As of December 31, 2025, the Company’s real estate portfolio held for investment was composed of 12 office properties encompassing in the aggregate approximately 5.6 million rentable square feet. As of December 31, 2025, the Company’s real estate portfolio held for investment was collectively 77.1% occupied. The following table summarizes the Company’s investments in real estate held for investment as of December 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

147,694

(65,259)

82,435

Gateway Tech Center

05/09/2012

Salt Lake City

Office

37,935

(15,826)

22,109

60 South Sixth

01/31/2013

Minneapolis

Office

88,241

(1,448)

86,793

Accenture Tower

12/16/2013

Chicago

Office

580,977

(208,066)

372,911

Ten Almaden

12/05/2014

San Jose

Office

131,720

(50,073)

81,647

Towers at Emeryville

12/23/2014

Emeryville

Office

128,576

(1,260)

127,316

3003 Washington Boulevard

12/30/2014

Arlington

Office

154,908

(53,735)

101,173

201 17th Street

06/23/2015

Atlanta

Office

105,854

(42,313)

63,541

515 Congress

08/31/2015

Austin

Office

139,164

(45,668)

93,496

The Almaden

09/23/2015

San Jose

Office

103,357

(1,230)

102,127

3001 Washington Boulevard

11/06/2015

Arlington

Office

61,048

(18,518)

42,530

Carillon

01/15/2016

Charlotte

Office

181,992

(55,873)

126,119

1,861,466

(559,269)

1,302,197

(1) Annualized base rent represents annualized contractual base rental income as of December 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 properties are leased to tenants under operating leases for which the terms and expirations vary. As of December 31, 2025, the leases, including leases that have been executed but not yet commenced, had remaining terms, excluding options to extend, of up to 13.5 years with a weighted-average remaining term of 5.3 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 $7.1 million and $8.4 million as of December 31, 2025 and 2024, respectively.

During the years ended December 31, 2025, 2024 and 2023, the Company recognized deferred rent from tenants of $6.1 million, $8.6 million and $7.6 million, respectively. As of December 31, 2025 and 2024, the cumulative deferred rent balance was $92.3 million and $88.3 million, respectively, and is included in rents and other receivables on the accompanying balance sheets. The cumulative deferred rent balance included $16.3 million and $16.6 million of unamortized lease incentives as of December 31, 2025 and 2024, respectively.

As of December 31, 2025, the Company’s net investments in real estate held for investment in Illinois, California and Texas represented 23.9%, 19.9% and 11.3% 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, 2025, the Company recorded non-cash impairment charges of $65.5 million to write down the carrying value of The Almaden (located in San Jose, California), Towers at Emeryville (located in Emeryville, California) and 60 South Sixth (located in Minneapolis, Minnesota) to their estimated fair values. The facts and circumstances leading to the impairments on the Company’s real estate held for investment during the year ended December 31, 2025 are as follows:

During the year ended December 31, 2025, the Company recorded non-cash impairment charges of $28.5 million for The Almaden, reflecting a decline in the estimated fair value of the property below its carrying value. The decrease was primarily attributable to changes in valuation assumptions and softening market conditions in the San Jose central business district. Key factors contributing to the decline included an increase in the terminal cap and discount rates, lower occupancy levels at the building, increased market leasing costs, and reduced projected revenue due to lower market rents, slower projected rent growth, and reduced lease renewal expectations in the San Jose office market.

During the year ended December 31, 2025, the Company recorded non-cash impairment charges of $16.3 million for the Towers at Emeryville, reflecting a decline in the estimated fair value of the property below its carrying value. The decrease was primarily attributable to changes in valuation assumptions and softening market conditions in the East Bay office sector. Key factors contributing to the decline included an increase in the terminal cap and discount rates, lower occupancy levels at the building, and an increase in general vacancy assumptions within the discounted cash flow model. The valuation also reflected lower projected revenue due to reduced effective rents and higher projected vacancy levels, consistent with broader trends in the East Bay office market, where vacancy rates have continued to rise amid slower leasing activity and elevated tenant turnover.

During the year ended December 31, 2025, the Company recorded non-cash impairment charges of $20.7 million for 60 South Sixth, reflecting a decline in the estimated fair value of the property below its carrying value. The decrease was primarily attributable to changes in valuation assumptions. Key factors contributing to the decline included an increase in the terminal cap and discount rates, reflecting a more cautious investment outlook and higher required returns for office assets in the Minneapolis central business district. The valuation also utilized an increased stabilized vacancy assumption and reflected a modest decrease in in-place occupancy, consistent with the current occupancy at the building and broader market trends indicating softening demand and rising availability in the downtown Minneapolis office market.

During the year ended December 31, 2024, the Company recorded non-cash impairment charges of $6.8 million to write down the carrying value of 60 South Sixth to its estimated fair value as a result of changes in cash flow estimates which resulted in the future estimated undiscounted cash flows being lower than the net carrying value of the property. The decrease in cash flow projections was primarily due to the continued challenges in the leasing environment.

During the year ended December 31, 2023, the Company recorded non-cash impairment charges of $45.5 million to write down the carrying value of 201 Spear Street (located in San Francisco, California) to its estimated fair value as a result of continued market uncertainty due to rising interest rates, increased vacancy rates as a result of slow return to office in San Francisco, additional projected vacancy due to anticipated tenant turnover and further declining values of comparable sales in the market, all of which impacted ongoing cash flow estimates and leasing projections, which resulted in the future estimated undiscounted cash flows being lower than the net carrying value of the property. As a result, 201 Spear Street was valued at substantially less than the outstanding mortgage debt. 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. See below, “— Disposition Through Deed-in-Lieu Transaction.”

During the year ended December 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 year ended December 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 revenues and expenses related to 201 Spear Street for the years ended December 31, 2024 and 2023, respectively (in thousands).


	Years Ended December 31,
	2024		2023
Revenues
Rental income (1)	$	197	$	7,930
Other operating income	9		507
Total revenues	$	206	$	8,437
Expenses
Operating, maintenance, and management	$	52	$	3,773
Real estate taxes and insurance	69		2,701
Asset management fees to affiliate	26		789
General and administrative expenses	93		113
Depreciation and amortization	—		3,941
Interest expense	419		10,001
Impairment charge	—		45,459
Total expenses	$	659	$	66,777