Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 29, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Registrant Name | City Office REIT, Inc. | |
Entity Central Index Key | 0001593222 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 54,547,063 | |
Entity Address, State or Province | BC | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | CIO | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock | |
6.625% Series A Cumulative Redeemable Preferred Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | CIO.PrA | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | 6.625% Series A Cumulative Redeemable Preferred Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Real estate properties | ||
Land | $ 230,034 | $ 223,789 |
Building and improvement | 782,576 | 704,113 |
Tenant improvement | 91,016 | 77,426 |
Furniture, fixtures and equipment | 285 | 319 |
Real estate properties, gross | 1,103,911 | 1,005,647 |
Accumulated depreciation | (93,623) | (70,484) |
Real estate properties, net | 1,010,288 | 935,163 |
Cash and cash equivalents | 12,281 | 16,138 |
Restricted cash | 20,240 | 17,007 |
Rents receivable, net | 31,844 | 26,095 |
Deferred leasing costs, net | 11,235 | 10,402 |
Acquired lease intangible assets, net | 73,394 | 75,501 |
Other assets | 16,830 | 2,755 |
Assets held for sale | 13,905 | 17,370 |
Total Assets | 1,190,017 | 1,100,431 |
Liabilities: | ||
Debt | 651,693 | 645,354 |
Accounts payable and accrued liabilities | 28,431 | 25,892 |
Deferred rent | 5,574 | 5,331 |
Tenant rent deposits | 5,691 | 4,564 |
Acquired lease intangible liabilities, net | 8,763 | 8,887 |
Other liabilities | 21,349 | 11,148 |
Liabilities related to assets held for sale | 356 | 878 |
Total Liabilities | 721,857 | 702,054 |
Commitments and Contingencies (Note 9) | ||
Equity: | ||
6.625% Series A Preferred stock, $0.01 par value per share, 5,600,000 shares authorized, 4,480,000 issued and outstanding | 112,000 | 112,000 |
Common stock, $0.01 par value, 100,000,000 shares authorized, 47,647,063 and 39,544,073 shares issued and outstanding | 476 | 395 |
Additional paid-in capital | 483,200 | 377,126 |
Accumulated deficit | (128,823) | (92,108) |
Accumulated other comprehensive income | 247 | |
Total Stockholders' Equity | 467,100 | 397,413 |
Non-controlling interests in properties | 1,060 | 964 |
Total Equity | 468,160 | 398,377 |
Total Liabilities and Equity | $ 1,190,017 | $ 1,100,431 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | ||
Preferred stock, Dividend rate percentage | 6.625% | 6.625% |
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,600,000 | 5,600,000 |
Preferred stock, shares issued | 4,480,000 | 4,480,000 |
Preferred stock, shares outstanding | 4,480,000 | 4,480,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 47,647,063 | 39,544,073 |
Common stock, shares outstanding | 47,647,063 | 39,544,073 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Rental and other revenues | $ 38,946 | $ 33,547 | $ 117,236 | $ 95,317 |
Operating expenses: | ||||
Property operating expenses | 14,384 | 13,253 | 42,754 | 36,627 |
General and administrative | 2,775 | 1,850 | 8,435 | 5,793 |
Depreciation and amortization | 15,035 | 13,379 | 44,057 | 37,044 |
Total operating expenses | 32,194 | 28,482 | 95,246 | 79,464 |
Operating income | 6,752 | 5,065 | 21,990 | 15,853 |
Interest expense: | ||||
Contractual interest expense | (7,378) | (5,915) | (22,022) | (16,184) |
Amortization of deferred financing costs and debt fair value | (321) | (311) | (992) | (1,297) |
Interest expense, net | (7,699) | (6,226) | (23,014) | (17,481) |
Net gain on sale of real estate property | 478 | 46,980 | ||
Net (loss)/income | (947) | (1,161) | (546) | 45,352 |
Net income attributable to non-controlling interests in properties | (164) | (135) | (498) | (384) |
Net (loss)/income attributable to the Company | (1,111) | (1,296) | (1,044) | 44,968 |
Preferred stock distributions | (1,855) | (1,855) | (5,565) | (5,565) |
Net (loss)/income attributable to common stockholders | $ (2,966) | $ (3,151) | $ (6,609) | $ 39,403 |
Net (loss)/income per common share: | ||||
Basic | $ (0.07) | $ (0.08) | $ (0.16) | $ 1.08 |
Diluted | $ (0.07) | $ (0.08) | $ (0.16) | $ 1.07 |
Weighted average common shares outstanding: | ||||
Basic | 42,591 | 37,494 | 40,610 | 36,572 |
Diluted | 42,591 | 37,494 | 40,610 | 36,920 |
Dividend distributions declared per common share | $ 0.235 | $ 0.235 | $ 0.705 | $ 0.705 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss)/income | $ (947) | $ (1,161) | $ (546) | $ 45,352 |
Unrealized cash flow hedge gains | 247 | 247 | ||
Comprehensive (loss)/income | (700) | (1,161) | (299) | 45,352 |
Comprehensive income attributable to non-controlling interests in properties | (164) | (135) | (498) | (384) |
Comprehensive (loss)/income attributable to the Company | (864) | (1,296) | (797) | 44,968 |
Preferred stock distributions | (1,855) | (1,855) | (5,565) | (5,565) |
Comprehensive (loss)/income attributable to common stockholders | $ (2,719) | $ (3,151) | $ (6,362) | $ 39,403 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income [Member] | Total stockholders' equity [Member] | Non-controlling Interests in Properties [Member] |
Beginning balance at Dec. 31, 2017 | $ 359,832 | $ 112,000 | $ 360 | $ 334,241 | $ (86,977) | $ 0 | $ 359,624 | $ 208 |
Beginning balance, shares at Dec. 31, 2017 | 4,480,000 | 36,012,000 | ||||||
Restricted stock award grants and vesting, values | 285 | $ 0 | $ 1 | 356 | (72) | 0 | 285 | 0 |
Restricted stock award grants and vesting, shares | 0 | 120,000 | ||||||
Common stock dividend distributions declared | (8,491) | $ 0 | $ 0 | 0 | (8,491) | 0 | (8,491) | 0 |
Preferred stock dividend distributions declared | (1,855) | 0 | 0 | 0 | (1,855) | 0 | (1,855) | 0 |
Distributions | (29) | 0 | 0 | 0 | 0 | 0 | (29) | |
Net income | 47,198 | 0 | 0 | 0 | 47,063 | 47,063 | 135 | |
Ending balance at Mar. 31, 2018 | 396,940 | $ 112,000 | $ 361 | 334,597 | (50,332) | 0 | 396,626 | 314 |
Ending balance, shares at Mar. 31, 2018 | 4,480,000 | 36,132,000 | ||||||
Beginning balance at Dec. 31, 2017 | 359,832 | $ 112,000 | $ 360 | 334,241 | (86,977) | 0 | 359,624 | 208 |
Beginning balance, shares at Dec. 31, 2017 | 4,480,000 | 36,012,000 | ||||||
Net income | 45,352 | |||||||
Ending balance at Sep. 30, 2018 | 415,751 | $ 112,000 | $ 395 | 376,689 | (74,079) | 0 | 415,005 | 746 |
Ending balance, shares at Sep. 30, 2018 | 4,480,000 | 39,544,000 | ||||||
Beginning balance at Mar. 31, 2018 | 396,940 | $ 112,000 | $ 361 | 334,597 | (50,332) | 0 | 396,626 | 314 |
Beginning balance, shares at Mar. 31, 2018 | 4,480,000 | 36,132,000 | ||||||
Restricted stock award grants and vesting, values | 332 | $ 0 | $ 0 | 412 | (80) | 0 | 332 | 0 |
Restricted stock award grants and vesting, shares | 0 | 1,000 | ||||||
Common stock dividend distributions declared | (8,491) | $ 0 | $ 0 | 0 | (8,491) | 0 | (8,491) | 0 |
Preferred stock dividend distributions declared | (1,855) | 0 | 0 | 0 | (1,855) | 0 | (1,855) | 0 |
Contributions | 43 | 0 | 0 | 0 | 0 | 0 | 43 | |
Distributions | (135) | 0 | 0 | 0 | 0 | 0 | (135) | |
Net income | (684) | 0 | 0 | 0 | (798) | (798) | 114 | |
Ending balance at Jun. 30, 2018 | 386,150 | $ 112,000 | $ 361 | 335,009 | (61,556) | 0 | 385,814 | 336 |
Ending balance, shares at Jun. 30, 2018 | 4,480,000 | 36,133,000 | ||||||
Restricted stock award grants and vesting, values | 357 | $ 0 | $ 0 | 436 | (79) | 0 | 357 | 0 |
Restricted stock award grants and vesting, shares | 0 | 0 | ||||||
Net proceeds from sale of common stock, values | 42,902 | $ 0 | $ 34 | 42,868 | 0 | 0 | 42,902 | 0 |
Net proceeds from sale of common stock, shares | 0 | 3,411,000 | ||||||
Common stock dividend distributions declared | (9,293) | $ 0 | $ 0 | 0 | (9,293) | 0 | (9,293) | 0 |
Preferred stock dividend distributions declared | (1,855) | 0 | 0 | 0 | (1,855) | 0 | (1,855) | 0 |
Minority interest buyout | (1,139) | 0 | 0 | (1,624) | 0 | 0 | (1,624) | 485 |
Distributions | (210) | 0 | 0 | 0 | 0 | 0 | (210) | |
Net income | (1,161) | 0 | 0 | 0 | (1,296) | 0 | (1,296) | 135 |
Ending balance at Sep. 30, 2018 | 415,751 | $ 112,000 | $ 395 | 376,689 | (74,079) | 0 | 415,005 | 746 |
Ending balance, shares at Sep. 30, 2018 | 4,480,000 | 39,544,000 | ||||||
Beginning balance at Dec. 31, 2018 | $ 398,377 | $ 112,000 | $ 395 | 377,126 | (92,108) | 0 | 397,413 | 964 |
Beginning balance, shares at Dec. 31, 2018 | 39,544,073 | 4,480,000 | 39,544,000 | |||||
Restricted stock award grants and vesting, values | $ 220 | $ 0 | $ 1 | 302 | (83) | 0 | 220 | 0 |
Restricted stock award grants and vesting, shares | 0 | 92,000 | ||||||
Common stock dividend distributions declared | (9,314) | $ 0 | $ 0 | 0 | (9,314) | 0 | (9,314) | 0 |
Preferred stock dividend distributions declared | (1,855) | 0 | 0 | 0 | (1,855) | 0 | (1,855) | 0 |
Contributions | 12 | 0 | 0 | 0 | 0 | 0 | 0 | 12 |
Distributions | (134) | 0 | 0 | 0 | 0 | 0 | 0 | (134) |
Net income | (920) | 0 | 0 | 0 | (1,089) | 0 | (1,089) | 169 |
Ending balance at Mar. 31, 2019 | 386,386 | $ 112,000 | $ 396 | 377,428 | (104,449) | 0 | 385,375 | 1,011 |
Ending balance, shares at Mar. 31, 2019 | 4,480,000 | 39,636,000 | ||||||
Beginning balance at Dec. 31, 2018 | $ 398,377 | $ 112,000 | $ 395 | 377,126 | (92,108) | 0 | 397,413 | 964 |
Beginning balance, shares at Dec. 31, 2018 | 39,544,073 | 4,480,000 | 39,544,000 | |||||
Net income | $ (546) | |||||||
Unrealized cash flow hedge gains | 247 | |||||||
Ending balance at Sep. 30, 2019 | $ 468,160 | $ 112,000 | $ 476 | 483,200 | (128,823) | 247 | 467,100 | 1,060 |
Ending balance, shares at Sep. 30, 2019 | 47,647,063 | 4,480,000 | 47,647,000 | |||||
Beginning balance at Mar. 31, 2019 | $ 386,386 | $ 112,000 | $ 396 | 377,428 | (104,449) | 0 | 385,375 | 1,011 |
Beginning balance, shares at Mar. 31, 2019 | 4,480,000 | 39,636,000 | ||||||
Restricted stock award grants and vesting, values | 410 | $ 0 | $ 0 | 509 | (99) | 0 | 410 | 0 |
Restricted stock award grants and vesting, shares | 0 | 11,000 | ||||||
Common stock dividend distributions declared | (9,318) | $ 0 | $ 0 | 0 | (9,318) | 0 | (9,318) | 0 |
Preferred stock dividend distributions declared | (1,855) | 0 | 0 | 0 | (1,855) | 0 | (1,855) | 0 |
Contributions | 10 | 0 | 0 | 0 | 0 | 0 | 0 | 10 |
Distributions | (156) | 0 | 0 | 0 | 0 | 0 | 0 | (156) |
Net income | 1,321 | 0 | 0 | 0 | 1,156 | 0 | 1,156 | 165 |
Ending balance at Jun. 30, 2019 | 376,798 | $ 112,000 | $ 396 | 377,937 | (114,565) | 0 | 375,768 | 1,030 |
Ending balance, shares at Jun. 30, 2019 | 4,480,000 | 39,647,000 | ||||||
Restricted stock award grants and vesting, values | 432 | $ 0 | $ 0 | 527 | (95) | 0 | 432 | 0 |
Restricted stock award grants and vesting, shares | 0 | 0 | ||||||
Net proceeds from sale of common stock, values | 104,816 | $ 0 | $ 80 | 104,736 | 0 | 0 | 104,816 | 0 |
Net proceeds from sale of common stock, shares | 0 | 8,000,000 | ||||||
Common stock dividend distributions declared | (11,197) | $ 0 | $ 0 | 0 | (11,197) | 0 | (11,197) | 0 |
Preferred stock dividend distributions declared | (1,855) | 0 | 0 | 0 | (1,855) | 0 | (1,855) | 0 |
Contributions | 46 | 0 | 0 | 0 | 0 | 0 | 0 | 46 |
Distributions | (180) | 0 | 0 | 0 | 0 | 0 | 0 | (180) |
Net income | (947) | 0 | 0 | 0 | (1,111) | 0 | (1,111) | 164 |
Unrealized cash flow hedge gains | 247 | 0 | 0 | 0 | 0 | 247 | 247 | 0 |
Ending balance at Sep. 30, 2019 | $ 468,160 | $ 112,000 | $ 476 | $ 483,200 | $ (128,823) | $ 247 | $ 467,100 | $ 1,060 |
Ending balance, shares at Sep. 30, 2019 | 47,647,063 | 4,480,000 | 47,647,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net (loss)/income | $ (546) | $ 45,352 |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | ||
Depreciation and amortization | 44,057 | 37,044 |
Amortization of deferred financing costs and debt fair value | 992 | 1,297 |
Amortization of above/below market leases | (67) | (143) |
Increase in straight-line rent/expense | (4,591) | (3,491) |
Non-cash stock compensation | 1,310 | 1,061 |
Net gain on sale of real estate property | (478) | (46,980) |
Changes in non-cash working capital: | ||
Rents receivable, net | (1,512) | (1,177) |
Other assets | (337) | (162) |
Accounts payable and accrued liabilities | (1,217) | (1,434) |
Deferred rent | 73 | (1,428) |
Tenant rent deposits | (421) | 140 |
Net Cash Provided By Operating Activities | 37,263 | 30,079 |
Cash Flows to Investing Activities: | ||
Additions to real estate properties | (13,855) | (15,785) |
Acquisition of real estate | (108,358) | (162,462) |
Net proceeds from sale of real estate | 33,941 | 84,839 |
Deferred leasing costs | (2,474) | (3,222) |
Net Cash Used In Investing Activities | (90,746) | (96,630) |
Cash Flows from Financing Activities: | ||
Proceeds from sale of common stock | 104,816 | 42,902 |
Debt issuance and extinguishment costs | (995) | (2,662) |
Proceeds from borrowings | 154,750 | 269,824 |
Repayment of borrowings | (171,575) | (212,128) |
Shares withheld for payment of taxes on restricted stock unit vesting | (246) | (87) |
Minority interest buyout | (1,139) | |
Contributions from non-controlling interests in properties | 68 | 43 |
Distributions to non-controlling interests in properties | (470) | (374) |
Dividend distributions paid to stockholders and Operating Partnership unitholders | (33,489) | (31,010) |
Net Cash Provided By Financing Activities | 52,859 | 65,369 |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (624) | (1,182) |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 33,145 | 35,014 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 32,521 | 33,832 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash: | ||
Cash and Cash Equivalents, End of Period | 12,281 | 13,696 |
Restricted Cash, End of Period | 20,240 | 20,136 |
Cash, Cash Equivalents and Restricted Cash, End of Period | 32,521 | 33,832 |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | 22,262 | 15,967 |
Purchases of additions in real estate properties included in accounts payable | 2,264 | 4,379 |
Purchases of deferred leasing costs included in accounts payable | 298 | $ 430 |
Unrealized cash flow hedge gains | 247 | |
Debt assumed on acquisition of real estate | $ 22,473 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business City Office REIT, Inc. (the “Company”) was organized in the state of Maryland on November 26, 2013 April 21, 2014 The Company’s interest in the Operating Partnership entitles the Company to share in distributions from, and allocations of profits and losses of, the Operating Partnership in proportion to the Company’s percentage ownership of common units. As the sole general partner of the Operating Partnership, the Company has the exclusive power under the Operating Partnership’s partnership agreement, as amended, to manage and conduct the Operating Partnership’s business, subject to limited approval and voting rights of the limited partners. The Company has elected to be taxed, and will continue to operate in a manner that will allow it to continue to qualify, as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). Subject to qualification as a REIT, the Company will be permitted to deduct dividend distributions paid to its stockholders, eliminating the U.S. federal taxation of income represented by such distributions at the Company level. REITs are subject to a number of organizational and operational requirements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to U.S. federal and state income tax on its taxable income at regular corporate tax rates and, for tax years beginning before 2018, any applicable alternative minimum tax. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with Securities and Exchange Commission rules and regulations and generally accepted accounting principles in the United States of America (“US GAAP”) and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K New Accounting Pronouncements Adopted in the Current Year In February 2016, the Financial Accounting Standards Board, or FASB, established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, on-balance No. 2018-01, No. 2018-10, No. 2018-11, The Company adopted the new standard effective January 1, 2019 and elected the effective date method for the transition. The Company elected the following practical expedients: • Transition method practical expedient – permits the Company to use the effective date as the date of initial application. Upon adoption, the Company did not have a cumulative-effect adjustment to the opening balance of retained earnings. Financial information and disclosures for periods before January 1, 2019 were not updated. • Package of practical expedients – permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification, and initial direct costs. This allowed the Company to continue classifying its leases at transition in substantially the same manner. • Single component practical expedient – permits the Company to not separate lease and non-lease • Land easement practical expedient – permits the Company not to reassess under the new standard its prior conclusions about land easements. • Short-term lease practical expedient – permits the Company not to recognize leases with a term equal to or less than 12 months. Lessor Accounting The accounting for lessors under the new standard remained relatively unchanged with a few targeted updates impacting the Company, which included: (i) narrower definition of initial direct costs that requires certain costs to be expensed rather than capitalized, and (ii) provisions for uncollectible rents to be recorded as a reduction in revenue rather than as bad debt expense. Lessee Accounting The new standard requires lessees to recognize a right-of-use months. Leases are classified as finance or operating at inception, with classification affecting the pattern and recording of expenses in the statement of operations. Upon transition the Company recognized right-of |
Real Estate Investments
Real Estate Investments | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Real Estate Investments | 3. Real Estate Investments Acquisitions During the nin e Property Date Acquired Percentage Owned 7601 T ech September 2019 100 % Cascade Station June 2019 100 % Canyon Park February 2019 100 % The Quad July 2018 100 % Circle Point July 2018 100 % Pima Center April 2018 100 % Each of the foregoing acquisitions were accounted for as asset acquisitions. The following table summarizes the Company’s allocation of the purchase price of assets acquired and liabilities assumed during the nine months ended September 30, 2019 (in thousands): 7601 T ech Canyon Park Cascade Station Land $ 10,865 $ 7,098 $ — $ 17,963 Buildings and improvements 25,677 36,619 25,141 87,437 Tenant improvements 3,858 1,797 2,080 7,735 Lease intangible assets 7,401 8,109 3,134 18,644 Other assets 293 10 3,164 3,467 Debt — — (697 ) (697 ) Accounts payable and other liabilities (668 ) (1,266 ) (186 ) (2,120 ) Lease intangible liabilities (79 ) (1,297 ) (220 ) (1,596 ) Net assets acquired $ 47,347 $ 51,070 $ 32,416 $ 130,833 The acquisition of the Cascade Station property was partially funded through an assumption of debt in the amount of $22.5 million. The following table summarizes the Company’s allocation of the purchase price of assets acquired and liabilities assumed during the nine months ended September 30, 2018 (in thousands): The Quad Circle Point Pima Center Total Sept. 2018 Land $ 8,079 $ 8,744 $ — $ 16,823 Buildings and improvements 38,060 33,708 42,235 114,003 Tenant improvements 1,798 5,393 2,898 10,089 Lease intangible assets 4,209 10,299 10,691 25,199 O 15 25 95 135 Accounts payable and other liabilities (527 ) (1,157 ) (337 ) (2,021 ) Lease intangible liabilities (1,247 ) (390 ) (129 ) (1,766 ) Net assets acquired $ 50,387 $ 56,622 $ 55,453 $ 162,462 Sale of Real Estate Property On May 7, 2019, the Company sold the 10455 Pacific Center building of the Sorrento Mesa property in San Diego, California for $16.5 million, resulting in an aggregate gain of $0.5 million net of disposal-related costs, which has been classified as net gain on sale of real estate property in the condensed consolidated statements of operations. On February 7, 2019, the Company sold the Plaza 25 property in Denver, Colorado for $17.9 million. No gain or loss was recognized on the sale as the property was carried at fair value less cost to sell on the date of disposition. On March 8, 2018, the Company sold the Washington Group Plaza property in Boise, Idaho for $86.5 million, resulting in an aggregate net gain of $47.0 million, net of $1.7 million in costs, which has been classified as net gain on sale of real estate property in the condensed consolidated statements of operations. In connection with the sale of the property, certain debt repayments were made. Assets Held for Sale On May 10, 2019, the Company entered into a Purchase and Sale agreement to sell a land parcel at the Circle Point property for $6.5 million. The Company determined that the land parcel met the criteria for classification as held for sale as of September 30, 2019. The transaction is anticipated to close in the first quarter of 2020, subject to customary closing conditions. As of September 30, 2019, the Company has re ceived non-refundable As of September 30, 2019 the Company determined that the Logan Tower property met the criteria for classification as held for sale. These properties have been classified as held for sale as of September 30, 2019 (in thousands): September 30, 2019 Logan Tower Circle Point Real estate properties, net $ 9,034 $ 4,441 $ 13,475 Deferred leasing costs, net 239 — 239 Acquired lease intangible assets, net 2 — 2 Rents receivable, prepaid expenses and other assets 189 — 189 Assets held for sale $ 9,464 $ 4,441 $ 13,905 Acquired lease intangible liabilities, net (10 ) — (10 ) Accounts payable, accrued expenses, deferred rent and tenant rent deposits (296 ) (50 ) (346 ) Liabilities related to assets held for sale $ (306 ) $ (50 ) $ (356 ) On November 30, 2018, the Company entered into a Purchase and Sale agreement to sell the Plaza 25 property for $17.9 million. The transaction closed in February 2019. The property was presented as held for sale as of December 31, 2018 (in thousands): December 31, 2018 Plaza 25 Real estate properties, net $ 16,149 Deferred leasing costs, net 419 Acquired lease intangible assets, net 11 Rents receivable, prepaid expenses and other assets 791 Assets held for sale $ 17,370 Accounts payable, accrued expenses, deferred rent and tenant rent deposits (878 ) Liabilities related to assets held for sale $ (878 ) |
Lease Intangibles
Lease Intangibles | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Lease Intangibles | 4. Lease Intangibles Lease intangibles and the value of assumed lease obligations as of September 30, 2019 and December 31, 2018 were comprised as follows (in thousands): Lease Intangible Assets Lease Intangible Liabilities September 30, 2019 Above Market Leases Below Market (1) In Place Leasing Total Below Below Market (1) Total Cost $ 15,510 $ — $ 87,957 $ 36,523 $ 139,990 $ (14,181 ) $ (138 ) $ (14,319 ) Accumulated amortization (6,363 ) — (44,822 ) (15,411 ) (66,596 ) 5,517 39 5,556 $ 9,147 $ — $ 43,135 $ 21,112 $ 73,394 $ (8,664 ) $ (99 ) $ (8,763 ) Lease Intangible Assets Lease Intangible Liabilities December 31, 2018 Above Market Leases Below Market (1) In Place Leasing Total Below Below Market (1) Total Cost $ 10,595 $ 1,855 $ 82,474 $ 31,706 $ 126,630 $ (12,925 ) $ (138 ) $ (13,063 ) Accumulated amortization (4,800 ) (19 ) (34,273 ) (12,037 ) (51,129 ) 4,140 36 4,176 $ 5,795 $ 1,836 $ 48,201 $ 19,669 $ 75,501 $ (8,785 ) $ (102 ) $ (8,887 ) (1) For the below market ground lease asset, the Company is the lessee, whereas, for the below market ground lease liability, the Company is the lessor. Upon the adoption of Topic 842 on January 1, 2019, the Company derecognized the below market ground lease intangible asset related to one of its lessee ground leases and included the net carrying value of the intangible asset within the right-of-use The estimated aggregate amortization expense for lease intangibles for the next five years and in the aggregate are as follows (in thousands): 2019 $ 5,098 2020 19,302 2021 15,990 2022 8,223 2023 5,361 Thereafter 10,657 $ 64,631 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt The following table summarizes the indebtedness as of September 30, 2019 and December 31, 2018 (dollars in thousands): Property September 30, December 31, Interest Rate as of September 30, 2019 (1) Unsecured Credit Facility ( 3 $ 43,325 $ 147,500 LIBOR +1.50 % (2) March 2022 Term Loan ( 4 50,000 — LIBOR +1.40 (2) September 2024 Midland Life Insurance ( 5 85,720 86,973 4.34 May 2021 Mission City 47,000 47,000 3.78 November 2027 190 Office Center 41,007 41,250 4.79 October 2025 Canyon Park ( 6 40,950 — 4.30 March 2027 Circle Point 39,650 39,650 4.49 September 2028 SanTan 34,250 34,682 4.56 March 2027 Intellicenter 33,102 33,481 4.65 October 2025 The Quad 30,600 30,600 4.20 September 2028 FRP Collection ( 7 29,142 29,589 3.10 September 2023 2525 McKinnon 27,000 27,000 4.24 April 2027 Cascade Station 22,390 — 4.55 May 2024 Greenwood Blvd ( 7 22,425 22,425 3.15 December 2025 5090 N 40 th 22,000 22,000 3.92 January 2027 AmberGlen 20,000 20,000 3.69 May 2027 Lake Vista Pointe 17,800 18,044 4.28 August 2024 Central Fairwinds ( 8 17,626 17,882 3.15 September 2024 FRP Ingenuity Drive 17,000 17,000 4.44 December 2024 Carillon Point ( 7 16,067 16,330 3.10 October 2023 Total Principal 657,054 651,406 Deferred financing costs, net (6,058 ) (6,052 ) Unamortized fair value adjustments 697 — Total $ 651,693 $ 645,354 (1) All interest rates are fixed interest rates with the exception of the unsecured credit facility (“Unsecured Credit Facility”) and the term loan (“Term Loan”) as explained in footnote s 3 (2) As of September 30, 2019, the one month LIBOR rate was 2.09%. (3) On March 15, 2018, the Company entered into a $ 250 500 43.3 7.0 s 140 225 1.50 (4) In September 2019, the Company entered into a $50 million Term Loan increasing its authorized borrowings from $250 million to $300 million. Borrowings under the Term Loan will bear interest at a rate equal to the LIBOR rate plus a margin between 125 to 215 basis points depending upon the Company’s consolidated leverage ratio. In conjunction with the Term Loan , the Company also entered into a pay-fixed receive-variable interest rate swap with a five year term, effectively fixing t he LIBOR component of the Term Loan at approximately 1.27% (the “Interest Rate Swap”). See Note 6 – Fair Value of Financial Measurements. (5) The mortgage loan is cross-collateralized by Cherry Creek, City Center and 7595 Tech (formerly “DTC crossroads ”). (6) The mortgage loan anticipated repayment date (“ARD”) is March 1, 2027. The final scheduled maturity date can be extended up to 5 years beyond the ARD. If the loan is not paid off at ARD, loan’s interest rate shall be adjusted to the greater of (i) the initial interest rate plus 200 basis points or (ii) the yield on the five year “on the run” treasury reported by Bloomberg market data service plus 450 basis points. (7) In (8) I The scheduled principal repayments of debt as of September 30, 2019 are as follows (in thousands): 2019 $ 1,400 2020 6,328 2021 89,314 2022 49,853 2023 48,528 Thereafter 461,631 $ 657,054 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 Inputs – quoted prices in active markets for identical assets or liabilities Level 2 Inputs – observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 Inputs – unobservable inputs During the three months ended September 30, 2019, the Company entered into an interest rate swap agreement for a notional amount of , which became effective September 2019. The five-year swap agreement terminates in September 2024. Pursuant to the agreement, the Company will pay a fixed rate of approximately of the notional amount annually, payable monthly, and receive floating rate 30-day LIBOR payments. The I R S other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. As of Accordingly, the fair value of the Interest Rate Swap has been classified as a Level 2 As of December 31, 2018, the Company did not have any hedges or derivatives. Cash, Cash Equivalents, Restricted Cash, Rents Receivable, Accounts Payable and Accrued Liabilities The Company estimates that the fair value approximates carrying value due to the relatively short-term nature of these instruments. Fair Value of Financial Instruments Not Carried at Fair Value With the exception of fixed rate mortgage loans payable, the carrying amounts of the Company’s financial instruments approximate their fair value. The Company determines the fair value of its fixed rate mortgage loan payable based on a discounted cash flow analysis using a discount rate that approximates the current borrowing rates for instruments of similar maturities. Based on this, the Company has determined that the fair value of these instruments was $586.1 million and $503.3 million as of September 30, 2019 and December 31, 2018, respectively. Accordingly, the fair value of mortgage loans payable have been classified as Level 3 fair value measurements. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions Administrative Services Agreement For the nine months ended September 30, 2019 and 2018, the Company earned $0.4 million and $0.5 million, respectively, in administrative services performed for Second City Real Estate II Corporation and its affiliates (collectively, “Second City”). Also during the nine months ended September 30, 2019, the Company was assigned a purchase contract which had been entered into by an entity affiliated with principals of Second City, which principals are also officers of the Company. The Company subsequently assigned the purchase contract to a third party during the nine months ended September 30, 2019. The Company paid no consideration to the related party for the contract other than return of deposits which the Company subsequently recovered from a third party in addition to an assignment fee. The Company recognized income of $2.6 million on the assignment of the purchase contract to the third party, which was recorded in rental and other revenues on the condensed consolidated statement of operations. During the three months ended September 30, 2019, an indirect, wholly-owned subsidiary of the Company entered into an Administrative Services Agreement (the “Administrative Services Agreement”) with Clarity Real Estate III GP, Limited Partnership and Clarity Real Estate Ventures GP, Limited Partnership (together, “Clarity”), entities affiliated with principals of Second City and officers of the Company. Pursuant to the Administrative Services Agreement, the Company will provide various administrative services and support to the related entities managing the Clarity funds. During the three months ended September 30, 2019 the amounts earned by the Company for the administrative services performed for Clarity were nominal. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 8. Leases Lessor Accounting The Company is focused on acquiring, owning and operating high-quality office properties for lease to a stable and diverse tenant base. Our properties have both full-service gross and net leases which are generally classified as operating leases. Rental income related to such leases is recognized on a straight-line basis over the remaining lease term. The Company’s total revenue includes fixed base rental payments provided under the lease and variable payments which principally consist of tenant expense reimbursements for certain property operating expenses. The Company elected the practical expedient to account for its lease and non-lease For the three and nine months ended September 30, 2019, the Company recognized $38.9 million and $114.5 million, respectively, of rental and other revenue related to its operating leases (in thousands): Three months ended September 30, 2019 Nine months ended September 30, 2019 Fixed payments $ 33,495 $ 98,555 Variable payments 5,441 15,967 $ 38,936 $ 114,522 Future minimum lease payments to be received by the Company as of September 30, 2019 under non-cancellable 2019 $ 31,253 2020 116,812 2021 106,709 2022 89,349 2023 71,209 Thereafter 161,614 $ 576,946 The Company’s leases may include various provisions such as scheduled rent increases, renewal options and termination options. The majority of the Company’s leases include defined rent increase rather than variable payments based on an index or unknown rate. Seven state government tenants currently have the exercisable right to terminate their leases if the applicable state legislature does not appropriate rent in its annual budget. The Company has determined that the occurrence of any government tenant not being appropriated the rent in the applicable annual budget is a remote contingency and accordingly recognizes lease revenue on a straight-line basis over the respective lease term. These tenants represent approximately 7.9% of the Company’s total future minimum lease payments as of September 30, 2019. Lessee Accounting As a lessee, the Company has ground and office leases classified as operating leases and one office lease classified as a financing lease. Upon adoption of Topic 842, on January 1, 2019, the Company recognized right-of-use right-of-use right-of-use right-of-use As of September 30, Right-of-use $ 13,125 Lease liability – operating leases $ 8,213 Right-of-use $ 85 Lease liability – financing leases $ 84 Lease liabilities are measured at the commencement date based on the present value of future lease payments. One of the Company’s operating ground leases includes rental payment increases over the lease term based on increases in the Consumer Price Index (“CPI”). Changes in the CPI were not estimated as part of the measurement of the operating lease liability. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The Company used a weighted average discount rate of 6.31% in determining its lease liabilities. The discount rates were derived from the Company’s assessment of the credit quality of the Company and adjusted to reflect secured borrowing, estimated yield curves and long-term spread adjustments. Right-of-use Operating lease expense for the three and nine months ended September 30, 2019 was $0.2 million and $0.6 million, respectively. Financing lease expense for the three and nine months ended September 30, 2019 was nominal. Future minimum lease payments to be paid by the Company as a lessee as of September 30, 2019 for the next five years and thereafter are as follows (in thousands): 2019 144 $ 6 2020 782 27 2021 781 27 2022 741 27 2023 659 4 Thereafter 27,277 — Total future minimum lease payments 30,384 91 Discount (22,170 ) (7 ) Total 8,214 $ 84 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies The Company is obligated under certain tenant leases to fund tenant improvements and the expansion of the underlying leased properties. Under various federal, state and local laws, ordinances and regulations relating to the protection of the environment, a current or previous owner or operator of real estate may be liable for the cost of removal or remediation of certain hazardous or toxic substances disposed, stored, generated, released, manufactured or discharged from, on, at, under, or in a property. As such, the Company may be potentially liable for costs associated with any potential environmental remediation at any of its formerly or currently owned properties. The Company believes that it is in compliance in all material respects with all federal, state and local ordinances and regulations regarding hazardous or toxic substances. Management is not aware of any environmental liability that it believes would have a material adverse impact on the Company’s financial position or results of operations. Management is unaware of any instances in which the Company would incur significant environmental costs if any or all properties were sold, disposed of or abandoned. However, there can be no assurance that any such non-compliance, The Company is involved from time to time in lawsuits and other disputes which arise in the ordinary course of business. As of September 30, 2019, management believes that these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s financial position or results of operations. |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
Stockholder's Equity | 10. Stockholders’ Equity The Company and the Operating Partnership previously entered into the amended equity distribution agreements (collectively, the “EDAs”) with the sales agents named therein (collectively, the “Sales Agents”), pursuant to which the Company may issue and sell from time to time up to 8,000,000 shares of common stock and up to 1,000,000 shares of Series A Preferred Stock through the Sales Agents, acting as agents or principals (the “ATM Program”). Pursuant to the EDAs, the shares may be offered and sold through the Sales Agents in transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act, including sales made directly on the New York Stock Exchange or sales made to or through a market maker other than on an exchange or, with the prior consent of the Company, in privately negotiated transactions. The Sales Agents will be entitled to compensation of up to 2.0% of the gross proceeds of shares sold through the Sales Agents from time to time under the EDAs. The Company has no obligation to sell any of the shares under the EDAs and may at any time suspend solicitations and offers under, or terminate, the EDAs. During the nine month period ended September 30, 2019, the Company issued 8,000,000 shares of common stock under the ATM Program. The Company raised $106.5 million in aggregate gross proceeds, resulting in aggregate net proceeds to the Company of approximately $104.8 million after deducting sales commissions and offering expenses. Common Stock and Common Unit Distributions On September 16, 2019 October 25, 2019 October 11, 2019 Preferred Stock Distributions On September 16, 2019 October 25, 2019 October 11, 2019 Restricted Stock Units The Company has an equity incentive plan (“Equity Incentive Plan”) for executive officers, directors and certain non-executive On May 2, 2019, the Company’s stockholders approved an amendment to the Equity Incentive Plan increasing the maximum number of shares of common stock that may be issued under the Equity Incentive Plan from 1,263,580 shares to 2,263,580 shares. To the extent an award granted under the Equity Incentive Plan expires or terminates, the shares subject to any portion of the award that expires or terminates without having been exercised or paid, as the case may be, will again become available for the issuance of additional awards. During the nine months ended September 30, 2019, 162,500 restricted stock units (“RSUs”) were granted to executive officers, directors and certain non-executive A RSU award represents the right to receive shares of the Company’s common stock in the future, after the applicable vesting criteria, determined by the Plan Administrator, has been satisfied. The holder of an award of RSU has no rights as a stockholder until shares of common stock are issued in settlement of vested RSUs. The Plan Administrator may provide for a grant of dividend equivalent rights in connection with the grant of RSU; provided, however, that if the RSUs do not vest solely upon satisfaction of continued employment or service, any payment in respect to the related dividend equivalent rights will be held by the Company and paid when, and only to the extent that, the related RSU vests. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events On October 7 o , for ag gregate eds of |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Summary of Significant Accounting Policies | Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with Securities and Exchange Commission rules and regulations and generally accepted accounting principles in the United States of America (“US GAAP”) and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K |
New Accounting Pronouncements | New Accounting Pronouncements Adopted in the Current Year In February 2016, the Financial Accounting Standards Board, or FASB, established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, on-balance No. 2018-01, No. 2018-10, No. 2018-11, The Company adopted the new standard effective January 1, 2019 and elected the effective date method for the transition. The Company elected the following practical expedients: • Transition method practical expedient – permits the Company to use the effective date as the date of initial application. Upon adoption, the Company did not have a cumulative-effect adjustment to the opening balance of retained earnings. Financial information and disclosures for periods before January 1, 2019 were not updated. • Package of practical expedients – permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification, and initial direct costs. This allowed the Company to continue classifying its leases at transition in substantially the same manner. • Single component practical expedient – permits the Company to not separate lease and non-lease • Land easement practical expedient – permits the Company not to reassess under the new standard its prior conclusions about land easements. • Short-term lease practical expedient – permits the Company not to recognize leases with a term equal to or less than 12 months. Lessor Accounting The accounting for lessors under the new standard remained relatively unchanged with a few targeted updates impacting the Company, which included: (i) narrower definition of initial direct costs that requires certain costs to be expensed rather than capitalized, and (ii) provisions for uncollectible rents to be recorded as a reduction in revenue rather than as bad debt expense. Lessee Accounting The new standard requires lessees to recognize a right-of-use months. Leases are classified as finance or operating at inception, with classification affecting the pattern and recording of expenses in the statement of operations. Upon transition the Company recognized right-of |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Schedule of Acquired Properties | During the nin e Property Date Acquired Percentage Owned 7601 T ech September 2019 100 % Cascade Station June 2019 100 % Canyon Park February 2019 100 % The Quad July 2018 100 % Circle Point July 2018 100 % Pima Center April 2018 100 % |
Schedule of Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s allocation of the purchase price of assets acquired and liabilities assumed during the nine months ended September 30, 2019 (in thousands): 7601 T ech Canyon Park Cascade Station Land $ 10,865 $ 7,098 $ — $ 17,963 Buildings and improvements 25,677 36,619 25,141 87,437 Tenant improvements 3,858 1,797 2,080 7,735 Lease intangible assets 7,401 8,109 3,134 18,644 Other assets 293 10 3,164 3,467 Debt — — (697 ) (697 ) Accounts payable and other liabilities (668 ) (1,266 ) (186 ) (2,120 ) Lease intangible liabilities (79 ) (1,297 ) (220 ) (1,596 ) Net assets acquired $ 47,347 $ 51,070 $ 32,416 $ 130,833 The acquisition of the Cascade Station property was partially funded through an assumption of debt in the amount of $22.5 million. The following table summarizes the Company’s allocation of the purchase price of assets acquired and liabilities assumed during the nine months ended September 30, 2018 (in thousands): The Quad Circle Point Pima Center Total Sept. 2018 Land $ 8,079 $ 8,744 $ — $ 16,823 Buildings and improvements 38,060 33,708 42,235 114,003 Tenant improvements 1,798 5,393 2,898 10,089 Lease intangible assets 4,209 10,299 10,691 25,199 O 15 25 95 135 Accounts payable and other liabilities (527 ) (1,157 ) (337 ) (2,021 ) Lease intangible liabilities (1,247 ) (390 ) (129 ) (1,766 ) Net assets acquired $ 50,387 $ 56,622 $ 55,453 $ 162,462 |
Schedule of Property Classified as Held for Sale | These properties have been classified as held for sale as of September 30, 2019 (in thousands): September 30, 2019 Logan Tower Circle Point Real estate properties, net $ 9,034 $ 4,441 $ 13,475 Deferred leasing costs, net 239 — 239 Acquired lease intangible assets, net 2 — 2 Rents receivable, prepaid expenses and other assets 189 — 189 Assets held for sale $ 9,464 $ 4,441 $ 13,905 Acquired lease intangible liabilities, net (10 ) — (10 ) Accounts payable, accrued expenses, deferred rent and tenant rent deposits (296 ) (50 ) (346 ) Liabilities related to assets held for sale $ (306 ) $ (50 ) $ (356 ) The property was presented as held for sale as of December 31, 2018 (in thousands): December 31, 2018 Plaza 25 Real estate properties, net $ 16,149 Deferred leasing costs, net 419 Acquired lease intangible assets, net 11 Rents receivable, prepaid expenses and other assets 791 Assets held for sale $ 17,370 Accounts payable, accrued expenses, deferred rent and tenant rent deposits (878 ) Liabilities related to assets held for sale $ (878 ) |
Lease Intangibles (Tables)
Lease Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Lease Intangibles and Value of Assumed Lease Obligations | Lease intangibles and the value of assumed lease obligations as of September 30, 2019 and December 31, 2018 were comprised as follows (in thousands): Lease Intangible Assets Lease Intangible Liabilities September 30, 2019 Above Market Leases Below Market (1) In Place Leasing Total Below Below Market (1) Total Cost $ 15,510 $ — $ 87,957 $ 36,523 $ 139,990 $ (14,181 ) $ (138 ) $ (14,319 ) Accumulated amortization (6,363 ) — (44,822 ) (15,411 ) (66,596 ) 5,517 39 5,556 $ 9,147 $ — $ 43,135 $ 21,112 $ 73,394 $ (8,664 ) $ (99 ) $ (8,763 ) Lease Intangible Assets Lease Intangible Liabilities December 31, 2018 Above Market Leases Below Market (1) In Place Leasing Total Below Below Market (1) Total Cost $ 10,595 $ 1,855 $ 82,474 $ 31,706 $ 126,630 $ (12,925 ) $ (138 ) $ (13,063 ) Accumulated amortization (4,800 ) (19 ) (34,273 ) (12,037 ) (51,129 ) 4,140 36 4,176 $ 5,795 $ 1,836 $ 48,201 $ 19,669 $ 75,501 $ (8,785 ) $ (102 ) $ (8,887 ) (1) For the below market ground lease asset, the Company is the lessee, whereas, for the below market ground lease liability, the Company is the lessor. Upon the adoption of Topic 842 on January 1, 2019, the Company derecognized the below market ground lease intangible asset related to one of its lessee ground leases and included the net carrying value of the intangible asset within the right-of-use |
Estimated Aggregate Amortization Expense for Lease Intangibles | The estimated aggregate amortization expense for lease intangibles for the next five years and in the aggregate are as follows (in thousands): 2019 $ 5,098 2020 19,302 2021 15,990 2022 8,223 2023 5,361 Thereafter 10,657 $ 64,631 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Secured Indebtedness | The following table summarizes the indebtedness as of September 30, 2019 and December 31, 2018 (dollars in thousands): Property September 30, December 31, Interest Rate as of September 30, 2019 (1) Unsecured Credit Facility ( 3 $ 43,325 $ 147,500 LIBOR +1.50 % (2) March 2022 Term Loan ( 4 50,000 — LIBOR +1.40 (2) September 2024 Midland Life Insurance ( 5 85,720 86,973 4.34 May 2021 Mission City 47,000 47,000 3.78 November 2027 190 Office Center 41,007 41,250 4.79 October 2025 Canyon Park ( 6 40,950 — 4.30 March 2027 Circle Point 39,650 39,650 4.49 September 2028 SanTan 34,250 34,682 4.56 March 2027 Intellicenter 33,102 33,481 4.65 October 2025 The Quad 30,600 30,600 4.20 September 2028 FRP Collection ( 7 29,142 29,589 3.10 September 2023 2525 McKinnon 27,000 27,000 4.24 April 2027 Cascade Station 22,390 — 4.55 May 2024 Greenwood Blvd ( 7 22,425 22,425 3.15 December 2025 5090 N 40 th 22,000 22,000 3.92 January 2027 AmberGlen 20,000 20,000 3.69 May 2027 Lake Vista Pointe 17,800 18,044 4.28 August 2024 Central Fairwinds ( 8 17,626 17,882 3.15 September 2024 FRP Ingenuity Drive 17,000 17,000 4.44 December 2024 Carillon Point ( 7 16,067 16,330 3.10 October 2023 Total Principal 657,054 651,406 Deferred financing costs, net (6,058 ) (6,052 ) Unamortized fair value adjustments 697 — Total $ 651,693 $ 645,354 (1) All interest rates are fixed interest rates with the exception of the unsecured credit facility (“Unsecured Credit Facility”) and the term loan (“Term Loan”) as explained in footnote s 3 (2) As of September 30, 2019, the one month LIBOR rate was 2.09%. (3) On March 15, 2018, the Company entered into a $ 250 500 43.3 7.0 s 140 225 1.50 (4) In September 2019, the Company entered into a $50 million Term Loan increasing its authorized borrowings from $250 million to $300 million. Borrowings under the Term Loan will bear interest at a rate equal to the LIBOR rate plus a margin between 125 to 215 basis points depending upon the Company’s consolidated leverage ratio. In conjunction with the Term Loan , the Company also entered into a pay-fixed receive-variable interest rate swap with a five year term, effectively fixing t he LIBOR component of the Term Loan at approximately 1.27% (the “Interest Rate Swap”). See Note 6 – Fair Value of Financial Measurements. (5) The mortgage loan is cross-collateralized by Cherry Creek, City Center and 7595 Tech (formerly “DTC crossroads ”). (6) The mortgage loan anticipated repayment date (“ARD”) is March 1, 2027. The final scheduled maturity date can be extended up to 5 years beyond the ARD. If the loan is not paid off at ARD, loan’s interest rate shall be adjusted to the greater of (i) the initial interest rate plus 200 basis points or (ii) the yield on the five year “on the run” treasury reported by Bloomberg market data service plus 450 basis points. (7) In (8) I |
Schedule of Principal Repayments of Mortgage Payable | The scheduled principal repayments of debt as of September 30, 2019 are as follows (in thousands): 2019 $ 1,400 2020 6,328 2021 89,314 2022 49,853 2023 48,528 Thereafter 461,631 $ 657,054 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Lease Lease Income | For the three and nine months ended September 30, 2019, the Company recognized $38.9 million and $114.5 million, respectively, of rental and other revenue related to its operating leases (in thousands): Three months ended September 30, 2019 Nine months ended September 30, 2019 Fixed payments $ 33,495 $ 98,555 Variable payments 5,441 15,967 $ 38,936 $ 114,522 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments to be received by the Company as of September 30, 2019 under non-cancellable 2019 $ 31,253 2020 116,812 2021 106,709 2022 89,349 2023 71,209 Thereafter 161,614 $ 576,946 |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Operating and financing right-of-use As of September 30, Right-of-use $ 13,125 Lease liability – operating leases $ 8,213 Right-of-use $ 85 Lease liability – financing leases $ 84 |
Schedule future minimum lease payments to be paid | Future minimum lease payments to be paid by the Company as a lessee as of September 30, 2019 for the next five years and thereafter are as follows (in thousands): 2019 144 $ 6 2020 782 27 2021 781 27 2022 741 27 2023 659 4 Thereafter 27,277 — Total future minimum lease payments 30,384 91 Discount (22,170 ) (7 ) Total 8,214 $ 84 |
Organization and Description _2
Organization and Description of Business - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company formation date | Nov. 26, 2013 |
Operation commencement date | Apr. 21, 2014 |
Real Estate Investments - Sched
Real Estate Investments - Schedule of Acquired Properties through Operating Partnership (Detail) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
The Quad [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2018-07 | |
Real estate property, percentage owned, asset acquisitions | 100.00% | |
Circle Point [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2018-07 | |
Real estate property, percentage owned, asset acquisitions | 100.00% | |
Canyon Park [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2019-02 | |
Real estate property, percentage owned, asset acquisitions | 100.00% | |
Cascade Station [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2019-06 | |
Real estate property, percentage owned, asset acquisitions | 100.00% | |
Pima Center [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2018-04 | |
Real estate property, percentage owned, asset acquisitions | 100.00% | |
7601 Tech [Member] | ||
Acquisitions [Line Items] | ||
Real estate property, date acquired, asset acquisitions | 2019-09 | |
Real estate property, percentage owned, asset acquisitions | 100.00% |
Real Estate Investments - Sch_2
Real Estate Investments - Schedule of Allocation of Purchase Price of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Acquisitions [Line Items] | ||
Land | $ 17,963 | $ 16,823 |
Buildings and improvements | 87,437 | 114,003 |
Tenant improvements | 7,735 | 10,089 |
Lease intangible assets | 18,644 | 25,199 |
Other assets | 3,467 | 135 |
Debt | (697) | |
Accounts payable and other liabilities | (2,120) | (2,021) |
Lease intangible liabilities | (1,596) | (1,766) |
Net assets acquired | 130,833 | 162,462 |
7601 Tech [Member] | ||
Acquisitions [Line Items] | ||
Land | 10,865 | |
Buildings and improvements | 25,677 | |
Tenant improvements | 3,858 | |
Lease intangible assets | 7,401 | |
Other assets | 293 | |
Accounts payable and other liabilities | (668) | |
Lease intangible liabilities | (79) | |
Net assets acquired | 47,347 | |
Pima Center [Member] | ||
Acquisitions [Line Items] | ||
Buildings and improvements | 42,235 | |
Tenant improvements | 2,898 | |
Lease intangible assets | 10,691 | |
Other assets | 95 | |
Accounts payable and other liabilities | (337) | |
Lease intangible liabilities | (129) | |
Net assets acquired | 55,453 | |
Circle Point [Member] | ||
Acquisitions [Line Items] | ||
Land | 8,744 | |
Buildings and improvements | 33,708 | |
Tenant improvements | 5,393 | |
Lease intangible assets | 10,299 | |
Other assets | 25 | |
Accounts payable and other liabilities | (1,157) | |
Lease intangible liabilities | (390) | |
Net assets acquired | 56,622 | |
The Quad [Member] | ||
Acquisitions [Line Items] | ||
Land | 8,079 | |
Buildings and improvements | 38,060 | |
Tenant improvements | 1,798 | |
Lease intangible assets | 4,209 | |
Other assets | 15 | |
Accounts payable and other liabilities | (527) | |
Lease intangible liabilities | (1,247) | |
Net assets acquired | $ 50,387 | |
Canyon Park [Member] | ||
Acquisitions [Line Items] | ||
Land | 7,098 | |
Buildings and improvements | 36,619 | |
Tenant improvements | 1,797 | |
Lease intangible assets | 8,109 | |
Other assets | 10 | |
Accounts payable and other liabilities | (1,266) | |
Lease intangible liabilities | (1,297) | |
Net assets acquired | 51,070 | |
Cascade Station [Member] | ||
Acquisitions [Line Items] | ||
Land | 0 | |
Buildings and improvements | 25,141 | |
Tenant improvements | 2,080 | |
Lease intangible assets | 3,134 | |
Other assets | 3,164 | |
Debt | (697) | |
Accounts payable and other liabilities | (186) | |
Lease intangible liabilities | (220) | |
Net assets acquired | $ 32,416 |
Real Estate Investments - Addit
Real Estate Investments - Additional Information (Detail) - USD ($) $ in Thousands | May 10, 2019 | May 07, 2019 | Feb. 07, 2019 | Nov. 30, 2018 | Mar. 08, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Real Estate [Line Items] | |||||||
Net gain on sale of real estate property | $ 478 | $ 46,980 | |||||
Debt Assumed | 22,473 | ||||||
Washington Group Plaza [Member] | |||||||
Real Estate [Line Items] | |||||||
Proceeds of sale of property | $ 86,500 | ||||||
Net gain on sale of real estate property | 47,000 | ||||||
Cost incurred on property sold | $ 1,700 | ||||||
Plaza 25 [Member] | |||||||
Real Estate [Line Items] | |||||||
Proceeds of sale of property | $ 17,900 | $ 17,900 | |||||
Sorrento Mesa [Member] | |||||||
Real Estate [Line Items] | |||||||
Proceeds of sale of property | $ 16,500 | ||||||
Net gain on sale of real estate property | $ 500 | ||||||
Cascade Station [Member] | |||||||
Real Estate [Line Items] | |||||||
Debt Assumed | 22,500 | ||||||
Circle Point Land [Member] | |||||||
Real Estate [Line Items] | |||||||
Proceeds of sale of property | $ 6,500 | ||||||
Non-refundable deposit received | $ 500 |
Real Estate Investments - Sch_3
Real Estate Investments - Schedule of Property Classified as Held for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | $ 13,905 | $ 17,370 |
Liabilities related to assets held for sale | (356) | (878) |
Real Estate Properties, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 13,475 | |
Deferred Leasing Costs, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 239 | |
Acquired Lease Intangible Assets, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 2 | |
Rents Receivable, Prepaid Expenses and Other Assets [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 189 | |
Acquired Lease Intangibles Liabilities, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | (10) | |
Accounts Payable, Accrued Expenses, Deferred Rent and Tenant Rent Deposits [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | (346) | |
Plaza 25 [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 17,370 | |
Liabilities related to assets held for sale | (878) | |
Plaza 25 [Member] | Real Estate Properties, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 16,149 | |
Plaza 25 [Member] | Deferred Leasing Costs, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 419 | |
Plaza 25 [Member] | Acquired Lease Intangible Assets, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 11 | |
Plaza 25 [Member] | Rents Receivable, Prepaid Expenses and Other Assets [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 791 | |
Plaza 25 [Member] | Accounts Payable, Accrued Expenses, Deferred Rent and Tenant Rent Deposits [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | $ (878) | |
Logan Tower [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 9,464 | |
Liabilities related to assets held for sale | (306) | |
Logan Tower [Member] | Real Estate Properties, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 9,034 | |
Logan Tower [Member] | Deferred Leasing Costs, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 239 | |
Logan Tower [Member] | Acquired Lease Intangible Assets, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 2 | |
Logan Tower [Member] | Rents Receivable, Prepaid Expenses and Other Assets [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 189 | |
Logan Tower [Member] | Acquired Lease Intangibles Liabilities, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | (10) | |
Logan Tower [Member] | Accounts Payable, Accrued Expenses, Deferred Rent and Tenant Rent Deposits [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | (296) | |
Circle Point Land [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 4,441 | |
Liabilities related to assets held for sale | (50) | |
Circle Point Land [Member] | Real Estate Properties, Net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 4,441 | |
Circle Point Land [Member] | Accounts Payable, Accrued Expenses, Deferred Rent and Tenant Rent Deposits [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | $ (50) |
Lease Intangibles - Schedule of
Lease Intangibles - Schedule of Lease Intangibles and Value of Assumed Lease Obligations (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | $ 139,990 | $ 126,630 |
Accumulated amortization, Lease Intangible Assets | (66,596) | (51,129) |
Total, Lease Intangible Assets | 73,394 | 75,501 |
Cost, Lease Intangible Liabilities | (14,319) | (13,063) |
Accumulated amortization, Lease Intangible Liabilities | 5,556 | 4,176 |
Total, Lease Intangible Liabilities | (8,763) | (8,887) |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 15,510 | 10,595 |
Accumulated amortization, Lease Intangible Assets | (6,363) | (4,800) |
Total, Lease Intangible Assets | 9,147 | 5,795 |
Below Market Ground Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 0 | 1,855 |
Accumulated amortization, Lease Intangible Assets | 0 | (19) |
Total, Lease Intangible Assets | 0 | 1,836 |
In Place Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 87,957 | 82,474 |
Accumulated amortization, Lease Intangible Assets | (44,822) | (34,273) |
Total, Lease Intangible Assets | 43,135 | 48,201 |
Leasing Commissions [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 36,523 | 31,706 |
Accumulated amortization, Lease Intangible Assets | (15,411) | (12,037) |
Total, Lease Intangible Assets | 21,112 | 19,669 |
Below Market Tenant Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Liabilities | (14,181) | (12,925) |
Accumulated amortization, Lease Intangible Liabilities | 5,517 | 4,140 |
Total, Lease Intangible Liabilities | (8,664) | (8,785) |
Below Market Ground Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Liabilities | (138) | (138) |
Accumulated amortization, Lease Intangible Liabilities | 39 | 36 |
Total, Lease Intangible Liabilities | $ (99) | $ (102) |
Lease Intangibles - Estimated A
Lease Intangibles - Estimated Aggregate Amortization Expense for Lease Intangibles (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 5,098 |
2020 | 19,302 |
2021 | 15,990 |
2022 | 8,223 |
2023 | 5,361 |
Thereafter | 10,657 |
Total | $ 64,631 |
Debt - Summary of Secured Indeb
Debt - Summary of Secured Indebtedness (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Indebtedness | $ 657,054 | $ 651,406 |
Deferred financing costs, net | (6,058) | (6,052) |
Unamortized fair value adjustments | 697 | |
Total | $ 651,693 | 645,354 |
Interest Rate, spread | 1.27% | |
Unsecured Debt [Member] | Term loan [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 50,000 | |
Interest Rate | 1.40% | |
Maturity | 2024-09 | |
Credit Facility [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 43,325 | 147,500 |
Maturity | 2022-03 | |
London Interbank Offered Rate (LIBOR) [Member] | Credit Facility [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate, spread | 1.50% | |
Midland Life Insurance [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 85,720 | 86,973 |
Interest Rate | 4.34% | |
Maturity | 2021-05 | |
Mission City [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 47,000 | 47,000 |
Interest Rate | 3.78% | |
Maturity | 2027-11 | |
190 Office Center [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 41,007 | 41,250 |
Interest Rate | 4.79% | |
Maturity | 2025-10 | |
Canyon Park [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 40,950 | |
Interest Rate | 4.30% | |
Maturity | 2027-03 | |
Circle Point [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 39,650 | 39,650 |
Interest Rate | 4.49% | |
Maturity | 2028-09 | |
SanTan [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 34,250 | 34,682 |
Interest Rate | 4.56% | |
Maturity | 2027-03 | |
Intellicenter [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 33,102 | 33,481 |
Interest Rate | 4.65% | |
Maturity | 2025-10 | |
The Quad [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 30,600 | 30,600 |
Interest Rate | 4.20% | |
Maturity | 2028-09 | |
FRP Collection [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 29,142 | 29,589 |
Interest Rate | 3.10% | |
Maturity | 2023-09 | |
2525 McKinnon [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 27,000 | 27,000 |
Interest Rate | 4.24% | |
Maturity | 2027-04 | |
Cascade Station [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 22,390 | |
Interest Rate | 4.55% | |
Maturity | 2024-05 | |
Greenwood Blvd [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 22,425 | 22,425 |
Interest Rate | 3.15% | |
Maturity | 2025-12 | |
5090 N 40th St [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 22,000 | 22,000 |
Interest Rate | 3.92% | |
Maturity | 2027-01 | |
AmberGlen Property [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 20,000 | 20,000 |
Interest Rate | 3.69% | |
Maturity | 2027-05 | |
Lake Vista Pointe [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 17,800 | 18,044 |
Interest Rate | 4.28% | |
Maturity | 2024-08 | |
Central Fairwinds [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 17,626 | 17,882 |
Interest Rate | 3.15% | |
Maturity | 2024-09 | |
FRP Ingenuity Drive [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 17,000 | 17,000 |
Interest Rate | 4.44% | |
Maturity | 2024-12 | |
Carillon Point [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 16,067 | $ 16,330 |
Interest Rate | 3.10% | |
Maturity | 2023-10 |
Debt - Summary of Secured Ind_2
Debt - Summary of Secured Indebtedness (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 24, 2019 | Aug. 30, 2019 | Dec. 31, 2018 | Mar. 15, 2018 | |
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 1.27% | ||||
Term loan | $ 50 | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, authorized amount | $ 250 | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, authorized amount | $ 300 | ||||
Unsecured Debt [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Fixed charge coverage ratio | 1.50% | ||||
FRP Collection [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 3.10% | 3.85% | |||
Greenwood Blvd [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 3.15% | 4.60% | |||
Central Fairwinds [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 3.15% | 4.00% | |||
Carillon Point [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate | 3.10% | 3.50% | |||
Canyon Park [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Term | 5 years | ||||
Canyon Park [Member] | Secured Debt [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 2.00% | ||||
Canyon Park [Member] | Secured Debt [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 4.50% | ||||
Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, outstanding | $ 7 | ||||
Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 1.25% | ||||
Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 2.15% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, authorized amount | 250 | ||||
Revolving Credit Facility, outstanding | $ 43.3 | ||||
Loan maturity date | Mar. 31, 2022 | ||||
Loan expected extended maturity date | Mar. 31, 2023 | ||||
Revolving Credit Facility, maximum borrowing capacity | $ 500 | ||||
Credit Facility [Member] | Unsecured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 1.50% | ||||
One month LIBOR rate | 2.09% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Fixed charge coverage ratio | 1.50% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 1.40% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 2.25% |
Debt - Schedule of Principal Re
Debt - Schedule of Principal Repayments of Mortgage Payable (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2019 | $ 1,400 | |
2020 | 6,328 | |
2021 | 89,314 | |
2022 | 49,853 | |
2023 | 48,528 | |
Thereafter | 461,631 | |
Total | $ 657,054 | $ 651,406 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Hedges or derivatives | $ 0 | |
Interest Rate Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notional amount | $ 50,000,000 | |
Fixed interest rate | 1.27% | |
Interest Rate Swap [Member] | Other Assets [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets fair value | $ 200,000 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage loans payable, fair value | $ 586,100,000 | $ 503,300,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Administrative Services Agreement [Member] | Second City Funds [Member] | ||
Related Party Transaction [Line Items] | ||
Annual payment receivable for services | $ 0.4 | $ 0.5 |
Purchase Contracts [Member] | Rental and other revenues [Member] | ||
Related Party Transaction [Line Items] | ||
Annual payment receivable for services | $ 2.6 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lease cost | $ 200 | $ 600 |
Operating Lease, Liability | $ 8,214 | $ 8,214 |
Operating Lease, Weighted Average Remaining Lease Term | 56 years | 56 years |
Operating Lease, Weighted Average Discount Rate, Percent | 6.31% | 6.31% |
Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Right-of-Use Asset | $ 9,200 | $ 9,200 |
Operating Lease, Liability | $ 7,200 | $ 7,200 |
Maximum [Member] | ||
Remaining lease terms | 69 years | 69 years |
Minimum [Member] | ||
Remaining lease terms | 2 years | 2 years |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Fixed payments | $ 33,495 | $ 98,555 |
Variable payments | 5,441 | 15,967 |
Operating Lease, Lease Income | $ 38,936 | $ 114,522 |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating Leases (Paranthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating Lease, Lease Income | $ 38,936 | $ 114,522 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments under Non-cancellable Operating Leases (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 31,253 |
2020 | 116,812 |
2021 | 106,709 |
2022 | 89,349 |
2023 | 71,209 |
Thereafter | 161,614 |
Total future minimum lease payments to be received | $ 576,946 |
Leases - Schedule of Operatin_3
Leases - Schedule of Operating Right-of-Use Assets and Lease Liabilities (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Lease liability – operating leases | $ 8,214 |
Lease liability – financing leases | 84 |
Other Assets [Member] | |
Right-of-use asset - operating leases | 13,125 |
Right-of-use asset – financing leases | 85 |
Other Liabilities [Member] | |
Lease liability – operating leases | 8,213 |
Lease liability – financing leases | $ 84 |
Leases - Schedule Future Minimu
Leases - Schedule Future Minimum Lease Payments To Be Paid (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
2019 | $ 144 |
2020 | 782 |
2021 | 781 |
2022 | 741 |
2023 | 659 |
Thereafter | 27,277 |
Total future minimum lease payments | 30,384 |
Discount | (22,170) |
Total | 8,214 |
2019 | 6 |
2020 | 27 |
2021 | 27 |
2022 | 27 |
2023 | 4 |
Total future minimum lease payments | 91 |
Discount | (7) |
Total | $ 84 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | Oct. 25, 2019USD ($) | Jun. 16, 2017 | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($)shares | Sep. 30, 2019USD ($)Installment$ / sharesshares | Sep. 30, 2018USD ($) | May 02, 2019shares | Mar. 31, 2019shares | Dec. 31, 2018shares | Nov. 01, 2018shares |
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||||
Preferred stock, shares authorized | 5,600,000 | 5,600,000 | 5,600,000 | |||||||
Net proceeds from sale of common stock | $ | $ 104,816 | $ 42,902 | ||||||||
Maximum number of shares issued under Equity Incentive Plan | 2,263,580 | 1,263,580 | ||||||||
Sales Agreement [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized | 8,000,000 | |||||||||
Preferred stock, shares authorized | 1,000,000 | |||||||||
Net proceeds from sale of common stock | $ | $ 104,800 | |||||||||
Percentage of compensation from gross proceeds of shares sold | 2.00% | |||||||||
Common Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock, shares issued | 8,000,000 | 3,411,000 | ||||||||
Declared cash dividend distribution per share | $ / shares | $ 0.235 | $ 0.235 | ||||||||
Dividends paid, declared date | Sep. 16, 2019 | |||||||||
Dividends paid date | Oct. 25, 2019 | |||||||||
Dividends paid, date of record | Oct. 11, 2019 | |||||||||
Dividend paid | $ | $ 11,200 | |||||||||
Common Stock [Member] | Sales Agreement [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock, shares issued | 8,000,000 | |||||||||
Gross proceeds from sale of stock | $ | $ 106,500 | |||||||||
Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock, shares issued | 0 | 0 | ||||||||
Declared cash dividend distribution per share | $ / shares | $ 0.4140625 | $ 0.4140625 | ||||||||
Dividends paid, declared date | Sep. 16, 2019 | |||||||||
Dividends paid date | Oct. 25, 2019 | |||||||||
Dividends paid, date of record | Oct. 11, 2019 | |||||||||
Dividend paid | $ | $ 1,900 | |||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of annual installments for award vesting | Installment | 3 | |||||||||
Net compensation expense | $ | $ 400 | $ 400 | $ 1,300 | $ 1,100 | ||||||
Restricted Stock Units (RSUs) [Member] | Directors and Non-Executive Employees [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Restricted stock units granted to executive officers, directors and non-executive employees | 162,500 | |||||||||
Restricted stock units grant date fair value | $ | $ 1,800 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Common Stock [Member] - USD ($) $ in Millions | Oct. 07, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Subsequent Event [Line Items] | |||
Stock, shares issued | 8,000,000 | 3,411,000 | |
Subsequent Event [Member] | Public Offering [Member] | |||
Subsequent Event [Line Items] | |||
Stock, shares issued | 6,900,000 | ||
Gross proceeds from sale of stock | $ 95.6 |