Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 09, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Brookfield DTLA Fund Office Trust Investor Inc. | |
Entity Central Index Key | 1,575,311 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Sep. 30, 2018 unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments in Real Estate: | ||
Land | $ 227,555 | $ 227,555 |
Buildings and improvements | 2,223,287 | 2,208,498 |
Tenant improvements | 346,013 | 320,269 |
Investments in real estate, gross | 2,796,855 | 2,756,322 |
Less: accumulated depreciation | 398,813 | 342,465 |
Investments in real estate, net | 2,398,042 | 2,413,857 |
Cash and cash equivalents | 115,467 | 31,958 |
Restricted cash | 41,855 | 35,547 |
Rents, deferred rents and other receivables, net | 149,261 | 129,482 |
Intangible assets, net | 47,729 | 58,289 |
Deferred charges, net | 67,803 | 69,635 |
Prepaid and other assets, net | 6,904 | 9,047 |
Total assets | 2,827,061 | 2,747,815 |
Liabilities: | ||
Mortgage loans, net | 2,135,397 | 1,991,692 |
Accounts payable and other liabilities | 69,938 | 80,810 |
Due to affiliates | 5,354 | 11,273 |
Intangible liabilities, net | 13,266 | 16,239 |
Total liabilities | 2,223,955 | 2,100,014 |
Commitments and Contingencies (See Note 15) | ||
Mezzanine Equity: | ||
Mezzanine equity | 1,014,992 | 990,749 |
Total mezzanine equity | 1,014,992 | 990,749 |
Stockholders’ Deficit: | ||
Common stock, $0.01 par value, 1,000 shares issued and outstanding as of September 30, 2018 and December 31, 2017 | 0 | 0 |
Additional paid-in capital | 194,210 | 194,210 |
Accumulated deficit | (290,673) | (256,877) |
Accumulated other comprehensive income (loss) | 667 | (273) |
Noncontrolling interest – Series B common interest | (316,090) | (280,008) |
Total stockholders’ deficit | (411,886) | (342,948) |
Total liabilities and deficit | 2,827,061 | 2,747,815 |
7.625% Series A Cumulative Redeemable Preferred Stock, $0.01 par value, 9,730,370 shares issued and outstanding as of September 30, 2018 and December 31, 2017 | ||
Mezzanine Equity: | ||
Mezzanine equity | 405,311 | 391,400 |
Series A-1 preferred interest | ||
Mezzanine Equity: | ||
Mezzanine equity | 396,419 | 383,510 |
Senior participating preferred interest | ||
Mezzanine Equity: | ||
Mezzanine equity | 25,584 | 25,548 |
Series B preferred interest | ||
Mezzanine Equity: | ||
Mezzanine equity | $ 187,678 | $ 190,291 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 1,000 | 1,000 |
Series A Preferred Stock | ||
Preferred stock feature | 7.625% Series A Cumulative Redeemable Preferred Stock | 7.625% Series A Cumulative Redeemable Preferred Stock |
Preferred stock, dividend rate, percentage | 7.625% | 7.625% |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 9,730,370 | 9,730,370 |
Preferred stock, shares outstanding (in shares) | 9,730,370 | 9,730,370 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue: | ||||
Rental income | $ 39,340 | $ 40,628 | $ 119,290 | $ 120,843 |
Tenant reimbursements | 25,320 | 24,368 | 71,401 | 72,138 |
Parking | 9,423 | 9,216 | 27,894 | 27,785 |
Interest and other | 3,068 | 2,855 | 17,971 | 8,286 |
Total revenue | 77,151 | 77,067 | 236,556 | 229,052 |
Expenses: | ||||
Rental property operating and maintenance | 26,154 | 25,422 | 74,062 | 73,332 |
Real estate taxes | 9,754 | 9,886 | 30,370 | 28,806 |
Parking | 2,368 | 2,196 | 7,497 | 6,926 |
Other expense | 1,128 | 1,122 | 4,481 | 3,489 |
Depreciation and amortization | 23,777 | 24,335 | 71,341 | 74,020 |
Interest | 28,608 | 23,243 | 78,486 | 70,223 |
Total expenses | 91,789 | 86,204 | 266,237 | 256,796 |
Net loss | (14,638) | (9,137) | (29,681) | (27,744) |
Series B common interest – allocation of net loss | (14,531) | (11,738) | (37,115) | (33,646) |
Net loss attributable to Brookfield DTLA | (8,595) | (6,052) | (19,885) | (16,727) |
Net loss available to common interest holders of Brookfield DTLA | (13,232) | (10,689) | (33,796) | (30,638) |
Series A-1 preferred interest | ||||
Expenses: | ||||
Current dividends | 4,303 | 4,303 | 12,909 | 12,909 |
Senior participating preferred interest | ||||
Expenses: | ||||
Redemption measurement adjustment | 220 | 385 | 2,645 | 250 |
Series B preferred interest | ||||
Expenses: | ||||
Current dividends | 3,965 | 3,965 | 11,765 | 9,470 |
Series A Preferred Stock | ||||
Expenses: | ||||
Current dividends | $ 4,637 | $ 4,637 | $ 13,911 | $ 13,911 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (14,638) | $ (9,137) | $ (29,681) | $ (27,744) |
Derivative transactions: | ||||
Unrealized derivative holding gains | 634 | 469 | 3,171 | 1,232 |
Reclassification adjustment for realized gains included in net loss | 0 | 0 | (1,198) | 0 |
Total other comprehensive income | 634 | 469 | 1,973 | 1,232 |
Comprehensive loss | (14,004) | (8,668) | (27,708) | (26,512) |
Less: comprehensive loss attributable to noncontrolling interests | (5,711) | (2,840) | (8,763) | (10,372) |
Comprehensive loss available to common interest holders of Brookfield DTLA | $ (8,293) | $ (5,828) | $ (18,945) | $ (16,140) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interest |
Balance, beginning of period (in shares) at Dec. 31, 2016 | 1,000 | |||||
Balance, beginning of period at Dec. 31, 2016 | $ (258,435) | $ 0 | $ 194,210 | $ (215,264) | $ (1,607) | $ (235,774) |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | ||||||
Net loss | (27,744) | (16,727) | (11,017) | |||
Other comprehensive income | 1,232 | 587 | 645 | |||
Dividends on Series A preferred stock, Series A-1 preferred interest, senior participating preferred interest and Series B preferred interest | (36,540) | (13,911) | (22,629) | |||
Balance, end of period (in shares) at Sep. 30, 2017 | 1,000 | |||||
Balance, end of period at Sep. 30, 2017 | (321,487) | $ 0 | 194,210 | (245,902) | (1,020) | (268,775) |
Balance, beginning of period (in shares) at Dec. 31, 2017 | 1,000 | |||||
Balance, beginning of period at Dec. 31, 2017 | (342,948) | $ 0 | 194,210 | (256,877) | (273) | (280,008) |
Increase (Decrease) in Stockholders' Deficit [Roll Forward] | ||||||
Net loss | (29,681) | (19,885) | (9,796) | |||
Other comprehensive income | 1,973 | 940 | 1,033 | |||
Dividends on Series A preferred stock, Series A-1 preferred interest, senior participating preferred interest and Series B preferred interest | (41,230) | (13,911) | (27,319) | |||
Balance, end of period (in shares) at Sep. 30, 2018 | 1,000 | |||||
Balance, end of period at Sep. 30, 2018 | $ (411,886) | $ 0 | $ 194,210 | $ (290,673) | $ 667 | $ (316,090) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (29,681) | $ (27,744) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 71,341 | 74,020 |
Provision for (recovery of) doubtful accounts | 108 | (7) |
Amortization of below-market leases/ above-market leases | 145 | (1,639) |
Straight-line rent amortization | (9,314) | (6,989) |
Amortization of tenant inducements | 3,007 | 2,808 |
Amortization of debt issuance costs and discounts | 8,053 | 4,659 |
Realized gain on interest rate swap | (1,198) | 0 |
Changes in assets and liabilities: | ||
Rents, deferred rents and other receivables, net | (5,124) | (83) |
Deferred charges, net | (3,510) | (5,600) |
Prepaid and other assets, net | 4,739 | 5,630 |
Accounts payable and other liabilities | (4,479) | 5,117 |
Due to affiliates | (5,919) | (10,997) |
Net cash provided by operating activities | 28,168 | 39,175 |
Cash flows from investing activities: | ||
Expenditures for real estate improvements | (57,016) | (54,308) |
Net cash used in investing activities | (57,016) | (54,308) |
Cash flows from financing activities: | ||
Proceeds from mortgage loans | 823,500 | 470,000 |
Principal payments on mortgage loans | (681,831) | (553,001) |
Distributions to noncontrolling interests | (16,987) | (270) |
Contributions from noncontrolling interests | 0 | 112,012 |
Financing fees paid | (6,017) | (7,478) |
Net cash provided by financing activities | 118,665 | 21,263 |
Net change in cash, cash equivalents and restricted cash | 89,817 | 6,130 |
Cash, cash equivalents and restricted cash at beginning of period | 67,505 | 90,385 |
Cash, cash equivalents and restricted cash at end of period | 157,322 | 96,515 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 72,974 | 66,809 |
Supplemental disclosure of non-cash activities: | ||
Accrual for real estate improvements | 11,635 | 19,526 |
Accrual for deferred leasing costs | 5,487 | 3,204 |
Writeoff of fully depreciated buildings and improvements | 0 | 3,992 |
Writeoff of fully depreciated tenant improvements | 0 | 48,790 |
Writeoff of fully amortized deferred charges | 0 | 17,867 |
Writeoff of fully depreciated intangible assets | 0 | 57,088 |
Writeoff of fully depreciated intangible liabilities | 0 | 16,320 |
Increase in fair value of interest rate swaps, net | $ 1,973 | $ 1,232 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Brookfield DTLA Fund Office Trust Investor Inc. (“Brookfield DTLA” or the “Company”) is a Maryland corporation and was incorporated on April 19, 2013. Brookfield DTLA was formed for the purpose of consummating the transactions contemplated in the Agreement and Plan of Merger dated as of April 24, 2013, as amended (the “Merger Agreement”), and the issuance of shares of 7.625% Series A Cumulative Redeemable Preferred Stock (the “Series A preferred stock”) in connection with the acquisition of MPG Office Trust, Inc. and MPG Office, L.P. (together, “MPG”). Brookfield DTLA is a direct subsidiary of Brookfield DTLA Holdings LLC, a Delaware limited liability company (“DTLA Holdings”, and together with its affiliates excluding the Company and its subsidiaries, the “Manager”). Brookfield DTLA owns BOA Plaza, EY Plaza, Wells Fargo Center–North Tower, Wells Fargo Center–South Tower, Gas Company Tower and 777 Tower, each of which is a Class A office property located in the Los Angeles Central Business District (the “LACBD”). Brookfield DTLA receives its income primarily from rental income (including tenant reimbursements) generated from the operations of its office and retail properties, and to a lesser extent, from its parking garages. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation As used in these condensed consolidated financial statements and related notes, unless the context requires otherwise, the terms “Brookfield DTLA,” the “Company,” “us,” “we” and “our” refer to Brookfield DTLA Fund Office Trust Investor Inc. Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim financial information and with the instructions to Form 10‑Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments, consisting of only those of a normal and recurring nature, considered necessary for a fair presentation of the financial position and interim results of Brookfield DTLA as of and for the periods presented have been included. The results of operations for interim periods are not necessarily indicative of those that may be expected for a full fiscal year. The condensed consolidated balance sheet data as of December 31, 2017 has been derived from Brookfield DTLA’s audited financial statements; however, the accompanying notes to the condensed consolidated financial statements do not include all disclosures required by GAAP. The financial information included herein should be read in conjunction with the consolidated financial statements and related notes included in Brookfield DTLA’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 27, 2018 . Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. For example, estimates and assumptions have been made with respect to fair values of assets and liabilities for purposes of applying the acquisition method of accounting, the useful lives of assets, recoverable amounts of receivables, impairment of long-lived assets and fair value of debt. Actual results could ultimately differ from such estimates. Accounting Pronouncements Adopted in 2018 Effective January 1, 2018, Brookfield DTLA adopted the guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-18, Restricted Cash to Accounting Standards Codification (“ASC”) Topic 230, Statement of Cash Flows. ASU 2016-18 requires entities to show the change during the period in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. We adopted ASU 2016-18 on a retrospective basis. Therefore, amounts generally described as restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown in the Company’s condensed consolidated statements of cash flows for the nine months ended September 30, 2018 and 2017 . As a result of the adoption of ASU 2016-18, the change in restricted cash is no longer presented as a separate line item within cash flows from investing activities in the condensed consolidated statement of cash flows since such balances are now included in total cash at both the beginning and end of the reporting period. As a result, for the nine months ended September 30, 2017 the Company used net cash in investing activities of $54.3 million instead of $42.6 million as previously reported. Effective January 1, 2018, Brook field DTLA adopted, on a modified retrospective basis, the guidance in ASU 2014-09, Revenue from Contracts with Customers (ASC Topic 606). ASU 2014-09, as amended by subsequent ASUs on the topic, establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services and also requires certain additional disclosures. The adoption of this pronouncement did not have an impact on Brookfield DTLA’s condensed consolidated financial statements . Effective January 1, 2018, Broo kfield DTLA adopted, on a retrospective basis, the guidance in ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments to ASC Topic 230, Statement of Cash Flows . ASU 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of this guidance did not have an impact on Brookfield DTLA’s condensed consolidated financial statements . Effective January 1, 2018, Bro okfield DTLA adopted, on a prospective basis, the guidance in ASU 2017-01, Clarifying the Definition of a Business to ASC Topic 805, Business Combinations. ASU 2017-01 introduced amendments that are intended to make the guidance on the definition of a business more consistent and cost-efficient. The objective of the update is to add further guidance that assists entities in evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or as a business by providing a basis to determine when a set of assets and activities acquired is not a business. We expect that future acquisitions of operating and development properties, if any, will be accounted for as asset acquisitions under the new guidance, instead of as business combinations under the previous guidance. Additionally, we expect that most of the transaction costs associated with any future acquisitions will be capitalized in the consolidated balance sheet as part of the purchase price of the property acquired instead of being expensed as incurred in the consolidated statement of operations as part of acquisition-related expenses. Effective January 1, 2018, Brookfield DTLA adopted, on a retrospective basis, the guidance in ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets to ASC Subtopic 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets . ASU 2017-05 clarifies the scope of recently established guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. This update conforms the derecognition guidance on nonfinancial assets with the model for transactions in ASC Topic 606. The adoption of this guidance did not have an impact on Brookfield DTLA’s condensed consolidated financial statements . Accounting Pronouncements Effective January 1, 2019 Leases In February 2016, the FASB issued an update (“ASU 2016-02”), Leases (Topic 842), to amend the accounting guidance for leases. ASU 2016-02 sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both lessees and lessors. The guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on a principle of whether or not the lease is effectively a financed purchase. For leases with a term greater than 12 months, lessees are required to record a right-of-use asset representing its right to use the underlying asset for the lease term and a liability to make lease payments on its balance sheet and will recognize lease expense generally on a straight‑line basis over the lease term in its statement of operations. For leases with a term of 12 months or less, lessees are permitted to make an accounting policy election by class of underlying asset not to recognize lease assets or liabilities on its balance sheet. If a lessee makes this election, it will recognize lease expense for such leases using the effective interest method. In July 2018, the FASB issued ASU 2018-11 that (1) simplifies transition requirements for both lessees and lessors by adding an option that permits an organization to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in its financial statements and (2) provides a practical expedient for lessors that permits lessors to make an accounting policy election to not separate nonlease components from the associated lease components, if the following two criteria are met: (1) the timing and pattern of transfer of the lease and nonlease components are the same, and (2) the lease component would be classified as an operating lease if accounted for separately. For leases where we are the lessor, Brookfield DTLA plans to elect the optional transition relief and apply the practical expedients provided by ASU 2018-11. As a result, leases where Brookfield DTLA is the lessor will be accounted for in a similar method to existing standards with the underlying leased asset being reported and recognized as a real estate asset. In August 2018, the FASB released an exposure draft to amend ASU 2016-02 that clarifies lessor treatment of sales taxes and other similar taxes collected from lessees, lessor costs paid directly by lessees and recognition of variable payments for contracts with lease and nonlease components. If the amendments are codified as currently drafted, we do not expect the amendments to have a material impact on Brookfield DTLA’s consolidated financial statements. We are currently evaluating the impact of the adoption of the new lease standard on Brookfield DTLA’s consolidated financial statements, and we currently believe that the adoption of this standard will not significantly change the accounting for operating leases on Brookfield DTLA’s consolidated balance sheet where we are the lessor, and that such leases will be accounted for in a similar manner. Under the new guidance, initial direct costs for both lessees and lessors will include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, Brookfield DTLA may no longer be able to capitalize internal leasing costs and instead may be required to expense these costs as incurred. ASU 2016-02 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted. We currently expect to adopt this standard effective January 1, 2019 using the practical expedients provided in the standard and the changes approved by the FASB. Other In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities to ASC Topic 815, Derivatives and Hedging . ASU 2017-12 introduced amendments intended to make targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The objective of the update is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. All transition requirements and elections should be applied to hedging relationships existing as of the date of adoption and the effect of the adoption should be reflected as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. Accounting Pronouncements Effective January 1, 2020 In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, to amend the accounting for credit losses for certain financial instruments. Under the new guidance, an entity recognizes its estimate of expected credit losses as an allowance, which the FASB believes will result in more timely recognition of such losses. In August 2018, the FASB released an exposure draft to amend ASU 2016-13. The proposed amendment would clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost . Instead, impairment of receivables arising from operating leases should be accounted for under Subtopic 842-30, Leases—Lessor . ASU 2016-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019, with early adoption permitted as of the fiscal year beginning after December 15, 2018, including adoption in an interim period using a modified-retrospective approach. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), to amend the disclosure requirements for fair value measurements. The amendments in ASU 2018-13 include new, modified and eliminated disclosure requirements and are the result of a broader disclosure project, FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements , that was finalized on August 28, 2018. The FASB used the guidance in the Concepts Statement to improve the effectiveness of the disclosure requirements in Topic 820. ASU 2018-13 is effective for interim and annual periods in fiscal years beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted for any eliminated or modified disclosures. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Sep. 30, 2018 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands): September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Cash and cash equivalents $ 115,467 $ 31,958 $ 48,122 $ 30,301 Restricted cash 41,855 35,547 48,393 60,084 Total cash, cash equivalents and restricted cash $ 157,322 $ 67,505 $ 96,515 $ 90,385 Restricted cash consists primarily of deposits for tenant improvements and leasing commissions, real estate taxes, debt service reserves and other items as required by certain of our mortgage loan agreements. |
Rents, Deferred Rents and Other
Rents, Deferred Rents and Other Receivables, Net | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Rents, Deferred Rents and Other Receivables, Net | Rents, Deferred Rents and Other Receivables, Net Brookfield DTLA’s rents, deferred rents and other receivables are presented net of the following amounts in the condensed consolidated balance sheets (in thousands): September 30, 2018 December 31, 2017 Allowance for doubtful accounts $ 314 $ 206 Accumulated amortization of tenant inducements 15,462 12,455 |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities | Intangible Assets and Liabilities Brookfield DTLA’s intangible assets and liabilities are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Intangible Assets In-place leases $ 66,365 $ 66,365 Tenant relationships 30,078 30,078 Above-market leases 31,270 31,270 127,713 127,713 Less: accumulated amortization 79,984 69,424 Intangible assets, net $ 47,729 $ 58,289 Intangible Liabilities Below-market leases $ 59,561 $ 59,561 Less: accumulated amortization 46,295 43,322 Intangible liabilities, net $ 13,266 $ 16,239 The impact of the amortization of acquired below-market leases, net of acquired above-market leases, on rental income and of acquired in-place leases and tenant relationships on depreciation and amortization expense is as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Rental income $ (72 ) $ 747 $ (145 ) $ 1,639 Depreciation and amortization expense 2,267 3,239 7,442 10,809 As of September 30, 2018 , the estimate of the amortization/accretion of intangible assets and liabilities during the remainder of 2018 , the next four years and thereafter is as follows (in thousands): In-Place Leases Other Intangible Assets Intangible Liabilities 2018 $ 875 $ 335 $ 778 2019 5,617 4,306 3,178 2020 4,972 3,415 2,972 2021 4,734 3,328 2,800 2022 4,022 3,050 2,493 Thereafter 5,532 7,543 1,045 $ 25,752 $ 21,977 $ 13,266 |
Deferred Charges, Net
Deferred Charges, Net | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Charges, Net | Deferred Charges, Net Brookfield DTLA’s deferred charges are presented net of the following amounts in the condensed consolidated balance sheets (in thousands): September 30, 2018 December 31, 2017 Accumulated amortization of deferred leasing costs $ 47,313 $ 39,762 |
Mortgage Loans
Mortgage Loans | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Mortgage Loans | Mortgage Loans Brookfield DTLA’s debt is as follows (in thousands, except percentage amounts): Contractual Maturity Date Principal Amount as of Interest Rate September 30, 2018 December 31, 2017 Floating-Rate Debt Variable-Rate Loans: Wells Fargo Center–North Tower (1) 10/9/2020 3.83 % $ 400,000 $ — Wells Fargo Center–North Tower (2) 10/9/2020 6.18 % 65,000 — Wells Fargo Center–North Tower (3) 10/9/2020 7.18 % 35,000 — Wells Fargo Center–South Tower (4) 12/6/2018 5.82 % 250,000 250,000 777 Tower (5) 11/1/2018 4.29 % 220,000 220,000 EY Plaza (6) 11/27/2020 6.65 % 35,000 — Total variable-rate loans 1,005,000 470,000 Variable-Rate Swapped to Fixed-Rate Loan: EY Plaza (7) 11/27/2020 3.90 % 230,000 — Total floating-rate debt 1,235,000 470,000 Fixed-Rate Debt: BOA Plaza 9/1/2024 4.05 % 400,000 400,000 Gas Company Tower 8/6/2021 3.47 % 319,000 319,000 Gas Company Tower 8/6/2021 6.50 % 131,000 131,000 Figueroa at 7th 3/1/2023 3.88 % 58,500 — Total fixed-rate debt 908,500 850,000 Debt Refinanced: Wells Fargo Center–North Tower — 470,000 EY Plaza — 176,831 Figueroa at 7th — 35,000 Total debt refinanced — 681,831 Total debt 2,143,500 2,001,831 Less: unamortized debt issuance costs 8,103 10,139 Total debt, net $ 2,135,397 $ 1,991,692 __________ (1) This loan bears interest at LIBOR plus 1.65% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of the loan, each for a period of one year, as long as the maturity dates of both of the mezzanine loans are extended when the maturity date of the mortgage loan is extended. (2) This loan bears interest at LIBOR plus 4.00% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of the loan, each for a period of one year, as long as the maturity date of the other mezzanine loan is extended when the maturity date of the mortgage loan is extended. (3) This loan bears interest at LIBOR plus 5.00% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of the loan, each for a period of one year, as long as the maturity date of the other mezzanine loan is extended when the maturity date of the mortgage loan is extended. (4) This loan bears interest at LIBOR plus 3.69% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 3.00% . On November 5, 2018 , Brookfield DTLA refinanced this mortgage loan. See Note 16 “Subsequent Events.” (5) This loan bears interest at LIBOR plus 2.18% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 5.75% . On October 31, 2018 , Brookfield DTLA extended the maturity date of this mortgage loan for a period of one year to November 1, 2019 . See Note 16 “Subsequent Events.” (6) This loan bears interest at LIBOR plus 4.55% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 3.50% . (7) This loan bears interest at LIBOR plus 1.65% . As required by the loan agreement, we have entered into interest rate swap agreements to hedge this loan, which effectively fix the LIBOR portion of the interest rate at 2.25% . The effective interest rate of 3.90% includes interest on the swaps. Debt Refinanced Figueroa at 7th— On February 6, 2018 , Brookfield DTLA refinanced the mortgage loan secured by the Figueroa at 7th retail property and received net proceeds totaling $58.0 million , of which $35.0 million was used to repay the mortgage loan that previously encumbered the property, with the remainder used for general corporate purposes. The new $58.5 million loan bears interest at a fixed rate equal to 3.88% , requires the payment of interest-only until maturity, and matures on March 1, 2023 . The loan is locked out from prepayment until March 1, 2020 , after which it can be prepaid, in whole or in part, with prepayment fees (as defined in the underlying loan agreement) until November 1, 2022 , after which the loan may be repaid without penalty. EY Plaza— On March 29, 2018 , Brookfield DTLA refinanced the mortgage loan secured by the EY Plaza office property and received net proceeds totaling $263.6 million , of which $175.8 million was used to repay the mortgage loan that previously encumbered the property, with the remainder to be used for general corporate purposes. The new $265.0 million loan is comprised of a $230.0 million mortgage loan and a $35.0 million mezzanine loan, each of which bears interest at variable rates equal to LIBOR plus 1.65% and 4.55% , respectively, requires the payment of interest-only until maturity, and matures on November 27, 2020 . The mortgage loan can be prepaid, in whole or in part, with prepayment fees (as defined in the underlying loan agreement) and payment of early termination fees to the counterparties to the interest rate swap agreements, as long as the mezzanine loan has been repaid in full prior to any prepayment of the mortgage loan. As required by the mortgage and mezzanine loan agreements, on March 29, 2018 the Company entered into derivative financial instruments to manage the risk of fluctuations in interest rates on its condensed consolidated statement of operations. See Note 13 “Financial Instruments.” Wells Fargo Center–North Tower— On September 21, 2018 , Brookfield DTLA refinanced the mortgage and mezzanine loans secured by the Wells Fargo Center–North Tower office property and received net proceeds totaling $496.0 million , of which $470.0 million was used to repay the loans that previously encumbered the property, with the remainder to be used for general corporate purposes. The new $500.0 million loan is comprised of a $400.0 million mortgage loan, a $65.0 million mezzanine loan, and a $35.0 million mezzanine loan, each of which bears interest at variable rates equal to LIBOR plus 1.65% , 4.00% , and 5.00% , respectively, requires the payment of interest-only until maturity, and matures on October 9, 2020 . The mortgage loan can be prepaid, in whole or in part, with prepayment fees (as defined in the underlying loan agreement), as long as the mezzanine loans are repaid on a pro rata basis with the mortgage loan, until October 9, 2019 , after which the loan may be repaid without penalty. Brookfield DTLA has three options to extend the maturity dates of the mortgage and mezzanine loans, each for a period of one year, as long as the maturity dates of both of the mezzanine loans are extended when the maturity date of the mortgage loan is extended. As required by the mortgage and mezzanine loan agreements, on September 21, 2018 the Company entered into derivative financial instruments to manage the risk of fluctuations in interest rates on its condensed consolidated statement of operations. See Note 13 “Financial Instruments.” Debt Maturities As Brookfield DTLA’s debt matures, principal payment obligations present significant future cash requirements. As of September 30, 2018 , our debt to be repaid during the remainder of 2018 , the next four years and thereafter is as follows (in thousands): 2018 (1) $ 470,000 2019 — 2020 765,000 2021 450,000 2022 — Thereafter 458,500 $ 2,143,500 __________ (1) On October 31, 2018 , Brookfield DTLA extended the maturity date of the $220.0 million mortgage loan secured by the 777 Tower office property for a period of one year to November 1, 2019 . Additionally, on November 5, 2018 , Brookfield DTLA refinanced the $250.0 million mortgage loan secured by the Wells Fargo Center–South Tower office property. See Note 16 “Subsequent Events.” As of September 30, 2018 , $601.0 million of our debt may be prepaid without penalty, $400.0 million may be defeased (as defined in the underlying loan agreement), $1,084.0 million may be prepaid with prepayment penalties, and $58.5 million is locked out from prepayment until March 1, 2020 . 777 Tower— On October 31, 2018 , Brookfield DTLA extended the maturity date of the mortgage loan secured by the 777 Tower office property for a period of one year to November 1, 2019 . Pursuant to the terms of the extension agreement, on October 15, 2018 the Company entered into an interest rate cap agreement with a notional amount of $220.0 million that limits the LIBOR portion of the interest rate on the mortgage loan to 5.75% through November 1, 2019 , the final maturity date of the loan. See Note 16 “Subsequent Events.” Wells Fargo Center–South Tower— On November 5, 2018 , Brookfield DLTA refinanced the mortgage loan secured by the Wells Fargo Center–South Tower office property and received net proceeds totaling $250.0 million that were used to repay the loan that previously encumbered the property. The Company incurred costs totaling approximately $3 million in connection with this transaction. The new $290.0 million mortgage loan is comprised of an initial advance amount of $253.0 million and a maximum future advance amount of $37.0 million that can be drawn by the Company to fund approved leasing costs (as defined in the underlying loan agreement), including tenant improvements and inducements, leasing commissions, and common area improvements. The loan bears interest at a variable rate of LIBOR plus 1.80% , matures on November 4, 2021 , and requires the payment of interest-only until maturity. The loan can be prepaid, in whole or in part, with prepayment fees (as defined in the underlying loan agreement) until November 5, 2019 , after which the loan can be repaid without penalty. Brookfield DTLA has two options to extend the maturity date of the loan, each for a period of one year. See Note 16 “Subsequent Events.” Non-Recourse Carve Out Guarantees All of Brookfield DTLA’s $2.1 billion of mortgage debt is subject to “non-recourse carve out” guarantees that expire upon elimination of the underlying loan obligations. In connection with all of these loans, Brookfield DTLA entered into “non-recourse carve out” guarantees, which provide for these otherwise non-recourse loans to become partially or fully recourse against DTLA Holdings or one of its subsidiaries, if certain triggering events (as defined in the loan agreements) occur. Debt Reporting Pursuant to the terms of certain of our mortgage loan agreements, Brookfield DTLA is required to report a debt service coverage ratio (“DSCR”) calculated using the formulas specified in the underlying loan agreements. We have submitted the required reports to the lenders for the measurement periods ended September 30, 2018 and were in compliance with the amounts required by the loan agreements. |
Mezzanine Equity
Mezzanine Equity | 9 Months Ended |
Sep. 30, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Mezzanine Equity | Mezzanine Equity Mezzanine equity in the condensed consolidated balance sheets is comprised of the Series A preferred stock, a Series A-1 preferred interest, a senior participating preferred interest, and a Series B preferred interest (collectively, the “Preferred Interests”). The Series A-1 preferred interest, senior participating preferred interest and Series B preferred interest are held by a noncontrolling interest holder. The Preferred Interests are classified in mezzanine equity because they are callable, and the holder of the Series A-1 preferred interest, senior participating preferred interest, Series B preferred interest, and some of the Series A preferred stock indirectly controls the ability to elect to redeem such instruments, through its controlling interest in the Company and its subsidiaries. There is no commitment or obligation on the part of Brookfield DTLA or DTLA Holdings to redeem the Preferred Interests. The Preferred Interests included within mezzanine equity were recorded at fair value on the date of issuance and have been adjusted to the greater of their carrying amount or redemption value as of September 30, 2018 and December 31, 2017 . Adjustments to increase the carrying amount to redemption value are recorded in the condensed consolidated statement of operations as a redemption measurement adjustment. Series A Preferred Stock As of September 30, 2018 and December 31, 2017 , 9,730,370 shares of Series A preferred stock were outstanding, of which 9,357,469 shares were issued to third parties and 372,901 shares were issued to DTLA Fund Holding Co., a subsidiary of DTLA Holdings. No dividends were declared on the Series A preferred stock during the nine months ended September 30, 2018 and 2017 . Dividends on the Series A preferred stock are cumulative, and therefore, will continue to accrue at an annual rate of $1.90625 per share. As of September 30, 2018 , the cumulative amount of unpaid dividends totals $162.1 million and has been reflected in the carrying amount of the Series A preferred stock. The Series A preferred stock does not have a stated maturity and is not subject to any sinking fund or mandatory redemption provisions. Upon liquidation, dissolution or winding up, the Series A preferred stock will rank senior to our common stock with respect to the payment of distributions. We may, at our option, redeem the Series A preferred stock, in whole or in part, for cash at a redemption price of $25.00 per share, plus all accumulated and unpaid dividends on such Series A preferred stock up to and including the redemption date. The Series A preferred stock is not convertible into or exchangeable for any other property or securities of Brookfield DTLA. As of September 30, 2018 , the Series A preferred stock is reported at its redemption value of $405.3 million calculated using the redemption price of $25.00 per share plus all accumulated and unpaid dividends on such Series A preferred stock through September 30, 2018 . Series A-1 Preferred Interest The Series A-1 preferred interest is held by DTLA Holdings or wholly owned subsidiaries of DTLA Holdings and has a stated value of $225.7 million . The Series A-1 preferred interest has mirror rights to the Series A preferred interests issued by Brookfield DTLA Fund Properties II LLC (“New OP”), which are held by a wholly owned subsidiary of Brookfield DTLA, but only with respect to their respective preferred liquidation preferences, and share pro rata with 48.13% to the Series A-1 preferred interest and 51.87% to the Series A preferred interest based on their current liquidation preferences in accordance with their respective preferred liquidation preferences in distributions from New OP, until their preferred liquidation preferences have been reduced to zero. Thereafter, distributions will be made 47.66% to the common component of the Series A interest and 52.34% to the common component of the Series B interest, which is held by DTLA Holdings. The economic terms of the Series A preferred stock mirror those of the New OP Series A preferred interests, including distributions in respect of the preferred liquidation preference. As of September 30, 2018 , the Series A-1 preferred interest is reported at its redemption value of $396.4 million calculated using its liquidation value of $225.7 million plus $170.7 million of accumulated and unpaid dividends on such Series A-1 preferred interest through September 30, 2018 . Senior Participating Preferred Interest Brookfield DTLA Fund Properties III LLC (“DTLA OP”) issued a senior participating preferred interest to DTLA Holdings in connection with the formation of Brookfield DTLA and the MPG acquisition. As of September 30, 2018 and December 31, 2017 , the senior participating preferred interest represents a 4.0% participating interest in the residual value of DTLA OP. During the nine months ended September 30, 2018 , Brookfield DTLA made distributions totaling $2.6 million to DTLA Holdings as returns of investment related to the senior participating preferred interest using cash on hand. As of September 30, 2018 , the senior participating preferred interest is reported at its redemption value of $25.6 million using the value of the participating interest. Series B Preferred Interest At the time of the merger with MPG, DTLA Holdings made a commitment to make capital contributions in cash or property to New OP, which directly or indirectly owns the Brookfield DTLA properties, to fund up to $260.0 million of its future cash needs, for which it will be entitled to receive a preferred return, if and when called by New OP. The Series B preferred interest in New OP held by DTLA Holdings is effectively senior to the interest in New OP held by Brookfield DTLA and has a priority on distributions senior to the equity securities of such subsidiaries held indirectly by Brookfield DTLA and, as a result, effectively rank senior to the Series A preferred stock. The Series B preferred interest in New OP may limit the amount of funds available to Brookfield DTLA for any purpose, including for dividends or other distributions to holders of its capital stock, including the Series A preferred stock. During the nine months ended September 30, 2018 , Brookfield DTLA made distributions totaling $14.4 million to DTLA Holdings as preferred returns on the Series B preferred interest using cash on hand. As of September 30, 2018 , the Series B preferred interest is reported at its redemption value of $187.7 million calculated using its liquidation value of $174.8 million plus $12.9 million of accumulated and unpaid dividends on such Series B preferred interest through September 30, 2018 . Change in Mezzanine Equity A summary of the change in mezzanine equity for the nine months ended September 30, 2018 is as follows (in thousands, except share amounts): Number of Shares of Series A Preferred Stock Series A Preferred Stock Noncontrolling Interests Total Mezzanine Equity Series A-1 Preferred Interest Senior Participating Preferred Interest Series B Preferred Interest Balance, December 31, 2017 9,730,370 $ 391,400 $ 383,510 $ 25,548 $ 190,291 $ 990,749 Current dividends 13,911 12,909 — 11,765 38,585 Distributions to holders (2,609 ) (14,378 ) (16,987 ) Redemption measurement adjustment 2,645 2,645 Balance, September 30, 2018 9,730,370 $ 405,311 $ 396,419 $ 25,584 $ 187,678 $ 1,014,992 |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Mezzanine Equity Component The Series A-1 preferred interest, senior participating preferred interest and Series B preferred interest consist of equity interests of New OP, DTLA OP and New OP, respectively, which are owned directly by DTLA Holdings. These noncontrolling interests are presented as mezzanine equity in the condensed consolidated balance sheet. See Note 8 “Mezzanine Equity.” Stockholders’ Deficit Component The Series B common interest ranks junior to the Series A preferred stock as to dividends and upon liquidation and is presented in the condensed consolidated balance sheet as noncontrolling interest. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) A summary of the change in accumulated other comprehensive income (loss) related to Brookfield DTLA’s cash flow hedges is as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Balance at beginning of period $ 765 $ (2,610 ) $ (574 ) $ (3,373 ) Other comprehensive income before reclassifications 634 469 3,171 1,232 Amounts reclassified from accumulated other comprehensive loss — — (1,198 ) — Net current-period other comprehensive income 634 469 1,973 1,232 Balance at end of period $ 1,399 $ (2,141 ) $ 1,399 $ (2,141 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Taxes Brookfield DTLA has elected to be taxed as a real estate investment trust (“REIT”) pursuant to Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its tax period ended December 31, 2013. Brookfield DTLA conducts and intends to conduct its operations so as to continue to qualify as a REIT. Accordingly, Brookfield DTLA is not subject to U.S. federal income tax, provided that it continues to qualify as a REIT and distributions to its stockholders, if any, generally equal or exceed its taxable income. Brookfield DTLA has elected to treat certain of its subsidiaries as taxable REIT subsidiaries (“TRS”). Certain activities that we undertake must be conducted by a TRS, such as non-customary services for our tenants, and holding assets that we cannot hold directly. A TRS is subject to both federal and state income taxes. Qualification and taxation as a REIT depends upon Brookfield DTLA’s ability to meet the various qualification tests imposed under the Code related to annual operating results, asset diversification, distribution levels and diversity of stock ownership. Accordingly, no assurance can be given that Brookfield DTLA will be organized or be able to operate in a manner so as to continue to qualify as a REIT. If Brookfield DTLA fails to qualify as a REIT in any taxable year, we will be subject to federal and state income tax on our taxable income at regular corporate tax rates, and we may be ineligible to qualify as a REIT for four subsequent tax years. Brookfield DTLA may be subject to certain state or local income taxes, or franchise taxes on its REIT activities. Brookfield DTLA recorded provisions for income taxes of $1.1 million and $0.5 million during the nine months ended September 30, 2018 and 2017 , respectively. The income tax provision for the nine months ended September 30, 2018 is primarily the result of a gain on the sale of artwork no longer on display at our Wells Fargo Center office properties due to renovation activities. Brookfield DTLA’s taxable income or loss is different than its financial statement income or loss. On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act amended the Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. Effective January 1, 2018, the Act reduced the corporate tax rate from a maximum rate of 35% to a flat rate of 21% for businesses. Since Brookfield DTLA has elected to qualify as a REIT with the intent of distributing 100% of its taxable income, there was no material impact to the Company’s condensed consolidated financial statements . Uncertain Tax Positions Brookfield DTLA recognizes tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more likely than not recognition threshold. Brookfield DTLA had no unrecognized tax benefits as of September 30, 2018 and December 31, 2017 , and Brookfield DTLA does not expect its unrecognized tax benefits balance to change during the next 12 months. As of September 30, 2018 , Brookfield DTLA’s 2013 tax period and 2014, 2015, 2016 and 2017 tax years remain open due to the statute of limitations and may be subject to examination by federal, state and local authorities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The valuation of Brookfield DTLA’s interest rate swaps is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of the derivatives. These analyses reflect the contractual terms of the derivatives, including the period to maturity, and use observable market-based inputs, including interest rate curves and implied volatilities. We have incorporated credit valuation adjustments to appropriately reflect both our own and the respective counterparty’s non-performance risk in the fair value measurements. Brookfield DTLA’s net assets (liabilities) measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall, are as follows (in thousands): Fair Value Measurements Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest rate swaps at: September 30, 2018 $ 2,597 $ — $ 2,597 $ — December 31, 2017 (574 ) — (574 ) — Interest rate caps at: September 30, 2018 $ 64 $ — $ 64 $ — December 31, 2017 15 — 15 — |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Derivative Financial Instruments A summary of the fair value of Brookfield DTLA’s derivative financial instruments is as follows (in thousands): Fair Value September 30, 2018 December 31, 2017 Derivatives designated as cash flow hedging instruments: Interest rate swaps $ 2,597 $ (574 ) Interest rate swap assets are included in prepaid and other assets, net and interest rate swap liabilities are included in accounts payable and other liabilities in the condensed consolidated balance sheet. A summary of the effect of derivative financial instruments reported in the condensed consolidated financial statements is as follows (in thousands): Amount of Gain Recognized in AOCL Amount of Gain Reclassified from AOCL to Statement of Operations Derivatives designated as cash flow hedging instruments: Interest rate swaps for the nine months ended: September 30, 2018 $ 3,171 $ 1,198 September 30, 2017 1,232 — Interest Rate Swaps— As of September 30, 2018 , Brookfield DTLA held the following interest rate swaps pursuant to the terms of the EY Plaza mortgage and mezzanine loan agreements (in thousands, except percentages and dates): Notional Amount Swap Rate LIBOR Spread Effective Rate Expiration Date Interest rate swap $ 173,678 2.18 % 1.65 % 3.83 % 11/2/2020 Interest rate swap 54,206 2.47 % 1.65 % 4.12 % 11/2/2020 $ 227,884 2.25 % 1.65 % 3.90 % As required by the EY Plaza mortgage loan agreement, on March 29, 2018 the Company entered into an interest rate swap agreement with a notional amount of $54.2 million and a swap rate of 2.47% , which effectively fixes the LIBOR portion of the interest rate at 4.12% . The swap requires net settlement each month. Interest Rate Caps— Brookfield DTLA holds interest rate caps pursuant to the terms of certain of its mortgage loan agreements with the following notional amounts (in thousands): September 30, 2018 December 31, 2017 Wells Fargo Center–North Tower $ 400,000 $ 370,000 Wells Fargo Center–North Tower 65,000 55,000 Wells Fargo Center–North Tower 35,000 45,000 Wells Fargo Center–South Tower 270,000 270,000 777 Tower 220,000 220,000 EY Plaza 35,000 — $ 1,025,000 $ 960,000 As required by the EY Plaza mezzanine loan agreement, on March 29, 2018 the Company entered into an interest rate cap agreement with a notional amount of $35.0 million that limits the LIBOR portion of the interest rate to 3.50% . The cap agreement expires on October 1, 2019 . As required by the Wells Fargo Center–North Tower mortgage and mezzanine loan agreements, on September 21, 2018 the Company entered interest rate cap agreements with notional amounts totaling $500.0 million that limit the LIBOR portion of the interest rates to 4.25% . The cap agreements expire on October 15, 2020 . Pursuant to the terms of the extension agreement, on October 15, 2018 the Company entered into an interest rate cap agreement with a notional amount of $220.0 million that limits the LIBOR portion of the interest rate on the 777 Tower mortgage loan to 5.75% through November 1, 2019 , the final maturity date of the loan. See Note 16 “Subsequent Events.” Pursuant to the terms of the mortgage loan agreement, on November 5, 2018 the Company entered into an interest rate cap agreement with a notional amount of $290.0 million that limits the LIBOR portion of the interest rate on the Wells Fargo Center–South Tower mortgage loan to 4.50% . The cap agreement expires on November 4, 2020 . See Note 16 “Subsequent Events.” Other Financial Instruments The estimated fair value and carrying amount of Brookfield DTLA’s mortgage loans are as follows (in thousands): September 30, 2018 December 31, 2017 Estimated fair value $ 2,134,275 $ 2,003,600 Carrying amount 2,143,500 2,001,831 We calculated the estimated fair value of our mortgage loans by discounting the future contractual cash flows of the loans using current risk adjusted rates available to borrowers with similar credit ratings. The fair value measurement is determined on the basis of current market expectations using assumptions that market participants would use when pricing liabilities, including assumptions about risk. The estimated fair value of mortgage loans is classified as Level 3. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Management Agreements Certain subsidiaries of Brookfield DTLA have entered into arrangements with the Manager, pursuant to which the Manager provides property management and various other services. Property management fees under the management agreements entered into in connection with these arrangements are calculated based on 2.75% of rents collected (as defined in the management agreements). In addition, the Company pays the Manager an asset management fee, which is calculated based on 0.75% of the capital contributed by DTLA Holdings. A summary of costs incurred by the applicable subsidiaries of Brookfield DTLA under these arrangements is as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Property management fee expense $ 2,096 $ 2,021 $ 6,021 $ 6,112 Asset management fee expense 1,583 1,583 4,748 4,748 General, administrative and reimbursable expenses 716 623 1,965 1,860 Leasing commissions and construction management fees 989 634 1,906 1,481 Insurance Agreements Properties held by certain Brookfield DTLA subsidiaries and affiliates are covered under insurance policies entered into by the Manager. Insurance premiums for Brookfield DTLA’s properties are paid by the Manager and Brookfield DTLA reimburses the Manager for the actual cost of such premiums. A summary of costs incurred by the applicable Brookfield DTLA subsidiaries under this arrangement is as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Insurance expense $ 1,975 $ 1,948 $ 5,902 $ 5,828 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Brookfield DTLA and its subsidiaries may be subject to pending legal proceedings and litigation incidental to its business. After consultation with legal counsel, management believes that any liability that may potentially result upon resolution of such matters is not expected to have a material adverse effect on the Company’s business, financial condition or consolidated financial statements as a whole. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Debt Maturities 777 Tower— On October 31, 2018 , Brookfield DTLA extended the maturity date of the mortgage loan secured by the 777 Tower office property for a period of one year to November 1, 2019 . Pursuant to the terms of the extension agreement, on October 15, 2018 the Company entered into an interest rate cap agreement with a notional amount of $220.0 million that limits the LIBOR portion of the interest rate on the mortgage loan to 5.75% through November 1, 2019 , the final maturity date of the loan. Wells Fargo Center–South Tower— On November 5, 2018 , Brookfield DLTA refinanced the mortgage loan secured by the Wells Fargo Center–South Tower office property and received net proceeds totaling $250.0 million that were used to repay the loan that previously encumbered the property. The Company incurred costs totaling approximately $3 million in connection with this transaction. The new $290.0 million mortgage loan is comprised of an initial advance amount of $253.0 million and a maximum future advance amount of $37.0 million that can be drawn by the Company to fund approved leasing costs (as defined in the underlying loan agreement), including tenant improvements and inducements, leasing commissions, and common area improvements. The loan bears interest at a variable rate of LIBOR plus 1.80% , matures on November 4, 2021 , and requires the payment of interest-only until maturity. The loan can be prepaid, in whole or in part, with prepayment fees (as defined in the underlying loan agreement) until November 5, 2019 , after which the loan can be repaid without penalty. Brookfield DTLA has two options to extend the maturity date of the loan, each for a period of one year. Pursuant to the terms of the mortgage loan agreement, on November 5, 2018 the Company entered into an interest rate cap agreement with a notional amount of $290.0 million that limits the LIBOR portion of the interest rate on the Wells Fargo Center–South Tower mortgage loan to 4.50% . The cap agreement expires on November 4, 2020 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements and related disclosures have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) applicable to interim financial information and with the instructions to Form 10‑Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments, consisting of only those of a normal and recurring nature, considered necessary for a fair presentation of the financial position and interim results of Brookfield DTLA as of and for the periods presented have been included. The results of operations for interim periods are not necessarily indicative of those that may be expected for a full fiscal year. The condensed consolidated balance sheet data as of December 31, 2017 has been derived from Brookfield DTLA’s audited financial statements; however, the accompanying notes to the condensed consolidated financial statements do not include all disclosures required by GAAP. The financial information included herein should be read in conjunction with the consolidated financial statements and related notes included in Brookfield DTLA’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 27, 2018 . |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. For example, estimates and assumptions have been made with respect to fair values of assets and liabilities for purposes of applying the acquisition method of accounting, the useful lives of assets, recoverable amounts of receivables, impairment of long-lived assets and fair value of debt. Actual results could ultimately differ from such estimates. |
Recent Accounting Pronouncements | Accounting Pronouncements Adopted in 2018 Effective January 1, 2018, Brookfield DTLA adopted the guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2016-18, Restricted Cash to Accounting Standards Codification (“ASC”) Topic 230, Statement of Cash Flows. ASU 2016-18 requires entities to show the change during the period in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. We adopted ASU 2016-18 on a retrospective basis. Therefore, amounts generally described as restricted cash and restricted cash equivalents are included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown in the Company’s condensed consolidated statements of cash flows for the nine months ended September 30, 2018 and 2017 . As a result of the adoption of ASU 2016-18, the change in restricted cash is no longer presented as a separate line item within cash flows from investing activities in the condensed consolidated statement of cash flows since such balances are now included in total cash at both the beginning and end of the reporting period. As a result, for the nine months ended September 30, 2017 the Company used net cash in investing activities of $54.3 million instead of $42.6 million as previously reported. Effective January 1, 2018, Brook field DTLA adopted, on a modified retrospective basis, the guidance in ASU 2014-09, Revenue from Contracts with Customers (ASC Topic 606). ASU 2014-09, as amended by subsequent ASUs on the topic, establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services and also requires certain additional disclosures. The adoption of this pronouncement did not have an impact on Brookfield DTLA’s condensed consolidated financial statements . Effective January 1, 2018, Broo kfield DTLA adopted, on a retrospective basis, the guidance in ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments to ASC Topic 230, Statement of Cash Flows . ASU 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of this guidance did not have an impact on Brookfield DTLA’s condensed consolidated financial statements . Effective January 1, 2018, Bro okfield DTLA adopted, on a prospective basis, the guidance in ASU 2017-01, Clarifying the Definition of a Business to ASC Topic 805, Business Combinations. ASU 2017-01 introduced amendments that are intended to make the guidance on the definition of a business more consistent and cost-efficient. The objective of the update is to add further guidance that assists entities in evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or as a business by providing a basis to determine when a set of assets and activities acquired is not a business. We expect that future acquisitions of operating and development properties, if any, will be accounted for as asset acquisitions under the new guidance, instead of as business combinations under the previous guidance. Additionally, we expect that most of the transaction costs associated with any future acquisitions will be capitalized in the consolidated balance sheet as part of the purchase price of the property acquired instead of being expensed as incurred in the consolidated statement of operations as part of acquisition-related expenses. Effective January 1, 2018, Brookfield DTLA adopted, on a retrospective basis, the guidance in ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets to ASC Subtopic 610-20, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets . ASU 2017-05 clarifies the scope of recently established guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. This update conforms the derecognition guidance on nonfinancial assets with the model for transactions in ASC Topic 606. The adoption of this guidance did not have an impact on Brookfield DTLA’s condensed consolidated financial statements . Accounting Pronouncements Effective January 1, 2019 Leases In February 2016, the FASB issued an update (“ASU 2016-02”), Leases (Topic 842), to amend the accounting guidance for leases. ASU 2016-02 sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both lessees and lessors. The guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on a principle of whether or not the lease is effectively a financed purchase. For leases with a term greater than 12 months, lessees are required to record a right-of-use asset representing its right to use the underlying asset for the lease term and a liability to make lease payments on its balance sheet and will recognize lease expense generally on a straight‑line basis over the lease term in its statement of operations. For leases with a term of 12 months or less, lessees are permitted to make an accounting policy election by class of underlying asset not to recognize lease assets or liabilities on its balance sheet. If a lessee makes this election, it will recognize lease expense for such leases using the effective interest method. In July 2018, the FASB issued ASU 2018-11 that (1) simplifies transition requirements for both lessees and lessors by adding an option that permits an organization to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in its financial statements and (2) provides a practical expedient for lessors that permits lessors to make an accounting policy election to not separate nonlease components from the associated lease components, if the following two criteria are met: (1) the timing and pattern of transfer of the lease and nonlease components are the same, and (2) the lease component would be classified as an operating lease if accounted for separately. For leases where we are the lessor, Brookfield DTLA plans to elect the optional transition relief and apply the practical expedients provided by ASU 2018-11. As a result, leases where Brookfield DTLA is the lessor will be accounted for in a similar method to existing standards with the underlying leased asset being reported and recognized as a real estate asset. In August 2018, the FASB released an exposure draft to amend ASU 2016-02 that clarifies lessor treatment of sales taxes and other similar taxes collected from lessees, lessor costs paid directly by lessees and recognition of variable payments for contracts with lease and nonlease components. If the amendments are codified as currently drafted, we do not expect the amendments to have a material impact on Brookfield DTLA’s consolidated financial statements. We are currently evaluating the impact of the adoption of the new lease standard on Brookfield DTLA’s consolidated financial statements, and we currently believe that the adoption of this standard will not significantly change the accounting for operating leases on Brookfield DTLA’s consolidated balance sheet where we are the lessor, and that such leases will be accounted for in a similar manner. Under the new guidance, initial direct costs for both lessees and lessors will include only those costs that are incremental to the arrangement and would not have been incurred if the lease had not been obtained. As a result, Brookfield DTLA may no longer be able to capitalize internal leasing costs and instead may be required to expense these costs as incurred. ASU 2016-02 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted. We currently expect to adopt this standard effective January 1, 2019 using the practical expedients provided in the standard and the changes approved by the FASB. Other In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities to ASC Topic 815, Derivatives and Hedging . ASU 2017-12 introduced amendments intended to make targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The objective of the update is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. All transition requirements and elections should be applied to hedging relationships existing as of the date of adoption and the effect of the adoption should be reflected as of the beginning of the fiscal year of adoption. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. Accounting Pronouncements Effective January 1, 2020 In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, to amend the accounting for credit losses for certain financial instruments. Under the new guidance, an entity recognizes its estimate of expected credit losses as an allowance, which the FASB believes will result in more timely recognition of such losses. In August 2018, the FASB released an exposure draft to amend ASU 2016-13. The proposed amendment would clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost . Instead, impairment of receivables arising from operating leases should be accounted for under Subtopic 842-30, Leases—Lessor . ASU 2016-13 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2019, with early adoption permitted as of the fiscal year beginning after December 15, 2018, including adoption in an interim period using a modified-retrospective approach. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), to amend the disclosure requirements for fair value measurements. The amendments in ASU 2018-13 include new, modified and eliminated disclosure requirements and are the result of a broader disclosure project, FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements , that was finalized on August 28, 2018. The FASB used the guidance in the Concepts Statement to improve the effectiveness of the disclosure requirements in Topic 820. ASU 2018-13 is effective for interim and annual periods in fiscal years beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted for any eliminated or modified disclosures. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands): September 30, 2018 December 31, 2017 September 30, 2017 December 31, 2016 Cash and cash equivalents $ 115,467 $ 31,958 $ 48,122 $ 30,301 Restricted cash 41,855 35,547 48,393 60,084 Total cash, cash equivalents and restricted cash $ 157,322 $ 67,505 $ 96,515 $ 90,385 |
Rents, Deferred Rents and Oth_2
Rents, Deferred Rents and Other Receivables, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Rents, Deferred Rents and Other Receivables | Brookfield DTLA’s rents, deferred rents and other receivables are presented net of the following amounts in the condensed consolidated balance sheets (in thousands): September 30, 2018 December 31, 2017 Allowance for doubtful accounts $ 314 $ 206 Accumulated amortization of tenant inducements 15,462 12,455 |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets and Liabilities | Brookfield DTLA’s intangible assets and liabilities are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Intangible Assets In-place leases $ 66,365 $ 66,365 Tenant relationships 30,078 30,078 Above-market leases 31,270 31,270 127,713 127,713 Less: accumulated amortization 79,984 69,424 Intangible assets, net $ 47,729 $ 58,289 Intangible Liabilities Below-market leases $ 59,561 $ 59,561 Less: accumulated amortization 46,295 43,322 Intangible liabilities, net $ 13,266 $ 16,239 |
Schedule of Impact of Intangible Amortization Expense | The impact of the amortization of acquired below-market leases, net of acquired above-market leases, on rental income and of acquired in-place leases and tenant relationships on depreciation and amortization expense is as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Rental income $ (72 ) $ 747 $ (145 ) $ 1,639 Depreciation and amortization expense 2,267 3,239 7,442 10,809 |
Schedule of Estimated Future Amortization/Accretion of Intangible Assets and Liabilities | As of September 30, 2018 , the estimate of the amortization/accretion of intangible assets and liabilities during the remainder of 2018 , the next four years and thereafter is as follows (in thousands): In-Place Leases Other Intangible Assets Intangible Liabilities 2018 $ 875 $ 335 $ 778 2019 5,617 4,306 3,178 2020 4,972 3,415 2,972 2021 4,734 3,328 2,800 2022 4,022 3,050 2,493 Thereafter 5,532 7,543 1,045 $ 25,752 $ 21,977 $ 13,266 |
Deferred Charges, Net (Tables)
Deferred Charges, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Charges | Brookfield DTLA’s deferred charges are presented net of the following amounts in the condensed consolidated balance sheets (in thousands): September 30, 2018 December 31, 2017 Accumulated amortization of deferred leasing costs $ 47,313 $ 39,762 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Brookfield DTLA’s debt is as follows (in thousands, except percentage amounts): Contractual Maturity Date Principal Amount as of Interest Rate September 30, 2018 December 31, 2017 Floating-Rate Debt Variable-Rate Loans: Wells Fargo Center–North Tower (1) 10/9/2020 3.83 % $ 400,000 $ — Wells Fargo Center–North Tower (2) 10/9/2020 6.18 % 65,000 — Wells Fargo Center–North Tower (3) 10/9/2020 7.18 % 35,000 — Wells Fargo Center–South Tower (4) 12/6/2018 5.82 % 250,000 250,000 777 Tower (5) 11/1/2018 4.29 % 220,000 220,000 EY Plaza (6) 11/27/2020 6.65 % 35,000 — Total variable-rate loans 1,005,000 470,000 Variable-Rate Swapped to Fixed-Rate Loan: EY Plaza (7) 11/27/2020 3.90 % 230,000 — Total floating-rate debt 1,235,000 470,000 Fixed-Rate Debt: BOA Plaza 9/1/2024 4.05 % 400,000 400,000 Gas Company Tower 8/6/2021 3.47 % 319,000 319,000 Gas Company Tower 8/6/2021 6.50 % 131,000 131,000 Figueroa at 7th 3/1/2023 3.88 % 58,500 — Total fixed-rate debt 908,500 850,000 Debt Refinanced: Wells Fargo Center–North Tower — 470,000 EY Plaza — 176,831 Figueroa at 7th — 35,000 Total debt refinanced — 681,831 Total debt 2,143,500 2,001,831 Less: unamortized debt issuance costs 8,103 10,139 Total debt, net $ 2,135,397 $ 1,991,692 __________ (1) This loan bears interest at LIBOR plus 1.65% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of the loan, each for a period of one year, as long as the maturity dates of both of the mezzanine loans are extended when the maturity date of the mortgage loan is extended. (2) This loan bears interest at LIBOR plus 4.00% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of the loan, each for a period of one year, as long as the maturity date of the other mezzanine loan is extended when the maturity date of the mortgage loan is extended. (3) This loan bears interest at LIBOR plus 5.00% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of the loan, each for a period of one year, as long as the maturity date of the other mezzanine loan is extended when the maturity date of the mortgage loan is extended. (4) This loan bears interest at LIBOR plus 3.69% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 3.00% . On November 5, 2018 , Brookfield DTLA refinanced this mortgage loan. See Note 16 “Subsequent Events.” (5) This loan bears interest at LIBOR plus 2.18% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 5.75% . On October 31, 2018 , Brookfield DTLA extended the maturity date of this mortgage loan for a period of one year to November 1, 2019 . See Note 16 “Subsequent Events.” (6) This loan bears interest at LIBOR plus 4.55% . As required by the loan agreement, we have entered into an interest rate cap agreement that limits the LIBOR portion of the interest rate to 3.50% . (7) This loan bears interest at LIBOR plus 1.65% . As required by the loan agreement, we have entered into interest rate swap agreements to hedge this loan, which effectively fix the LIBOR portion of the interest rate at 2.25% . The effective interest rate of 3.90% includes interest on the swaps. |
Schedule of Maturities of Debt | As of September 30, 2018 , our debt to be repaid during the remainder of 2018 , the next four years and thereafter is as follows (in thousands): 2018 (1) $ 470,000 2019 — 2020 765,000 2021 450,000 2022 — Thereafter 458,500 $ 2,143,500 |
Mezzanine Equity (Tables)
Mezzanine Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Change in Mezzanine Equity | A summary of the change in mezzanine equity for the nine months ended September 30, 2018 is as follows (in thousands, except share amounts): Number of Shares of Series A Preferred Stock Series A Preferred Stock Noncontrolling Interests Total Mezzanine Equity Series A-1 Preferred Interest Senior Participating Preferred Interest Series B Preferred Interest Balance, December 31, 2017 9,730,370 $ 391,400 $ 383,510 $ 25,548 $ 190,291 $ 990,749 Current dividends 13,911 12,909 — 11,765 38,585 Distributions to holders (2,609 ) (14,378 ) (16,987 ) Redemption measurement adjustment 2,645 2,645 Balance, September 30, 2018 9,730,370 $ 405,311 $ 396,419 $ 25,584 $ 187,678 $ 1,014,992 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Summary of the Change in Accumulated Other Comprehensive Income (Loss) Related to Cash Flow Hedges | A summary of the change in accumulated other comprehensive income (loss) related to Brookfield DTLA’s cash flow hedges is as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Balance at beginning of period $ 765 $ (2,610 ) $ (574 ) $ (3,373 ) Other comprehensive income before reclassifications 634 469 3,171 1,232 Amounts reclassified from accumulated other comprehensive loss — — (1,198 ) — Net current-period other comprehensive income 634 469 1,973 1,232 Balance at end of period $ 1,399 $ (2,141 ) $ 1,399 $ (2,141 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Net Assets (Liabilities) Measured at Fair Value on a Recurring Basis | Brookfield DTLA’s net assets (liabilities) measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall, are as follows (in thousands): Fair Value Measurements Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest rate swaps at: September 30, 2018 $ 2,597 $ — $ 2,597 $ — December 31, 2017 (574 ) — (574 ) — Interest rate caps at: September 30, 2018 $ 64 $ — $ 64 $ — December 31, 2017 15 — 15 — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivative Financial Instruments | A summary of the fair value of Brookfield DTLA’s derivative financial instruments is as follows (in thousands): Fair Value September 30, 2018 December 31, 2017 Derivatives designated as cash flow hedging instruments: Interest rate swaps $ 2,597 $ (574 ) |
Summary of Effect of Derivative Financial Instruments | A summary of the effect of derivative financial instruments reported in the condensed consolidated financial statements is as follows (in thousands): Amount of Gain Recognized in AOCL Amount of Gain Reclassified from AOCL to Statement of Operations Derivatives designated as cash flow hedging instruments: Interest rate swaps for the nine months ended: September 30, 2018 $ 3,171 $ 1,198 September 30, 2017 1,232 — |
Schedules of Interest Rate Derivatives | As of September 30, 2018 , Brookfield DTLA held the following interest rate swaps pursuant to the terms of the EY Plaza mortgage and mezzanine loan agreements (in thousands, except percentages and dates): Notional Amount Swap Rate LIBOR Spread Effective Rate Expiration Date Interest rate swap $ 173,678 2.18 % 1.65 % 3.83 % 11/2/2020 Interest rate swap 54,206 2.47 % 1.65 % 4.12 % 11/2/2020 $ 227,884 2.25 % 1.65 % 3.90 % Brookfield DTLA holds interest rate caps pursuant to the terms of certain of its mortgage loan agreements with the following notional amounts (in thousands): September 30, 2018 December 31, 2017 Wells Fargo Center–North Tower $ 400,000 $ 370,000 Wells Fargo Center–North Tower 65,000 55,000 Wells Fargo Center–North Tower 35,000 45,000 Wells Fargo Center–South Tower 270,000 270,000 777 Tower 220,000 220,000 EY Plaza 35,000 — $ 1,025,000 $ 960,000 |
Summary of Estimated Fair Value and Carrying Amount of Mortgage Loans | The estimated fair value and carrying amount of Brookfield DTLA’s mortgage loans are as follows (in thousands): September 30, 2018 December 31, 2017 Estimated fair value $ 2,134,275 $ 2,003,600 Carrying amount 2,143,500 2,001,831 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Costs Incurred Under Arrangements with Related Parties | A summary of costs incurred by the applicable Brookfield DTLA subsidiaries under this arrangement is as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Insurance expense $ 1,975 $ 1,948 $ 5,902 $ 5,828 A summary of costs incurred by the applicable subsidiaries of Brookfield DTLA under these arrangements is as follows (in thousands): For the Three Months Ended For the Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Property management fee expense $ 2,096 $ 2,021 $ 6,021 $ 6,112 Asset management fee expense 1,583 1,583 4,748 4,748 General, administrative and reimbursable expenses 716 623 1,965 1,860 Leasing commissions and construction management fees 989 634 1,906 1,481 |
Organization and Description _2
Organization and Description of Business - Narrative (Details) | Oct. 15, 2013 | Sep. 30, 2018 | Dec. 31, 2017 |
Series A Preferred Stock | |||
Organization and Description of Business [Line Items] | |||
Preferred stock, dividend rate, percentage | 7.625% | 7.625% | 7.625% |
Basis of Presentation - Account
Basis of Presentation - Accounting Pronouncements Adopted in 2018 - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle | ||
Net cash used in investing activities | $ (57,016) | $ (54,308) |
Accounting Standards Update 2016-18 | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Net cash used in investing activities | (54,300) | |
Previously Reported | Accounting Standards Update 2016-18 | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Net cash used in investing activities | $ (42,600) |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 115,467 | $ 31,958 | $ 48,122 | $ 30,301 |
Restricted cash | 41,855 | 35,547 | 48,393 | 60,084 |
Total cash, cash equivalents and restricted cash | $ 157,322 | $ 67,505 | $ 96,515 | $ 90,385 |
Rents, Deferred Rents and Oth_3
Rents, Deferred Rents and Other Receivables, Net - Schedule of Rents, Deferred Rents and Other Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Allowance for doubtful accounts | $ 314 | $ 206 |
Accumulated amortization of tenant inducements | $ 15,462 | $ 12,455 |
Intangible Assets and Liabili_3
Intangible Assets and Liabilities - Summary of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Intangible Assets | ||
In-place leases | $ 66,365 | $ 66,365 |
Tenant relationships | 30,078 | 30,078 |
Above-market leases | 31,270 | 31,270 |
Intangible assets, gross | 127,713 | 127,713 |
Less: accumulated amortization | 79,984 | 69,424 |
Intangible assets, net | 47,729 | 58,289 |
Intangible Liabilities | ||
Below-market leases | 59,561 | 59,561 |
Less: accumulated amortization | 46,295 | 43,322 |
Intangible liabilities, net | $ 13,266 | $ 16,239 |
Intangible Assets and Liabili_4
Intangible Assets and Liabilities - Schedule of Impact of Intangible Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Rental income | ||||
Acquired Indefinite-lived Intangible Assets and Liabilities [Line Items] | ||||
Amortization of intangible assets | $ (72) | $ 747 | $ (145) | $ 1,639 |
Depreciation and amortization expense | ||||
Acquired Indefinite-lived Intangible Assets and Liabilities [Line Items] | ||||
Amortization of intangible assets | $ 2,267 | $ 3,239 | $ 7,442 | $ 10,809 |
Intangible Assets and Liabili_5
Intangible Assets and Liabilities - Schedule of Estimated Future Amortization/Accretion of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
Intangible assets, net | $ 47,729 | $ 58,289 |
Below Market Lease, Net, Amortization Income, Fiscal Year Maturity | ||
2,018 | 778 | |
2,019 | 3,178 | |
2,020 | 2,972 | |
2,021 | 2,800 | |
2,022 | 2,493 | |
Thereafter | 1,045 | |
Intangible liabilities, net | 13,266 | $ 16,239 |
In-Place Leases | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2,018 | 875 | |
2,019 | 5,617 | |
2,020 | 4,972 | |
2,021 | 4,734 | |
2,022 | 4,022 | |
Thereafter | 5,532 | |
Intangible assets, net | 25,752 | |
Other Intangible Assets | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2,018 | 335 | |
2,019 | 4,306 | |
2,020 | 3,415 | |
2,021 | 3,328 | |
2,022 | 3,050 | |
Thereafter | 7,543 | |
Intangible assets, net | $ 21,977 |
Deferred Charges, Net - Schedul
Deferred Charges, Net - Schedule of Deferred Charges (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accumulated amortization of deferred leasing costs | $ 47,313 | $ 39,762 |
Mortgage Loans - Schedule of De
Mortgage Loans - Schedule of Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Total debt, gross | $ 2,143,500 | $ 2,001,831 |
Less: unamortized debt issuance costs | 8,103 | 10,139 |
Total debt, net | 2,135,397 | 1,991,692 |
Variable Rate Loans | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 1,005,000 | 470,000 |
Floating Rate Debt | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 1,235,000 | 470,000 |
Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 908,500 | 850,000 |
Debt Refinanced | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 0 | 681,831 |
Wells Fargo Center - North Tower | Variable Rate Loans - Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Oct. 9, 2020 | |
Effective interest rate | 3.83% | |
Total debt, gross | $ 400,000 | 0 |
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine A Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Oct. 9, 2020 | |
Effective interest rate | 6.18% | |
Total debt, gross | $ 65,000 | 0 |
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine B Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Oct. 9, 2020 | |
Effective interest rate | 7.18% | |
Total debt, gross | $ 35,000 | 0 |
Wells Fargo Center - North Tower | Debt Refinanced | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 0 | 470,000 |
Wells Fargo Center - South Tower | Variable Rate Loans - Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Dec. 6, 2018 | |
Effective interest rate | 5.82% | |
Total debt, gross | $ 250,000 | 250,000 |
777 Tower | Variable Rate Loans - Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Nov. 1, 2018 | |
Effective interest rate | 4.29% | |
Total debt, gross | $ 220,000 | 220,000 |
EY Plaza | Variable Rate Loans - Mezzanine A Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Nov. 27, 2020 | |
Effective interest rate | 6.65% | |
Total debt, gross | $ 35,000 | 0 |
EY Plaza | Floating Rate Debt | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Nov. 27, 2020 | |
Effective interest rate | 3.90% | |
Total debt, gross | $ 230,000 | 0 |
EY Plaza | Debt Refinanced | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 0 | 176,831 |
Bank of America Plaza | Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Sep. 1, 2024 | |
Fixed interest rate | 4.05% | |
Total debt, gross | $ 400,000 | 400,000 |
Gas Company Tower | Fixed Rate Debt - Senior Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Aug. 6, 2021 | |
Fixed interest rate | 3.47% | |
Total debt, gross | $ 319,000 | 319,000 |
Gas Company Tower | Fixed Rate Debt - Mezzanine Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Aug. 6, 2021 | |
Fixed interest rate | 6.50% | |
Total debt, gross | $ 131,000 | 131,000 |
Figueroa at 7th | Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Mar. 1, 2023 | |
Fixed interest rate | 3.88% | |
Total debt, gross | $ 58,500 | 0 |
Figueroa at 7th | Debt Refinanced | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 0 | $ 35,000 |
Mortgage Loans - Schedule of _2
Mortgage Loans - Schedule of Debt (Footnote) (Details) $ in Millions | Nov. 05, 2018USD ($)extension | Sep. 30, 2018extensionextension_option | Oct. 15, 2018 | Sep. 21, 2018 | Mar. 29, 2018 |
Wells Fargo Center - North Tower | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Cap interest rate | 4.25% | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 3.83% | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mortgage Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.65% | ||||
Cap interest rate | 4.25% | ||||
Number of options to extend | extension_option | 3 | ||||
Option extension period | 1 year | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine A Loan | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 6.18% | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine A Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.00% | ||||
Cap interest rate | 4.25% | ||||
Number of options to extend | 3 | ||||
Option extension period | 1 year | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine B Loan | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 7.18% | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine B Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 5.00% | ||||
Cap interest rate | 4.25% | ||||
Number of options to extend | 3 | ||||
Option extension period | 1 year | ||||
Wells Fargo Center - South Tower | Variable Rate Loans - Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 5.82% | ||||
Wells Fargo Center - South Tower | Variable Rate Loans - Mortgage Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.69% | ||||
Cap interest rate | 3.00% | ||||
Number of options to extend | 3 | ||||
Option extension period | 1 year | ||||
777 Tower | Variable Rate Loans - Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 4.29% | ||||
777 Tower | Variable Rate Loans - Mortgage Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.18% | ||||
Cap interest rate | 5.75% | ||||
EY Plaza | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Cap interest rate | 3.50% | ||||
EY Plaza | Variable Rate Loans - Mezzanine A Loan | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 6.65% | ||||
EY Plaza | Variable Rate Loans - Mezzanine A Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.55% | ||||
Cap interest rate | 3.50% | ||||
EY Plaza | Floating Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 3.90% | ||||
EY Plaza | Floating Rate Debt | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.65% | ||||
Interest Rate Swaps | EY Plaza | |||||
Debt Instrument [Line Items] | |||||
Swap rate | 2.25% | ||||
Subsequent Event | Wells Fargo Center - South Tower | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Cap interest rate | 4.50% | ||||
Subsequent Event | Wells Fargo Center - South Tower | Variable Rate Loans - Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Future advance amount | $ | $ 37 | ||||
Subsequent Event | Wells Fargo Center - South Tower | Variable Rate Loans - Mortgage Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.80% | ||||
Number of options to extend | 2 | ||||
Option extension period | 1 year | ||||
Subsequent Event | 777 Tower | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Cap interest rate | 5.75% |
Mortgage Loans - Debt Refinance
Mortgage Loans - Debt Refinanced - Narrative (Details) $ in Thousands | Sep. 21, 2018USD ($) | Mar. 29, 2018USD ($) | Feb. 06, 2018USD ($) | Sep. 30, 2018USD ($)extensionextension_option | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | |||||
Net proceeds from mortgage loans | $ 823,500 | $ 470,000 | |||
Figueroa at 7th | Fixed Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Net proceeds from mortgage loans | $ 58,000 | ||||
New mortgage loan | $ 58,500 | ||||
Fixed interest rate | 3.88% | ||||
Figueroa at 7th | Variable Rate Loans - Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Repayment of long-term debt | $ 35,000 | ||||
EY Plaza | |||||
Debt Instrument [Line Items] | |||||
New mortgage loan | $ 265,000 | ||||
EY Plaza | Floating Rate Debt | |||||
Debt Instrument [Line Items] | |||||
Net proceeds from mortgage loans | $ 263,600 | ||||
Repayment of long-term debt | $ 175,800 | ||||
New mortgage loan | $ 230,000 | ||||
EY Plaza | Floating Rate Debt | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.65% | ||||
EY Plaza | Variable Rate Loans - Mezzanine A Loan | |||||
Debt Instrument [Line Items] | |||||
New mortgage loan | $ 35,000 | ||||
EY Plaza | Variable Rate Loans - Mezzanine A Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.55% | ||||
Wells Fargo Center - North Tower | |||||
Debt Instrument [Line Items] | |||||
New mortgage loan | $ 500,000 | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mortgage Loan | |||||
Debt Instrument [Line Items] | |||||
Net proceeds from mortgage loans | $ 496,000 | ||||
Repayment of long-term debt | $ 470,000 | ||||
New mortgage loan | $ 400,000 | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mortgage Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.65% | ||||
Number of options to extend | extension_option | 3 | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine A Loan | |||||
Debt Instrument [Line Items] | |||||
New mortgage loan | $ 65,000 | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine A Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.00% | ||||
Number of options to extend | extension | 3 | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine B Loan | |||||
Debt Instrument [Line Items] | |||||
New mortgage loan | $ 35,000 | ||||
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine B Loan | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 5.00% | ||||
Number of options to extend | extension | 3 |
Mortgage Loans - Schedule of Ma
Mortgage Loans - Schedule of Maturities of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,018 | $ 470,000 | |
2,019 | 0 | |
2,020 | 765,000 | |
2,021 | 450,000 | |
2,022 | 0 | |
Thereafter | 458,500 | |
Total | $ 2,143,500 | $ 2,001,831 |
Mortgage Loans - Schedule of _3
Mortgage Loans - Schedule of Maturities of Debt (Footnote) (Details) - Subsequent Event - Variable Rate Loans - Mortgage Loan - USD ($) $ in Millions | Nov. 05, 2018 | Oct. 31, 2018 |
777 Tower | ||
Debt Instrument [Line Items] | ||
Debt refinanced, to be refinanced or extended | $ 220 | |
Wells Fargo Center - South Tower | ||
Debt Instrument [Line Items] | ||
Debt refinanced, to be refinanced or extended | $ 250 |
Mortgage Loans - Debt Maturitie
Mortgage Loans - Debt Maturities - Narrative (Details) $ in Millions | Sep. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
Prepayment amount without penalty | $ 601 |
Amount available to be defeased after lock-out periods | 400 |
Prepaid with penalties | 1,084 |
Locked out from prepayment | $ 58.5 |
Mortgage Loans - Debt Maturit_2
Mortgage Loans - Debt Maturities - Narrative - 777 Tower (Details) - USD ($) $ in Thousands | Oct. 15, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Interest Rate Caps | Not Designated as Hedging Instrument | |||
Debt Instrument [Line Items] | |||
Notional amount | $ 1,025,000 | $ 960,000 | |
Subsequent Event | 777 Tower | Interest Rate Caps | Not Designated as Hedging Instrument | |||
Debt Instrument [Line Items] | |||
Notional amount | $ 220,000 | ||
LIBOR | Subsequent Event | 777 Tower | |||
Debt Instrument [Line Items] | |||
Cap interest rate | 5.75% |
Mortgage Loans - Debt Maturit_3
Mortgage Loans - Debt Maturities - Narrative - Wells Fargo Center-South Tower (Details) $ in Thousands | Nov. 05, 2018USD ($)extension | Sep. 30, 2018USD ($)extension | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | |||
Debt Instrument, Covenant Compliance | Pursuant to the terms of certain of our mortgage loan agreements, Brookfield DTLA is required to report a debt service coverage ratio (“DSCR”) calculated using the formulas specified in the underlying loan agreements. We have submitted the required reports to the lenders for the measurement periods ended September 30, 2018 and were in compliance with the amounts required by the loan agreements. | ||
Proceeds from mortgage loans | $ 823,500 | $ 470,000 | |
Financing fees paid | $ 6,017 | $ 7,478 | |
Wells Fargo Center - South Tower | Variable Rate Loans - Mortgage Loan | LIBOR | |||
Debt Instrument [Line Items] | |||
Option extension period | 1 year | ||
Basis spread on variable rate | 3.69% | ||
Number of options to extend | extension | 3 | ||
Subsequent Event | Wells Fargo Center - South Tower | |||
Debt Instrument [Line Items] | |||
New mortgage loan | $ 290,000 | ||
Subsequent Event | Wells Fargo Center - South Tower | Variable Rate Loans - Mortgage Loan | |||
Debt Instrument [Line Items] | |||
Proceeds from mortgage loans | 250,000 | ||
Financing fees paid | 3,000 | ||
New mortgage loan | 253,000 | ||
Future advance amount | 37,000 | ||
Repayment of long-term debt | $ 250,000 | ||
Subsequent Event | Wells Fargo Center - South Tower | Variable Rate Loans - Mortgage Loan | LIBOR | |||
Debt Instrument [Line Items] | |||
Option extension period | 1 year | ||
Basis spread on variable rate | 1.80% | ||
Number of options to extend | extension | 2 |
Mortgage Loans - Non-Recourse C
Mortgage Loans - Non-Recourse Carve Out Guarantees - Narrative (Details) $ in Billions | Sep. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
Mortgage debt subject to non-recourse carve out guarantees | $ 2.1 |
Mezzanine Equity - Series A Pre
Mezzanine Equity - Series A Preferred Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 116 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | |
Temporary Equity [Line Items] | ||||
Redemption value | $ 1,014,992 | $ 1,014,992 | $ 990,749 | |
Series A Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 9,730,370 | 9,730,370 | 9,730,370 | |
Preferred stock dividends declared (in USD per share) | $ 0 | $ 0 | ||
Preferred stock, dividend rate (in USD per share) | 1.90625 | |||
Preferred stock, amount of preferred dividends in arrears | $ 162,100 | |||
Preferred stock, redemption price per share (in USD per share) | $ 25 | $ 25 | ||
Redemption value | $ 405,311 | $ 405,311 | $ 391,400 | |
Third party issuance | Series A Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 9,357,469 | 9,357,469 | 9,357,469 | |
Brookfield DTLA Holdings LLC | Series A Preferred Stock | ||||
Temporary Equity [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 372,901 | 372,901 | 372,901 |
Mezzanine Equity - Series A-1 P
Mezzanine Equity - Series A-1 Preferred Interest - Narrative (Details) - USD ($) $ in Thousands | Oct. 15, 2013 | Sep. 30, 2018 | Dec. 31, 2017 |
Temporary Equity [Line Items] | |||
Redemption value | $ 1,014,992 | $ 990,749 | |
Series A-1 Preferred Interest | |||
Temporary Equity [Line Items] | |||
Stated value of preferred interest issued | $ 225,700 | ||
Redemption value | 396,419 | $ 383,510 | |
Liquidation value | 225,700 | ||
Preferred stock, amount of preferred dividends in arrears | $ 170,700 | ||
Series A-1 Preferred Interest | |||
Temporary Equity [Line Items] | |||
Current preferred interest percent distribution | 48.13% | ||
Series A Preferred Interest | |||
Temporary Equity [Line Items] | |||
Current preferred interest percent distribution | 51.87% | ||
Common Component of Series A Interest | |||
Temporary Equity [Line Items] | |||
Preferred interest percent distribution after liquidation preference reduced to zero | 47.66% | ||
Common Component of Series B Interest | |||
Temporary Equity [Line Items] | |||
Preferred interest percent distribution after liquidation preference reduced to zero | 52.34% |
Mezzanine Equity - Senior Parti
Mezzanine Equity - Senior Participating Preferred Interest - Narrative (Details) - USD ($) $ in Thousands | Oct. 15, 2013 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Temporary Equity [Line Items] | ||||
Distributions to noncontrolling interests | $ (16,987) | $ (270) | ||
Redemption value | 1,014,992 | $ 990,749 | ||
Senior Participating Preferred Interest | ||||
Temporary Equity [Line Items] | ||||
Distributions to noncontrolling interests | (2,600) | |||
Redemption value | $ 25,584 | $ 25,548 | ||
Brookfield DTLA Holdings LLC | 333 South Hope and EYP Realty | Senior Participating Preferred Interest | ||||
Temporary Equity [Line Items] | ||||
Participating interest in residual value | 4.00% |
Mezzanine Equity - Series B Pre
Mezzanine Equity - Series B Preferred Interest - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Oct. 15, 2013 | |
Temporary Equity [Line Items] | ||||
Distributions to noncontrolling interests | $ (16,987) | $ (270) | ||
Redemption value | 1,014,992 | $ 990,749 | ||
Series B Preferred Interest | ||||
Temporary Equity [Line Items] | ||||
Maximum funding commitment | $ 260,000 | |||
Distributions to noncontrolling interests | (14,400) | |||
Redemption value | 187,678 | $ 190,291 | ||
Liquidation value | 174,800 | |||
Accumulated and unpaid dividends | $ 12,900 |
Mezzanine Equity - Summary of C
Mezzanine Equity - Summary of Change in Mezzanine Equity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance, December 31, 2017 | $ 990,749 |
Current dividends | 38,585 |
Distributions to holders | (16,987) |
Redemption measurement adjustment | 2,645 |
Balance, September 30, 2018 | $ 1,014,992 |
Series A Preferred Stock | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance, December 31, 2017 (in shares) | shares | 9,730,370 |
Balance, December 31, 2017 | $ 391,400 |
Current dividends | 13,911 |
Balance, September 30, 2018 | $ 405,311 |
Balance, September 30, 2018 (in shares) | shares | 9,730,370 |
Series A-1 Preferred Interest | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance, December 31, 2017 | $ 383,510 |
Current dividends | 12,909 |
Balance, September 30, 2018 | 396,419 |
Senior Participating Preferred Interest | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance, December 31, 2017 | 25,548 |
Current dividends | 0 |
Distributions to holders | (2,609) |
Redemption measurement adjustment | 2,645 |
Balance, September 30, 2018 | 25,584 |
Series B Preferred Interest | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |
Balance, December 31, 2017 | 190,291 |
Current dividends | 11,765 |
Distributions to holders | (14,378) |
Balance, September 30, 2018 | $ 187,678 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Change in Accumulated Other Comprehensive Income (Loss) Related to Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Other comprehensive income before reclassifications | $ 634 | $ 469 | $ 3,171 | $ 1,232 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | (1,198) | 0 |
Accumulated Other Comprehensive Loss | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 765 | (2,610) | (574) | (3,373) |
Other comprehensive income before reclassifications | 634 | 469 | 3,171 | 1,232 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | (1,198) | 0 |
Net current-period other comprehensive income | 634 | 469 | 1,973 | 1,232 |
Balance at end of period | $ 1,399 | $ (2,141) | $ 1,399 | $ (2,141) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 1,100 | $ 500 | |
Unrecognized tax benefits | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Net Assets (Liabilities) Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cash flow hedge derivatives at fair value, net | $ 2,597 | $ (574) |
Interest Rate Swaps | Quoted Prices in Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cash flow hedge derivatives at fair value, net | 0 | 0 |
Interest Rate Swaps | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cash flow hedge derivatives at fair value, net | 2,597 | (574) |
Interest Rate Swaps | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cash flow hedge derivatives at fair value, net | 0 | 0 |
Interest Rate Caps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivative instruments not designated as hedging instruments, at fair value | 64 | 15 |
Interest Rate Caps | Quoted Prices in Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivative instruments not designated as hedging instruments, at fair value | 0 | 0 |
Interest Rate Caps | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivative instruments not designated as hedging instruments, at fair value | 64 | 15 |
Interest Rate Caps | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate derivative instruments not designated as hedging instruments, at fair value | $ 0 | $ 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Details) - Interest Rate Swaps - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Interest rate cash flow hedge derivatives at fair value, net | $ 2,597 | $ (574) |
Prepaid and other assets, net | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate cash flow hedge derivatives at fair value, net | $ 2,597 | |
Accounts payable and other liabilities | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate cash flow hedge derivatives at fair value, net | $ (574) |
Financial Instruments - Summa_2
Financial Instruments - Summary of Effect of Derivative Instruments (Details) - Cash Flow Hedging - Interest Rate Swaps - Designated as Hedging Instrument - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative [Line Items] | ||
Amount of Gain Recognized in AOCL | $ 3,171 | $ 1,232 |
Amount of Gain Reclassified from AOCL to Statement of Operations | $ 1,198 | $ 0 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Interest Rate Swaps (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Mar. 29, 2018 | |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional amount | $ 227,884 | |
Swap rate | 2.25% | |
LIBOR spread | 1.65% | |
Effective interest rate | 3.90% | |
EY Plaza | Interest Rate Swap Agreement One | ||
Derivative [Line Items] | ||
Notional amount | $ 173,678 | |
Swap rate | 2.18% | |
LIBOR spread | 1.65% | |
Effective interest rate | 3.83% | |
EY Plaza | Interest Rate Swap Agreement Two | ||
Derivative [Line Items] | ||
Notional amount | $ 54,206 | $ 54,200 |
Swap rate | 2.47% | 2.47% |
LIBOR spread | 1.65% | |
Effective interest rate | 4.12% | 4.12% |
Financial Instruments - Interes
Financial Instruments - Interest Rate Swaps - Narrative (Details) - Designated as Hedging Instrument - EY Plaza - Interest Rate Swap Agreement Two - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 29, 2018 |
Derivative [Line Items] | ||
Notional amount | $ 54,206 | $ 54,200 |
Swap rate | 2.47% | 2.47% |
Effective interest rate | 4.12% | 4.12% |
Financial Instruments - Schedul
Financial Instruments - Schedule of Interest Rate Caps (Details) - Interest Rate Caps - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 21, 2018 | Mar. 29, 2018 | Dec. 31, 2017 |
Derivative Instruments, Interest Rate Caps [Line Items] | ||||
Notional amount | $ 1,025,000 | $ 960,000 | ||
Wells Fargo Center - North Tower | ||||
Derivative Instruments, Interest Rate Caps [Line Items] | ||||
Notional amount | $ 500,000 | |||
Wells Fargo Center - North Tower | Variable Rate Loans - Mortgage Loan | ||||
Derivative Instruments, Interest Rate Caps [Line Items] | ||||
Notional amount | 400,000 | 370,000 | ||
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine A Loan | ||||
Derivative Instruments, Interest Rate Caps [Line Items] | ||||
Notional amount | 65,000 | 55,000 | ||
Wells Fargo Center - North Tower | Variable Rate Loans - Mezzanine B Loan | ||||
Derivative Instruments, Interest Rate Caps [Line Items] | ||||
Notional amount | 35,000 | 45,000 | ||
Wells Fargo Center - South Tower | Variable Rate Loans | ||||
Derivative Instruments, Interest Rate Caps [Line Items] | ||||
Notional amount | 270,000 | 270,000 | ||
777 Tower | Variable Rate Loans | ||||
Derivative Instruments, Interest Rate Caps [Line Items] | ||||
Notional amount | 220,000 | 220,000 | ||
EY Plaza | ||||
Derivative Instruments, Interest Rate Caps [Line Items] | ||||
Notional amount | $ 35,000 | |||
EY Plaza | Variable Rate Loans - Mezzanine A Loan | ||||
Derivative Instruments, Interest Rate Caps [Line Items] | ||||
Notional amount | $ 35,000 | $ 0 |
Financial Instruments - Inter_2
Financial Instruments - Interest Rate Caps - Narrative (Details) - USD ($) $ in Thousands | Nov. 05, 2018 | Oct. 15, 2018 | Sep. 30, 2018 | Sep. 21, 2018 | Mar. 29, 2018 | Dec. 31, 2017 |
Not Designated as Hedging Instrument | Interest Rate Caps | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 1,025,000 | $ 960,000 | ||||
EY Plaza | LIBOR | ||||||
Derivative [Line Items] | ||||||
Cap interest rate | 3.50% | |||||
EY Plaza | Not Designated as Hedging Instrument | Interest Rate Caps | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 35,000 | |||||
Wells Fargo Center - North Tower | LIBOR | ||||||
Derivative [Line Items] | ||||||
Cap interest rate | 4.25% | |||||
Wells Fargo Center - North Tower | Not Designated as Hedging Instrument | Interest Rate Caps | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 500,000 | |||||
Subsequent Event | 777 Tower | LIBOR | ||||||
Derivative [Line Items] | ||||||
Cap interest rate | 5.75% | |||||
Subsequent Event | 777 Tower | Not Designated as Hedging Instrument | Interest Rate Caps | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 220,000 | |||||
Subsequent Event | Wells Fargo Center - South Tower | LIBOR | ||||||
Derivative [Line Items] | ||||||
Cap interest rate | 4.50% | |||||
Subsequent Event | Wells Fargo Center - South Tower | Not Designated as Hedging Instrument | Interest Rate Caps | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 290,000 |
Financial Instruments - Summa_4
Financial Instruments - Summary of Estimated Fair Value and Carrying Amount of Mortgage Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Estimated fair value | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage loans | $ 2,134,275 | $ 2,003,600 |
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Mortgage loans | $ 2,143,500 | $ 2,001,831 |
Related Party Transactions - Ma
Related Party Transactions - Management Agreements - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Property management fee, percent | 2.75% |
Asset management fee, percent | 0.75% |
Related Party Transactions - Su
Related Party Transactions - Summary of Costs Incurred Under Arrangements with Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property management fee expense | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expenses | $ 2,096 | $ 2,021 | $ 6,021 | $ 6,112 |
Asset management fee expense | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expenses | 1,583 | 1,583 | 4,748 | 4,748 |
General, administrative and reimbursable expenses | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expenses | 716 | 623 | 1,965 | 1,860 |
Leasing commissions and construction management fees | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expenses | 989 | 634 | 1,906 | 1,481 |
Insurance expense | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction expenses | $ 1,975 | $ 1,948 | $ 5,902 | $ 5,828 |
Subsequent Events - Debt Maturi
Subsequent Events - Debt Maturities - Narrative - 777 Tower (Details) - USD ($) $ in Thousands | Oct. 15, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Not Designated as Hedging Instrument | Interest Rate Caps | |||
Subsequent Event [Line Items] | |||
Notional amount | $ 1,025,000 | $ 960,000 | |
Not Designated as Hedging Instrument | 777 Tower | Interest Rate Caps | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Notional amount | $ 220,000 | ||
LIBOR | 777 Tower | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cap interest rate | 5.75% |
Subsequent Events - Debt Matu_2
Subsequent Events - Debt Maturities - Narrative - Wells Fargo Center-South Tower (Details) $ in Thousands | Nov. 05, 2018USD ($)extension | Sep. 30, 2018USD ($)extension | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Subsequent Event [Line Items] | ||||
Net proceeds from mortgage loans | $ 823,500 | $ 470,000 | ||
Financing fees paid | $ (6,017) | $ (7,478) | ||
Wells Fargo Center - South Tower | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
New mortgage loan | $ 290,000 | |||
Variable Rate Loans - Mortgage Loan | Wells Fargo Center - South Tower | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Net proceeds from mortgage loans | 250,000 | |||
Repayment of long-term debt | 250,000 | |||
Financing fees paid | (3,000) | |||
New mortgage loan | 253,000 | |||
Future advance amount | $ 37,000 | |||
LIBOR | Wells Fargo Center - South Tower | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cap interest rate | 4.50% | |||
LIBOR | Variable Rate Loans - Mortgage Loan | Wells Fargo Center - South Tower | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 3.69% | |||
Number of options to extend | extension | 3 | |||
Option extension period | 1 year | |||
Cap interest rate | 3.00% | |||
LIBOR | Variable Rate Loans - Mortgage Loan | Wells Fargo Center - South Tower | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 1.80% | |||
Number of options to extend | extension | 2 | |||
Option extension period | 1 year | |||
Not Designated as Hedging Instrument | Interest Rate Caps | ||||
Subsequent Event [Line Items] | ||||
Notional amount | $ 1,025,000 | $ 960,000 | ||
Not Designated as Hedging Instrument | Interest Rate Caps | Wells Fargo Center - South Tower | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Notional amount | $ 290,000 |