v3.26.1
REAL ESTATE SALES
12 Months Ended
Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
REAL ESTATE SALES
During the year ended December 31, 2024, the Company sold two office properties to purchasers unaffiliated with the Company or the Advisor. In February 2024, the Company completed the sale of one office property for $48.8 million, before third-party closing costs and disposition fees payable to the Advisor, and in November 2024, the Company sold one office property for $151.0 million, before third-party closing costs, credits and disposition fees payable to the Advisor. The Company recognized a gain on sale of $53.1 million related to these dispositions. During the year ended December 31, 2025, the Company sold one office property and one mixed-use office/retail property to purchasers unaffiliated with the Company or the Advisor. In July 2025, the Company completed the sale of one office property for $126.5 million, before third-party closing costs, credits and disposition fees payable to the Advisor, and in September 2025, the Company sold one mixed-use office/retail property for $100.0 million, before third-party closing costs, credits and disposition fees payable to the Advisor. The Company recognized a gain on sale of $77.4 million related to these dispositions.
The results of operations for the properties sold during the years ended December 31, 2025 and 2024 are included in continuing operations on the Company’s consolidated statements of operations. The following table summarizes certain revenues and expenses related to the Company’s real estate properties that were sold during the years ended December 31, 2025 and 2024, which were included in continuing operations (in thousands):
Years Ended December 31,
202520242023
Revenues
Rental income$18,468 $47,277 $50,548 
Other operating income1,455 3,604 3,663 
Total revenues$19,923 $50,881 $54,211 
Expenses
Operating, maintenance, and management$5,401 $11,869 $12,655 
Real estate taxes and insurance3,590 7,668 9,583 
Asset management fees to affiliate1,191 2,890 3,291 
General and administrative expenses (1)
(414)— — 
Depreciation and amortization5,032 17,275 18,121 
Interest expense (2)
3,284 5,028 4,923 
Total expenses$18,084 $44,730 $48,573 
_____________________
(1) General and administrative expenses include a reversal of a deferred tax liability related to Park Place Village.
(2) Interest expense includes interest expense incurred related to the Park Place Village Mortgage Loan. Upon the sale of Park Place Village in September 2025, the borrower under the Park Place Village Mortgage Loan paid off the outstanding principal and accrued interest due under the Park Place Village Mortgage Loan. Interest expense incurred on portfolio loans is not allocated to the individual properties that serve as collateral for these portfolio loans and therefore, interest expense incurred for the properties sold in February 2024, November 2024 and July 2025 is not shown in this table. The office property sold in February 2024 had served as collateral for the Modified Portfolio Revolving Loan Facility. The property sold in November 2024 and the property sold in July 2025 had served as collateral for the Amended and Restated Portfolio Loan Facility. Upon the sale of the office property in February 2024, $46.2 million of the outstanding principal of the Modified Portfolio Revolving Loan Facility was repaid. Upon the sale of the office property in November 2024, $140.4 million of the outstanding principal of the Amended and Restated Portfolio Loan Facility was repaid. Upon the sale of the office property in July 2025, $87.7 million of the net sale proceeds from the sale of the property was applied to reduce the outstanding principal of the Amended and Restated Portfolio Loan Facility. See Note 8, “Notes Payable – Recent Financing Transactions – Amended and Restated Portfolio Loan Facility.”
REAL ESTATE SALES
The following summary presents the major components of assets and liabilities related to real estate held for sale (in thousands).
December 31,
 20252024
Assets related to real estate held for sale:
Total real estate, at cost$— $184,921 
Accumulated depreciation and amortization— (53,450)
Real estate held for sale, net— 131,471 
Other assets— 15,209 
Total assets related to real estate held for sale$— $146,680 
Liabilities related to real estate held for sale:
Notes payable related to real estate held for sale, net$— $152,445 
Other liabilities— 2,999 
Total liabilities related to real estate held for sale$— $155,444