,583 | |||||||||
Net operating income | $ | 102,007 | $ | 15,968 | $ | 117,975 | ||||||
Summary information for the reportable segments for the year ended December 31, 2012 is as follows: | ||||||||||||
Office Properties | Media and Entertainment | Total | ||||||||||
Properties | ||||||||||||
Revenue | $ | 120,328 | $ | 40,133 | $ | 160,461 | ||||||
Operating expenses | 50,599 | 24,340 | 74,939 | |||||||||
Net operating income | $ | 69,729 | $ | 15,793 | $ | 85,522 | ||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following is reconciliation from NOI to reported net income, the most direct comparable financial measure calculated and presented in accordance with GAAP: | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||
Net operating income | $ | 149,146 | $ | 117,975 | $ | 85,522 | ||||||
General and administrative | (28,253 | ) | (19,952 | ) | (16,497 | ) | ||||||
Depreciation and amortization | (72,216 | ) | (70,063 | ) | (54,758 | ) | ||||||
Interest expense | (25,932 | ) | (25,470 | ) | (19,071 | ) | ||||||
Interest income | 30 | 272 | 306 | |||||||||
Acquisition-related expenses | (4,641 | ) | (1,446 | ) | (1,051 | ) | ||||||
Other expense | 14 | 99 | 92 | |||||||||
Income (loss) from continuing operations before gain on sale of real estate | $ | 18,148 | $ | 1,415 | $ | (5,457 | ) | |||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | ||||||||||||||||
Three months ended | ||||||||||||||||
December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | |||||||||||||
Total revenues | $ | 68,787 | $ | 68,155 | $ | 62,129 | $ | 55,596 | ||||||||
Income from operations | 11,640 | 12,622 | 13,195 | 11,220 | ||||||||||||
Net (loss) income from discontinued operations | — | (38 | ) | (60 | ) | (66 | ) | |||||||||
Net income (loss) | 885 | 11,415 | 6,689 | 4,533 | ||||||||||||
Net (loss) income attributable to Hudson Pacific Properties, Inc. stockholders’ | $ | (2,290 | ) | $ | 7,620 | $ | 3,365 | $ | 1,260 | |||||||
Net loss (income) from continuing operations attributable to common stockholders’ per share— basic and diluted | $ | (0.03 | ) | $ | 0.11 | $ | 0.05 | $ | 0.02 | |||||||
Net (loss) income from discontinued operations per share— basic and diluted | $ | — | $ | — | $ | — | $ | — | ||||||||
Net loss attributable to common stockholders’ per share— basic and diluted | $ | (0.03 | ) | $ | 0.11 | $ | 0.05 | $ | 0.02 | |||||||
Weighted average shares of common stock outstanding— basic and diluted | 66,512,651 | 66,506,179 | 66,485,639 | 63,625,751 | ||||||||||||
Three months ended | ||||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | |||||||||||||
Total revenues | $ | 57,417 | $ | 53,348 | $ | 47,390 | $ | 47,403 | ||||||||
Income from operations | 10,407 | 5,170 | 7,314 | 3,668 | ||||||||||||
Net (loss) income from discontinued operations | (37 | ) | (155 | ) | (4,552 | ) | 735 | |||||||||
Net income (loss) | 3,269 | (2,752 | ) | (3,428 | ) | 317 | ||||||||||
Net loss attributable to Hudson Pacific Properties, Inc. stockholders’ | $ | (83 | ) | $ | (5,694 | ) | $ | (6,184 | ) | $ | (2,872 | ) | ||||
Net loss (income) from continuing operations attributable to common stockholders’ per share— basic and diluted | $ | — | $ | (0.10 | ) | $ | (0.03 | ) | $ | (0.07 | ) | |||||
Net (loss) income from discontinued operations per share— basic and diluted | $ | — | $ | — | $ | (0.08 | ) | $ | 0.01 | |||||||
Net loss attributable to common stockholders’ per share— basic and diluted | $ | — | $ | (0.10 | ) | $ | (0.11 | ) | $ | (0.06 | ) | |||||
Weighted average shares of common stock outstanding— basic and diluted | 56,271,285 | 56,144,099 | 56,075,747 | 52,184,280 | ||||||||||||
Organization_Details
Organization (Details) | Dec. 31, 2014 |
property | |
Office Properties | |
Business Acquisition | |
Number of real estate properties | 26 |
Media and Entertainment Properties | |
Business Acquisition | |
Number of real estate properties | 2 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||
Aug. 19, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 19, 2014 | Aug. 14, 2012 | |
property | indicator | |||||
indicator | property | |||||
subsidiary | ||||||
Accounting Policies [Line Items] | ||||||
Commitment fee earned | $400,000 | |||||
Capitalized personnel costs | 3,100,000 | 1,900,000 | ||||
Capitalized interest | 6,900,000 | 4,600,000 | ||||
Construction costs capitalization period after substantially complete | 1 year | |||||
Impairment of Long-Lived Assets | ||||||
Impairment loss from discontinued operations | 0 | |||||
Number of properties held for sale | 1 | 0 | ||||
Goodwill | ||||||
Goodwill | 8,754,000 | 8,754,000 | ||||
Goodwill impairment indicators noted | 0 | 0 | ||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||
Allowance for doubtful accounts | 1,040,000 | 1,036,000 | ||||
Bad debt expense (recovery) | -97,000 | 959,000 | 724,000 | |||
Notes Receivable | ||||||
Notes receivable, maximum principal | 140,000,000 | 140,000,000 | ||||
Notes receivable, share of maximum principal, percentage | 23.77% | 23.77% | ||||
Notes receivable, share of maximum principal, amount | 33,300,000 | 33,300,000 | ||||
Notes receivable, gross | 28,500,000 | |||||
Note receivable, interest rate | 11.00% | |||||
Notes receivable from loan acquired | 28,268,000 | 0 | ||||
Notes receivable basis points (as a percent) | 13.00% | |||||
Notes receivable, basis points floor (as a percent) | 1.00% | |||||
Income Taxes | ||||||
Income tax expense | 0 | 0 | ||||
Number of subsidiaries | 1 | |||||
Building Improvements | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful life | 39 years | |||||
Land Improvements | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful life | 15 years | |||||
Furniture and Fixtures [Member] | Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful life | 5 years | |||||
Furniture and Fixtures [Member] | Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful life | 7 years | |||||
Allowance for Straight-Line Receivables [Member] | ||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||
Allowance for doubtful accounts | 600,000 | 300,000 | ||||
Cash Flow Hedging [Member] | ||||||
Derivative Financial Instruments | ||||||
Number of interest rate contracts | 3 | |||||
Early Adoption of ASU 2014-08 [Member] | ||||||
Income Taxes | ||||||
Gain on sale of real estate | $5,500,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Accounts Receivable Net of Allowance for Uncollectable Tenant Receivables (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Accounts receivable | $17,287 | $9,898 |
Allowance for doubtful accounts | -1,040 | -1,036 |
Accounts receivable, net | $16,247 | $8,862 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Interest Rate Derivatives (Details) (USD $) | Jan. 11, 2012 | Dec. 31, 2014 |
instrument | ||
Derivative | ||
Notional Amount | $42,000,000 | |
Interest Rate Caps | ||
Derivative | ||
Number of Instruments | 2 | |
Notional Amount | 92,000,000 | |
Interest Rate Swaps | ||
Derivative | ||
Number of Instruments | 1 | |
Notional Amount | $64,500,000 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) (Designated as Hedging Instrument, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value | ||
Asset Derivatives | $3 | $192 |
Liability Derivatives | 1,750 | 0 |
Interest Rate Contract | Interest Rate Contracts | ||
Derivatives, Fair Value | ||
Asset Derivatives | 3 | 192 |
Liability Derivatives | $1,750 | $0 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Schedule of Derivative Instruments, Gain (Loss) on the Income Statement (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income [Roll Forward] | |||
Beginning Balance of OCI related to interest rate contracts | $1,162 | $1,465 | $1,036 |
Unrealized Loss Recognized in OCI Due to Change in Fair Value of interest rate contracts | 1,939 | -121 | 457 |
Loss Reclassified from OCI into Income (as Interest Expense) | -440 | -182 | -28 |
Net Change in OCI | 1,499 | -303 | 429 |
Ending Balance of Accumulated OCI Related to Derivatives | 2,661 | 1,162 | 1,465 |
Parent [Member] | |||
Other Comprehensive Income [Roll Forward] | |||
Ending Balance of Accumulated OCI Related to Derivatives | 2,443 | 997 | 1,287 |
Non-controlling Interest [Member] | |||
Other Comprehensive Income [Roll Forward] | |||
Ending Balance of Accumulated OCI Related to Derivatives | ($218) | ($165) | ($178) |
Investment_in_Real_Estate_Real
Investment in Real Estate - Real Estate Investment Property (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investment in real estate | ||||
Beginning balance | $2,035,330 | $1,475,955 | $1,060,504 | |
Acquisitions | 114,008 | 538,322 | 390,370 | |
Improvements, capitalized costs | 128,018 | 89,707 | 27,901 | |
Disposal | -37,615 | -9,638 | -2,820 | |
Cost of property sold | 0 | -59,016 | 0 | |
Ending Balance | 2,239,741 | 2,035,330 | 1,475,955 | |
Reclassification to assets associated with real estate held for sale | -68,446 | -82,305 | 0 | |
Total real estate held for investment | 2,171,295 | 1,953,025 | 1,475,955 | |
Accumulated depreciation | ||||
Beginning balance | -108,411 | -85,184 | ||
Additions | -50,044 | -41,454 | -34,675 | |
Deletions | 23,825 | 10,296 | 2,820 | |
Ending Balance | 142,561 | 116,342 | 85,184 | 53,329 |
Reclassification to assets associated with real estate held for sale | 7,904 | 7,931 | 0 | |
Total Accumulated depreciation | ($134,657) | ($108,411) | ($85,184) |
Investment_in_Real_Estate_Purc
Investment in Real Estate - Purchase Price Allocation for Acquisition (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 06, 2014 | Feb. 12, 2014 | Feb. 28, 2014 | Oct. 17, 2014 | 22-May-13 | Jun. 14, 2013 | Jul. 31, 2013 | Sep. 26, 2013 | Apr. 05, 2012 | Jun. 02, 2012 | Sep. 05, 2012 | Sep. 21, 2012 | Nov. 08, 2012 | |
Consideration paid | ||||||||||||||||
Cash consideration | $113,580,000 | $389,883,000 | $392,320,000 | |||||||||||||
Notes Receivable | 4,000,000 | |||||||||||||||
Debt Assumed | 0 | 102,299,000 | 0 | |||||||||||||
Non-controlling interest in consolidated real estate entity | 0 | 45,704,000 | 1,481,000 | |||||||||||||
Total consideration | 113,580,000 | 541,886,000 | 393,801,000 | |||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 114,008,000 | 538,322,000 | 390,370,000 | |||||||||||||
Above-market leases | 173,000 | 167,000 | ||||||||||||||
Deferred leasing costs and lease intangibles, net | 3,163,000 | 34,256,000 | ||||||||||||||
Leases in place | 16,099,000 | |||||||||||||||
Other lease intangibles | 4,072,000 | |||||||||||||||
Fair market unfavorable debt value | -5,820,000 | |||||||||||||||
Below-market leases | -3,315,000 | -22,449,000 | -16,018,000 | |||||||||||||
Other (liabilities) asset assumed, net | -449,000 | -2,423,000 | -889,000 | |||||||||||||
Total consideration paid | 113,580,000 | 541,886,000 | 393,801,000 | |||||||||||||
EOP Northern California Portfolio | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 1,750,000,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Area of real estate property | 8,200,000 | |||||||||||||||
Equity consideration | 63,474,791 | |||||||||||||||
Merrill Place | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 57,034,000 | |||||||||||||||
Total consideration | 57,034,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 57,508,000 | |||||||||||||||
Above-market leases | 173,000 | |||||||||||||||
Deferred leasing costs and lease intangibles, net | 3,163,000 | |||||||||||||||
Below-market leases | -3,315,000 | |||||||||||||||
Other (liabilities) asset assumed, net | -495,000 | |||||||||||||||
Total consideration paid | 57,034,000 | |||||||||||||||
3402 Pico Blvd. | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 18,546,000 | |||||||||||||||
Total consideration | 18,546,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 18,500,000 | |||||||||||||||
Above-market leases | 0 | |||||||||||||||
Deferred leasing costs and lease intangibles, net | 0 | |||||||||||||||
Below-market leases | 0 | |||||||||||||||
Other (liabilities) asset assumed, net | 46,000 | |||||||||||||||
Total consideration paid | 18,546,000 | |||||||||||||||
12655 Jefferson | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 38,000,000 | |||||||||||||||
Total consideration | 38,000,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 38,000,000 | |||||||||||||||
Above-market leases | 0 | |||||||||||||||
Deferred leasing costs and lease intangibles, net | 0 | |||||||||||||||
Below-market leases | 0 | |||||||||||||||
Other (liabilities) asset assumed, net | 0 | |||||||||||||||
Total consideration paid | 38,000,000 | |||||||||||||||
3401 Exposition | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 8,489,000 | |||||||||||||||
Notes Receivable | 4,000,000 | |||||||||||||||
Debt Assumed | 13,233,000 | |||||||||||||||
Non-controlling interest in consolidated real estate entity | 0 | |||||||||||||||
Total consideration | 25,722,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 25,439,000 | |||||||||||||||
Deferred leasing costs and lease intangibles, net | 0 | |||||||||||||||
Fair market unfavorable debt value | 0 | |||||||||||||||
Below-market leases | 0 | |||||||||||||||
Other (liabilities) asset assumed, net | 283,000 | |||||||||||||||
Total consideration paid | 25,722,000 | |||||||||||||||
Pinnacle II | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 1,505,000 | |||||||||||||||
Notes Receivable | 0 | |||||||||||||||
Debt Assumed | 89,066,000 | |||||||||||||||
Non-controlling interest in consolidated real estate entity | 45,704,000 | |||||||||||||||
Total consideration | 136,275,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 134,289,000 | |||||||||||||||
Deferred leasing costs and lease intangibles, net | 12,637,000 | |||||||||||||||
Fair market unfavorable debt value | -5,820,000 | |||||||||||||||
Below-market leases | -7,783,000 | |||||||||||||||
Other (liabilities) asset assumed, net | 2,952,000 | |||||||||||||||
Total consideration paid | 136,275,000 | |||||||||||||||
Seattle Portfolio | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 368,389,000 | |||||||||||||||
Notes Receivable | 0 | |||||||||||||||
Debt Assumed | 0 | |||||||||||||||
Non-controlling interest in consolidated real estate entity | 0 | |||||||||||||||
Total consideration | 368,389,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 367,094,000 | |||||||||||||||
Deferred leasing costs and lease intangibles, net | 21,619,000 | |||||||||||||||
Fair market unfavorable debt value | 0 | |||||||||||||||
Below-market leases | -14,666,000 | |||||||||||||||
Other (liabilities) asset assumed, net | -5,658,000 | |||||||||||||||
Total consideration paid | 368,389,000 | |||||||||||||||
1861 Bundy | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 11,500,000 | |||||||||||||||
Notes Receivable | 0 | |||||||||||||||
Debt Assumed | 0 | |||||||||||||||
Non-controlling interest in consolidated real estate entity | 0 | |||||||||||||||
Total consideration | 11,500,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 11,500,000 | |||||||||||||||
Deferred leasing costs and lease intangibles, net | 0 | |||||||||||||||
Fair market unfavorable debt value | 0 | |||||||||||||||
Below-market leases | 0 | |||||||||||||||
Other (liabilities) asset assumed, net | 0 | |||||||||||||||
Total consideration paid | 11,500,000 | |||||||||||||||
10900 Washington | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 2,605,000 | |||||||||||||||
Non-controlling interest in consolidated real estate entity | 0 | |||||||||||||||
Total consideration | 2,605,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 2,600,000 | |||||||||||||||
Above-market leases | 0 | |||||||||||||||
Leases in place | 0 | |||||||||||||||
Other lease intangibles | 0 | |||||||||||||||
Below-market leases | 0 | |||||||||||||||
Other (liabilities) asset assumed, net | 5,000 | |||||||||||||||
Total consideration paid | 2,605,000 | |||||||||||||||
901 Market | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 90,871,000 | |||||||||||||||
Non-controlling interest in consolidated real estate entity | 0 | |||||||||||||||
Total consideration | 90,871,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 97,187,000 | |||||||||||||||
Above-market leases | 0 | |||||||||||||||
Leases in place | 2,968,000 | |||||||||||||||
Other lease intangibles | 548,000 | |||||||||||||||
Below-market leases | -10,249,000 | |||||||||||||||
Other (liabilities) asset assumed, net | 417,000 | |||||||||||||||
Total consideration paid | 90,871,000 | |||||||||||||||
Element LA | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 88,436,000 | |||||||||||||||
Non-controlling interest in consolidated real estate entity | 0 | |||||||||||||||
Total consideration | 88,436,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 88,024,000 | |||||||||||||||
Above-market leases | 0 | |||||||||||||||
Leases in place | 1,325,000 | |||||||||||||||
Other lease intangibles | 46,000 | |||||||||||||||
Below-market leases | -666,000 | |||||||||||||||
Other (liabilities) asset assumed, net | -293,000 | |||||||||||||||
Total consideration paid | 88,436,000 | |||||||||||||||
1455 Gordon Street | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 2,385,000 | |||||||||||||||
Non-controlling interest in consolidated real estate entity | 0 | |||||||||||||||
Total consideration | 2,385,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 2,384,000 | |||||||||||||||
Above-market leases | 0 | |||||||||||||||
Leases in place | 96,000 | |||||||||||||||
Other lease intangibles | 22,000 | |||||||||||||||
Below-market leases | -27,000 | |||||||||||||||
Other (liabilities) asset assumed, net | -90,000 | |||||||||||||||
Total consideration paid | 2,385,000 | |||||||||||||||
Pinnacle I | ||||||||||||||||
Consideration paid | ||||||||||||||||
Cash consideration | 208,023,000 | |||||||||||||||
Non-controlling interest in consolidated real estate entity | 1,481,000 | |||||||||||||||
Total consideration | 209,504,000 | |||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Investment in real estate, net | 200,175,000 | |||||||||||||||
Above-market leases | 167,000 | |||||||||||||||
Leases in place | 11,710,000 | |||||||||||||||
Other lease intangibles | 3,456,000 | |||||||||||||||
Below-market leases | -5,076,000 | |||||||||||||||
Other (liabilities) asset assumed, net | -928,000 | |||||||||||||||
Total consideration paid | $209,504,000 | |||||||||||||||
Office Building | EOP Northern California Portfolio | ||||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Number of properties acquired | 26 | |||||||||||||||
Development Parcel [Member] | EOP Northern California Portfolio | ||||||||||||||||
Allocation of consideration paid | ||||||||||||||||
Number of properties acquired | 2 |
Investment_in_Real_Estate_Pro_
Investment in Real Estate - Pro Forma Information (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Real Estate [Abstract] | ||
Total revenues | $253,924 | $224,102 |
Net loss | $23,540 | ($5,620) |
Investment_in_Real_Estate_Sche
Investment in Real Estate - Schedule of Dispositions (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 | Jul. 16, 2014 | 31-May-13 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Debt Assumed | $0 | $102,299,000 | $0 | ||||
Impairment Ioss on real estate | 0 | 5,580,000 | |||||
Income from discontinued operations | -164,000 | 1,571,000 | 451,000 | ||||
City Plaza | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Total office revenues | 0 | 4,321,000 | 5,695,000 | ||||
Office operating expenses | -164,000 | -1,961,000 | -2,978,000 | ||||
Depreciation and amortization | 0 | -789,000 | -2,266,000 | ||||
Income from discontinued operations | -164,000 | 1,571,000 | 451,000 | ||||
Disposal Group, Not Discontinued Operations [Member] | Tierrasanta | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Sale price of properties | 19,500,000 | ||||||
Disposal Group, Not Discontinued Operations [Member] | Forecast [Member] | First Financial | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Sale price of properties | 89,000,000 | ||||||
Debt Assumed | 42,449,000 | [1] | |||||
Discontinued Operations, Held-for-sale [Member] | City Plaza | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Sale price of properties | 56,000,000 | ||||||
Impairment Ioss on real estate | $5,600,000 | ||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjUzNTg1NjU1MjQ0MTRlNzZiMTM0MmM1NWNiYzAwZDExfFRleHRTZWxlY3Rpb246QjgyQUYxRkY5M0VGM0QwMzQyOEIwN0RCRkMxM0EyRUUM} |
Investment_in_Real_Estate_Real1
Investment in Real Estate - Real Estate Held-for-sale (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Real Estate Investment Property, Net | $2,036,638 | $1,844,614 |
Restricted cash | 14,244 | 13,929 |
Straight-line rent receivables | 33,006 | 19,715 |
Deferred leasing costs and lease intangibles, net | 102,023 | 108,402 |
Other | 1,564 | 1,626 |
Assets | 2,340,885 | 2,131,276 |
Notes payable | 918,059 | 888,308 |
Accounts payable and accrued liabilities | 36,844 | 26,118 |
Liabilities | 1,055,693 | 1,017,935 |
Stockholders' Equity Attributable to Parent | 1,179,174 | 1,003,446 |
Liabilities and Equity | 2,340,885 | 2,131,276 |
Disposal Group, Not Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Real Estate Investment Property, Net | 60,542 | 74,374 |
Restricted cash | 2,839 | 2,821 |
Straight-line rent receivables | 2,151 | 1,997 |
Deferred leasing costs and lease intangibles, net | 2,457 | 3,693 |
Other | 545 | 360 |
Assets | 68,534 | 83,245 |
Notes payable | 42,449 | 43,000 |
Accounts payable and accrued liabilities | 322 | 1,393 |
Other Liabilities | 443 | 731 |
Liabilities | 43,214 | 45,124 |
Stockholders' Equity Attributable to Parent | 25,320 | 38,121 |
Liabilities and Equity | $68,534 | $83,245 |
Deferred_Leasing_Costs_and_Lea2
Deferred Leasing Costs and Lease Intangibles, net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | $148,774 | $173,203 |
Accumulated amortization | -46,751 | -64,801 |
Deferred leasing costs and lease intangibles, net | 102,023 | 108,402 |
Other Liabilities, Unclassified [Abstract] | ||
Below-market leases | 57,420 | 67,284 |
Accumulated accretion | -16,451 | -22,100 |
Below-market leases, net | 40,969 | 45,184 |
Above-market leases [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 10,891 | 14,869 |
Lease in-place [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 60,130 | 83,793 |
Below-market ground leases [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 7,513 | 7,513 |
Other lease intangibles [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 26,731 | 35,651 |
Lease buy-out costs [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 4,597 | 3,107 |
Deferred leasing costs [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | $38,912 | $28,270 |
Deferred_Leasing_Costs_and_Lea3
Deferred Leasing Costs and Lease Intangibles, net - Future Amortization Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above-market leases | $2,026 | $2,542 | $3,757 |
Weighted-average amortization period | 10 years | ||
2015 | 19,096 | ||
2016 | 17,289 | ||
2017 | 14,087 | ||
2018 | 12,334 | ||
2019 | 10,976 | ||
Thereafter | 28,241 | ||
Deferred leasing costs and lease intangibles, net | 102,023 | 108,402 | |
Lease in-place [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $20,879 | $24,374 | $19,822 |
Lease Intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average amortization period | 6 years 2 months 1 day | 7 years 9 months 11 days |
Deferred_Leasing_Costs_and_Lea4
Deferred Leasing Costs and Lease Intangibles, net - Estimated Amortization Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of below-market leases | $7,661 | $8,570 | $7,321 |
Below market lease, weighted average useful life | 6 years 6 months 15 days | 7 years 2 months 23 days | |
2015 | 7,158 | ||
2016 | 6,798 | ||
2017 | 6,334 | ||
2018 | 5,609 | ||
2019 | 5,311 | ||
Thereafter | 9,759 | ||
Below-market leases, net | $40,969 |
Prepaid_Expense_and_Other_Asse2
Prepaid Expense and Other Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Components of Prepaid Expense and Other Assets | ||
Prepaid insurance | $3,025 | $2,677 |
Prepaid property taxes | 427 | 5 |
Corporate furniture, fixtures and equipment, net of accumulated depreciation of $207 and $629 respectively | 1,405 | 490 |
Trade name, net of accumulated amortization of $751 and $649, respectively | 102,023 | 108,402 |
Other | 1,564 | 1,626 |
Other Assets, Reclassification to Held For Sale | 0 | -76 |
Prepaid expenses and other assets | 6,692 | 5,094 |
Amortization period | 10 years | |
Accumulated amortization | 46,751 | 64,801 |
Furniture, Fixtures and Equipment | ||
Components of Prepaid Expense and Other Assets | ||
Accumulated depreciation | 207 | 629 |
Trade Names | ||
Components of Prepaid Expense and Other Assets | ||
Trade name, net of accumulated amortization of $751 and $649, respectively | 271 | 372 |
Accumulated amortization | $751 | $649 |
Notes_Payable_Details
Notes Payable (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 03, 2012 | Aug. 03, 2012 | Aug. 22, 2013 | Jan. 11, 2012 | Oct. 29, 2012 | Mar. 16, 2011 | Feb. 11, 2011 | Jul. 31, 2013 | ||
Debt Instrument [Line Items] | ||||||||||||
Assumption of secured debt in connection with property acquisitions (Notes 3 and 6) | $0 | $102,299,000 | $0 | |||||||||
Debt | ||||||||||||
Outstanding | 915,003,000 | 882,988,000 | ||||||||||
Unamortized loan premium, net | 3,056,000 | [1] | 5,320,000 | |||||||||
Total | 918,059,000 | 888,308,000 | ||||||||||
Encumbrances | 677,452,000 | |||||||||||
Duration used in interest rate calculation | 360 days | |||||||||||
Interest rate cap | 2.00% | |||||||||||
Notional Amount | 42,000,000 | |||||||||||
Revolving Credit Facility | ||||||||||||
Debt | ||||||||||||
Outstanding | 130,000,000 | 0 | ||||||||||
Revolving Credit Facility | LIBOR [Member] | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 1.55% | [2] | 1.55% | |||||||||
Line of credit facility, potential basis spread on variable rate, post credit rating | 1.00% | 1.00% | ||||||||||
Line of credit facility, commitment fee percentage | 0.25% | |||||||||||
Line of credit facility, potential commitment fee percentage, post credit rating | 0.15% | |||||||||||
Revolving Credit Facility | LIBOR [Member] | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 2.20% | [2] | 2.20% | |||||||||
Line of credit facility, potential basis spread on variable rate, post credit rating | 1.85% | 1.85% | ||||||||||
Line of credit facility, commitment fee percentage | 0.35% | |||||||||||
Line of credit facility, potential commitment fee percentage, post credit rating | 0.45% | |||||||||||
3401 Exposition | ||||||||||||
Debt | ||||||||||||
Outstanding | 0 | [3] | 13,233,000 | |||||||||
3401 Exposition | LIBOR [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 3.80% | [2],[3] | ||||||||||
6922 Hollywood | ||||||||||||
Debt | ||||||||||||
Outstanding | 0 | [4] | 40,396,000 | |||||||||
Interest Rate | 5.58% | [2],[4] | ||||||||||
275 Brannan Street | ||||||||||||
Debt | ||||||||||||
Outstanding | 15,000,000 | |||||||||||
275 Brannan Street | LIBOR [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 2.00% | [2] | ||||||||||
Pinnacle II [Member] | ||||||||||||
Debt | ||||||||||||
Outstanding | 88,540,000 | |||||||||||
Interest Rate | 6.31% | [2],[5] | ||||||||||
Periodic payment, debt service payment term | 30 years | |||||||||||
901 Market | ||||||||||||
Debt | ||||||||||||
Outstanding | 49,600,000 | 49,600,000 | ||||||||||
Unused borrowing capacity | 11,900,000 | |||||||||||
901 Market | LIBOR [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 2.25% | [2],[6] | ||||||||||
Element LA | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | 65,500,000 | |||||||||||
Debt | ||||||||||||
Outstanding | 566,000 | |||||||||||
Element LA | LIBOR [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 1.95% | [2],[7] | ||||||||||
Sunset Gower Sunset Bronson | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 3.50% | 2.25% | ||||||||||
Debt | ||||||||||||
Outstanding | 97,000,000 | 97,000,000 | 92,000,000 | |||||||||
Interest rate cap | 3.72% | |||||||||||
Notional Amount | 50,000,000 | |||||||||||
Sunset Gower Sunset Bronson | LIBOR [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 2.25% | [2],[8] | ||||||||||
Rincon Center | ||||||||||||
Debt | ||||||||||||
Outstanding | 105,853,000 | |||||||||||
Interest Rate | 5.13% | [2],[9] | ||||||||||
Periodic payment, debt service payment term | 30 years | |||||||||||
First and King | ||||||||||||
Debt | ||||||||||||
Outstanding | 0 | [10] | 95,000,000 | |||||||||
First and King | LIBOR [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 1.60% | [10],[2] | ||||||||||
Met Park North | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 1.55% | |||||||||||
Debt | ||||||||||||
Outstanding | 64,500,000 | 64,500,000 | ||||||||||
Fixed interest rate | 2.16% | |||||||||||
Met Park North | LIBOR [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, basis spread on variable rate | 1.55% | [11],[2] | ||||||||||
First Financial | ||||||||||||
Debt | ||||||||||||
Interest Rate | 4.58% | [12],[2] | ||||||||||
10950 Washington | ||||||||||||
Debt | ||||||||||||
Outstanding | 29,300,000 | |||||||||||
Interest Rate | 5.32% | [2],[9] | ||||||||||
Periodic payment, debt service payment term | 30 years | |||||||||||
Pinnacle I [Member] | ||||||||||||
Debt | ||||||||||||
Outstanding | $129,000,000 | |||||||||||
Interest Rate | 3.95% | [13],[2] | ||||||||||
Periodic payment, debt service payment term | 30 years | |||||||||||
[1] | Represents unamortized amount of the non-cash mark-to-market adjustment on debt associated with Pinnacle II. | |||||||||||
[2] | Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed, excluding the amortization of loan fees and costs. | |||||||||||
[3] | This loan was assumed on May 22, 2013 in connection with the closing of our acquisition of the 3401 Exposition Boulevard property. | |||||||||||
[4] | This loan was assumed on November 22, 2011 in connection with the closing of our acquisition of the 6922 Hollywood Boulevard property. | |||||||||||
[5] | This loan was assumed on June 14, 2013 in connection with the contribution of the Pinnacle II building to the Company’s joint venture with M. David Paul & Associates/Worthe Real Estate Group. This loan bore interest only for the first five years. Beginning with the payment due October 6, 2011, monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule. | |||||||||||
[6] | On October 29, 2012, we obtained a loan for our 901 Market property pursuant to which we borrowed $49.6 million upon closing, with the ability to draw up to an additional $11.9 million for budgeted base building, tenant improvements, and other costs associated with the renovation and lease-up of that property. | |||||||||||
[7] | $65.5 million | |||||||||||
[8] | On March 16, 2011, we purchased an interest rate cap in order to cap one-month LIBOR at 3.715% with respect to $50.0 million of the loan through February 11, 2016. On January 11, 2012 we purchased an interest rate cap in order to cap one-month LIBOR at 2.00% with respect to $42.0 million of the loan through February 11, 2016. Effective August 22, 2013, the terms of this loan were amended to increase the outstanding balance from $92.0 million to $97.0 million, reduce the interest rate from LIBOR plus 3.50% to LIBOR plus 2.25%, and extend the maturity date from February 11, 2016 to February 11, 2018. | |||||||||||
[9] | This loan is amortizing based on a 30-year amortization schedule. | |||||||||||
[10] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjUzNTg1NjU1MjQ0MTRlNzZiMTM0MmM1NWNiYzAwZDExfFRleHRTZWxlY3Rpb246MDUwQzI5QzI3QUFCMjJCNTNDNTAwN0RCRkMxM0VFNjAM} | |||||||||||
[11] | This loan bears interest only at a rate equal to one-month LIBOR plus 1.55%. The full loan amount is subject to an interest rate contract that swapped one-month LIBOR to a fixed rate of 2.1644% through the loan's maturity on August 1, 2020. | |||||||||||
[12] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjUzNTg1NjU1MjQ0MTRlNzZiMTM0MmM1NWNiYzAwZDExfFRleHRTZWxlY3Rpb246QjgyQUYxRkY5M0VGM0QwMzQyOEIwN0RCRkMxM0EyRUUM} | |||||||||||
[13] | This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30-year amortization schedule. |
Notes_Payable_Minimum_Future_P
Notes Payable - Minimum Future Payments Due on Notes Payable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $18,323 | |
2016 | 138,199 | |
2017 | 62,195 | |
2018 | 328,320 | |
2019 | 152,885 | |
Thereafter | 215,081 | |
Total | $915,003 | $882,988 |
Interest_Rate_Contracts_Detail
Interest Rate Contracts (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||
Aug. 22, 2013 | Feb. 11, 2011 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2014 | Jul. 31, 2013 | Jan. 11, 2012 | Mar. 16, 2011 | |
Derivative | ||||||||
Outstanding | $882,988,000 | $915,003,000 | ||||||
Interest rate cap | 2.00% | |||||||
Notional Amount | 42,000,000 | |||||||
Derivative assets, disclosed as “Interest rate contracts†| 192,000 | 3,000 | ||||||
Sunset Gower Sunset Bronson | ||||||||
Derivative | ||||||||
Term of loan | 5 years | |||||||
Outstanding | 97,000,000 | 92,000,000 | 97,000,000 | |||||
Basis spread on variable rate | 2.25% | 3.50% | ||||||
Interest rate cap | 3.72% | |||||||
Notional Amount | 50,000,000 | |||||||
Sunset Gower Sunset Bronson | One-Month LIBOR | ||||||||
Derivative | ||||||||
Basis spread on variable rate | 3.50% | |||||||
Met Park North | ||||||||
Derivative | ||||||||
Term of loan | 7 years | |||||||
Outstanding | 64,500,000 | 64,500,000 | 64,500,000 | |||||
Basis spread on variable rate | 1.55% | |||||||
Met Park North | One-Month LIBOR | ||||||||
Derivative | ||||||||
Basis spread on variable rate | 1.55% | |||||||
Interest Rate Swaps | ||||||||
Derivative | ||||||||
Notional Amount | 64,500,000 | |||||||
Fair value of interest rate swap | 1,750,000 | |||||||
Interest Rate Swaps | Met Park North | One-Month LIBOR | ||||||||
Derivative | ||||||||
Interest rate cap | 2.16% | 2.16% | ||||||
Interest Rate Caps | ||||||||
Derivative | ||||||||
Notional Amount | 92,000,000 | |||||||
Derivative assets, disclosed as “Interest rate contracts†| 192,000 | 3,000 | ||||||
Interest Rate Caps | Sunset Gower Sunset Bronson | ||||||||
Derivative | ||||||||
Notional Amount | $42,000,000 | $50,000,000 | ||||||
Interest Rate Caps | Sunset Gower Sunset Bronson | One-Month LIBOR | ||||||||
Derivative | ||||||||
Interest rate cap | 2.00% | 3.72% |
Future_Minimum_Base_Rents_and_2
Future Minimum Base Rents and Future Minimum Lease Payments - Narrative (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2011 | Dec. 31, 2014 | Aug. 17, 2007 | |
Sunset Gower | |||
Ground Leases | |||
Ground lease monthly rent | $31,000 | $14,000 | |
Ground lease rental rate adjustment period | 7 years | ||
Del Amo | |||
Ground Leases | |||
Annual rent | 1 | ||
9300 Wilshire | |||
Ground Leases | |||
Minimum annual rent | 75,000 | ||
Percent of gross rentals | 6.00% | ||
222 Kearny | |||
Ground Leases | |||
Minimum annual rent | 975,000 | ||
Operating income amount | 8,000,000 | ||
Greater of | 222 Kearny | |||
Ground Leases | |||
Minimum annual rent | $975,000 | ||
Percent of operating income | 20.00% |
Future_Minimum_Base_Rents_and_3
Future Minimum Base Rents and Future Minimum Lease Payments - Future Minimum Base Rents (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leased Assets | |
2015 | $171,181 |
2016 | 171,760 |
2017 | 159,109 |
2018 | 149,463 |
2019 | 134,439 |
Thereafter | 558,707 |
Total | 1,344,659 |
Non-Cancelable Leases | |
Operating Leased Assets | |
2015 | 170,355 |
2016 | 168,323 |
2017 | 152,138 |
2018 | 139,835 |
2019 | 123,690 |
Thereafter | 539,180 |
Total | 1,293,521 |
Subject to Early Termination Options | |
Operating Leased Assets | |
2015 | 826 |
2016 | 3,437 |
2017 | 6,971 |
2018 | 9,628 |
2019 | 10,749 |
Thereafter | 19,527 |
Total | $51,138 |
Future_Minimum_Base_Rents_and_4
Future Minimum Base Rents and Future Minimum Lease Payments - Future Minimum Lease Payments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future Minimum Base Rents and Lease Payments Future Minimum Rents [Abstract] | |
2015 | $1,417 |
2016 | 1,417 |
2017 | 1,417 |
2018 | 1,417 |
2019 | 1,417 |
Thereafter | $49,408 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notes payable | $969,259 | $940,435 |
Notes receivable | 28,268 | 0 |
Derivative assets, disclosed as “Interest rate contracts†| 3 | 192 |
Derivative liabilities, disclosed as “Interest rate contracts†| 1,750 | 0 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notes payable | 960,508 | 931,308 |
Notes receivable | 28,268 | 0 |
Interest Rate Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative liabilities, disclosed as “Interest rate contracts†| 1,750 | 0 |
Interest Rate Contract | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets, disclosed as “Interest rate contracts†| 3 | 192 |
Derivative liabilities, disclosed as “Interest rate contracts†| $1,750 | $0 |
Equity_Narrative_Details
Equity - Narrative (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||
Oct. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 28, 2014 | Feb. 12, 2013 | 3-May-12 | Dec. 31, 2013 | Jan. 23, 2012 | Dec. 31, 2010 | 18-May-12 | Jan. 02, 2014 | Feb. 29, 2012 | Oct. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2011 | |
common_unit_holder | common_unit_holder | common_unit_holder | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Noncontrolling interest, common units outstanding (in shares) | 2,382,563 | 2,610,941 | ||||||||||||||||
Number of common unit holders | 1 | 1 | 1 | |||||||||||||||
Noncontrolling interest, decrease from redemptions or purchase of interests (in shares) | 72,500 | 155,878 | ||||||||||||||||
Cumulative value of shares sold under program to date | 14,500,000 | |||||||||||||||||
Proceeds from issuance of common stock | $197,468,000 | $202,542,000 | $190,798,000 | |||||||||||||||
Conversion of convertible securities (in shares) | 72,500 | 155,878 | ||||||||||||||||
Common dividends declared (dollars per share) | $0.50 | |||||||||||||||||
Non-cash compensation expense recognized as additional paid-in capital | 7,979,000 | 6,682,000 | 4,314,000 | |||||||||||||||
Series A Cumulative Redeemable Preferred Units of the Operating Partnership | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Noncontrolling interest, decrease from redemptions or purchase of interests (in shares) | 80,000 | |||||||||||||||||
Shares outstanding of preferred stock | 419,014 | 407,066 | ||||||||||||||||
Interest rate of preferred stock | 6.25% | |||||||||||||||||
Liquidation preference of preferred stock (dollars per share) | 25 | $25 | ||||||||||||||||
Preferred dividends declared (dollars per share) | $1.56 | |||||||||||||||||
Series B Preferred Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares outstanding of preferred stock | 5,800,000 | 5,800,000 | 5,800,000 | |||||||||||||||
Interest rate of preferred stock | 8.38% | 8.38% | ||||||||||||||||
Liquidation preference of preferred stock (dollars per share) | $25 | $25 | $25 | |||||||||||||||
Par value of preferred stock | $0.01 | $0.01 | $0.01 | |||||||||||||||
Liquidation preference of preferred stock, per annum (dollars per share) | $2.09 | |||||||||||||||||
Preferred stock, redemption period after change in control | 90 days | |||||||||||||||||
Preferred dividends declared (dollars per share) | $2.09 | |||||||||||||||||
Common Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Proceeds from issuance of common stock | 195,800,000 | 189,900,000 | 190,800,000 | |||||||||||||||
Maximum | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share price | $22.07 | $22.27 | $22.27 | |||||||||||||||
Minimum | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share price | $21.92 | $20.55 | $20.55 | |||||||||||||||
At-the-Market | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares of stock sold (in shares) | 76,000 | 613,000 | ||||||||||||||||
Value of shares authorized | 125,000,000 | |||||||||||||||||
Existing and Newly Elected Board Member | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Award vesting period | 3 years | |||||||||||||||||
Employees | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Award vesting period | 3 years | |||||||||||||||||
Award hold post vesting period | 2 years | |||||||||||||||||
Change of Control | Series B Preferred Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Interest rate of preferred stock | 12.38% | |||||||||||||||||
Liquidation preference of preferred stock, per annum (dollars per share) | $3.09 | |||||||||||||||||
Pinnacle JV | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Number of buildings in property | 2 | |||||||||||||||||
Area of real estate property | 625,640 | |||||||||||||||||
Ownership interest in property | 65.00% | |||||||||||||||||
Pinnacle I | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Ownership interest in property | 98.25% | 98.25% | 98.25% | |||||||||||||||
Business acquisition, area of real estate property (in sqft) | 393,776 | 393,776 | 393,776 | |||||||||||||||
Pinnacle II | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Business acquisition, area of real estate property (in sqft) | 231,864 | 231,864 | ||||||||||||||||
Public Offering | Series B Preferred Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares of stock sold (in shares) | 2,300,000 | 3,500,000 | ||||||||||||||||
Proceeds from the offering before transaction costs | 57,500,000 | 83,900,000 | ||||||||||||||||
Public Offering | Common Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares of stock sold (in shares) | 8,250,000 | 8,000,000 | 13,225,000 | |||||||||||||||
Public offering price (dollars per share) | $15 | |||||||||||||||||
Exercise of Over-allotment Option | Series B Preferred Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares of stock sold (in shares) | 300,000 | 300,000 | ||||||||||||||||
Exercise of Over-allotment Option | Common Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares of stock sold (in shares) | 1,237,500 | 1,200,000 | 1,725,000 | |||||||||||||||
Public offering price (dollars per share) | $21.50 | $21.50 | ||||||||||||||||
Private Placement | Common Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares of stock sold (in shares) | 2,000,000 | |||||||||||||||||
General and Administrative Expense | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based compensation expense | 7,559,000 | 6,454,000 | ||||||||||||||||
Deferred Leasing Costs and Lease Intangibles, Net | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Share-based compensation expense | 420,000 | 228,000 | ||||||||||||||||
Restricted Stock Units (RSUs) | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Award vesting period | 2 years | |||||||||||||||||
Additional Paid in Capital | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Non-cash compensation expense recognized as additional paid-in capital | $7,979,000 | $6,682,000 | $4,314,000 |
Equity_Common_Stock_Offering_N
Equity - Common Stock Offering Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 28, 2014 | Feb. 12, 2013 | 3-May-12 | 18-May-12 |
Class of Stock [Line Items] | |||||||
Proceeds from issuance of common stock | $197,468 | $202,542 | $190,798 | ||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from issuance of common stock | $195,800 | $189,900 | $190,800 | ||||
Public Offering | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Shares of stock sold (in shares) | 8,250,000 | 8,000,000 | 13,225,000 | ||||
Public offering price (dollars per share) | $15 | ||||||
Exercise of Over-allotment Option | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Shares of stock sold (in shares) | 1,237,500 | 1,200,000 | 1,725,000 | ||||
Public offering price (dollars per share) | $21.50 | $21.50 | |||||
Private Placement | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Shares of stock sold (in shares) | 2,000,000 |
Equity_Dividends_Details
Equity - Dividends (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||
Dec. 30, 2013 | Oct. 02, 2013 | Jul. 02, 2013 | Apr. 02, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ||||||
Common stock, distributions per share (in dollars per share) | $0.13 | $0.13 | $0.13 | $0.13 | $0.50 | |
Common stock, dividends, total percentage | 100.00% | |||||
Common stock, percentage classified as ordinary dividends | 45.18% | |||||
Common stock, percentage classified as return of capital | 54.82% | |||||
Preferred stock, distributions per share (in dollars per share) | $0.52 | $0.52 | $0.52 | $0.52 | $2.09 | |
Oridnary Dividends [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, distributions per share (in dollars per share) | $0.06 | $0.06 | $0.06 | $0.06 | $0.23 | |
Preferred stock, distributions per share (in dollars per share) | $0.52 | $0.52 | $0.52 | $0.52 | $2.09 | |
Non-Qualified Ordinary Dividends [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, distributions per share (in dollars per share) | $0.06 | $0.06 | $0.06 | $0.06 | $0.23 | |
Preferred stock, distributions per share (in dollars per share) | $0.52 | $0.52 | $0.52 | $0.52 | $2.09 | |
Qualified Ordinary Dividends [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, distributions per share (in dollars per share) | $0 | $0 | $0 | $0 | $0 | |
Preferred stock, distributions per share (in dollars per share) | $0 | $0 | $0 | $0 | $0 | |
Return of Capital Dividend [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock, distributions per share (in dollars per share) | $0.07 | $0.07 | $0.07 | $0.07 | $0.27 | |
Series B Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Interest rate of preferred stock | 8.38% | 8.38% |
Equity_Stock_Based_Compensatio
Equity - Stock Based Compensation (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock [Member] | |||
Shares: | |||
Beginning balance | 541,180 | 632,344 | |
Granted | 281,491 | 263,039 | 268,060 |
Vested | -275,051 | -350,788 | -262,908 |
Canceled | -3,913 | -3,415 | |
Ending balance | 543,707 | 541,180 | 632,344 |
Weighted-Average Grant-Date Fair Value: | |||
Beginning balance | $19.98 | $17.12 | |
Granted | $29.38 | $22.16 | $20.33 |
Vested | $16.83 | $16.50 | |
Canceled | $20.44 | $16.09 | |
Ending balance | $26.43 | $19.98 | $17.12 |
Total Vest-Date Fair Value (in thousands) | $9,794 | $7,664 | $5,096 |
Equity_Outperformance_Program_
Equity - Outperformance Program (Details) (USD $) | 0 Months Ended | ||
Jan. 02, 2014 | Jan. 02, 2012 | Jan. 02, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
2012 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum share value authorized under plan | $10,000,000 | ||
Stock settled awards | 3,490,000 | ||
Forfeiture adjustment as percent of total cost | 6.00% | ||
Risk free interest rate | 0.40% | ||
Expected dividend payment per share | $1.62 | ||
2013 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum share value authorized under plan | 11,000,000 | ||
Stock settled awards | 4,140,000 | ||
Forfeiture adjustment as percent of total cost | 6.00% | ||
Risk free interest rate | 0.38% | ||
Expected dividend payment per share | $1.50 | ||
2014 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum share value authorized under plan | 12,000,000 | ||
Percentage Amount TSR Exceeds Simple Annual TSR | 4.00% | ||
Simple Annual TSR | 9.00% | ||
Percent TSR Exceeds SNL Equity REIT Index | 4.00% | ||
Percent of Underperformance of SNL Equity REIT Index | 4.00% | ||
Underperformance of SNL Equity REIT Index per Year | 3.00% | ||
Stock settled awards | 3,210,000 | ||
Forfeiture adjustment as percent of total cost | 10.00% | ||
Risk free interest rate | 0.77% | ||
Expected dividend payment per share | 1.5 | ||
Maximum | 2012 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Hypothetical bonus pool for stock settled award | 4,000,000 | ||
Maximum | 2013 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Hypothetical bonus pool for stock settled award | 4,000,000 | ||
Maximum | 2014 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Absolute TSR Reduced on a Linear Basis | 100.00% | ||
Simple TSR Reduced on a Linear Basis | 7.00% | ||
Minimum | 2012 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Hypothetical bonus pool for stock settled award | 2,000,000 | ||
Minimum | 2013 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Hypothetical bonus pool for stock settled award | $2,000,000 | ||
Minimum | 2014 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Absolute TSR Reduced on a Linear Basis | 0.00% | ||
Simple TSR Reduced on a Linear Basis | 0.00% | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 2 years | ||
The Company | 2012 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate | 36.00% | ||
The Company | 2013 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate | 33.00% | ||
The Company | 2014 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate | 28.00% | ||
SNL Equity REIT Index | 2012 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate | 35.00% | ||
SNL Equity REIT Index | 2013 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate | 25.00% | ||
SNL Equity REIT Index | 2014 Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate | 26.00% |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transaction | |
Monthly rental obligation under the lease | $12,000 |
FJM Investments, LLC | |
Related Party Transaction | |
Area of real estate property | 3,707 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loss Contingencies | ||
Commitment to tenants to deliver space | 45.2 | |
Customer Concentration Risk | Sales | ||
Loss Contingencies | ||
Percentage of revenue from one industry | 16.00% | 20.00% |
Segment_Reporting_Summary_of_R
Segment Reporting - Summary of Reportable Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of Reportable Segments | 2 | ||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Revenue | $68,787 | $68,155 | $62,129 | $55,596 | $57,417 | $53,348 | $47,390 | $47,403 | $253,415 | $205,558 | $160,461 |
Operating expenses | 104,269 | 87,583 | 74,939 | ||||||||
Income from operations | 149,146 | 117,975 | 85,522 | ||||||||
Office Properties | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Revenue | 213,786 | 165,441 | 120,328 | ||||||||
Operating expenses | 78,372 | 63,434 | 50,599 | ||||||||
Income from operations | 135,414 | 102,007 | 69,729 | ||||||||
Media and Entertainment Properties | |||||||||||
Segment Reporting Information, Profit (Loss) [Abstract] | |||||||||||
Revenue | 39,629 | 40,117 | 40,133 | ||||||||
Operating expenses | 25,897 | 24,149 | 24,340 | ||||||||
Income from operations | $13,732 | $15,968 | $15,793 |
Segment_Reporting_Reconciliati
Segment Reporting - Reconciliation of Income (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting [Abstract] | |||
Net operating income | $149,146,000 | $117,975,000 | $85,522,000 |
General and administrative | -28,253,000 | -19,952,000 | -16,497,000 |
Depreciation and amortization | -72,216,000 | -70,063,000 | -54,758,000 |
Interest expense | -25,932,000 | -25,470,000 | -19,071,000 |
Interest income | 30,000 | 272,000 | 306,000 |
Acquisition-related expenses | -4,641,000 | -1,446,000 | -1,051,000 |
Other expense | -14,000 | -99,000 | -92,000 |
Income (Loss) before Gain or Loss on Sale of Properties, and Extraordinary Items | 18,148,000 | 1,415,000 | -5,457,000 |
Intersegment sales | 0 | 0 | |
Intersegment transfers | $0 | $0 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $68,787 | $68,155 | $62,129 | $55,596 | $57,417 | $53,348 | $47,390 | $47,403 | $253,415 | $205,558 | $160,461 |
Income from operations | 11,640 | 12,622 | 13,195 | 11,220 | 10,407 | 5,170 | 7,314 | 3,668 | 23,686 | 1,415 | -5,457 |
Net (loss) income from discontinued operations | 0 | -38 | -60 | -66 | -37 | -155 | -4,552 | 735 | -164 | -4,009 | 451 |
Net income (loss) | 885 | 11,415 | 6,689 | 4,533 | 3,269 | -2,752 | -3,428 | 317 | 23,522 | -2,594 | -5,006 |
Net loss attributable to Hudson Pacific Properties, Inc. stockholders’ | ($2,290) | $7,620 | $3,365 | $1,260 | ($83) | ($5,694) | ($6,184) | ($2,872) | $9,955 | ($14,833) | ($17,190) |
Net loss (income) from continuing operations attributable to common stockholders’ per share— basic and diluted | ($0.03) | $0.11 | $0.05 | $0.02 | $0 | ($0.10) | ($0.03) | ($0.07) | $0.15 | ($0.20) | ($0.42) |
Net (loss) income from discontinued operations per share— basic and diluted | $0 | $0 | $0 | $0 | $0 | $0 | ($0.08) | $0.01 | $0 | ($0.07) | $0.01 |
Net loss attributable to common stockholders’ per share— basic and diluted | ($0.03) | $0.11 | $0.05 | $0.02 | $0 | ($0.10) | ($0.11) | ($0.06) | |||
Weighted average shares of common stock outstanding— basic and diluted | 66,512,651 | 66,506,179 | 66,485,639 | 63,625,751 | 56,271,285 | 56,144,099 | 56,075,747 | 52,184,280 |
Subsequent_Events_Acquisitions
Subsequent Events - Acquisitions (Details) (Office, Subsequent Event [Member], USD $) | 0 Months Ended | |
Jan. 07, 2015 | Jan. 07, 2015 | |
Office | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 45.00% | 45.00% |
Joint Venture, Interest in Real Estate, Sales Price | $219.20 |
Subsequent_Events_Common_Stock
Subsequent Events - Common Stock Offering (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 20, 2015 |
Subsequent Event [Line Items] | ||||
Proceeds from issuance of common stock | $197,468 | $202,542 | $190,798 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Stock issued | 11,000,000 | |||
Share price | $31.75 | |||
Proceeds from issuance of common stock | $385,200 | |||
Exercise of Over-allotment Option | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Stock issued | 1,650,000 |
Subsequent_Events_2015_Outperf
Subsequent Events - 2015 Outperformance Program (Details) (USD $) | 0 Months Ended | |
Jan. 02, 2014 | Jan. 01, 2015 | |
Subsequent Event [Line Items] | ||
Performance period | 3 years | |
2012 Outperformance Program | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Maximum bonus pool | $15,000,000 | |
Amount by which TSR exceeds simple annual TSR | 4.00% | |
Absolute TSR component | 9.00% | |
Percent TSR Exceeds SNL Equity REIT Index | 4.00% | |
Percent of Underperformance of SNL Equity REIT Index | 4.00% | |
Underperformance of SNL Equity REIT Index per Year | 3.00% | |
Target bonus pool | $3.60 | |
Simple Annual TSR | 11.00% | |
Performance period | 3 years | |
Restricted Stock Units (RSUs) | ||
Subsequent Event [Line Items] | ||
Award vesting period | 2 years | |
Restricted Stock Units (RSUs) | 2012 Outperformance Program | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Award vesting period | 2 years | |
Executive Officer, Victor Coleman [Member] | Performance Shares [Member] | 2012 Outperformance Program | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Percentage participation rights | 22.40% | |
Executive Officer, Mark Lammas [Member] | Performance Shares [Member] | 2012 Outperformance Program | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Percentage participation rights | 12.00% | |
Executive Officer, Christopher Barton [Member] | Performance Shares [Member] | 2012 Outperformance Program | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Percentage participation rights | 8.00% | |
Executive Officer, Alex Vouvalides [Member] | Performance Shares [Member] | 2012 Outperformance Program | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Percentage participation rights | 10.00% | |
Maximum | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Absolute TSR Reduced on a Linear Basis | 100.00% | |
Simple TSR Reduced on a Linear Basis | 7.00% | |
Minimum | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Absolute TSR Reduced on a Linear Basis | 0.00% | |
Simple TSR Reduced on a Linear Basis | 0.00% |
Schedule_III_Consolidated_Real1
Schedule III - Consolidated Real Estate and Accumulated Depreciation (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 22, 2013 | Dec. 31, 2011 | Feb. 11, 2011 | ||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | $677,452,000 | ||||||
Amount of encumbrances, net of real estate held-for-sale | 635,003,000 | ||||||
Initial Costs | |||||||
Land | 628,920,000 | ||||||
Land, net of real estate held-for-sale | 620,805,000 | ||||||
Building & Improvements | 1,338,647,000 | ||||||
Buildings & Improvements, net of real estate held-for-sale | 1,286,510,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 255,564,000 | ||||||
Improvements, net of real estate held-for-sale | 247,370,000 | ||||||
Carrying Costs | 16,610,000 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 628,920,000 | ||||||
Land, net of real estate held-for-sale | 620,805,000 | ||||||
Building & All Improvements | 1,610,821,000 | ||||||
Buildings & All Improvements, net of real estate held-for-sale | 1,550,490,000 | ||||||
Total | 2,239,741,000 | 2,035,330,000 | 1,475,955,000 | 1,060,504,000 | |||
Real estate, net of real estate held-for-sale | 2,171,295,000 | ||||||
Accumulated depreciation | -134,657,000 | -108,411,000 | -85,184,000 | ||||
Accumulated depreciation, including amounts reclassified as held-for-sale | -142,561,000 | -116,342,000 | -85,184,000 | -53,329,000 | |||
Long-term debt | 915,003,000 | 882,988,000 | |||||
SEC Schedule III, Real Estate Accumulated Depreciation, Depreciation Expense | 50,044,000 | 41,454,000 | 34,675,000 | ||||
SEC Schedule III, Real Estate, Federal Income Tax Basis | 2,200,000,000 | ||||||
Office | Technicolor Building | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | [1] | |||||
Initial Costs | |||||||
Land | 6,599,000 | [1] | |||||
Building & Improvements | 27,187,000 | [1] | |||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 25,460,000 | [1] | |||||
Carrying Costs | 3,088,000 | [1] | |||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 6,599,000 | [1] | |||||
Building & All Improvements | 55,735,000 | [1] | |||||
Total | 62,334,000 | [1] | |||||
Accumulated depreciation | -13,316,000 | [1] | |||||
Office | 875 Howard Street Property | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | [1] | |||||
Initial Costs | |||||||
Land | 18,058,000 | [1] | |||||
Building & Improvements | 41,046,000 | [1] | |||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 12,436,000 | [1] | |||||
Carrying Costs | 1,180,000 | [1] | |||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 18,058,000 | [1] | |||||
Building & All Improvements | 54,662,000 | [1] | |||||
Total | 72,720,000 | [1] | |||||
Accumulated depreciation | -12,408,000 | [1] | |||||
Office | First Financial | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 42,449,000 | ||||||
Initial Costs | |||||||
Land | 8,115,000 | ||||||
Building & Improvements | 52,137,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 8,194,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 8,115,000 | ||||||
Building & All Improvements | 60,331,000 | ||||||
Total | 68,446,000 | ||||||
Accumulated depreciation | -7,904,000 | ||||||
Office | Del Amo | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | ||||||
Initial Costs | |||||||
Land | 0 | ||||||
Building & Improvements | 18,000,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 1,167,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 0 | ||||||
Building & All Improvements | 19,167,000 | ||||||
Total | 19,167,000 | ||||||
Accumulated depreciation | -2,656,000 | ||||||
Office | 9300 Wilshire | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | ||||||
Initial Costs | |||||||
Land | 0 | ||||||
Building & Improvements | 10,718,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 696,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 0 | ||||||
Building & All Improvements | 11,414,000 | ||||||
Total | 11,414,000 | ||||||
Accumulated depreciation | -1,427,000 | ||||||
Office | 222 Kearny | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | [1] | |||||
Initial Costs | |||||||
Land | 7,563,000 | [1] | |||||
Building & Improvements | 23,793,000 | [1] | |||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 2,768,000 | [1] | |||||
Carrying Costs | 0 | [1] | |||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 7,563,000 | [1] | |||||
Building & All Improvements | 26,561,000 | [1] | |||||
Total | 34,124,000 | [1] | |||||
Accumulated depreciation | -3,349,000 | [1] | |||||
Office | Rincon Center | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 104,126,000 | [2] | |||||
Initial Costs | |||||||
Land | 58,251,000 | ||||||
Building & Improvements | 110,656,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 11,763,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 58,251,000 | ||||||
Building & All Improvements | 122,419,000 | ||||||
Total | 180,670,000 | ||||||
Accumulated depreciation | -14,755,000 | ||||||
Office | 1455 Market | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | [1] | |||||
Initial Costs | |||||||
Land | 41,226,000 | [1] | |||||
Building & Improvements | 34,990,000 | [1] | |||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 25,934,000 | [1] | |||||
Carrying Costs | 0 | [1] | |||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 41,226,000 | [1] | |||||
Building & All Improvements | 60,924,000 | [1] | |||||
Total | 102,150,000 | [1] | |||||
Accumulated depreciation | -1,419,000 | [1] | |||||
Office | 10950 Washington | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 28,866,000 | [2] | |||||
Initial Costs | |||||||
Land | 17,979,000 | ||||||
Building & Improvements | 25,110,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 416,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 17,979,000 | ||||||
Building & All Improvements | 25,526,000 | ||||||
Total | 43,505,000 | ||||||
Accumulated depreciation | -3,329,000 | ||||||
Office | 604 Arizona | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | [1] | |||||
Initial Costs | |||||||
Land | 5,620,000 | [1] | |||||
Building & Improvements | 14,745,000 | [1] | |||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 1,384,000 | [1] | |||||
Carrying Costs | 0 | [1] | |||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 5,620,000 | [1] | |||||
Building & All Improvements | 16,129,000 | [1] | |||||
Total | 21,749,000 | [1] | |||||
Accumulated depreciation | -1,385,000 | [1] | |||||
Office | 275 Brannan Street | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 15,000,000 | ||||||
Initial Costs | |||||||
Land | 4,187,000 | ||||||
Building & Improvements | 8,063,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 14,026,000 | ||||||
Carrying Costs | 1,115,000 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 4,187,000 | ||||||
Building & All Improvements | 23,204,000 | ||||||
Total | 27,391,000 | ||||||
Accumulated depreciation | -1,811,000 | ||||||
Office | 625 Second Street | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | [1] | |||||
Initial Costs | |||||||
Land | 10,744,000 | [1] | |||||
Building & Improvements | 42,650,000 | [1] | |||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | -70,000 | [1] | |||||
Carrying Costs | 0 | [1] | |||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 10,744,000 | [1] | |||||
Building & All Improvements | 42,580,000 | [1] | |||||
Total | 53,324,000 | [1] | |||||
Accumulated depreciation | -4,267,000 | [1] | |||||
Office | 6922 Hollywood | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | ||||||
Initial Costs | |||||||
Land | 16,608,000 | ||||||
Building & Improvements | 72,392,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 3,835,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 16,608,000 | ||||||
Building & All Improvements | 76,227,000 | ||||||
Total | 92,835,000 | ||||||
Accumulated depreciation | -7,551,000 | ||||||
Office | 10900 Washington | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | ||||||
Initial Costs | |||||||
Land | 1,400,000 | ||||||
Building & Improvements | 1,200,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 735,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 1,400,000 | ||||||
Building & All Improvements | 1,935,000 | ||||||
Total | 3,335,000 | ||||||
Accumulated depreciation | -209,000 | ||||||
Office | 901 Market | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 49,600,000 | [3] | |||||
Initial Costs | |||||||
Land | 17,882,000 | ||||||
Building & Improvements | 79,305,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 13,719,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 17,882,000 | ||||||
Building & All Improvements | 93,024,000 | ||||||
Total | 110,906,000 | ||||||
Accumulated depreciation | -6,300,000 | ||||||
Office | Element LA | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 59,490,000 | [4] | |||||
Initial Costs | |||||||
Land | 79,769,000 | ||||||
Building & Improvements | 19,755,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 69,529,000 | ||||||
Carrying Costs | 9,225,000 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 79,769,000 | ||||||
Building & All Improvements | 98,509,000 | ||||||
Total | 178,278,000 | ||||||
Accumulated depreciation | -113,000 | ||||||
Office | Pinnacle I | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 129,000,000 | [5] | |||||
Initial Costs | |||||||
Land | 28,518,000 | ||||||
Building & Improvements | 171,657,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 3,976,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 28,518,000 | ||||||
Building & All Improvements | 175,633,000 | ||||||
Total | 204,151,000 | ||||||
Accumulated depreciation | -10,961,000 | ||||||
Office | Pinnacle II | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 87,421,000 | [6] | |||||
Initial Costs | |||||||
Land | 15,430,000 | ||||||
Building & Improvements | 115,537,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 208,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 15,430,000 | ||||||
Building & All Improvements | 115,745,000 | ||||||
Total | 131,175,000 | ||||||
Accumulated depreciation | -5,298,000 | ||||||
Office | 3401 Exposition | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | ||||||
Initial Costs | |||||||
Land | 14,120,000 | ||||||
Building & Improvements | 11,319,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 9,953,000 | ||||||
Carrying Costs | 1,028,000 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 14,120,000 | ||||||
Building & All Improvements | 22,300,000 | ||||||
Total | 36,420,000 | ||||||
Accumulated depreciation | -81,000 | ||||||
Office | First and King | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | ||||||
Initial Costs | |||||||
Land | 35,899,000 | ||||||
Building & Improvements | 184,437,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 5,619,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 35,899,000 | ||||||
Building & All Improvements | 190,056,000 | ||||||
Total | 225,955,000 | ||||||
Accumulated depreciation | -7,751,000 | ||||||
Office | Met Park North | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 64,500,000 | [7] | |||||
Initial Costs | |||||||
Land | 28,996,000 | ||||||
Building & Improvements | 71,768,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 499,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 28,996,000 | ||||||
Building & All Improvements | 72,267,000 | ||||||
Total | 101,263,000 | ||||||
Accumulated depreciation | -3,011,000 | ||||||
Office | Northview | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | ||||||
Initial Costs | |||||||
Land | 4,803,000 | ||||||
Building & Improvements | 41,191,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 151,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 4,803,000 | ||||||
Building & All Improvements | 41,342,000 | ||||||
Total | 46,145,000 | ||||||
Accumulated depreciation | -2,354,000 | ||||||
Office | 3402 Pico Blvd. | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | ||||||
Initial Costs | |||||||
Land | 16,410,000 | ||||||
Building & Improvements | 2,136,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 1,066,000 | ||||||
Carrying Costs | 627,000 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 16,410,000 | ||||||
Building & All Improvements | 3,829,000 | ||||||
Total | 20,239,000 | ||||||
Accumulated depreciation | 0 | ||||||
Office | Merrill Place | |||||||
Initial Costs | |||||||
Land | 27,684,000 | ||||||
Building & Improvements | 29,824,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 1,539,000 | ||||||
Carrying Costs | 2,000 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 27,684,000 | ||||||
Building & All Improvements | 31,365,000 | ||||||
Total | 59,049,000 | ||||||
Accumulated depreciation | -1,307,000 | ||||||
Office | 12655 Jefferson | |||||||
Initial Costs | |||||||
Land | 6,040,000 | ||||||
Building & Improvements | 31,960,000 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 73,000 | ||||||
Carrying Costs | 0 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 6,040,000 | ||||||
Building & All Improvements | 32,033,000 | ||||||
Total | 38,073,000 | ||||||
Accumulated depreciation | 0 | ||||||
Office | Icon | |||||||
Initial Costs | |||||||
Land | 0 | ||||||
Building & Improvements | 0 | ||||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 13,121,000 | ||||||
Carrying Costs | 84,000 | ||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 0 | ||||||
Building & All Improvements | 13,205,000 | ||||||
Total | 13,205,000 | ||||||
Accumulated depreciation | 0 | ||||||
Media & Entertainment | Sunset Gower | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 97,000,000 | [8] | |||||
Initial Costs | |||||||
Land | 79,321,000 | [9] | |||||
Building & Improvements | 64,697,000 | [9] | |||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 15,685,000 | [9] | |||||
Carrying Costs | 139,000 | [9] | |||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 79,321,000 | [9] | |||||
Building & All Improvements | 80,521,000 | [9] | |||||
Total | 159,842,000 | [9] | |||||
Accumulated depreciation | -15,856,000 | [9] | |||||
Media & Entertainment | Sunset Bronson | |||||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||||
Encumbrances | 0 | [9] | |||||
Initial Costs | |||||||
Land | 77,698,000 | [9] | |||||
Building & Improvements | 32,374,000 | [9] | |||||
Cost Capitalized Subsequent to Acquisition | |||||||
Improvements | 11,682,000 | [9] | |||||
Carrying Costs | 122,000 | [9] | |||||
Gross Carrying Amount at December 31, 2014 | |||||||
Land | 77,698,000 | [9] | |||||
Building & All Improvements | 44,178,000 | [9] | |||||
Total | 121,876,000 | [9] | |||||
Accumulated depreciation | -13,743,000 | [9] | |||||
Building Improvements | |||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Estimated useful life | 39 years | ||||||
Land Improvements | |||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Estimated useful life | 15 years | ||||||
Revolving Credit Facility | |||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Long-term debt | 130,000,000 | 0 | |||||
Sunset Gower Sunset Bronson | |||||||
Gross Carrying Amount at December 31, 2014 | |||||||
Long-term debt | $97,000,000 | $97,000,000 | $92,000,000 | ||||
Basis spread on variable rate | 3.50% | 2.25% | |||||
[1] | These properties are secured under our line of credit, which, as of December 31, 2014, has an outstanding balance of $130,000. | ||||||
[2] | This loan is amortizing based on a 30-year amortization schedule. | ||||||
[3] | On October 29, 2012, we obtained a loan for our 901 Market property pursuant to which we borrowed $49.6 million upon closing, with the ability to draw up to an additional $11.9 million for budgeted base building, tenant improvements, and other costs associated with the renovation and lease-up of that property. | ||||||
[4] | $65.5 million | ||||||
[5] | This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30-year amortization schedule. | ||||||
[6] | This loan was assumed on June 14, 2013 in connection with the contribution of the Pinnacle II building to the Company’s joint venture with M. David Paul & Associates/Worthe Real Estate Group. This loan bore interest only for the first five years. Beginning with the payment due October 6, 2011, monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule. | ||||||
[7] | This loan bears interest only at a rate equal to one-month LIBOR plus 1.55%. The full loan amount is subject to an interest rate contract that swapped one-month LIBOR to a fixed rate of 2.1644% through the loan's maturity on August 1, 2020. | ||||||
[8] | On March 16, 2011, we purchased an interest rate cap in order to cap one-month LIBOR at 3.715% with respect to $50.0 million of the loan through February 11, 2016. On January 11, 2012 we purchased an interest rate cap in order to cap one-month LIBOR at 2.00% with respect to $42.0 million of the loan through February 11, 2016. Effective August 22, 2013, the terms of this loan were amended to increase the outstanding balance from $92.0 million to $97.0 million, reduce the interest rate from LIBOR plus 3.50% to LIBOR plus 2.25%, and extend the maturity date from February 11, 2016 to February 11, 2018. | ||||||
[9] | Effective August 22, 2013, the terms of this loan were amended to increase the outstanding balance from $92,000 to $97,000, reduce the interest rate from LIBOR plus 3.50% to LIBOR plus 2.25%, and extend the maturity date from February 11, 2016 to February 11, 2018. |
Schedule_IV_Mortgage_Loans_on_1
Schedule IV - Mortgage Loans on Real Estate (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Mortgage Loans on Real Estate [Abstract] | ||
Interest rate | 11.00% | |
Final maturity date | 18-Aug-16 | |
Periodic payment terms | Interest Only | |
Prior liens | $0 | |
Face amount of mortgage | 28,528,000 | |
Notes receivable | 28,268,000 | 0 |
Carrying amount of mortgage | 28,268,000 | |
Principal amount of loans subject to delinquent principal or interest | $0 |