Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies As used in these 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 consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated balance sheets as of December 31, 2018 and 2017 include the accounts of Brookfield DTLA and subsidiaries in which it has a controlling financial interest. All intercompany transactions have been eliminated in consolidation as of and for the years ended December 31, 2018 , 2017 and 2016 . In determining whether Brookfield DTLA has a controlling financial interest in an entity and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members as well as whether the entity is a variable interest entity (“VIE”) and Brookfield DTLA is the primary beneficiary. A VIE is broadly defined as an entity where either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Brookfield DTLA qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors includes, but is not limited to, Brookfield DTLA’s ability to direct the activities that most significantly impact the VIE’s economic performance, its form of ownership interest, its representation on the VIE’s governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and its ability to replace the manager of and/or liquidate the entity. The Company earns a return through an indirect investment in Brookfield DTLA Fund Properties II LLC (“New OP”). DTLA Holdings, the parent of Brookfield DTLA, owns all of the common interest in New OP. Brookfield DTLA has an indirect preferred stock interest in New OP and its wholly owned subsidiary is the managing member of New OP. The Company determined that New OP is a VIE and as a result of having the power to direct the significant activities of New OP and exposure to the economic performance of New OP, Brookfield DTLA meets the two conditions for being the primary beneficiary. Brookfield DTLA is required to continually evaluate its VIE relationships and consolidation conclusion. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the 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 the fair value of debt. Actual results could ultimately differ from such estimates. Reclassifications During the year ended December 31, 2018 , the Company reclassified asset management fees earned by the Manager from rental property operating and maintenance expense to other expense in the consolidated statement of operations. Management does not include asset management fees as an input when evaluating the operating performance of Brookfield DTLA’s properties and created a new category within other expense during 2018 to capture such fees. For the years ended December 31, 2017 and 2016 , the Company reported rental property operating and maintenance expense totaling $100.3 million and $99.1 million and other expense totaling $5.2 million and $4.9 million in the consolidated statements of operations, respectively. After the reclassification, rental property operating and maintenance expense now totals $94.0 million and $92.8 million and other expense now totals $11.5 million and $11.2 million in the consolidated statements of operations for the years ended December 31, 2017 and 2016 , respectively. These reclassifications had no effect on the Company’s financial position, results of operations or cash flows in any year. During the year ended December 31, 2018 , the Company also reclassified lease termination fees from interest and other income to rental income in the consolidated statement of operations in anticipation of adopting Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). For the years ended December 31, 2017 and 2016 , the Company reported interest and other income totaling $10.3 million and $13.7 million and rental income totaling $162.4 million and $164.8 million in the consolidated statements of operations, respectively. After the reclassification, interest and other income now totals $7.0 million and $9.3 million and rental income now totals $165.7 million and $169.2 million in the consolidated statements of operations for the years ended December 31, 2017 and 2016 , respectively. These reclassifications had no effect on the Company’s financial position, results of operations or cash flows in any year. Accounting Pronouncements Adopted in 2018 Effective January 1, 2018, Brookfield DTLA adopted, on a modified retrospective basis, the guidance in Financial Accounting Standards Board (“FASB”) ASU 2014-09, Revenue from Contracts with Customers Accounting Standards Codification (“ASC”) Topic 606. ASU 2014-09, as amended by subsequent ASUs on the topic, established a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded 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 requires certain additional disclosures. The adoption of this pronouncement did not have an impact on Brookfield DTLA’s consolidated financial statements. Effective January 1, 2018, Brookfield DTLA adopted, on a retrospective basis, the guidance in ASU 2016-18, Restricted Cash to Topic 230, Statement of Cash Flows. ASU 2016-18 requires entities to include restricted cash with cash and cash equivalents when reconciling the beginning and end of period total amounts shown in the statement of cash flows. Therefore, the change in restricted cash is no longer presented as a separate line item within cash flows from investing activities in the Company’s consolidated statement of cash flows since such balances are now combined with cash and cash equivalents at both the beginning and end of the reporting period. For the year ended December 31, 2017 , the Company used net cash in investing activities of $74.7 million instead of the $50.2 million previously reported, while for the year ended December 31, 2016 , the net cash used in investing activities was $57.4 million instead of the $63.6 million previously reported. Effective January 1, 2018, Brookfield DTLA adopted, on a retrospective basis, the guidance in ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments to 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 of 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 consolidated financial statements. Accounting Pronouncements Effective January 1, 2019 Leases In February 2016, the FASB issued an update (“ASU 2016-02”), Leases (Topic 842) . The primary difference between Topic 842 and current GAAP is the recognition of lease assets and liabilities on the balance sheet by lessees for leases classified as operating leases under current GAAP. The accounting applied by lessors is largely unchanged from current GAAP, for example, the vast majority of operating leases will remain classified as operating leases, and lessors will continue to recognize lease income for those leases on a straight-line basis over the lease term. In July 2018, the FASB issued ASU 2018-11, which includes an optional practical expedient for lessors to elect, by class of underlying asset, to not separate the lease from the non-lease components as required by Topic 842 if certain criteria are met. For leases where we are the lessor, the Company qualifies for the single component presentation and as a result, leases will be accounted for in a similar method to existing standards. Topic 842 defines initial direct costs of a lease (which the Company has historically capitalized) as incremental costs that would not have been incurred had the lease not been executed. Costs to negotiate or arrange a lease regardless of its outcome, such as fixed employee compensation, tax or legal advice to negotiate lease terms, and lessor costs related to advertising or soliciting potential tenants, will be expensed as incurred under the new guidance. During the year ended December 31, 2018 , the Company capitalized $137 thousand of leasing costs that would not qualify as initial direct costs and would have been expensed under Topic 842. ASU 2016-02 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018. 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 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. We do not expect the adoption of this guidance to have material impact on Brookfield DTLA’s consolidated financial statements. Accounting Pronouncements Effective January 1, 2020 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), and made changes to its conceptual framework, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements , that are intended to improve the effectiveness of disclosures in notes to financial statements. ASU 2018-13 removes, modifies and adds certain disclosure requirements related to fair value measurements required by Topic 820. The guidance is effective for interim and annual periods in fiscal years beginning after December 15, 2019. 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. In October 2018, the FASB issued ASU 2018-17, Consolidation ( Topic 810 ), Targeted Improvements to Related Party Guidance for Variable Interest Entities , which amends two aspects of the related-party guidance in Topic 810. Specifically, ASU 2018-17 (1) adds an elective private company scope exception to the variable interest entity guidance for entities under common control and (2) removes a sentence in ASC 810-10-55-37D regarding the evaluation of fees paid to decision makers to conform with the amendments in ASU 2016-17, Consolidation ( Topic 810 ), Interests Held through Related Parties That Are under Common Control (issued in October 2016). ASU 2018-17 is effective for interim and annual periods in fiscal years beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. Significant Accounting Policies Business Combinations— Effective January 1, 2018, Brookfield DTLA adopted, on a prospective basis, the guidance in ASU 2017-01, Clarifying the Definition of a Business to ASC Topic 805, Business Combinations. Prior to the adoption of this guidance, the Company applied purchase accounting to the assets and liabilities related to real estate investments acquired from third parties. Prior to adopting this guidance, Brookfield DTLA allocated the purchase price of real estate acquired to tangible assets, consisting primarily of land, building and tenant improvements, and identifiable intangible assets and liabilities, consisting of the value of above- and below-market leases, in-place leases, and tenant relationships, based in each case on their fair value in accordance with GAAP in effect at the time of the acquisitions. The principal valuation technique employed by Brookfield DTLA in determining the fair value of identified assets acquired and liabilities assumed is the income approach, which is then compared to the cost approach. Tangible values for investments in real estate are calculated based on replacement costs for like type quality assets. Above- and below-market lease values are determined by comparing in-place rents with current market rents. In‑place lease amounts are determined by calculating the potential lost revenue during the replacement of the current leases in place. Leasing commissions and legal/marketing fees are determined based upon market allowances pro-rated over the remaining lease terms. Mortgage loans assumed in an acquisition are analyzed using current market terms for similar debt. The value of the acquired above-market and below-market leases are amortized and recorded as either a decrease (in the case of above-market leases) or an increase (in the case of below-market leases) to rental income in the consolidated statement of operations over the remaining term of the associated lease. The value of tenant relationships is amortized over the expected term of the relationship, which includes an estimated probability of lease renewal. The value of in-place leases is amortized as an expense over the remaining life of the leases. Amortization of tenant relationships and in‑place leases is included in depreciation and amortization in the consolidated statement of operations. Investments in Real Estate— Land is carried at cost. Buildings are recorded at historical cost and are depreciated on a straight‑line basis over the estimated useful life of the building, which is 60 years with an estimated salvage value of 5% . Building improvements are recorded at historical cost and are depreciated on a straight-line basis over their estimated useful lives, which range from 7 years to 25 years. Land improvements are combined with building improvements for financial reporting purposes and are carried at cost. Tenant improvements that are determined to be assets of Brookfield DTLA are recorded at cost; amortization is included in depreciation and amortization expense in the consolidated statement of operations on a straight‑line basis over the shorter of the useful life or the applicable lease term. Depreciation expense related to investments in real estate during the years ended December 31, 2018 , 2017 and 2016 was $75.7 million , $73.6 million and $73.0 million , respectively. Real estate is reviewed for impairment if events or changes in circumstances indicate that the carrying amount of the real estate may not be recoverable. In such an event, a comparison is made of the current and projected operating cash flows of the property into the foreseeable future on an undiscounted basis to the carrying amount of the real estate. If the undiscounted cash flows expected to be generated by an asset are less than its carrying amount, an impairment provision would be recorded to write down the carrying amount of such asset to its fair value. Brookfield DTLA assesses fair value based on estimated cash flow projections utilizing appropriate discount and capitalization rates and available market information. Projections of future cash flow take into account the specific business plan for the property and management’s best estimate of the most probable set of economic conditions expected to prevail in the market. Management believes no impairment of Brookfield DTLA’s real estate assets existed at December 31, 2018 and 2017 . Cash and Cash Equivalents— Cash and cash equivalents include all cash and short-term investments with an original maturity of three months or less. Restricted Cash— 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 Receivables, Net— Differences between rental income and the contractual amounts due are recorded as deferred rents receivable in the consolidated balance sheet. Brookfield DTLA evaluates its deferred rents receivable to consider if an allowance is necessary. Rents, deferred rents and other receivables, net also includes amounts paid to a tenant for improvements owned or costs incurred by the tenant. Such amounts are treated as tenant inducements and are presented in the consolidated balance sheet net of accumulated amortization totaling $16.7 million and $12.5 million as of December 31, 2018 and 2017 , respectively. Amortization of tenant inducements is recorded on a straight-line basis over the term of the related lease as a reduction of rental income in the consolidated statement of operations. Brookfield DTLA periodically evaluates the collectability of amounts due from tenants and maintains an allowance for doubtful accounts in the consolidated balance sheet for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. Management exercises judgment in establishing these allowances and considers payment history and current credit status in developing these estimates. The allowance for doubtful accounts for Brookfield DTLA totaled $314 thousand and $206 thousand as of December 31, 2018 and 2017 , respectively. During the years ended December 31, 2018 , 2017 and 2016 , Brookfield DTLA recorded a provision for doubtful accounts of $190 thousand , and recoveries of accounts of $7 thousand and $271 thousand , respectively. Due to/from Affiliates, Net— Amounts due to/from affiliates, net consist of related party receivables and payables from affiliates of BAM primarily for fees for property and asset management and other services. These amounts are due on demand and are non‑interest bearing. See Note 12 “Related Party Transactions.” Deferred Charges, Net— Leasing costs are deferred and are presented as deferred charges in the consolidated balance sheet net of accumulated amortization totaling $50.3 million and $39.8 million as of December 31, 2018 and 2017 , respectively. Deferred leasing costs are amortized on a straight‑line basis over the terms of the related leases as part of depreciation and amortization expense in the consolidated statement of operations. Prepaid and Other Assets, Net— Prepaid and other assets, net include prepaid insurance, real estate taxes and interest, fair value of derivative financial instruments, other operating costs and non-operating furniture and equipment, net of accumulated depreciation totaling $4.6 million and $4.3 million , as of December 31, 2018 and 2017 , respectively. Mortgage Loans, Net— Mortgage loans are presented in the consolidated balance sheet net of unamortized debt issuance costs totaling $11.0 million and $10.1 million as of December 31, 2018 and 2017 , respectively. Debt issuance costs and discounts totaling $9.6 million , $6.4 million and $4.3 million were amortized during the years ended December 31, 2018 , 2017 and 2016 , respectively, over the terms of the related mortgage loans on a basis that approximates the effective interest method and are included as part of interest expense in the consolidated statement of operations. Revenue Recognition— Rental income from leases providing for periodic increases in base rent is recognized on a straight-line basis over the noncancelable term of the respective leases. Certain leases with retail tenants also provide for the payment by the lessee of additional rent based on a percentage of the tenant’s sales. Percentage rents are recognized only after the tenant sales thresholds have been achieved. Recoveries of operating expenses and real estate taxes are recorded as tenant reimbursements in the consolidated statement of operations in the period during which the expenses are incurred. Derivative Financial Instruments— Brookfield DTLA uses interest rate swap and cap derivative financial instruments to manage risk from fluctuations in interest rates. Interest rate swaps involve the receipt of variable-rate amounts in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying principal amount. Interest rate caps involve the receipt of variable-rate amounts beyond a specified strike price over the life of the contracts without exchange of the underlying principal amount. The Company believes these contracts are with counterparties who are creditworthy financial institutions. At the inception of the contracts, Brookfield DTLA designates its interest rate swap contracts as cash flow hedges and documents the relationship of the hedge to the underlying transaction. Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the consolidated statement of operations. Changes in fair value of cash flow hedge derivative financial instruments are deferred and recorded as part of accumulated other comprehensive loss in the consolidated statement of stockholders’ deficit until the underlying transaction affects earnings. In the event that an anticipated transaction is no longer likely to occur, the Company recognizes the change in fair value of the derivative financial instrument in its consolidated statement of operations in the period the determination is made. Additionally, Brookfield DTLA uses interest rate cap contracts to limit impact of changes in the LIBOR rate on certain of its mortgage and mezzanine loans. Due to the short-term nature of the contracts involved, the Company does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statement of operations. Segment Reporting Brookfield DTLA currently operates in a single reportable segment referred to as its office segment, which includes the operation and management of commercial office properties. Each of Brookfield DTLA’s operating properties is considered a separate operating segment, as each property earns revenues and incurs expenses, individual operating results are reviewed and discrete financial information is available. Management does not distinguish or group Brookfield DTLA’s consolidated operations based on geography, size or type. Brookfield DTLA’s operating properties have similar economic characteristics and provide similar products and services to tenants. As a result, Brookfield DTLA’s operating properties are aggregated into a single reportable segment. Accounting for Conditional Asset Retirement Obligations Brookfield DTLA has evaluated whether it has any conditional asset retirement obligations, which are a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional upon future events that may or may not be within an entity’s control. The obligation to perform the asset retirement activity is unconditional even though uncertainty exists about the timing and/or method of settlement. Accordingly, Brookfield DTLA recognized a liability for a conditional asset retirement obligation in the consolidated balance sheet as of December 31, 2018 and 2017 . |