As of March 31, 2025, the Company’s real estate portfolio was composed of 13 office properties and one mixed-use office/retail property encompassing in the aggregate approximately 6.4 million rentable square feet. As of March 31, 2025, the Company’s real estate portfolio was collectively 80.2% occupied. The following table summarizes the Company’s investments in real estate as of March 31, 2025 (in thousands):

Property

Date Acquired

City

State

Property Type

Total Real Estate, at Cost (1)

Accumulated Depreciation and Amortization (1)

Total Real Estate, Net (1)

Town Center

03/27/2012

Plano

Office

144,104

(60,137)

83,967

Gateway Tech Center

05/09/2012

Salt Lake City

Office

37,398

(14,575)

22,823

60 South Sixth

01/31/2013

Minneapolis

Office

115,520

(3,644)

111,876

Sterling Plaza

06/19/2013

Dallas

Office

98,234

(37,118)

61,116

Accenture Tower

12/16/2013

Chicago

Office

576,067

(190,635)

385,432

Ten Almaden

12/05/2014

San Jose

Office

131,599

(46,605)

84,994

Towers at Emeryville

12/23/2014

Emeryville

Office

223,725

(75,925)

147,800

3003 Washington Boulevard

12/30/2014

Arlington

Office

154,926

(50,700)

104,226

Park Place Village

06/18/2015

Leawood

Office/Retail

88,028

(18,506)

69,522

201 17th Street

06/23/2015

Atlanta

Office

105,538

(39,042)

66,496

515 Congress

08/31/2015

Austin

Office

138,040

(41,839)

96,201

The Almaden

09/23/2015

San Jose

Office

192,549

(57,392)

135,157

3001 Washington Boulevard

11/06/2015

Arlington

Office

60,999

(17,123)

43,876

Carillon

01/15/2016

Charlotte

Office

182,275

(51,063)

131,212

2,249,002

(704,304)

1,544,698

(1) Annualized base rent represents annualized contractual base rental income as of March 31, 2025, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.

The Company’s office and office/retail properties are leased to tenants under operating leases for which the terms and expirations vary. As of March 31, 2025, the leases, including leases that have been executed but not yet commenced, had remaining terms, excluding options to extend, of up to 14.3 years with a weighted-average remaining term of 5.4 years. Some of the leases have provisions to extend the term of the leases, options for early termination for all or a part of the leased premises after paying a specified penalty, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires a security deposit from the tenant in the form of a cash deposit and/or a letter of credit. The amount required as a security deposit varies depending upon the terms of the respective lease and the creditworthiness of the tenant, but generally is not a significant amount. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $8.9 million and $8.4 million as of March 31, 2025 and December 31, 2024, respectively.

During the three months ended March 31, 2025 and 2024, the Company recognized deferred rent from tenants of $2.2 million and $3.5 million, respectively. As of March 31, 2025 and December 31, 2024, the cumulative deferred rent balance was $96.9 million and $95.1 million, respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $17.8 million and $17.9 million of unamortized lease incentives as of March 31, 2025 and December 31, 2024, respectively.

As of March 31, 2025, the Company’s net investments in real estate in Illinois, California and Texas represented 21.4%, 20.4% and 13.4% of the Company’s total assets, respectively. As a result, the geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Illinois, California and Texas real estate markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for office space resulting from the local business climate, could adversely affect the Company’s operating results.

During the year ended December 31, 2023, the borrower under the 201 Spear Street Mortgage Loan (the “Spear Street Borrower”) entered into a deed-in-lieu of foreclosure transaction (the “Deed-in-Lieu Transaction”) with the lender of the 201 Spear Street Mortgage Loan (the “Spear Street Lender”). On January 9, 2024, the Spear Street Lender transferred the title of the 201 Spear Street property to a third-party buyer of the 201 Spear Street Mortgage Loan. As a result, during the three months ended March 31, 2024, the Company disposed of the 201 Spear Street property in connection with the Deed-in-Lieu Transaction and recognized a $56.4 million gain from extinguishment of debt for the three months ended March 31, 2024. The results of operations for 201 Spear Street are included in continuing operations on the Company’s consolidated statements of operations. The following table summarizes the revenue and expenses related to 201 Spear Street for the three months ended March 31, 2024 (in thousands).


	For the Three Months Ended March 31, 2024

Revenues
Rental income (1)		$	197
Other operating income		9
Total revenues		$	206
Expenses
Operating, maintenance, and management		$	52
Real estate taxes and insurance		69
Asset management fees to affiliate		26
General and administrative expenses		22

Interest expense		419

Total expenses		$	588