Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 29, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | Brookfield DTLA Fund Office Trust Investor Inc. | ||
Entity Central Index Key | 0001575311 | ||
Entity Accounting Standard | US GAAP | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 0 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments in Real Estate: | ||
Land | $ 227,555 | $ 227,555 |
Buildings and improvements | 2,245,818 | 2,208,498 |
Tenant improvements | 361,077 | 320,269 |
Investments in real estate, gross | 2,834,450 | 2,756,322 |
Less: accumulated depreciation | 418,205 | 342,465 |
Investments in real estate, net | 2,416,245 | 2,413,857 |
Cash and cash equivalents | 80,421 | 31,958 |
Restricted cash | 25,349 | 35,547 |
Rents, deferred rents and other receivables, net | 151,509 | 129,482 |
Intangible assets, net | 44,640 | 58,289 |
Deferred charges, net | 67,731 | 69,635 |
Prepaid and other assets, net | 9,763 | 9,047 |
Total assets | 2,795,658 | 2,747,815 |
Liabilities: | ||
Mortgage loans, net | 2,140,724 | 1,991,692 |
Accounts payable and other liabilities | 63,678 | 80,810 |
Due to affiliates, net | 3,834 | 11,273 |
Intangible liabilities, net | 12,454 | 16,239 |
Total liabilities | 2,220,690 | 2,100,014 |
Commitments and Contingencies (See Note 14) | ||
Mezzanine Equity: | ||
Mezzanine equity | 1,015,889 | 990,749 |
Total mezzanine equity | 1,015,889 | 990,749 |
Stockholders’ Deficit: | ||
Common stock, $0.01 par value, 1,000 shares issued and outstanding as of December 31, 2018 and 2017 | 0 | 0 |
Additional paid-in capital | 195,825 | 194,210 |
Accumulated deficit | (385,158) | (256,877) |
Accumulated other comprehensive loss | (107) | (273) |
Noncontrolling interest – Series B common interest | (251,481) | (280,008) |
Total stockholders’ deficit | (440,921) | (342,948) |
Total liabilities and deficit | 2,795,658 | 2,747,815 |
Series A preferred stock | ||
Mezzanine Equity: | ||
Mezzanine equity | 409,932 | 391,400 |
Series A-1 preferred interest | ||
Mezzanine Equity: | ||
Mezzanine equity | 400,816 | 383,510 |
Senior participating preferred interest | ||
Mezzanine Equity: | ||
Mezzanine equity | 23,443 | 25,548 |
Series B preferred interest | ||
Mezzanine Equity: | ||
Mezzanine equity | $ 181,698 | $ 190,291 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 1,000 | 1,000 |
Series A preferred stock | ||
Preferred stock feature | 7.625% Series A Cumulative Redeemable Preferred Stock | 7.625% Series A Cumulative Redeemable Preferred Stock |
Preferred stock, dividend rate, percentage | 7.625% | 7.625% |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference (in USD per share) | $ 25 | $ 25 |
Preferred stock, shares issued (in shares) | 9,730,370 | 9,730,370 |
Preferred stock, shares outstanding (in shares) | 9,730,370 | 9,730,370 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue: | |||
Rental income | $ 162,203 | $ 165,689 | $ 169,168 |
Revenues | 315,680 | 306,322 | 310,692 |
Expenses: | |||
Rental property operating and maintenance | 98,940 | 93,945 | 92,744 |
Real estate taxes | 40,013 | 37,758 | 37,401 |
Parking | 10,165 | 9,374 | 8,430 |
Other expense | 9,920 | 11,508 | 11,239 |
Depreciation and amortization | 96,264 | 97,808 | 103,970 |
Interest | 105,035 | 93,566 | 95,075 |
Total expenses | 360,337 | 343,959 | 348,859 |
Net loss | (44,657) | (37,637) | (38,167) |
Series B common interest – allocation of net income (loss) | 28,343 | (45,699) | (41,055) |
Net loss attributable to Brookfield DTLA | (109,749) | (23,065) | (18,837) |
Net loss available to common interest holders of Brookfield DTLA | (128,281) | (41,613) | (37,385) |
Series A-1 preferred interest | |||
Expenses: | |||
Current dividends | 17,306 | 17,213 | 17,213 |
Senior participating preferred interest | |||
Expenses: | |||
Redemption measurement adjustment | 1,482 | 479 | 2,428 |
Series B preferred interest | |||
Expenses: | |||
Current preferred return | 17,961 | 13,435 | 2,084 |
Series A preferred stock | |||
Expenses: | |||
Current dividends | 18,532 | 18,548 | 18,548 |
Tenant reimbursements | |||
Revenue: | |||
Revenues | 105,930 | 96,518 | 95,578 |
Parking | |||
Revenue: | |||
Revenues | 37,252 | 37,093 | 36,614 |
Interest and Other | |||
Revenue: | |||
Revenues | $ 10,295 | $ 7,022 | $ 9,332 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (44,657) | $ (37,637) | $ (38,167) |
Derivative transactions: | |||
Unrealized derivative holding gains | 1,548 | 2,799 | 2,042 |
Reclassification adjustment for realized gains included in net loss | (1,198) | 0 | 0 |
Total other comprehensive income | 350 | 2,799 | 2,042 |
Comprehensive loss | (44,307) | (34,838) | (36,125) |
Less: comprehensive income (loss) attributable to noncontrolling interests | 65,276 | (13,107) | (18,261) |
Comprehensive loss available to common interest holders of Brookfield DTLA | $ (109,583) | $ (21,731) | $ (17,864) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non-controlling Interest |
Balance at beginning of year (in shares) at Dec. 31, 2015 | 1,000 | |||||
Balance at beginning of year at Dec. 31, 2015 | $ (184,537) | $ 0 | $ 191,710 | $ (177,879) | $ (2,580) | $ (195,788) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (38,167) | (18,837) | (19,330) | |||
Other comprehensive income | 2,042 | 973 | 1,069 | |||
Contributions from DTLA Holdings | 2,500 | 2,500 | ||||
Dividends on Series A preferred stock, Series A-1 preferred interest, senior participating preferred interest and Series B preferred interest | (40,273) | (18,548) | (21,725) | |||
Balance at end of year (in shares) at Dec. 31, 2016 | 1,000 | |||||
Balance at end of year at Dec. 31, 2016 | (258,435) | $ 0 | 194,210 | (215,264) | (1,607) | (235,774) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (37,637) | (23,065) | (14,572) | |||
Other comprehensive income | 2,799 | 1,334 | 1,465 | |||
Dividends on Series A preferred stock, Series A-1 preferred interest, senior participating preferred interest and Series B preferred interest | (49,675) | (18,548) | (31,127) | |||
Balance at end of year (in shares) at Dec. 31, 2017 | 1,000 | |||||
Balance at end of year at Dec. 31, 2017 | (342,948) | $ 0 | 194,210 | (256,877) | (273) | (280,008) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (44,657) | (109,749) | 65,092 | |||
Other comprehensive income | 350 | 166 | 184 | |||
Contributions from DTLA Holdings | 1,615 | 1,615 | ||||
Dividends on Series A preferred stock, Series A-1 preferred interest, senior participating preferred interest and Series B preferred interest | (55,281) | (18,532) | (36,749) | |||
Balance at end of year (in shares) at Dec. 31, 2018 | 1,000 | |||||
Balance at end of year at Dec. 31, 2018 | $ (440,921) | $ 0 | $ 195,825 | $ (385,158) | $ (107) | $ (251,481) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (44,657) | $ (37,637) | $ (38,167) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 96,264 | 97,808 | 103,970 |
Provision for doubtful (recovery of) accounts | 190 | (7) | (271) |
Amortization of below-market leases/ above-market leases | 222 | (2,219) | (3,465) |
Straight-line rent amortization | (11,399) | (11,237) | (16,798) |
Amortization of tenant inducements | 4,228 | 3,816 | 3,399 |
Amortization of debt issuance costs and discounts | 9,565 | 6,400 | 4,329 |
Realized gain on derivative financial instruments | (1,198) | 0 | 0 |
Changes in assets and liabilities: | |||
Rents, deferred rents and other receivables, net | (12,179) | (3,850) | (9,122) |
Deferred charges, net | (22,209) | (15,336) | (9,516) |
Prepaid and other assets, net | (82) | 139 | (53) |
Accounts payable and other liabilities | 6,083 | (3,037) | (3,469) |
Due to affiliates, net | (7,439) | (3,054) | 4,991 |
Net cash provided by operating activities | 17,389 | 31,786 | 35,828 |
Cash flows from investing activities: | |||
Expenditures for real estate improvements | (90,065) | (74,696) | (57,350) |
Net cash used in investing activities | (90,065) | (74,696) | (57,350) |
Cash flows from financing activities: | |||
Proceeds from mortgage loans | 1,081,686 | 470,000 | 720,000 |
Principal payments on mortgage loans | (931,831) | (554,028) | (751,518) |
Dividend paid on Series A preferred stock | 0 | 0 | (21,893) |
Contributions from noncontrolling interests | 0 | 112,012 | 63,280 |
Distributions to noncontrolling interests | (30,141) | (470) | (616) |
Contributions from DTLA Holdings | 1,615 | 0 | 2,500 |
Financing fees paid | (10,388) | (7,484) | (7,412) |
Net cash provided by financing activities | 110,941 | 20,030 | 4,341 |
Net change in cash, cash equivalents and restricted cash | 38,265 | (22,880) | (17,181) |
Cash, cash equivalents and restricted cash at beginning of year | 67,505 | 90,385 | 107,566 |
Cash, cash equivalents and restricted cash at end of year | 105,770 | 67,505 | 90,385 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 96,074 | 88,160 | 89,630 |
Cash paid for income taxes, net | 1,127 | 214 | 584 |
Supplemental disclosure of non-cash activities: | |||
Accrual for real estate improvements | 17,179 | 25,616 | 24,465 |
Accrual for deferred leasing costs | 2,997 | 3,277 | 2,349 |
Increase in fair value of interest rate swaps | 1,548 | 2,799 | 2,042 |
Writeoff of fully depreciated buildings and improvements | 0 | 4,007 | 0 |
Writeoff of fully depreciated tenant improvements | 0 | 56,291 | 0 |
Writeoff of fully amortized deferred charges | 0 | 20,481 | 0 |
Writeoff of fully amortized intangible assets | 0 | 68,990 | 0 |
Writeoff of fully amortized intangible liabilities | 0 | 16,783 | 0 |
Reconciliation of cash, cash equivalents and restricted cash | |||
Cash, cash equivalents and restricted cash | $ 67,505 | $ 90,385 | $ 107,566 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Brookfield DTLA Fund Office Trust Investor Inc. (“Brookfield DTLA” or the “Company”) is a Maryland corporation and was incorporated on April 19, 2013. Brookfield DTLA was formed for the purpose of consummating the transactions contemplated in the Agreement and Plan of Merger dated as of April 24, 2013, as amended (the “Merger Agreement”), and the issuance of shares of 7.625% Series A Cumulative Redeemable Preferred Stock (the “Series A preferred stock”) in connection with the acquisition of MPG Office Trust, Inc. and MPG Office, L.P. (together, “MPG”). Brookfield DTLA is a direct subsidiary of Brookfield DTLA Holdings LLC, a Delaware limited liability company (“DTLA Holdings”, and together with its affiliates excluding the Company and its subsidiaries, the “Manager”). DTLA Holdings is an indirect partially-owned subsidiary of Brookfield Property Partners L.P., a limited partnership under the Laws of Bermuda (“BPY”), which in turn is the flagship listed real estate company of Brookfield Asset Management Inc., a corporation under the Laws of Canada (“BAM”). Brookfield DTLA owns BOA Plaza, EY Plaza, Wells Fargo Center–North Tower, Wells Fargo Center–South Tower, Gas Company Tower and 777 Tower, each of which is a Class A office property located in the Los Angeles Central Business District (the “LACBD”) and other investments. Brookfield DTLA receives its income primarily from rental income (including tenant reimbursements) generated from the operations of its office and retail properties, and to a lesser extent, from its parking garages. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies As used in these consolidated financial statements and related notes, unless the context requires otherwise, the terms “Brookfield DTLA,” the “Company,” “us,” “we” and “our” refer to Brookfield DTLA Fund Office Trust Investor Inc. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated balance sheets as of December 31, 2018 and 2017 include the accounts of Brookfield DTLA and subsidiaries in which it has a controlling financial interest. All intercompany transactions have been eliminated in consolidation as of and for the years ended December 31, 2018 , 2017 and 2016 . In determining whether Brookfield DTLA has a controlling financial interest in an entity and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members as well as whether the entity is a variable interest entity (“VIE”) and Brookfield DTLA is the primary beneficiary. A VIE is broadly defined as an entity where either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Brookfield DTLA qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors includes, but is not limited to, Brookfield DTLA’s ability to direct the activities that most significantly impact the VIE’s economic performance, its form of ownership interest, its representation on the VIE’s governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and its ability to replace the manager of and/or liquidate the entity. The Company earns a return through an indirect investment in Brookfield DTLA Fund Properties II LLC (“New OP”). DTLA Holdings, the parent of Brookfield DTLA, owns all of the common interest in New OP. Brookfield DTLA has an indirect preferred stock interest in New OP and its wholly owned subsidiary is the managing member of New OP. The Company determined that New OP is a VIE and as a result of having the power to direct the significant activities of New OP and exposure to the economic performance of New OP, Brookfield DTLA meets the two conditions for being the primary beneficiary. Brookfield DTLA is required to continually evaluate its VIE relationships and consolidation conclusion. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. For example, estimates and assumptions have been made with respect to fair values of assets and liabilities for purposes of applying the acquisition method of accounting, the useful lives of assets, recoverable amounts of receivables, impairment of long‑lived assets and the fair value of debt. Actual results could ultimately differ from such estimates. Reclassifications During the year ended December 31, 2018 , the Company reclassified asset management fees earned by the Manager from rental property operating and maintenance expense to other expense in the consolidated statement of operations. Management does not include asset management fees as an input when evaluating the operating performance of Brookfield DTLA’s properties and created a new category within other expense during 2018 to capture such fees. For the years ended December 31, 2017 and 2016 , the Company reported rental property operating and maintenance expense totaling $100.3 million and $99.1 million and other expense totaling $5.2 million and $4.9 million in the consolidated statements of operations, respectively. After the reclassification, rental property operating and maintenance expense now totals $94.0 million and $92.8 million and other expense now totals $11.5 million and $11.2 million in the consolidated statements of operations for the years ended December 31, 2017 and 2016 , respectively. These reclassifications had no effect on the Company’s financial position, results of operations or cash flows in any year. During the year ended December 31, 2018 , the Company also reclassified lease termination fees from interest and other income to rental income in the consolidated statement of operations in anticipation of adopting Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). For the years ended December 31, 2017 and 2016 , the Company reported interest and other income totaling $10.3 million and $13.7 million and rental income totaling $162.4 million and $164.8 million in the consolidated statements of operations, respectively. After the reclassification, interest and other income now totals $7.0 million and $9.3 million and rental income now totals $165.7 million and $169.2 million in the consolidated statements of operations for the years ended December 31, 2017 and 2016 , respectively. These reclassifications had no effect on the Company’s financial position, results of operations or cash flows in any year. Accounting Pronouncements Adopted in 2018 Effective January 1, 2018, Brookfield DTLA adopted, on a modified retrospective basis, the guidance in Financial Accounting Standards Board (“FASB”) ASU 2014-09, Revenue from Contracts with Customers Accounting Standards Codification (“ASC”) Topic 606. ASU 2014-09, as amended by subsequent ASUs on the topic, established a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services and requires certain additional disclosures. The adoption of this pronouncement did not have an impact on Brookfield DTLA’s consolidated financial statements. Effective January 1, 2018, Brookfield DTLA adopted, on a retrospective basis, the guidance in ASU 2016-18, Restricted Cash to Topic 230, Statement of Cash Flows. ASU 2016-18 requires entities to include restricted cash with cash and cash equivalents when reconciling the beginning and end of period total amounts shown in the statement of cash flows. Therefore, the change in restricted cash is no longer presented as a separate line item within cash flows from investing activities in the Company’s consolidated statement of cash flows since such balances are now combined with cash and cash equivalents at both the beginning and end of the reporting period. For the year ended December 31, 2017 , the Company used net cash in investing activities of $74.7 million instead of the $50.2 million previously reported, while for the year ended December 31, 2016 , the net cash used in investing activities was $57.4 million instead of the $63.6 million previously reported. Effective January 1, 2018, Brookfield DTLA adopted, on a retrospective basis, the guidance in ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments to Topic 230, Statement of Cash Flows . ASU 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of this guidance did not have an impact on Brookfield DTLA’s consolidated financial statements. Accounting Pronouncements Effective January 1, 2019 Leases In February 2016, the FASB issued an update (“ASU 2016-02”), Leases (Topic 842) . The primary difference between Topic 842 and current GAAP is the recognition of lease assets and liabilities on the balance sheet by lessees for leases classified as operating leases under current GAAP. The accounting applied by lessors is largely unchanged from current GAAP, for example, the vast majority of operating leases will remain classified as operating leases, and lessors will continue to recognize lease income for those leases on a straight-line basis over the lease term. In July 2018, the FASB issued ASU 2018-11, which includes an optional practical expedient for lessors to elect, by class of underlying asset, to not separate the lease from the non-lease components as required by Topic 842 if certain criteria are met. For leases where we are the lessor, the Company qualifies for the single component presentation and as a result, leases will be accounted for in a similar method to existing standards. Topic 842 defines initial direct costs of a lease (which the Company has historically capitalized) as incremental costs that would not have been incurred had the lease not been executed. Costs to negotiate or arrange a lease regardless of its outcome, such as fixed employee compensation, tax or legal advice to negotiate lease terms, and lessor costs related to advertising or soliciting potential tenants, will be expensed as incurred under the new guidance. During the year ended December 31, 2018 , the Company capitalized $137 thousand of leasing costs that would not qualify as initial direct costs and would have been expensed under Topic 842. ASU 2016-02 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018. We currently expect to adopt this standard effective January 1, 2019 using the practical expedients provided in the standard and the changes approved by the FASB. Other In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, to Topic 815, Derivatives and Hedging . ASU 2017-12 introduced amendments intended to make targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The objective of the update is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018. We do not expect the adoption of this guidance to have material impact on Brookfield DTLA’s consolidated financial statements. Accounting Pronouncements Effective January 1, 2020 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), and made changes to its conceptual framework, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements , that are intended to improve the effectiveness of disclosures in notes to financial statements. ASU 2018-13 removes, modifies and adds certain disclosure requirements related to fair value measurements required by Topic 820. The guidance is effective for interim and annual periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for any eliminated or modified disclosures. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation ( Topic 810 ), Targeted Improvements to Related Party Guidance for Variable Interest Entities , which amends two aspects of the related-party guidance in Topic 810. Specifically, ASU 2018-17 (1) adds an elective private company scope exception to the variable interest entity guidance for entities under common control and (2) removes a sentence in ASC 810-10-55-37D regarding the evaluation of fees paid to decision makers to conform with the amendments in ASU 2016-17, Consolidation ( Topic 810 ), Interests Held through Related Parties That Are under Common Control (issued in October 2016). ASU 2018-17 is effective for interim and annual periods in fiscal years beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. Significant Accounting Policies Business Combinations— Effective January 1, 2018, Brookfield DTLA adopted, on a prospective basis, the guidance in ASU 2017-01, Clarifying the Definition of a Business to ASC Topic 805, Business Combinations. Prior to the adoption of this guidance, the Company applied purchase accounting to the assets and liabilities related to real estate investments acquired from third parties. Prior to adopting this guidance, Brookfield DTLA allocated the purchase price of real estate acquired to tangible assets, consisting primarily of land, building and tenant improvements, and identifiable intangible assets and liabilities, consisting of the value of above- and below-market leases, in-place leases, and tenant relationships, based in each case on their fair value in accordance with GAAP in effect at the time of the acquisitions. The principal valuation technique employed by Brookfield DTLA in determining the fair value of identified assets acquired and liabilities assumed is the income approach, which is then compared to the cost approach. Tangible values for investments in real estate are calculated based on replacement costs for like type quality assets. Above- and below-market lease values are determined by comparing in-place rents with current market rents. In‑place lease amounts are determined by calculating the potential lost revenue during the replacement of the current leases in place. Leasing commissions and legal/marketing fees are determined based upon market allowances pro-rated over the remaining lease terms. Mortgage loans assumed in an acquisition are analyzed using current market terms for similar debt. The value of the acquired above-market and below-market leases are amortized and recorded as either a decrease (in the case of above-market leases) or an increase (in the case of below-market leases) to rental income in the consolidated statement of operations over the remaining term of the associated lease. The value of tenant relationships is amortized over the expected term of the relationship, which includes an estimated probability of lease renewal. The value of in-place leases is amortized as an expense over the remaining life of the leases. Amortization of tenant relationships and in‑place leases is included in depreciation and amortization in the consolidated statement of operations. Investments in Real Estate— Land is carried at cost. Buildings are recorded at historical cost and are depreciated on a straight‑line basis over the estimated useful life of the building, which is 60 years with an estimated salvage value of 5% . Building improvements are recorded at historical cost and are depreciated on a straight-line basis over their estimated useful lives, which range from 7 years to 25 years. Land improvements are combined with building improvements for financial reporting purposes and are carried at cost. Tenant improvements that are determined to be assets of Brookfield DTLA are recorded at cost; amortization is included in depreciation and amortization expense in the consolidated statement of operations on a straight‑line basis over the shorter of the useful life or the applicable lease term. Depreciation expense related to investments in real estate during the years ended December 31, 2018 , 2017 and 2016 was $75.7 million , $73.6 million and $73.0 million , respectively. Real estate is reviewed for impairment if events or changes in circumstances indicate that the carrying amount of the real estate may not be recoverable. In such an event, a comparison is made of the current and projected operating cash flows of the property into the foreseeable future on an undiscounted basis to the carrying amount of the real estate. If the undiscounted cash flows expected to be generated by an asset are less than its carrying amount, an impairment provision would be recorded to write down the carrying amount of such asset to its fair value. Brookfield DTLA assesses fair value based on estimated cash flow projections utilizing appropriate discount and capitalization rates and available market information. Projections of future cash flow take into account the specific business plan for the property and management’s best estimate of the most probable set of economic conditions expected to prevail in the market. Management believes no impairment of Brookfield DTLA’s real estate assets existed at December 31, 2018 and 2017 . Cash and Cash Equivalents— Cash and cash equivalents include all cash and short-term investments with an original maturity of three months or less. Restricted Cash— Restricted cash consists primarily of deposits for tenant improvements and leasing commissions, real estate taxes, debt service reserves and other items as required by certain of our mortgage loan agreements. Rents, Deferred Rents and Other Receivables, Net— Differences between rental income and the contractual amounts due are recorded as deferred rents receivable in the consolidated balance sheet. Brookfield DTLA evaluates its deferred rents receivable to consider if an allowance is necessary. Rents, deferred rents and other receivables, net also includes amounts paid to a tenant for improvements owned or costs incurred by the tenant. Such amounts are treated as tenant inducements and are presented in the consolidated balance sheet net of accumulated amortization totaling $16.7 million and $12.5 million as of December 31, 2018 and 2017 , respectively. Amortization of tenant inducements is recorded on a straight-line basis over the term of the related lease as a reduction of rental income in the consolidated statement of operations. Brookfield DTLA periodically evaluates the collectability of amounts due from tenants and maintains an allowance for doubtful accounts in the consolidated balance sheet for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. Management exercises judgment in establishing these allowances and considers payment history and current credit status in developing these estimates. The allowance for doubtful accounts for Brookfield DTLA totaled $314 thousand and $206 thousand as of December 31, 2018 and 2017 , respectively. During the years ended December 31, 2018 , 2017 and 2016 , Brookfield DTLA recorded a provision for doubtful accounts of $190 thousand , and recoveries of accounts of $7 thousand and $271 thousand , respectively. Due to/from Affiliates, Net— Amounts due to/from affiliates, net consist of related party receivables and payables from affiliates of BAM primarily for fees for property and asset management and other services. These amounts are due on demand and are non‑interest bearing. See Note 12 “Related Party Transactions.” Deferred Charges, Net— Leasing costs are deferred and are presented as deferred charges in the consolidated balance sheet net of accumulated amortization totaling $50.3 million and $39.8 million as of December 31, 2018 and 2017 , respectively. Deferred leasing costs are amortized on a straight‑line basis over the terms of the related leases as part of depreciation and amortization expense in the consolidated statement of operations. Prepaid and Other Assets, Net— Prepaid and other assets, net include prepaid insurance, real estate taxes and interest, fair value of derivative financial instruments, other operating costs and non-operating furniture and equipment, net of accumulated depreciation totaling $4.6 million and $4.3 million , as of December 31, 2018 and 2017 , respectively. Mortgage Loans, Net— Mortgage loans are presented in the consolidated balance sheet net of unamortized debt issuance costs totaling $11.0 million and $10.1 million as of December 31, 2018 and 2017 , respectively. Debt issuance costs and discounts totaling $9.6 million , $6.4 million and $4.3 million were amortized during the years ended December 31, 2018 , 2017 and 2016 , respectively, over the terms of the related mortgage loans on a basis that approximates the effective interest method and are included as part of interest expense in the consolidated statement of operations. Revenue Recognition— Rental income from leases providing for periodic increases in base rent is recognized on a straight-line basis over the noncancelable term of the respective leases. Certain leases with retail tenants also provide for the payment by the lessee of additional rent based on a percentage of the tenant’s sales. Percentage rents are recognized only after the tenant sales thresholds have been achieved. Recoveries of operating expenses and real estate taxes are recorded as tenant reimbursements in the consolidated statement of operations in the period during which the expenses are incurred. Derivative Financial Instruments— Brookfield DTLA uses interest rate swap and cap derivative financial instruments to manage risk from fluctuations in interest rates. Interest rate swaps involve the receipt of variable-rate amounts in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying principal amount. Interest rate caps involve the receipt of variable-rate amounts beyond a specified strike price over the life of the contracts without exchange of the underlying principal amount. The Company believes these contracts are with counterparties who are creditworthy financial institutions. At the inception of the contracts, Brookfield DTLA designates its interest rate swap contracts as cash flow hedges and documents the relationship of the hedge to the underlying transaction. Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the consolidated statement of operations. Changes in fair value of cash flow hedge derivative financial instruments are deferred and recorded as part of accumulated other comprehensive loss in the consolidated statement of stockholders’ deficit until the underlying transaction affects earnings. In the event that an anticipated transaction is no longer likely to occur, the Company recognizes the change in fair value of the derivative financial instrument in its consolidated statement of operations in the period the determination is made. Additionally, Brookfield DTLA uses interest rate cap contracts to limit impact of changes in the LIBOR rate on certain of its mortgage and mezzanine loans. Due to the short-term nature of the contracts involved, the Company does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statement of operations. Segment Reporting Brookfield DTLA currently operates in a single reportable segment referred to as its office segment, which includes the operation and management of commercial office properties. Each of Brookfield DTLA’s operating properties is considered a separate operating segment, as each property earns revenues and incurs expenses, individual operating results are reviewed and discrete financial information is available. Management does not distinguish or group Brookfield DTLA’s consolidated operations based on geography, size or type. Brookfield DTLA’s operating properties have similar economic characteristics and provide similar products and services to tenants. As a result, Brookfield DTLA’s operating properties are aggregated into a single reportable segment. Accounting for Conditional Asset Retirement Obligations Brookfield DTLA has evaluated whether it has any conditional asset retirement obligations, which are a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional upon future events that may or may not be within an entity’s control. The obligation to perform the asset retirement activity is unconditional even though uncertainty exists about the timing and/or method of settlement. Accordingly, Brookfield DTLA recognized a liability for a conditional asset retirement obligation in the consolidated balance sheet as of December 31, 2018 and 2017 . |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Liabilities | Intangible Assets and Liabilities Brookfield DTLA’s intangible assets and liabilities are summarized as follows (in thousands): As of December 31, 2018 2017 Intangible Assets In-place leases $ 66,365 $ 66,365 Tenant relationships 30,078 30,078 Above-market leases 31,270 31,270 Intangible assets, gross 127,713 127,713 Less: accumulated amortization 83,073 69,424 Intangible assets, net $ 44,640 $ 58,289 Intangible Liabilities Below-market leases $ 59,561 $ 59,561 Less: accumulated amortization 47,107 43,322 Intangible liabilities, net $ 12,454 $ 16,239 The impact of the amortization of acquired below-market leases, net of acquired above-market leases, on rental income and of acquired in-place leases and tenant relationships on depreciation and amortization expense is as follows (in thousands): For the Year Ended December 31, 2018 2017 2016 Rental income $ (222 ) $ 2,218 $ 3,465 Depreciation and amortization expense 9,642 13,527 19,609 As of December 31, 2018 , the estimate of the amortization/accretion of intangible assets and liabilities during the next five years and thereafter is as follows (in thousands): In-Place Leases Other Intangible Assets Intangible Liabilities 2019 $ 5,742 $ 4,043 $ 3,223 2020 4,786 3,228 2,975 2021 4,533 3,171 2,797 2022 3,847 2,944 2,460 2023 2,221 2,569 674 Thereafter 2,975 4,581 325 $ 24,104 $ 20,536 $ 12,454 |
Mortgage Loans
Mortgage Loans | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Mortgage Loans | Mortgage Loans Brookfield DTLA’s debt is as follows (in thousands, except dates and percentage amounts): Contractual Maturity Date Principal Amount as of December 31, Interest Rate 2018 2017 Floating-Rate Debt Variable-Rate Loans: Wells Fargo Center–North Tower (1) 10/9/2020 4.11 % $ 400,000 $ — Wells Fargo Center–North Tower (2) 10/9/2020 6.46 % 65,000 — Wells Fargo Center–North Tower (3) 10/9/2020 7.46 % 35,000 — Wells Fargo Center–South Tower (4) 11/4/2021 4.15 % 258,186 — 777 Tower (5) 11/1/2019 4.53 % 220,000 220,000 EY Plaza (6) 11/27/2020 6.90 % 35,000 — Total variable-rate loans 1,013,186 220,000 Variable-Rate Swapped to Fixed-Rate Loan: EY Plaza (7) 11/27/2020 3.90 % 230,000 — Total floating-rate debt 1,243,186 220,000 Fixed-Rate Debt: BOA Plaza 9/1/2024 4.05 % 400,000 400,000 Gas Company Tower 8/6/2021 3.47 % 319,000 319,000 Gas Company Tower 8/6/2021 6.50 % 131,000 131,000 Figueroa at 7th 3/1/2023 3.88 % 58,500 — Total fixed-rate debt 908,500 850,000 Debt Refinanced: Wells Fargo Center–North Tower — 470,000 Wells Fargo Center–South Tower — 250,000 EY Plaza — 176,831 Figueroa at 7th — 35,000 Total debt refinanced — 931,831 Total debt 2,151,686 2,001,831 Less: unamortized debt issuance costs 10,962 10,139 Total debt, net $ 2,140,724 $ 1,991,692 __________ (1) This loan bears interest at LIBOR plus 1.65% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of this loan, each for a period of one year, as long as the maturity dates of both of the mezzanine loans are extended when the maturity date of the mortgage loan is extended. (2) This loan bears interest at LIBOR plus 4.00% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of this loan, each for a period of one year, as long as the maturity date of the other mezzanine loan is extended when the maturity date of the mortgage loan is extended. (3) This loan bears interest at LIBOR plus 5.00% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of this loan, each for a period of one year, as long as the maturity date of the other mezzanine loan is extended when the maturity date of the mortgage loan is extended. (4) This loan bears interest at LIBOR plus 1.80% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 4.50% . Brookfield DTLA has two options to extend the maturity date of this loan, each for a period of one year. As of December 31, 2018 , a future advance amount of $31.8 million is available under this loan that can be drawn by the Company to fund approved leasing costs (as defined in the underlying loan agreement), including tenant improvements and inducements, leasing commissions, and common area improvements. (5) This loan bears interest at LIBOR plus 2.18% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 5.75% . Brookfield DTLA has one option to extend the maturity date of this loan for a period of one year, subject to meeting certain debt yield and loan to value ratios (as specified in the loan agreement). As of December 31, 2018 , we do not meet the criteria specified in the loan agreement to extend this loan. See “—Debt Maturities—777 Tower” below. (6) This loan bears interest at LIBOR plus 4.55% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 3.50% . (7) This loan bears interest at LIBOR plus 1.65% . As required by the loan agreement, we have entered into interest rate swap contracts to hedge this loan, which effectively fix the LIBOR portion of the interest rate at 2.27% . The effective interest rate of 3.90% includes interest on the swaps. The weighted average interest rate of our debt was 4.34% and 4.29% as of December 31, 2018 and 2017 , respectively. Debt Refinanced Figueroa at 7th— On February 6, 2018 , Brookfield DTLA refinanced the mortgage loan secured by the Figueroa at 7th retail property and received net proceeds totaling $58.0 million , of which $35.0 million was used to repay the mortgage loan that previously encumbered the property, with the remainder used for general corporate purposes. The new $58.5 million loan bears interest at a fixed rate equal to 3.88% , requires the payment of interest-only until maturity, and matures on March 1, 2023. The loan is locked out from prepayment until March 1, 2020 , after which it can be prepaid, in whole or in part, with prepayment fees (as defined in the underlying loan agreement) until November 1, 2022 , after which the loan may be repaid without penalty. EY Plaza— On March 29, 2018 , Brookfield DTLA refinanced the mortgage loan secured by the EY Plaza office property and received net proceeds totaling $263.4 million , of which $175.8 million was used to repay the mortgage loan that previously encumbered the property, with the remainder used for general corporate purposes. The new $265.0 million loan is comprised of a $230.0 million mortgage loan and a $35.0 million mezzanine loan, each of which bears interest at variable rates equal to LIBOR plus 1.65% and 4.55% , respectively, requires the payment of interest-only until maturity, and matures on November 27, 2020 . The mortgage loan can be prepaid, in whole or in part, with prepayment fees (as defined in the underlying loan agreement) and payment of early termination fees to the counterparties to the interest rate swap contracts, as long as the mezzanine loan has been repaid in full prior to any prepayment of the mortgage loan. As required by the mortgage and mezzanine loan agreements, on March 29, 2018 the Company entered into derivative financial instruments to manage the risk of fluctuations in interest rates on its consolidated statement of operations. See Note 11 “Financial Instruments.” Wells Fargo Center–North Tower— On September 21, 2018 , Brookfield DTLA refinanced the mortgage and mezzanine loans secured by the Wells Fargo Center–North Tower office property and received net proceeds totaling $496.0 million , of which $470.0 million was used to repay the loans that previously encumbered the property, with the remainder used for general corporate purposes. The new $500.0 million loan is comprised of a $400.0 million mortgage loan, a $65.0 million mezzanine loan, and a $35.0 million mezzanine loan, each of which bears interest at variable rates equal to LIBOR plus 1.65% , 4.00% , and 5.00% , respectively, requires the payment of interest-only until maturity, and matures on October 9, 2020 . The mortgage loan can be prepaid, in whole or in part, with prepayment fees (as defined in the underlying loan agreement), as long as the mezzanine loans are repaid on a pro rata basis with the mortgage loan, until October 9, 2019 , after which the loan may be repaid without penalty. Brookfield DTLA has three options to extend the maturity dates of the mortgage and mezzanine loans, each for a period of one year, as long as the maturity dates of both of the mezzanine loans are extended when the maturity date of the mortgage loan is extended. As required by the mortgage and mezzanine loan agreements, on September 21, 2018 the Company entered into derivative financial instruments to manage the risk of fluctuations in interest rates on its consolidated statement of operations. See Note 11 “Financial Instruments.” Wells Fargo Center–South Tower— On November 5, 2018 , Brookfield DTLA refinanced the mortgage loan secured by the Wells Fargo Center–South Tower office property and received net proceeds totaling $250.0 million that were used to repay the loan that previously encumbered the property. The Company incurred costs totaling $3.5 million in connection with this transaction, of which $3.0 million were paid using proceeds from the refinancing and $0.5 million using cash on hand. The new $290.0 million mortgage loan is comprised of an initial advance amount of $253.0 million and a maximum future advance amount of $37.0 million that can be drawn by the Company to fund approved leasing costs (as defined in the underlying loan agreement), including tenant improvements and inducements, leasing commissions, and common area improvements. The loan bears interest at a variable rate of LIBOR plus 1.80% , matures on November 4, 2021 , and requires the payment of interest-only until maturity. The loan can be prepaid, in whole or in part, with prepayment fees (as defined in the underlying loan agreement) until November 5, 2019 , after which the loan can be repaid without penalty. Brookfield DTLA has two options to extend the maturity date of the loan, each for a period of one year. During the year ended December 31, 2018 , the Company received $5.2 million from the lender for approved leasing costs under the future advance portion of the mortgage loan. As of December 31, 2018 , an advance amount of $31.8 million remains available under this loan that can be drawn to fund future approved leasing costs. As required by the mortgage loan agreement, on November 5, 2018 the Company entered into a derivative financial instrument to manage the risk of fluctuations in interest rates on its consolidated statement of operations. See Note 11 “Financial Instruments.” Debt Extension 777 Tower— On October 31, 2018 , Brookfield DTLA extended the maturity date of the mortgage loan secured by the 777 Tower office property for a period of one year to November 1, 2019 . The Company incurred costs totaling approximately $0.8 million in connection with this transaction that were paid using cash on hand. As required by the extension agreement, on October 15, 2018 the Company entered into a derivative financial instrument to manage the risk of fluctuations in interest rates on its consolidated statement of operations. See Note 11 “Financial Instruments.” Debt Maturities As Brookfield DTLA’s debt matures, principal payment obligations present significant future cash requirements. As of December 31, 2018 , our debt to be repaid during the next five years and thereafter is as follows (in thousands): 2019 $ 220,000 2020 765,000 2021 708,186 2022 — 2023 58,500 Thereafter 400,000 $ 2,151,686 As of December 31, 2018 , $220.0 million of our debt may be prepaid without penalty, $400.0 million may be defeased (as defined in the underlying loan agreement), $1,473.2 million may be prepaid with prepayment penalties, and $58.5 million is locked out from prepayment until March 1, 2020 . 777 Tower— Brookfield DTLA currently intends to refinance the mortgage loan secured by the 777 Tower office property on or about November 1, 2019 , its scheduled maturity date. As of December 31, 2018 , we do not meet the criteria specified in the loan agreement to extend the maturity date of this loan. As of December 31, 2018 , the Company does not expect to make a principal paydown when the loan is refinanced (based on current market conditions). There can be no assurance that this refinancing can be accomplished or what terms will be available in the market for this type of financing at the time of any refinancing. Non-Recourse Carve Out Guarantees All of Brookfield DTLA’s $2.2 billion of mortgage debt is subject to “non-recourse carve out” guarantees that expire upon elimination of the underlying loan obligations. In connection with all of these loans, Brookfield DTLA entered into “non-recourse carve out” guarantees, which provide for these otherwise non-recourse loans to become partially or fully recourse against DTLA Holdings or one of its subsidiaries, if certain triggering events (as defined in the loan agreements) occur. Although these events differ from loan to loan, some of the common events include: • The special purpose property-owning subsidiary of DTLA Holdings or DTLA Holdings filing a voluntary petition for bankruptcy; • The special purpose property-owning subsidiary of DTLA Holdings’ failure to maintain its status as a special purpose entity; • Subject to certain conditions, the special purpose property-owning subsidiary of DTLA Holdings’ failure to obtain the lender’s written consent prior to any subordinate financing or other voluntary lien encumbering the associated property; and • Subject to certain conditions, the special purpose property-owning subsidiary of DTLA Holdings’ failure to obtain the lender’s written consent prior to a transfer or conveyance of the associated property, including, in some cases, indirect transfers in connection with a change in control of DTLA Holdings or Brookfield DTLA. In addition, other items that are customarily recourse to a non-recourse carve out guarantor include, but are not limited to, the payment of real property taxes, the breach of representations related to environmental issues or hazardous substances, physical waste of the property, liens which are senior to the mortgage loan and outstanding security deposits. The maximum amount DTLA Holdings would be required to pay under a “non‑recourse carve out” guarantee is the principal amount of the loan (or a total of $2.2 billion as of December 31, 2018 for all loans). This maximum amount does not include liabilities related to environmental issues or hazardous substances. Losses resulting from the breach of our loan agreement representations related to environmental issues or hazardous substances are generally recourse to DTLA Holdings pursuant to the “non-recourse carve out” guarantees and any such losses would be in addition to the total principal amounts of the loans. The potential losses are not quantifiable and can be material in certain circumstances, depending on the severity of the environmental or hazardous substance issues. Since each of our non-recourse loans is secured by the office building owned by the special purpose property-owning subsidiary of DTLA Holdings, the amount due to the lender from DTLA Holdings in the event a “non-recourse carve out” guarantee is triggered could subsequently be partially or fully mitigated by the net proceeds received from any disposition of the office building; however, such proceeds may not be sufficient to cover the maximum potential amount due, depending on the particular asset. Debt Reporting Compliance Pursuant to the terms of certain of our mortgage loan agreements, Brookfield DTLA is required to report a debt service coverage ratio (“DSCR”) calculated using the formulas specified in the underlying loan agreements. We have submitted the required reports to the lenders for the measurement periods ended December 31, 2018 and were in compliance with the amounts required by the loan agreements. |
Mezzanine Equity
Mezzanine Equity | 12 Months Ended |
Dec. 31, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Mezzanine Equity | Mezzanine Equity Mezzanine equity in the consolidated balance sheet is comprised of the Series A preferred stock, a Series A-1 preferred interest, a senior participating preferred interest, and a Series B preferred interest (collectively, the “Preferred Interests”). The Series A-1 preferred interest, senior participating preferred interest and Series B preferred interest are held by a noncontrolling interest holder. The Preferred Interests are classified in mezzanine equity because they are callable, and the holder of the Series A-1 preferred interest, senior participating preferred interest, Series B preferred interest, and some of the Series A preferred stock indirectly controls the ability to elect to redeem such instruments, through its controlling interest in the Company and its subsidiaries. There is no commitment or obligation on the part of Brookfield DTLA or DTLA Holdings to redeem the Preferred Interests. The Preferred Interests included within mezzanine equity were recorded at fair value on the date of issuance and have been adjusted to the greater of their carrying amount or redemption value as of December 31, 2018 and 2017 . Adjustments to increase the carrying amount to redemption value are recorded in the consolidated statement of operations as a redemption measurement adjustment. Distributions During the years ended December 31, 2018 , 2017 and 2016 , the Company made distributions using cash on hand totaling $30.1 million , $0.5 million and $0.6 million , respectively, to DTLA Holdings related to the Series B preferred and senior participating preferred interests during 2018 and the senior participating preferred interest during 2017 and 2016 , respectively. Series A Preferred Stock Brookfield DTLA is authorized to issue up to 10,000,000 shares of Series A preferred stock, $0.01 par value per share, with a liquidation preference of $25.00 per share. As of December 31, 2018 and 2017 , 9,730,370 shares of Series A preferred stock were outstanding, of which 9,357,469 shares were issued to third parties and 372,901 shares were issued to DTLA Fund Holding Co., a subsidiary of DTLA Holdings. No dividends were declared on the Series A preferred stock during the years ended December 31, 2018 , 2017 and 2016 . Dividends on the Series A preferred stock are cumulative, and therefore, will continue to accrue at an annual rate of $1.90625 per share. As of December 31, 2018 , the cumulative amount of unpaid dividends totals $166.7 million and has been reflected in the carrying amount of the Series A preferred stock. During the year ended December 31, 2016 , Brookfield DTLA paid a cash dividend of $2.25 per share to holders of record of its Series A preferred stock at the close of business on December 15, 2015 using cash on hand. This dividend payment reduced the accumulated and unpaid dividends owed on the Series A preferred stock by $21.9 million . The dividend was declared on December 4, 2015 by the board of directors in connection with the settlement on a class-wide basis of the litigation brought in Maryland State Court and styled as In re MPG Office Trust Inc. Preferred Shareholder Litigation , Case No. 24‑C-13-004097. The Series A preferred stock does not have a stated maturity and is not subject to any sinking fund or mandatory redemption provisions. Upon liquidation, dissolution or winding up, the Series A preferred stock will rank senior to our common stock with respect to the payment of distributions. We may, at our option, redeem the Series A preferred stock, in whole or in part, for cash at a redemption price of $25.00 per share, plus all accumulated and unpaid dividends on such Series A preferred stock up to and including the redemption date. The Series A preferred stock is not convertible into or exchangeable for any other property or securities of Brookfield DTLA. As of December 31, 2018 , the Series A preferred stock is reported at its redemption value of $409.9 million calculated using the redemption price of $25.00 per share plus all accumulated and unpaid dividends on such Series A preferred stock through December 31, 2018 . Series A-1 Preferred Interest The Series A-1 preferred interest is held by DTLA Holdings or wholly owned subsidiaries of DTLA Holdings. The Series A-1 preferred interest has mirror rights to the Series A preferred interests issued by New OP, which are held by a wholly owned subsidiary of Brookfield DTLA. The Series A-1 preferred interest shares pro rata with the Series A preferred interest in distributions from New OP at the rate of 48.13% to the Series A-1 preferred interest and 51.87% to the Series A preferred interest until their accumulated and unpaid dividends and preferred liquidation preferences have been reduced to zero. Thereafter, distributions will be made 47.66% to the common component of the Series A interest and 52.34% to the common component of the Series B interest, which is held by DTLA Holdings. The economic terms of the Series A preferred stock mirror those of the New OP Series A preferred interests, including distributions in respect of the preferred liquidation preference. As of December 31, 2018 , the Series A-1 preferred interest is reported at its redemption value of $400.8 million calculated using its liquidation value of $225.7 million plus $175.1 million of accumulated and unpaid dividends on such Series A-1 preferred interest through December 31, 2018 . Senior Participating Preferred Interest Brookfield DTLA Fund Properties III LLC (“DTLA OP”) issued a senior participating preferred interest to DTLA Holdings in connection with the formation of Brookfield DTLA and the MPG acquisition. The senior participating preferred interest represents a 4.0% participating interest in the residual value of DTLA OP. During the years ended December 31, 2018 , 2017 and 2016 , Brookfield DTLA made distributions totaling $3.6 million , $0.5 million and $0.6 million , respectively, to DTLA Holdings as returns of investment related to the senior participating preferred interest held using cash on hand. Additionally, the Company received a cash contribution of $0.5 million during the year ended December 31, 2017 from DTLA Holdings, which was used for general corporate purposes. As of December 31, 2018 , the senior participating preferred interest is reported at its redemption value of $23.4 million using the value of the participating interest. Series B Preferred Interest At the time of the merger with MPG, DTLA Holdings made a commitment to make capital contributions in cash or property to New OP, which directly or indirectly owns the Brookfield DTLA properties, to fund up to $260.0 million of its future cash needs, for which it will be entitled to receive a market rate of return determined at the time of contribution (“preferred return”). As of December 31, 2018 , $85.2 million is available to the Company under this commitment for future funding. The Series B preferred interest in New OP held by DTLA Holdings is effectively senior to the interest in New OP held by Brookfield DTLA and has a priority on distributions senior to the equity securities of such subsidiaries held indirectly by Brookfield DTLA and, as a result, effectively rank senior to the Series A preferred stock. The Series B preferred interest in New OP may limit the amount of funds available to Brookfield DTLA for any purpose, including for dividends or other distributions to holders of its capital stock, including the Series A preferred stock. During the year ended December 31, 2017 , the Company received cash contributions totaling $111.5 million from DTLA Holdings, which are entitled to a 9.0% preferred return as part of the Series B preferred interest. The Company used the funds received to pay for costs associated with the refinancing of the Wells Fargo Center–North Tower mortgage loan, including a principal paydown and transaction costs, and for general corporate purposes. During the year ended December 31, 2016 , the Company received cash contributions totaling $63.3 million from DTLA Holdings under this commitment, which are entitled to a 9.0% preferred return as part of the Series B preferred interest. The Company used the funds received to pay for costs associated with the refinancing of the Wells Fargo Center–South Tower and Gas Company Tower mortgage loans, including principal paydowns and funding of loan reserves, and for general corporate purposes. During the year ended December 31, 2018 , Brookfield DTLA made distributions totaling $26.6 million to DTLA Holdings as preferred returns on the Series B preferred interest using cash on hand. As of December 31, 2018 , the Series B preferred interest is reported at its redemption value of $181.7 million calculated using its liquidation value of $174.8 million plus $6.9 million of unpaid preferred returns on such Series B preferred interest through December 31, 2018 . Change in Mezzanine Equity A summary of the change in mezzanine equity is as follows (in thousands, except share amounts): Number of Shares of Series A Preferred Stock Series A Preferred Stock Noncontrolling Interests Total Mezzanine Equity Series A-1 Preferred Interest Senior Participating Preferred Interest Series B Preferred Interest Balance, December 31, 2015 9,730,370 $ 354,304 $ 349,084 $ 23,207 $ — $ 726,595 Issuance of Series B preferred interest 63,280 63,280 Current dividends 18,548 17,213 — — 35,761 Current preferred return 2,084 2,084 Redemption measurement adjustment 2,428 2,428 Distributions to holders (616 ) — (616 ) Balance, December 31, 2016 9,730,370 372,852 366,297 25,019 65,364 829,532 Issuance of Series B preferred interest 111,492 111,492 Current dividends 18,548 17,213 — — 35,761 Current preferred return 13,435 13,435 Redemption measurement adjustment 479 479 Contribution from holders 520 520 Distributions to holders (470 ) — (470 ) Balance, December 31, 2017 9,730,370 391,400 383,510 25,548 190,291 990,749 Issuance of Series B preferred interest — — Current dividends 18,532 17,306 — — 35,838 Current preferred return 17,961 17,961 Redemption measurement adjustment 1,482 1,482 Distributions to holders (3,587 ) (26,554 ) (30,141 ) Balance, December 31, 2018 9,730,370 $ 409,932 $ 400,816 $ 23,443 $ 181,698 $ 1,015,889 |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders’ Deficit Brookfield DTLA is authorized to issue up to 1,000,000 shares of common stock, $0.01 par value per share. As of December 31, 2018 and 2017 , 1,000 shares of common stock were issued and outstanding. No dividends were declared on the common stock during the years ended December 31, 2018 , 2017 and 2016 . Brookfield DTLA has not paid any cash dividends on its common stock in the past. Any future dividends declared would be at the discretion of Brookfield DTLA’s board of directors and would depend on its financial condition, results of operations, contractual obligations and the terms of its financing agreements at the time a dividend is considered, and other relevant factors. During the years ended December 31, 2018 and 2016 , Brookfield DTLA received capital contributions totaling $1.6 million and $2.5 million , respectively, from DTLA Holdings, which were used for general corporate purposes. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Mezzanine Equity Component The Series A-1 preferred interest, senior participating preferred interest and Series B preferred interest consist of equity interests of New OP, DTLA OP and New OP, respectively, which are owned directly by DTLA Holdings. These noncontrolling interests are presented as mezzanine equity in the consolidated balance sheet. See Note 5 “Mezzanine Equity.” Stockholders’ Deficit Component The Series B common interest ranks junior to the Series A preferred stock as to dividends and upon liquidation and is presented in the consolidated balance sheet as noncontrolling interest. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss A summary of the change in accumulated other comprehensive loss related to Brookfield DTLA’s derivative financial instruments designated as cash flow hedges is as follows (in thousands): For the Year Ended December 31, 2018 2017 2016 Balance at beginning of year $ (574 ) $ (3,373 ) $ (5,415 ) Other comprehensive income before reclassifications 1,548 2,799 2,042 Amounts reclassified from accumulated (1,198 ) — — Net current-year other comprehensive income 350 2,799 2,042 Balance at end of year $ (224 ) $ (574 ) $ (3,373 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Taxes Brookfield DTLA has elected to be taxed as a real estate investment trust (“REIT”) pursuant to Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its tax period ended December 31, 2013. Brookfield DTLA conducts and intends to conduct its operations so as to continue to qualify as a REIT. Accordingly, Brookfield DTLA is not subject to U.S. federal income tax, provided that it continues to qualify as a REIT and distributions to its stockholders, if any, generally equal or exceed its taxable income. Brookfield DTLA has elected to treat certain of its subsidiaries as taxable REIT subsidiaries (“TRS”). Certain activities that we undertake must be conducted by a TRS, such as non‑customary services for our tenants, and holding assets that we cannot hold directly. A TRS is subject to both federal and state income taxes. Our TRS did not have significant tax provisions or deferred income tax items for the years ended December 31, 2018 , 2017 and 2016 . Qualification and taxation as a REIT depends upon Brookfield DTLA’s ability to meet the various qualification tests imposed under the Code related to annual operating results, asset diversification, distribution levels and diversity of stock ownership. Accordingly, no assurance can be given that Brookfield DTLA will be organized or be able to operate in a manner so as to continue to qualify or remain qualified as a REIT. If Brookfield DTLA fails to qualify as a REIT in any taxable year, we will be subject to federal and state income tax on our taxable income at regular corporate tax rates, and we may be ineligible to qualify as a REIT for four subsequent tax years. Brookfield DTLA may be subject to certain state or local income taxes, or franchise taxes on its REIT activities. Brookfield DTLA’s taxable income or loss is different than its financial statement income or loss. As of December 31, 2018 and 2017 , Brookfield DTLA had net operating loss carryforwards totaling $288 million and $240 million , respectively, which expire between 2033 and 2038 . On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act amended the Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. Effective January 1, 2018, the Act reduced the corporate tax rate from a maximum rate of 35% to a flat rate of 21% for businesses. Since Brookfield DTLA has elected to qualify as a REIT with the intent of distributing 100% of its taxable income, there was no material impact to the Company’s consolidated financial statements. Uncertain Tax Positions Brookfield DTLA recognizes tax benefits from uncertain tax positions when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more likely than not recognition threshold. Brookfield DTLA has no unrecognized tax benefits as of December 31, 2018 and 2017 , and does not expect its unrecognized tax benefits balance to change during the next 12 months. As of December 31, 2018 , Brookfield DTLA’s 2013 tax period and 2014, 2015, 2016 and 2017 tax years remain open due to the statute of limitations and may be subject to examination by federal, state and local authorities. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The valuation of Brookfield DTLA’s derivative financial instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of the derivatives. These analyses reflect the contractual terms of the derivatives, including the period to maturity, and use observable market-based inputs, including interest rate curves and implied volatilities. We have incorporated credit valuation adjustments to appropriately reflect both our own and the respective counterparty’s non-performance risk in the fair value measurements. Brookfield DTLA’s assets (liabilities) measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall, are as follows (in thousands): Fair Value Measurements Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest rate swaps at: December 31, 2018 $ 974 $ — $ 974 $ — December 31, 2017 (574 ) — (574 ) — December 31, 2016 (3,373 ) — (3,373 ) — Interest rate caps at: December 31, 2018 $ 11 $ — $ 11 $ — December 31, 2017 15 — 15 — December 31, 2016 53 — 53 — |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Derivative Financial Instruments A summary of the fair value of Brookfield DTLA’s derivative financial instruments is as follows (in thousands): Fair Value as of December 31, 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ 974 $ (574 ) Derivatives not designated as hedging instruments: Interest rate caps 11 15 Interest rate swap assets and caps are included in prepaid and other assets, net and interest rate swap liabilities are included in accounts payable and other liabilities in the consolidated balance sheet. A summary of the effect of derivative financial instruments reported in the consolidated financial statements is as follows (in thousands): Amount of Gain Recognized in AOCL Amount of Gain Reclassified from AOCL to Statement of Operations Derivatives designated as hedging instruments: Interest rate swaps for the year ended: December 31, 2018 $ 1,548 $ 1,198 December 31, 2017 2,799 — December 31, 2016 2,042 — The gain reclassified from accumulated other comprehensive loss during the year ended December 31, 2018 is included as part of interest and other revenue in the consolidated statement of operations. Changes in the fair value of interest rate caps during the years ended December 31, 2018 , 2017 and 2016 had an immaterial impact on the Company’s consolidated statements of operations. Interest Rate Swaps— As of December 31, 2018 , Brookfield DTLA held the following interest rate swap contracts pursuant to the terms of the EY Plaza mortgage loan agreement (in thousands, except percentages and dates): Notional Amount Swap Rate LIBOR Spread Effective Interest Rate Expiration Date Interest rate swap $ 172,600 2.18 % 1.65 % 3.83 % 11/2/2020 Interest rate swap 54,206 2.47 % 1.65 % 4.12 % 11/2/2020 $ 226,806 2.27 % 1.65 % 3.90 % As required by the EY Plaza mortgage loan agreement, on March 29, 2018 the Company entered into an interest rate swap contract with a notional amount of $54.2 million and a swap rate of 2.47% , which effectively fixes the LIBOR portion of the interest rate at 4.12% . The swap requires net settlement each month. Interest Rate Caps— Brookfield DTLA holds interest rate cap contracts pursuant to the terms of certain of its mortgage and mezzanine loan agreements with the following notional amounts (in thousands): As of December 31, 2018 2017 Wells Fargo Center–North Tower $ 400,000 $ 370,000 Wells Fargo Center–North Tower 65,000 55,000 Wells Fargo Center–North Tower 35,000 45,000 Wells Fargo Center–South Tower 290,000 270,000 777 Tower 220,000 220,000 EY Plaza 35,000 — $ 1,045,000 $ 960,000 As required by the EY Plaza mezzanine loan agreement, on March 29, 2018 the Company entered into an interest rate cap contract with a notional amount of $35.0 million that limits the LIBOR portion of the interest rate to 3.50% . The cap contract expires on October 1, 2019 . As required by the Wells Fargo Center–North Tower mortgage and mezzanine loan agreements, on September 21, 2018 the Company entered interest rate cap contracts with notional amounts totaling $500.0 million that limit the LIBOR portion of the interest rates to 4.25% . The cap contracts expire on October 15, 2020 . As required by the 777 Tower extension agreement, on October 15, 2018 the Company entered into an interest rate cap contract with a notional amount of $220.0 million that limits the LIBOR portion of the interest rate to 5.75% . The cap contract expires on November 1, 2019 . As required by the Wells Fargo Center–South Tower mortgage loan agreement, on November 5, 2018 the Company entered into an interest rate cap contract with a notional amount of $290.0 million that limits the LIBOR portion of the interest rate to 4.50% . The cap contract expires on November 4, 2020 . Other Financial Instruments Brookfield DTLA’s other financial instruments that are exposed to concentrations of credit risk consist primarily of cash and accounts receivable. Management routinely assesses the financial strength of its tenants and, as a consequence, believes that its accounts receivable credit risk exposure is limited. Brookfield DTLA places its temporary cash investments with federally insured institutions. Cash balances with any one institution may at times be in excess of the federally insured limits. The estimated fair value and carrying amount of Brookfield DTLA’s mortgage and mezzanine loans are as follows (in thousands): As of December 31, 2018 2017 Estimated fair value $ 2,142,813 $ 2,003,600 Carrying amount 2,151,686 2,001,831 We calculated the estimated fair value of our mortgage loans using methods and techniques appropriate for each loan after an observation of market participants and current lending markets. The primary techniques used are applications of the Income Approach which converts future amounts (for example, cash flows) to a single current (that is, discounted) amount using a risk adjusted discount rate. The estimated fair value of mortgage loans is classified as Level 3. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Management Agreements Certain subsidiaries of Brookfield DTLA have entered into arrangements with the Manager, pursuant to which the Manager provides property management and various other services. Property management fees under the management agreements entered into in connection with these arrangements are calculated based on 2.75% of rents collected (as defined in the management agreements). In addition, the Company pays the Manager an asset management fee, which is calculated based on 0.75% of the capital contributed by DTLA Holdings. Leasing management fees paid to the Manager range from 1.00% to 4.00% of expected rents, depending on the terms of the lease and whether a third-party broker was paid a commission for the transaction. Construction management fees are paid to the Manager based on 3.00% of hard and soft construction costs. A summary of costs incurred by the applicable subsidiaries Brookfield DTLA under these arrangements is as follows (in thousands): For the Year Ended December 31, 2018 2017 2016 Property management fee expense $ 8,111 $ 8,136 $ 7,964 Asset management fee expense 6,330 6,330 6,330 Leasing and construction management fee expenses 3,209 5,198 3,049 General, administrative and reimbursable expenses 3,007 2,613 2,466 Costs incurred under these arrangements are included in rental property operating and maintenance expense in the consolidated statement of operations, with the exception of asset management fee expense which is included in other expense. Insurance Agreements Properties held by certain Brookfield DTLA subsidiaries and affiliates are covered under insurance policies entered into by the Manager that provide, among other things, all risk property and business interruption coverage for BPY’s commercial portfolio with an aggregate limit of $2.5 billion per occurrence as well as an aggregate limit of $437.5 million of earthquake insurance, and $372.5 million of flood and weather catastrophe insurance. In addition, Brookfield DTLA’s properties are covered by a terrorism insurance policy that provides a maximum of $4.0 billion per occurrence for all of BPY’s U.S. properties. Brookfield DTLA is in compliance with the contractual obligations regarding terrorism insurance contained in such policies. Insurance premiums for Brookfield DTLA’s properties are paid by the Manager and Brookfield DTLA reimburses the Manager for the actual cost of such premiums. A summary of costs incurred by the applicable Brookfield DTLA subsidiaries and affiliates under this arrangement, which are included in rental property operating and maintenance expense in the consolidated statement of operations, is as follows (in thousands): For the Year Ended December 31, 2018 2017 2016 Insurance expense $ 8,026 $ 7,795 $ 7,948 Other Related Party Transactions with BAM Affiliates Brookfield DTLA leases office space to a tenant in which an affiliate of BAM is an investor. Additionally, the Company purchases chilled water for air conditioning at one of its properties from an affiliate of BAM. A summary of the impact of related party transactions with BAM affiliates on the Company’s consolidated statement of operations is as follows (in thousands): For the Year Ended December 31, 2018 2017 2016 Rental income and tenant reimbursements revenue $ 1,928 $ — $ — Rental property and maintenance expense 862 579 — |
Rental Income
Rental Income | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Rental Income | Rental Income Brookfield DTLA’s properties are leased to tenants under net operating leases with initial expiration dates ranging from 2019 to 2035 . The future minimum base rental income (on a non‑straight‑line basis) to be received under executed noncancelable tenant operating leases as of December 31, 2018 is as follows (in thousands): 2019 $ 160,732 2020 162,373 2021 162,175 2022 147,958 2023 130,674 Thereafter 587,950 $ 1,351,862 Certain leases with retail tenants also provide for the payment by the lessee of additional rent based on a percentage of the tenant’s sales. The amounts shown in the table above do not include percentage rents. The Company recorded percentage rents totaling $2.0 million , $3.1 million and $2.8 million during the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Concentration of Tenant Credit Risk Brookfield DTLA generally does not require collateral or other security from its tenants, other than security deposits or letters of credit. Our credit risk is mitigated by the high quality of our existing tenant base, review of prospective tenants’ risk profiles prior to lease execution, and frequent monitoring of our tenant portfolio to identify problem tenants. However, since we have a significant concentration of rental revenue from certain tenants, the inability of those tenants to make their lease payments could have a material adverse effect on our results of operations, cash flow or financial condition. A significant portion of Brookfield DTLA’s rental income and tenant reimbursements revenue is generated by a small number of tenants. No tenant accounted for more than 10% of our consolidated rental income and tenant reimbursements revenue during the years ended December 31, 2018 , 2017 and 2016 . Concentration of Property Revenue Risk During the years ended December 31, 2018 , 2017 and 2016 , EY Plaza, BOA Plaza, Wells Fargo Center–North Tower, Wells Fargo Center–South Tower, Gas Company Tower and 777 Tower each contributed more than 10% of Brookfield DTLA’s consolidated revenue. The revenue generated by these six properties totaled 98% , 100% and 100% of Brookfield DTLA’s consolidated revenue during the years ended December 31, 2018 , 2017 and 2016 , respectively. Litigation Brookfield DTLA and its subsidiaries may be subject to pending legal proceedings and litigation incidental to its business. After consultation with legal counsel, management believes that any liability that may potentially result upon resolution of such matters is not expected to have a material adverse effect on the Company’s business, financial condition or consolidated financial statements as a whole. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands) Year Ended December 31, 2018 Revenue $ 75,211 $ 84,194 $ 77,151 $ 79,124 Expenses 84,990 89,458 91,789 94,100 Net loss (9,779 ) (5,264 ) (14,638 ) (14,976 ) Net (loss) income attributable to noncontrolling interests: Series A-1 preferred interest – current dividends 4,303 4,303 4,303 4,397 Senior participating preferred interest – redemption measurement adjustment 1,657 768 220 (1,163 ) Series B preferred interest – current preferred return 3,879 3,921 3,965 6,196 Series B common interest – allocation of net (loss) income (12,695 ) (9,889 ) (14,531 ) 65,458 Net loss attributable to Brookfield DTLA (6,923 ) (4,367 ) (8,595 ) (89,864 ) Series A preferred stock – current dividends 4,637 4,637 4,637 4,621 Net loss available to common interest holders of Brookfield DTLA $ (11,560 ) $ (9,004 ) $ (13,232 ) $ (94,485 ) Year Ended December 31, 2017 Revenue $ 75,915 $ 76,070 $ 77,067 $ 77,270 Expenses 86,021 84,571 86,204 87,163 Net loss (10,106 ) (8,501 ) (9,137 ) (9,893 ) Net loss attributable to noncontrolling interests: Series A-1 preferred interest – current dividends 4,303 4,303 4,303 4,304 Senior participating preferred interest – redemption measurement adjustment 56 (191 ) 385 229 Series B preferred interest – current preferred return 1,644 3,861 3,965 3,965 Series B common interest – allocation of net loss (10,858 ) (11,050 ) (11,738 ) (12,053 ) Net loss attributable to Brookfield DTLA (5,251 ) (5,424 ) (6,052 ) (6,338 ) Series A preferred stock – current dividends 4,637 4,637 4,637 4,637 Net loss available to common interest holders of Brookfield DTLA $ (9,888 ) $ (10,061 ) $ (10,689 ) $ (10,975 ) |
Investments in Real Estate
Investments in Real Estate | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Investments in Real Estate | Investments in Real Estate A summary of information related to Brookfield DTLA’s investments in real estate as of December 31, 2018 is as follows (in thousands): Encum- brances Initial Cost to Company Costs Capitalized Subsequent to Acquisition Gross Amount at Which Carried at Close of Period Accum- ulated Depre- ciation (3) Year Acquired Land Buildings and Improve- ments Improve- ments Carrying Costs Land Buildings and Improve- ments (1) Total (2) Los Angeles, CA Wells Fargo Center– North Tower 333 S. Grand Avenue $ 500,000 $ 41,024 $ 456,363 $ 94,924 $ — $ 41,024 $ 551,287 $ 592,311 $ 70,932 2013 BOA Plaza 400,000 54,163 354,422 48,130 — 54,163 402,552 456,715 106,833 2006 Wells Fargo Center– South Tower 355 S. Grand Avenue 258,186 21,231 401,149 44,677 — 21,231 445,826 467,057 50,528 2013 Gas Company 450,000 20,742 396,159 65,881 — 20,742 462,040 482,782 51,813 2013 EY Plaza (4) 725 S. Figueroa 323,500 47,385 286,982 118,822 — 47,385 405,804 453,189 95,304 2006 777 Tower 777 S. Figueroa 220,000 38,010 303,697 24,759 — 38,010 328,456 366,466 42,795 2013 Development site at 755 S. Figueroa Street — 5,000 — 10,930 — 5,000 10,930 15,930 — $ 2,151,686 $ 227,555 $ 2,198,772 $ 408,123 $ — $ 227,555 $ 2,606,895 $ 2,834,450 $ 418,205 __________ (1) Land improvements are combined with building improvements for financial reporting purposes and are carried at cost. (2) The aggregate gross cost of Brookfield DTLA’s investments in real estate for federal income tax purposes approximated $2.6 billion as of December 31, 2018 . (3) Depreciation in the consolidated statement of operations is computed on a straight-line basis over the following estimated useful lives: buildings ( 60 years, with an estimated salvage value of 5% ), building improvements (ranging from 7 years to 25 years), and tenant improvements (the shorter of the useful life or the applicable lease term). (4) Includes the mortgage loan encumbering the Figueroa at 7th retail property. The following is a reconciliation of Brookfield DTLA’s investments in real estate (in thousands): For the Year Ended December 31, 2018 2017 2016 Investments in Real Estate Balance at beginning of year $ 2,756,322 $ 2,740,773 $ 2,675,249 Additions during the year: Improvements 78,128 75,847 65,524 Deductions during the year: Other (1) — 60,298 — Balance at end of year $ 2,834,450 $ 2,756,322 $ 2,740,773 __________ (1) During the year ended December 31, 2017 , the amount reported represents the cost of fully depreciated buildings and improvements and tenant improvements written off during the period. The following is a reconciliation of Brookfield DTLA’s accumulated depreciation on its investments in real estate (in thousands): For the Year Ended December 31, 2018 2017 2016 Accumulated Depreciation Balance at beginning of year $ 342,465 $ 329,149 $ 256,130 Additions during the year: Depreciation expense 75,740 73,614 73,019 Deductions during the year: Other (1) — 60,298 — Balance at end of year $ 418,205 $ 342,465 $ 329,149 __________ (1) During the year ended December 31, 2017 , the amount reported represents the accumulated depreciation of fully depreciated buildings and improvements and tenant improvements written off during the period. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated balance sheets as of December 31, 2018 and 2017 include the accounts of Brookfield DTLA and subsidiaries in which it has a controlling financial interest. All intercompany transactions have been eliminated in consolidation as of and for the years ended December 31, 2018 , 2017 and 2016 . |
Consolidation of Variable Interest Entities | In determining whether Brookfield DTLA has a controlling financial interest in an entity and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members as well as whether the entity is a variable interest entity (“VIE”) and Brookfield DTLA is the primary beneficiary. A VIE is broadly defined as an entity where either (i) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. Brookfield DTLA qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors includes, but is not limited to, Brookfield DTLA’s ability to direct the activities that most significantly impact the VIE’s economic performance, its form of ownership interest, its representation on the VIE’s governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and its ability to replace the manager of and/or liquidate the entity. The Company earns a return through an indirect investment in Brookfield DTLA Fund Properties II LLC (“New OP”). DTLA Holdings, the parent of Brookfield DTLA, owns all of the common interest in New OP. Brookfield DTLA has an indirect preferred stock interest in New OP and its wholly owned subsidiary is the managing member of New OP. The Company determined that New OP is a VIE and as a result of having the power to direct the significant activities of New OP and exposure to the economic performance of New OP, Brookfield DTLA meets the two conditions for being the primary beneficiary. Brookfield DTLA is required to continually evaluate its VIE relationships and consolidation conclusion. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. For example, estimates and assumptions have been made with respect to fair values of assets and liabilities for purposes of applying the acquisition method of accounting, the useful lives of assets, recoverable amounts of receivables, impairment of long‑lived assets and the fair value of debt. Actual results could ultimately differ from such estimates. |
Reclassifications | Reclassifications During the year ended December 31, 2018 , the Company reclassified asset management fees earned by the Manager from rental property operating and maintenance expense to other expense in the consolidated statement of operations. Management does not include asset management fees as an input when evaluating the operating performance of Brookfield DTLA’s properties and created a new category within other expense during 2018 to capture such fees. For the years ended December 31, 2017 and 2016 , the Company reported rental property operating and maintenance expense totaling $100.3 million and $99.1 million and other expense totaling $5.2 million and $4.9 million in the consolidated statements of operations, respectively. After the reclassification, rental property operating and maintenance expense now totals $94.0 million and $92.8 million and other expense now totals $11.5 million and $11.2 million in the consolidated statements of operations for the years ended December 31, 2017 and 2016 , respectively. These reclassifications had no effect on the Company’s financial position, results of operations or cash flows in any year. During the year ended December 31, 2018 , the Company also reclassified lease termination fees from interest and other income to rental income in the consolidated statement of operations in anticipation of adopting Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). For the years ended December 31, 2017 and 2016 , the Company reported interest and other income totaling $10.3 million and $13.7 million and rental income totaling $162.4 million and $164.8 million in the consolidated statements of operations, respectively. After the reclassification, interest and other income now totals $7.0 million and $9.3 million and rental income now totals $165.7 million and $169.2 million in the consolidated statements of operations for the years ended December 31, 2017 and 2016 , respectively. These reclassifications had no effect on the Company’s financial position, results of operations or cash flows in any year. |
Recent Accounting Pronouncements | Accounting Pronouncements Adopted in 2018 Effective January 1, 2018, Brookfield DTLA adopted, on a modified retrospective basis, the guidance in Financial Accounting Standards Board (“FASB”) ASU 2014-09, Revenue from Contracts with Customers Accounting Standards Codification (“ASC”) Topic 606. ASU 2014-09, as amended by subsequent ASUs on the topic, established a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and superseded most of the existing revenue recognition guidance. ASU 2014-09 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services and requires certain additional disclosures. The adoption of this pronouncement did not have an impact on Brookfield DTLA’s consolidated financial statements. Effective January 1, 2018, Brookfield DTLA adopted, on a retrospective basis, the guidance in ASU 2016-18, Restricted Cash to Topic 230, Statement of Cash Flows. ASU 2016-18 requires entities to include restricted cash with cash and cash equivalents when reconciling the beginning and end of period total amounts shown in the statement of cash flows. Therefore, the change in restricted cash is no longer presented as a separate line item within cash flows from investing activities in the Company’s consolidated statement of cash flows since such balances are now combined with cash and cash equivalents at both the beginning and end of the reporting period. For the year ended December 31, 2017 , the Company used net cash in investing activities of $74.7 million instead of the $50.2 million previously reported, while for the year ended December 31, 2016 , the net cash used in investing activities was $57.4 million instead of the $63.6 million previously reported. Effective January 1, 2018, Brookfield DTLA adopted, on a retrospective basis, the guidance in ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments to Topic 230, Statement of Cash Flows . ASU 2016-15 clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The adoption of this guidance did not have an impact on Brookfield DTLA’s consolidated financial statements. Accounting Pronouncements Effective January 1, 2019 Leases In February 2016, the FASB issued an update (“ASU 2016-02”), Leases (Topic 842) . The primary difference between Topic 842 and current GAAP is the recognition of lease assets and liabilities on the balance sheet by lessees for leases classified as operating leases under current GAAP. The accounting applied by lessors is largely unchanged from current GAAP, for example, the vast majority of operating leases will remain classified as operating leases, and lessors will continue to recognize lease income for those leases on a straight-line basis over the lease term. In July 2018, the FASB issued ASU 2018-11, which includes an optional practical expedient for lessors to elect, by class of underlying asset, to not separate the lease from the non-lease components as required by Topic 842 if certain criteria are met. For leases where we are the lessor, the Company qualifies for the single component presentation and as a result, leases will be accounted for in a similar method to existing standards. Topic 842 defines initial direct costs of a lease (which the Company has historically capitalized) as incremental costs that would not have been incurred had the lease not been executed. Costs to negotiate or arrange a lease regardless of its outcome, such as fixed employee compensation, tax or legal advice to negotiate lease terms, and lessor costs related to advertising or soliciting potential tenants, will be expensed as incurred under the new guidance. During the year ended December 31, 2018 , the Company capitalized $137 thousand of leasing costs that would not qualify as initial direct costs and would have been expensed under Topic 842. ASU 2016-02 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018. We currently expect to adopt this standard effective January 1, 2019 using the practical expedients provided in the standard and the changes approved by the FASB. Other In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities, to Topic 815, Derivatives and Hedging . ASU 2017-12 introduced amendments intended to make targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The objective of the update is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. ASU 2017-12 is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2018. We do not expect the adoption of this guidance to have material impact on Brookfield DTLA’s consolidated financial statements. Accounting Pronouncements Effective January 1, 2020 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), and made changes to its conceptual framework, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements , that are intended to improve the effectiveness of disclosures in notes to financial statements. ASU 2018-13 removes, modifies and adds certain disclosure requirements related to fair value measurements required by Topic 820. The guidance is effective for interim and annual periods in fiscal years beginning after December 15, 2019. Early adoption is permitted for any eliminated or modified disclosures. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation ( Topic 810 ), Targeted Improvements to Related Party Guidance for Variable Interest Entities , which amends two aspects of the related-party guidance in Topic 810. Specifically, ASU 2018-17 (1) adds an elective private company scope exception to the variable interest entity guidance for entities under common control and (2) removes a sentence in ASC 810-10-55-37D regarding the evaluation of fees paid to decision makers to conform with the amendments in ASU 2016-17, Consolidation ( Topic 810 ), Interests Held through Related Parties That Are under Common Control (issued in October 2016). ASU 2018-17 is effective for interim and annual periods in fiscal years beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of the adoption of this guidance on Brookfield DTLA’s consolidated financial statements. |
Business Combinations | Business Combinations— Effective January 1, 2018, Brookfield DTLA adopted, on a prospective basis, the guidance in ASU 2017-01, Clarifying the Definition of a Business to ASC Topic 805, Business Combinations. Prior to the adoption of this guidance, the Company applied purchase accounting to the assets and liabilities related to real estate investments acquired from third parties. Prior to adopting this guidance, Brookfield DTLA allocated the purchase price of real estate acquired to tangible assets, consisting primarily of land, building and tenant improvements, and identifiable intangible assets and liabilities, consisting of the value of above- and below-market leases, in-place leases, and tenant relationships, based in each case on their fair value in accordance with GAAP in effect at the time of the acquisitions. The principal valuation technique employed by Brookfield DTLA in determining the fair value of identified assets acquired and liabilities assumed is the income approach, which is then compared to the cost approach. Tangible values for investments in real estate are calculated based on replacement costs for like type quality assets. Above- and below-market lease values are determined by comparing in-place rents with current market rents. In‑place lease amounts are determined by calculating the potential lost revenue during the replacement of the current leases in place. Leasing commissions and legal/marketing fees are determined based upon market allowances pro-rated over the remaining lease terms. Mortgage loans assumed in an acquisition are analyzed using current market terms for similar debt. The value of the acquired above-market and below-market leases are amortized and recorded as either a decrease (in the case of above-market leases) or an increase (in the case of below-market leases) to rental income in the consolidated statement of operations over the remaining term of the associated lease. The value of tenant relationships is amortized over the expected term of the relationship, which includes an estimated probability of lease renewal. The value of in-place leases is amortized as an expense over the remaining life of the leases. Amortization of tenant relationships and in‑place leases is included in depreciation and amortization in the consolidated statement of operations. |
Investments in Real Estate | Investments in Real Estate— Land is carried at cost. Buildings are recorded at historical cost and are depreciated on a straight‑line basis over the estimated useful life of the building, which is 60 years with an estimated salvage value of 5% . Building improvements are recorded at historical cost and are depreciated on a straight-line basis over their estimated useful lives, which range from 7 years to 25 years. Land improvements are combined with building improvements for financial reporting purposes and are carried at cost. Tenant improvements that are determined to be assets of Brookfield DTLA are recorded at cost; amortization is included in depreciation and amortization expense in the consolidated statement of operations on a straight‑line basis over the shorter of the useful life or the applicable lease term. Depreciation expense related to investments in real estate during the years ended December 31, 2018 , 2017 and 2016 was $75.7 million , $73.6 million and $73.0 million , respectively. Real estate is reviewed for impairment if events or changes in circumstances indicate that the carrying amount of the real estate may not be recoverable. In such an event, a comparison is made of the current and projected operating cash flows of the property into the foreseeable future on an undiscounted basis to the carrying amount of the real estate. If the undiscounted cash flows expected to be generated by an asset are less than its carrying amount, an impairment provision would be recorded to write down the carrying amount of such asset to its fair value. Brookfield DTLA assesses fair value based on estimated cash flow projections utilizing appropriate discount and capitalization rates and available market information. Projections of future cash flow take into account the specific business plan for the property and management’s best estimate of the most probable set of economic conditions expected to prevail in the market. Management believes no impairment of Brookfield DTLA’s real estate assets existed at December 31, 2018 and 2017 . |
Cash and Cash Equivalents | Cash and Cash Equivalents— Cash and cash equivalents include all cash and short-term investments with an original maturity of three months or less. |
Restricted Cash | Restricted Cash— Restricted cash consists primarily of deposits for tenant improvements and leasing commissions, real estate taxes, debt service reserves and other items as required by certain of our mortgage loan agreements. |
Rents, Deferred Rents and Other Receivables, Net | Rents, Deferred Rents and Other Receivables, Net— Differences between rental income and the contractual amounts due are recorded as deferred rents receivable in the consolidated balance sheet. Brookfield DTLA evaluates its deferred rents receivable to consider if an allowance is necessary. Rents, deferred rents and other receivables, net also includes amounts paid to a tenant for improvements owned or costs incurred by the tenant. Such amounts are treated as tenant inducements and are presented in the consolidated balance sheet net of accumulated amortization totaling $16.7 million and $12.5 million as of December 31, 2018 and 2017 , respectively. Amortization of tenant inducements is recorded on a straight-line basis over the term of the related lease as a reduction of rental income in the consolidated statement of operations. Brookfield DTLA periodically evaluates the collectability of amounts due from tenants and maintains an allowance for doubtful accounts in the consolidated balance sheet for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. Management exercises judgment in establishing these allowances and considers payment history and current credit status in developing these estimates. The allowance for doubtful accounts for Brookfield DTLA totaled $314 thousand and $206 thousand as of December 31, 2018 and 2017 , respectively. During the years ended December 31, 2018 , 2017 and 2016 , Brookfield DTLA recorded a provision for doubtful accounts of $190 thousand , and recoveries of accounts of $7 thousand and $271 thousand , respectively. |
Deferred Charges, Net | Deferred Charges, Net— Leasing costs are deferred and are presented as deferred charges in the consolidated balance sheet net of accumulated amortization totaling $50.3 million and $39.8 million as of December 31, 2018 and 2017 , respectively. Deferred leasing costs are amortized on a straight‑line basis over the terms of the related leases as part of depreciation and amortization expense in the consolidated statement of operations. |
Mortgage Loans, Net | Mortgage Loans, Net— Mortgage loans are presented in the consolidated balance sheet net of unamortized debt issuance costs totaling $11.0 million and $10.1 million as of December 31, 2018 and 2017 , respectively. Debt issuance costs and discounts totaling $9.6 million , $6.4 million and $4.3 million were amortized during the years ended December 31, 2018 , 2017 and 2016 , respectively, over the terms of the related mortgage loans on a basis that approximates the effective interest method and are included as part of interest expense in the consolidated statement of operations. |
Revenue Recognition | Revenue Recognition— Rental income from leases providing for periodic increases in base rent is recognized on a straight-line basis over the noncancelable term of the respective leases. Certain leases with retail tenants also provide for the payment by the lessee of additional rent based on a percentage of the tenant’s sales. Percentage rents are recognized only after the tenant sales thresholds have been achieved. Recoveries of operating expenses and real estate taxes are recorded as tenant reimbursements in the consolidated statement of operations in the period during which the expenses are incurred. |
Derivative Financial Instruments | Derivative Financial Instruments— Brookfield DTLA uses interest rate swap and cap derivative financial instruments to manage risk from fluctuations in interest rates. Interest rate swaps involve the receipt of variable-rate amounts in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying principal amount. Interest rate caps involve the receipt of variable-rate amounts beyond a specified strike price over the life of the contracts without exchange of the underlying principal amount. The Company believes these contracts are with counterparties who are creditworthy financial institutions. At the inception of the contracts, Brookfield DTLA designates its interest rate swap contracts as cash flow hedges and documents the relationship of the hedge to the underlying transaction. Hedge effectiveness is assessed at inception and throughout the life of the hedge to ensure the hedge qualifies for hedge accounting. Changes in fair value associated with hedge ineffectiveness, if any, are recorded in the consolidated statement of operations. Changes in fair value of cash flow hedge derivative financial instruments are deferred and recorded as part of accumulated other comprehensive loss in the consolidated statement of stockholders’ deficit until the underlying transaction affects earnings. In the event that an anticipated transaction is no longer likely to occur, the Company recognizes the change in fair value of the derivative financial instrument in its consolidated statement of operations in the period the determination is made. Additionally, Brookfield DTLA uses interest rate cap contracts to limit impact of changes in the LIBOR rate on certain of its mortgage and mezzanine loans. Due to the short-term nature of the contracts involved, the Company does not use hedge accounting for these contracts, and as such, changes in fair value are recorded in the period of change in the consolidated statement of operations. |
Segment Reporting | Segment Reporting Brookfield DTLA currently operates in a single reportable segment referred to as its office segment, which includes the operation and management of commercial office properties. Each of Brookfield DTLA’s operating properties is considered a separate operating segment, as each property earns revenues and incurs expenses, individual operating results are reviewed and discrete financial information is available. Management does not distinguish or group Brookfield DTLA’s consolidated operations based on geography, size or type. Brookfield DTLA’s operating properties have similar economic characteristics and provide similar products and services to tenants. As a result, Brookfield DTLA’s operating properties are aggregated into a single reportable segment. |
Accounting for Conditional Asset Retirement Obligations | Accounting for Conditional Asset Retirement Obligations Brookfield DTLA has evaluated whether it has any conditional asset retirement obligations, which are a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional upon future events that may or may not be within an entity’s control. The obligation to perform the asset retirement activity is unconditional even though uncertainty exists about the timing and/or method of settlement. Accordingly, Brookfield DTLA recognized a liability for a conditional asset retirement obligation in the consolidated balance sheet as of December 31, 2018 and 2017 . |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets and Liabilities | Brookfield DTLA’s intangible assets and liabilities are summarized as follows (in thousands): As of December 31, 2018 2017 Intangible Assets In-place leases $ 66,365 $ 66,365 Tenant relationships 30,078 30,078 Above-market leases 31,270 31,270 Intangible assets, gross 127,713 127,713 Less: accumulated amortization 83,073 69,424 Intangible assets, net $ 44,640 $ 58,289 Intangible Liabilities Below-market leases $ 59,561 $ 59,561 Less: accumulated amortization 47,107 43,322 Intangible liabilities, net $ 12,454 $ 16,239 |
Schedule of Impact of Intangible Amortization Expense | The impact of the amortization of acquired below-market leases, net of acquired above-market leases, on rental income and of acquired in-place leases and tenant relationships on depreciation and amortization expense is as follows (in thousands): For the Year Ended December 31, 2018 2017 2016 Rental income $ (222 ) $ 2,218 $ 3,465 Depreciation and amortization expense 9,642 13,527 19,609 |
Schedule of Estimated Future Amortization/Accretion of Intangible Assets and Liabilities | As of December 31, 2018 , the estimate of the amortization/accretion of intangible assets and liabilities during the next five years and thereafter is as follows (in thousands): In-Place Leases Other Intangible Assets Intangible Liabilities 2019 $ 5,742 $ 4,043 $ 3,223 2020 4,786 3,228 2,975 2021 4,533 3,171 2,797 2022 3,847 2,944 2,460 2023 2,221 2,569 674 Thereafter 2,975 4,581 325 $ 24,104 $ 20,536 $ 12,454 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Brookfield DTLA’s debt is as follows (in thousands, except dates and percentage amounts): Contractual Maturity Date Principal Amount as of December 31, Interest Rate 2018 2017 Floating-Rate Debt Variable-Rate Loans: Wells Fargo Center–North Tower (1) 10/9/2020 4.11 % $ 400,000 $ — Wells Fargo Center–North Tower (2) 10/9/2020 6.46 % 65,000 — Wells Fargo Center–North Tower (3) 10/9/2020 7.46 % 35,000 — Wells Fargo Center–South Tower (4) 11/4/2021 4.15 % 258,186 — 777 Tower (5) 11/1/2019 4.53 % 220,000 220,000 EY Plaza (6) 11/27/2020 6.90 % 35,000 — Total variable-rate loans 1,013,186 220,000 Variable-Rate Swapped to Fixed-Rate Loan: EY Plaza (7) 11/27/2020 3.90 % 230,000 — Total floating-rate debt 1,243,186 220,000 Fixed-Rate Debt: BOA Plaza 9/1/2024 4.05 % 400,000 400,000 Gas Company Tower 8/6/2021 3.47 % 319,000 319,000 Gas Company Tower 8/6/2021 6.50 % 131,000 131,000 Figueroa at 7th 3/1/2023 3.88 % 58,500 — Total fixed-rate debt 908,500 850,000 Debt Refinanced: Wells Fargo Center–North Tower — 470,000 Wells Fargo Center–South Tower — 250,000 EY Plaza — 176,831 Figueroa at 7th — 35,000 Total debt refinanced — 931,831 Total debt 2,151,686 2,001,831 Less: unamortized debt issuance costs 10,962 10,139 Total debt, net $ 2,140,724 $ 1,991,692 __________ (1) This loan bears interest at LIBOR plus 1.65% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of this loan, each for a period of one year, as long as the maturity dates of both of the mezzanine loans are extended when the maturity date of the mortgage loan is extended. (2) This loan bears interest at LIBOR plus 4.00% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of this loan, each for a period of one year, as long as the maturity date of the other mezzanine loan is extended when the maturity date of the mortgage loan is extended. (3) This loan bears interest at LIBOR plus 5.00% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 4.25% . Brookfield DTLA has three options to extend the maturity date of this loan, each for a period of one year, as long as the maturity date of the other mezzanine loan is extended when the maturity date of the mortgage loan is extended. (4) This loan bears interest at LIBOR plus 1.80% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 4.50% . Brookfield DTLA has two options to extend the maturity date of this loan, each for a period of one year. As of December 31, 2018 , a future advance amount of $31.8 million is available under this loan that can be drawn by the Company to fund approved leasing costs (as defined in the underlying loan agreement), including tenant improvements and inducements, leasing commissions, and common area improvements. (5) This loan bears interest at LIBOR plus 2.18% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 5.75% . Brookfield DTLA has one option to extend the maturity date of this loan for a period of one year, subject to meeting certain debt yield and loan to value ratios (as specified in the loan agreement). As of December 31, 2018 , we do not meet the criteria specified in the loan agreement to extend this loan. See “—Debt Maturities—777 Tower” below. (6) This loan bears interest at LIBOR plus 4.55% . As required by the loan agreement, we have entered into an interest rate cap contract that limits the LIBOR portion of the interest rate to 3.50% . (7) This loan bears interest at LIBOR plus 1.65% . As required by the loan agreement, we have entered into interest rate swap contracts to hedge this loan, which effectively fix the LIBOR portion of the interest rate at 2.27% . The effective interest rate of 3.90% includes interest on the swaps. |
Schedule of Debt Maturities | As of December 31, 2018 , our debt to be repaid during the next five years and thereafter is as follows (in thousands): 2019 $ 220,000 2020 765,000 2021 708,186 2022 — 2023 58,500 Thereafter 400,000 $ 2,151,686 |
Mezzanine Equity (Tables)
Mezzanine Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Change in Mezzanine Equity | A summary of the change in mezzanine equity is as follows (in thousands, except share amounts): Number of Shares of Series A Preferred Stock Series A Preferred Stock Noncontrolling Interests Total Mezzanine Equity Series A-1 Preferred Interest Senior Participating Preferred Interest Series B Preferred Interest Balance, December 31, 2015 9,730,370 $ 354,304 $ 349,084 $ 23,207 $ — $ 726,595 Issuance of Series B preferred interest 63,280 63,280 Current dividends 18,548 17,213 — — 35,761 Current preferred return 2,084 2,084 Redemption measurement adjustment 2,428 2,428 Distributions to holders (616 ) — (616 ) Balance, December 31, 2016 9,730,370 372,852 366,297 25,019 65,364 829,532 Issuance of Series B preferred interest 111,492 111,492 Current dividends 18,548 17,213 — — 35,761 Current preferred return 13,435 13,435 Redemption measurement adjustment 479 479 Contribution from holders 520 520 Distributions to holders (470 ) — (470 ) Balance, December 31, 2017 9,730,370 391,400 383,510 25,548 190,291 990,749 Issuance of Series B preferred interest — — Current dividends 18,532 17,306 — — 35,838 Current preferred return 17,961 17,961 Redemption measurement adjustment 1,482 1,482 Distributions to holders (3,587 ) (26,554 ) (30,141 ) Balance, December 31, 2018 9,730,370 $ 409,932 $ 400,816 $ 23,443 $ 181,698 $ 1,015,889 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Summary of Change in Accumulated Other Comprehensive Loss | A summary of the change in accumulated other comprehensive loss related to Brookfield DTLA’s derivative financial instruments designated as cash flow hedges is as follows (in thousands): For the Year Ended December 31, 2018 2017 2016 Balance at beginning of year $ (574 ) $ (3,373 ) $ (5,415 ) Other comprehensive income before reclassifications 1,548 2,799 2,042 Amounts reclassified from accumulated (1,198 ) — — Net current-year other comprehensive income 350 2,799 2,042 Balance at end of year $ (224 ) $ (574 ) $ (3,373 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets (Liabilities) Measured at Fair Value on a Recurring Basis | Brookfield DTLA’s assets (liabilities) measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall, are as follows (in thousands): Fair Value Measurements Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest rate swaps at: December 31, 2018 $ 974 $ — $ 974 $ — December 31, 2017 (574 ) — (574 ) — December 31, 2016 (3,373 ) — (3,373 ) — Interest rate caps at: December 31, 2018 $ 11 $ — $ 11 $ — December 31, 2017 15 — 15 — December 31, 2016 53 — 53 — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Derivative Financial Instruments | A summary of the fair value of Brookfield DTLA’s derivative financial instruments is as follows (in thousands): Fair Value as of December 31, 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ 974 $ (574 ) Derivatives not designated as hedging instruments: Interest rate caps 11 15 |
Summary of Effect of Derivative Financial Instruments | A summary of the effect of derivative financial instruments reported in the consolidated financial statements is as follows (in thousands): Amount of Gain Recognized in AOCL Amount of Gain Reclassified from AOCL to Statement of Operations Derivatives designated as hedging instruments: Interest rate swaps for the year ended: December 31, 2018 $ 1,548 $ 1,198 December 31, 2017 2,799 — December 31, 2016 2,042 — |
Schedules of Derivative Instruments | As of December 31, 2018 , Brookfield DTLA held the following interest rate swap contracts pursuant to the terms of the EY Plaza mortgage loan agreement (in thousands, except percentages and dates): Notional Amount Swap Rate LIBOR Spread Effective Interest Rate Expiration Date Interest rate swap $ 172,600 2.18 % 1.65 % 3.83 % 11/2/2020 Interest rate swap 54,206 2.47 % 1.65 % 4.12 % 11/2/2020 $ 226,806 2.27 % 1.65 % 3.90 % Brookfield DTLA holds interest rate cap contracts pursuant to the terms of certain of its mortgage and mezzanine loan agreements with the following notional amounts (in thousands): As of December 31, 2018 2017 Wells Fargo Center–North Tower $ 400,000 $ 370,000 Wells Fargo Center–North Tower 65,000 55,000 Wells Fargo Center–North Tower 35,000 45,000 Wells Fargo Center–South Tower 290,000 270,000 777 Tower 220,000 220,000 EY Plaza 35,000 — $ 1,045,000 $ 960,000 |
Summary of Estimated Fair Value and Carrying Amount of Mortgage and Mezzanine Loans | The estimated fair value and carrying amount of Brookfield DTLA’s mortgage and mezzanine loans are as follows (in thousands): As of December 31, 2018 2017 Estimated fair value $ 2,142,813 $ 2,003,600 Carrying amount 2,151,686 2,001,831 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Costs Incurred Under Agreements with Related Parties | A summary of costs incurred by the applicable subsidiaries Brookfield DTLA under these arrangements is as follows (in thousands): For the Year Ended December 31, 2018 2017 2016 Property management fee expense $ 8,111 $ 8,136 $ 7,964 Asset management fee expense 6,330 6,330 6,330 Leasing and construction management fee expenses 3,209 5,198 3,049 General, administrative and reimbursable expenses 3,007 2,613 2,466 A summary of costs incurred by the applicable Brookfield DTLA subsidiaries and affiliates under this arrangement, which are included in rental property operating and maintenance expense in the consolidated statement of operations, is as follows (in thousands): For the Year Ended December 31, 2018 2017 2016 Insurance expense $ 8,026 $ 7,795 $ 7,948 A summary of the impact of related party transactions with BAM affiliates on the Company’s consolidated statement of operations is as follows (in thousands): For the Year Ended December 31, 2018 2017 2016 Rental income and tenant reimbursements revenue $ 1,928 $ — $ — Rental property and maintenance expense 862 579 — |
Rental Income (Tables)
Rental Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Base Rental Income Under Executed Noncancelable Tenant Operating Leases | The future minimum base rental income (on a non‑straight‑line basis) to be received under executed noncancelable tenant operating leases as of December 31, 2018 is as follows (in thousands): 2019 $ 160,732 2020 162,373 2021 162,175 2022 147,958 2023 130,674 Thereafter 587,950 $ 1,351,862 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information (Unaudited) | First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands) Year Ended December 31, 2018 Revenue $ 75,211 $ 84,194 $ 77,151 $ 79,124 Expenses 84,990 89,458 91,789 94,100 Net loss (9,779 ) (5,264 ) (14,638 ) (14,976 ) Net (loss) income attributable to noncontrolling interests: Series A-1 preferred interest – current dividends 4,303 4,303 4,303 4,397 Senior participating preferred interest – redemption measurement adjustment 1,657 768 220 (1,163 ) Series B preferred interest – current preferred return 3,879 3,921 3,965 6,196 Series B common interest – allocation of net (loss) income (12,695 ) (9,889 ) (14,531 ) 65,458 Net loss attributable to Brookfield DTLA (6,923 ) (4,367 ) (8,595 ) (89,864 ) Series A preferred stock – current dividends 4,637 4,637 4,637 4,621 Net loss available to common interest holders of Brookfield DTLA $ (11,560 ) $ (9,004 ) $ (13,232 ) $ (94,485 ) Year Ended December 31, 2017 Revenue $ 75,915 $ 76,070 $ 77,067 $ 77,270 Expenses 86,021 84,571 86,204 87,163 Net loss (10,106 ) (8,501 ) (9,137 ) (9,893 ) Net loss attributable to noncontrolling interests: Series A-1 preferred interest – current dividends 4,303 4,303 4,303 4,304 Senior participating preferred interest – redemption measurement adjustment 56 (191 ) 385 229 Series B preferred interest – current preferred return 1,644 3,861 3,965 3,965 Series B common interest – allocation of net loss (10,858 ) (11,050 ) (11,738 ) (12,053 ) Net loss attributable to Brookfield DTLA (5,251 ) (5,424 ) (6,052 ) (6,338 ) Series A preferred stock – current dividends 4,637 4,637 4,637 4,637 Net loss available to common interest holders of Brookfield DTLA $ (9,888 ) $ (10,061 ) $ (10,689 ) $ (10,975 ) |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule of Real Estate Properties | A summary of information related to Brookfield DTLA’s investments in real estate as of December 31, 2018 is as follows (in thousands): Encum- brances Initial Cost to Company Costs Capitalized Subsequent to Acquisition Gross Amount at Which Carried at Close of Period Accum- ulated Depre- ciation (3) Year Acquired Land Buildings and Improve- ments Improve- ments Carrying Costs Land Buildings and Improve- ments (1) Total (2) Los Angeles, CA Wells Fargo Center– North Tower 333 S. Grand Avenue $ 500,000 $ 41,024 $ 456,363 $ 94,924 $ — $ 41,024 $ 551,287 $ 592,311 $ 70,932 2013 BOA Plaza 400,000 54,163 354,422 48,130 — 54,163 402,552 456,715 106,833 2006 Wells Fargo Center– South Tower 355 S. Grand Avenue 258,186 21,231 401,149 44,677 — 21,231 445,826 467,057 50,528 2013 Gas Company 450,000 20,742 396,159 65,881 — 20,742 462,040 482,782 51,813 2013 EY Plaza (4) 725 S. Figueroa 323,500 47,385 286,982 118,822 — 47,385 405,804 453,189 95,304 2006 777 Tower 777 S. Figueroa 220,000 38,010 303,697 24,759 — 38,010 328,456 366,466 42,795 2013 Development site at 755 S. Figueroa Street — 5,000 — 10,930 — 5,000 10,930 15,930 — $ 2,151,686 $ 227,555 $ 2,198,772 $ 408,123 $ — $ 227,555 $ 2,606,895 $ 2,834,450 $ 418,205 __________ (1) Land improvements are combined with building improvements for financial reporting purposes and are carried at cost. (2) The aggregate gross cost of Brookfield DTLA’s investments in real estate for federal income tax purposes approximated $2.6 billion as of December 31, 2018 . (3) Depreciation in the consolidated statement of operations is computed on a straight-line basis over the following estimated useful lives: buildings ( 60 years, with an estimated salvage value of 5% ), building improvements (ranging from 7 years to 25 years), and tenant improvements (the shorter of the useful life or the applicable lease term). (4) Includes the mortgage loan encumbering the Figueroa at 7th retail property. |
Investments in Real Estate | The following is a reconciliation of Brookfield DTLA’s investments in real estate (in thousands): For the Year Ended December 31, 2018 2017 2016 Investments in Real Estate Balance at beginning of year $ 2,756,322 $ 2,740,773 $ 2,675,249 Additions during the year: Improvements 78,128 75,847 65,524 Deductions during the year: Other (1) — 60,298 — Balance at end of year $ 2,834,450 $ 2,756,322 $ 2,740,773 __________ (1) During the year ended December 31, 2017 , the amount reported represents the cost of fully depreciated buildings and improvements and tenant improvements written off during the period. |
Accumulated Depreciation | The following is a reconciliation of Brookfield DTLA’s accumulated depreciation on its investments in real estate (in thousands): For the Year Ended December 31, 2018 2017 2016 Accumulated Depreciation Balance at beginning of year $ 342,465 $ 329,149 $ 256,130 Additions during the year: Depreciation expense 75,740 73,614 73,019 Deductions during the year: Other (1) — 60,298 — Balance at end of year $ 418,205 $ 342,465 $ 329,149 __________ (1) During the year ended December 31, 2017 , the amount reported represents the accumulated depreciation of fully depreciated buildings and improvements and tenant improvements written off during the period. |
Organization and Description _2
Organization and Description of Business - Narrative (Details) | Oct. 15, 2013 | Dec. 31, 2018 | Dec. 31, 2017 |
Series A preferred stock | |||
Organization and Description of Business [Line Items] | |||
Preferred stock, dividend rate, percentage | 7.625% | 7.625% | 7.625% |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Reclassifications - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Rental property operating and maintenance | $ 98,940 | $ 93,945 | $ 92,744 | ||||||||
Other expense | 9,920 | 11,508 | 11,239 | ||||||||
Revenues | $ 79,124 | $ 77,151 | $ 84,194 | $ 75,211 | $ 77,270 | $ 77,067 | $ 76,070 | $ 75,915 | 315,680 | 306,322 | 310,692 |
Rental income | 162,203 | 165,689 | 169,168 | ||||||||
Interest and Other | |||||||||||
Revenues | $ 10,295 | 7,022 | 9,332 | ||||||||
Previously Reported | |||||||||||
Rental property operating and maintenance | 100,300 | 99,100 | |||||||||
Other expense | 5,200 | 4,900 | |||||||||
Rental income | 162,400 | 164,800 | |||||||||
Previously Reported | Interest and Other | |||||||||||
Revenues | $ 10,300 | $ 13,700 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Accounting Pronouncements Adopted In 2018 and Effective Jan 1, 2019 - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net cash used in investing activities | $ (90,065) | $ (74,696) | $ (57,350) |
Accounting Standards Update 2016-18 | |||
Net cash used in investing activities | (74,700) | (57,400) | |
Accounting Standards Update 2016-18 | Previously Reported | |||
Net cash used in investing activities | $ (50,200) | $ (63,600) | |
Accounting Standards Update 2016-02 | Leasing Costs Not Qualifying To Be Expensed Under New Principle | |||
Effect of change in accounting principle | $ 137 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Investments in Real Estate - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense related to investments in real estate | $ 75,700 | $ 73,600 | $ 73,000 |
Impairment of real estate assets | $ 0 | $ 0 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 60 years | ||
Estimated salvage value | 5.00% | ||
Building Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years | ||
Building Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 25 years |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Rents, Deferred Rents and Other Receivables, Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Tenant inducments, accumulated amortization | $ 16,700 | $ 12,500 | |
Allowance for doubtful accounts | 314 | 206 | |
Provision for doubtful (recovery of) accounts | $ 190 | $ (7) | $ (271) |
Basis of Presentation and Sum_7
Basis of Presentation and Summary of Significant Accounting Policies - Deferred Charges, Net - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred leasing costs, accumulated amortization | $ 50.3 | $ 39.8 |
Basis of Presentation and Sum_8
Basis of Presentation and Summary of Significant Accounting Policies - Prepaid and Other Assets, Net - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid Expense and Other Assets [Abstract] | ||
Accumulated depreciation of non-operating furniture and equipment | $ 4.6 | $ 4.3 |
Basis of Presentation and Sum_9
Basis of Presentation and Summary of Significant Accounting Policies - Mortgage Loans, Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
Unamortized debt issuance costs | $ 10,962 | $ 10,139 | |
Amortization of debt issuance costs and discounts | $ 9,565 | $ 6,400 | $ 4,329 |
Intangible Assets and Liabili_3
Intangible Assets and Liabilities - Summary of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Intangible Assets | ||
In-place leases | $ 66,365 | $ 66,365 |
Tenant relationships | 30,078 | 30,078 |
Above-market leases | 31,270 | 31,270 |
Intangible assets, gross | 127,713 | 127,713 |
Less: accumulated amortization | 83,073 | 69,424 |
Intangible assets, net | 44,640 | 58,289 |
Intangible Liabilities | ||
Below-market leases | 59,561 | 59,561 |
Less: accumulated amortization | 47,107 | 43,322 |
Intangible liabilities, net | $ 12,454 | $ 16,239 |
Intangible Assets and Liabili_4
Intangible Assets and Liabilities - Schedule of Impact of Intangible Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Rental income | |||
Acquired Indefinite-lived Intangible Assets and Liabilities [Line Items] | |||
Amortization of intangible assets and liabilities | $ (222) | $ 2,218 | $ 3,465 |
Depreciation and amortization expense | |||
Acquired Indefinite-lived Intangible Assets and Liabilities [Line Items] | |||
Amortization of intangible assets and liabilities | $ 9,642 | $ 13,527 | $ 19,609 |
Intangible Assets and Liabili_5
Intangible Assets and Liabilities - Schedule of Estimated Future Amortization/Accretion of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
Intangible assets, net | $ 44,640 | $ 58,289 |
Intangible Liabilities, Net, Amortization Income, Fiscal Year Maturity | ||
2019 | 3,223 | |
2020 | 2,975 | |
2021 | 2,797 | |
2022 | 2,460 | |
2023 | 674 | |
Thereafter | 325 | |
Intangible liabilities, net | 12,454 | $ 16,239 |
In-Place Leases | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2019 | 5,742 | |
2020 | 4,786 | |
2021 | 4,533 | |
2022 | 3,847 | |
2023 | 2,221 | |
Thereafter | 2,975 | |
Intangible assets, net | 24,104 | |
Other Intangible Assets | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2019 | 4,043 | |
2020 | 3,228 | |
2021 | 3,171 | |
2022 | 2,944 | |
2023 | 2,569 | |
Thereafter | 4,581 | |
Intangible assets, net | $ 20,536 |
Mortgage Loans - Schedule of De
Mortgage Loans - Schedule of Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Total debt, gross | $ 2,151,686 | $ 2,001,831 |
Less: unamortized debt issuance costs | 10,962 | 10,139 |
Total debt, net | 2,140,724 | 1,991,692 |
Variable Rate Loans | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 1,013,186 | 220,000 |
Floating Rate Debt | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 1,243,186 | 220,000 |
Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 908,500 | 850,000 |
Debt Refinanced | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 0 | 931,831 |
Wells Fargo Center - North Tower | Variable Rate Debt - Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Oct. 9, 2020 | |
Variable interest rate | 4.11% | |
Total debt, gross | $ 400,000 | 0 |
Wells Fargo Center - North Tower | Variable Rate Debt - Mezzanine A Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Oct. 9, 2020 | |
Variable interest rate | 6.46% | |
Total debt, gross | $ 65,000 | 0 |
Wells Fargo Center - North Tower | Variable Rate Debt - Mezzanine B Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Oct. 9, 2020 | |
Variable interest rate | 7.46% | |
Total debt, gross | $ 35,000 | 0 |
Wells Fargo Center - North Tower | Debt Refinanced | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 0 | 470,000 |
Wells Fargo Center - South Tower | Variable Rate Debt - Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Nov. 4, 2021 | |
Variable interest rate | 4.15% | |
Total debt, gross | $ 258,186 | 0 |
Wells Fargo Center - South Tower | Debt Refinanced | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 0 | 250,000 |
777 Tower | Variable Rate Debt - Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Nov. 1, 2019 | |
Variable interest rate | 4.53% | |
Total debt, gross | $ 220,000 | 220,000 |
EY Plaza | Variable Rate Debt - Mezzanine A Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Nov. 27, 2020 | |
Variable interest rate | 6.90% | |
Total debt, gross | $ 35,000 | 0 |
EY Plaza | Floating Rate Debt | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Nov. 27, 2020 | |
Variable interest rate | 3.90% | |
Total debt, gross | $ 230,000 | 0 |
EY Plaza | Debt Refinanced | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 0 | 176,831 |
Bank of America Plaza | Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Sep. 1, 2024 | |
Fixed interest rate | 4.05% | |
Total debt, gross | $ 400,000 | 400,000 |
Gas Company Tower | Fixed Rate Debt - Senior Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Aug. 6, 2021 | |
Fixed interest rate | 3.47% | |
Total debt, gross | $ 319,000 | 319,000 |
Gas Company Tower | Fixed Rate Debt - Mezzanine Loan | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Aug. 6, 2021 | |
Fixed interest rate | 6.50% | |
Total debt, gross | $ 131,000 | 131,000 |
Figueroa at 7th | Fixed Rate Debt | ||
Debt Instrument [Line Items] | ||
Contractual maturity date | Mar. 1, 2023 | |
Fixed interest rate | 3.88% | |
Total debt, gross | $ 58,500 | 0 |
Figueroa at 7th | Debt Refinanced | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 0 | $ 35,000 |
Mortgage Loans - Schedule of _2
Mortgage Loans - Schedule of Debt (Footnote) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)extensionextension_option | Nov. 05, 2018USD ($) | |
Variable Rate Debt - Mortgage Loan | Wells Fargo Center - North Tower | ||
Debt Instrument [Line Items] | ||
Number of options to extend | 3 | |
Option extension period | 1 year | |
Effective interest rate | 4.11% | |
Variable Rate Debt - Mortgage Loan | Wells Fargo Center - North Tower | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.65% | |
Cap interest rate | 4.25% | |
Variable Rate Debt - Mortgage Loan | Wells Fargo Center - South Tower | ||
Debt Instrument [Line Items] | ||
Number of options to extend | 2 | |
Option extension period | 1 year | |
Effective interest rate | 4.15% | |
Remaining future advance amount | $ | $ 31.8 | $ 37 |
Variable Rate Debt - Mortgage Loan | Wells Fargo Center - South Tower | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.80% | |
Cap interest rate | 4.50% | |
Variable Rate Debt - Mortgage Loan | 777 Tower | ||
Debt Instrument [Line Items] | ||
Number of options to extend | extension_option | 1 | |
Option extension period | 1 year | |
Effective interest rate | 4.53% | |
Variable Rate Debt - Mortgage Loan | 777 Tower | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.18% | |
Cap interest rate | 5.75% | |
Variable Rate Debt - Mezzanine A Loan | Wells Fargo Center - North Tower | ||
Debt Instrument [Line Items] | ||
Number of options to extend | 3 | |
Option extension period | 1 year | |
Effective interest rate | 6.46% | |
Variable Rate Debt - Mezzanine A Loan | Wells Fargo Center - North Tower | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4.00% | |
Cap interest rate | 4.25% | |
Variable Rate Debt - Mezzanine A Loan | EY Plaza | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 6.90% | |
Variable Rate Debt - Mezzanine A Loan | EY Plaza | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4.55% | |
Cap interest rate | 3.50% | |
Variable Rate Debt - Mezzanine B Loan | Wells Fargo Center - North Tower | ||
Debt Instrument [Line Items] | ||
Number of options to extend | 3 | |
Option extension period | 1 year | |
Effective interest rate | 7.46% | |
Variable Rate Debt - Mezzanine B Loan | Wells Fargo Center - North Tower | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 5.00% | |
Cap interest rate | 4.25% | |
Floating Rate Debt | EY Plaza | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 3.90% | |
Floating Rate Debt | EY Plaza | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.65% | |
Interest Rate Swap | EY Plaza | ||
Debt Instrument [Line Items] | ||
Swap rate | 2.27% |
Mortgage Loans - Narrative (Det
Mortgage Loans - Narrative (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Weighted average interest rate of total debt outstanding | 4.34% | 4.29% |
Mortgage Loans - Debt Refinance
Mortgage Loans - Debt Refinanced - Narrative (Details) $ in Thousands | Nov. 05, 2018USD ($) | Sep. 21, 2018USD ($) | Mar. 29, 2018USD ($) | Feb. 06, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)extension | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||
Payment of financing costs | $ 10,388 | $ 7,484 | $ 7,412 | |||||
Proceeds from issuance of debt | 1,081,686 | $ 470,000 | $ 720,000 | |||||
Figueroa at 7th | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from refinancing of debt | $ 58,000 | |||||||
Repayment of long-term debt | $ 35,000 | |||||||
Figueroa at 7th | Fixed Rate Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
New mortgage loan principal amount | $ 58,500 | $ 58,500 | ||||||
Fixed interest rate | 3.88% | 3.88% | ||||||
EY Plaza | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from refinancing of debt | $ 263,400 | |||||||
Repayment of long-term debt | $ 175,800 | |||||||
New mortgage loan principal amount | $ 265,000 | $ 265,000 | ||||||
EY Plaza | Floating Rate Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
New mortgage loan principal amount | 230,000 | $ 230,000 | ||||||
EY Plaza | Floating Rate Debt | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.65% | |||||||
EY Plaza | Variable Rate Debt - Mezzanine A Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
New mortgage loan principal amount | 35,000 | $ 35,000 | ||||||
EY Plaza | Variable Rate Debt - Mezzanine A Loan | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 4.55% | |||||||
Wells Fargo Center - North Tower | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from refinancing of debt | $ 496,000 | |||||||
Repayment of long-term debt | $ 470,000 | |||||||
New mortgage loan principal amount | 500,000 | $ 500,000 | ||||||
Wells Fargo Center - North Tower | Variable Rate Debt - Mortgage Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
New mortgage loan principal amount | 400,000 | $ 400,000 | ||||||
Number of options to extend | extension | 3 | |||||||
Option extension period | 1 year | |||||||
Wells Fargo Center - North Tower | Variable Rate Debt - Mortgage Loan | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.65% | |||||||
Wells Fargo Center - North Tower | Variable Rate Debt - Mezzanine A Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
New mortgage loan principal amount | 65,000 | $ 65,000 | ||||||
Number of options to extend | extension | 3 | |||||||
Option extension period | 1 year | |||||||
Wells Fargo Center - North Tower | Variable Rate Debt - Mezzanine A Loan | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 4.00% | |||||||
Wells Fargo Center - North Tower | Variable Rate Debt - Mezzanine B Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
New mortgage loan principal amount | 35,000 | $ 35,000 | ||||||
Number of options to extend | extension | 3 | |||||||
Option extension period | 1 year | |||||||
Wells Fargo Center - North Tower | Variable Rate Debt - Mezzanine B Loan | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 5.00% | |||||||
Wells Fargo Center - South Tower | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from refinancing of debt | $ 250,000 | |||||||
Payment of financing costs | 3,500 | |||||||
Payment of financing costs using proceeds from debt | 3,000 | |||||||
New mortgage loan principal amount | 290,000 | $ 290,000 | ||||||
Wells Fargo Center - South Tower | Variable Rate Debt - Mortgage Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of long-term debt | 250,000 | |||||||
New mortgage loan principal amount | 253,000 | 253,000 | ||||||
Future advance amount | 37,000 | 31,800 | $ 31,800 | |||||
Number of options to extend | extension | 2 | |||||||
Option extension period | 1 year | |||||||
Proceeds from issuance of debt | $ 5,200 | |||||||
Wells Fargo Center - South Tower | Variable Rate Debt - Mortgage Loan | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.80% | |||||||
Cash on hand | Wells Fargo Center - South Tower | ||||||||
Debt Instrument [Line Items] | ||||||||
Payment of financing costs | $ 500 |
Mortgage Loans - Debt Extension
Mortgage Loans - Debt Extension - Narrative (Details) - USD ($) $ in Thousands | Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Payment of financing costs | $ 10,388 | $ 7,484 | $ 7,412 | |
777 Tower | ||||
Debt Instrument [Line Items] | ||||
Payment of financing costs | $ 800 | |||
777 Tower | Variable Rate Debt - Mortgage Loan | ||||
Debt Instrument [Line Items] | ||||
Extension term of maturity date on loan | 1 year |
Mortgage Loans - Schedule of _3
Mortgage Loans - Schedule of Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2019 | $ 220,000 | |
2020 | 765,000 | |
2021 | 708,186 | |
2022 | 0 | |
2023 | 58,500 | |
Thereafter | 400,000 | |
Total | $ 2,151,686 | $ 2,001,831 |
Mortgage Loans - Debt Maturitie
Mortgage Loans - Debt Maturities - Narrative (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
Prepaid without penalty | $ 220 |
Available to be defeased | 400 |
Prepaid with prepayment penalties | 1,473.2 |
Locked out from prepayment until March 1, 2020 | $ 58.5 |
Mortgage Loans - Non-Recourse C
Mortgage Loans - Non-Recourse Carve Out Guarantees - Narrative (Details) $ in Billions | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
Mortgage debt subject to non-recourse carve out guarantees | $ 2.2 |
Mortgage Loans - Debt Reporting
Mortgage Loans - Debt Reporting Compliance - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instrument [Line Items] | |
Covenant compliance | Pursuant to the terms of certain of our mortgage loan agreements, Brookfield DTLA is required to report a debt service coverage ratio (“DSCR”) calculated using the formulas specified in the underlying loan agreements. We have submitted the required reports to the lenders for the measurement periods ended December 31, 2018 and were in compliance with the amounts required by the loan agreements. |
Mezzanine Equity - Distribution
Mezzanine Equity - Distributions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Distributions to noncontrolling interests | $ 30,141 | $ 470 | $ 616 |
Series B Preferred Interest and Senior Participating Preferred Interest | |||
Class of Stock [Line Items] | |||
Distributions to noncontrolling interests | 30,100 | ||
Senior Participating Preferred Interest | |||
Class of Stock [Line Items] | |||
Distributions to noncontrolling interests | $ 3,587 | $ 470 | $ 616 |
Mezzanine Equity - Series A Pre
Mezzanine Equity - Series A Preferred Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 04, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||
Redemption value | $ 1,015,889 | $ 990,749 | $ 829,532 | $ 726,595 | $ 1,015,889 | |
Series A preferred stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred stock, liquidation preference (in USD per share) | $ 25 | $ 25 | $ 25 | |||
Preferred stock, shares outstanding (in shares) | 9,730,370 | 9,730,370 | 9,730,370 | |||
Preferred stock dividends declared (in USD per share) | $ 0 | $ 0 | $ 0 | $ 2.25 | ||
Preferred stock, dividend rate (in USD per share) | $ 1.90625 | |||||
Preferred stock, amount of preferred dividends in arrears | $ 166,700 | |||||
Preferred stock dividends paid (in USD per share) | $ 2.25 | |||||
Dividend payment | $ 21,900 | |||||
Redemption value | $ 409,932 | $ 391,400 | $ 372,852 | $ 354,304 | $ 409,932 | |
Third party issuance | Series A preferred stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares outstanding (in shares) | 9,357,469 | 9,357,469 | 9,357,469 | |||
DTLA Holdings | Series A preferred stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares outstanding (in shares) | 372,901 | 372,901 | 372,901 |
Mezzanine Equity - Series A-1 P
Mezzanine Equity - Series A-1 Preferred Interest - Narrative (Details) - USD ($) $ in Thousands | Oct. 15, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||||
Redemption value | $ 1,015,889 | $ 990,749 | $ 829,532 | $ 726,595 | |
Series A-1 Preferred Interest | |||||
Class of Stock [Line Items] | |||||
Redemption value | 400,816 | $ 383,510 | $ 366,297 | $ 349,084 | |
Liquidation value | 225,700 | ||||
Preferred stock, amount of preferred dividends in arrears | $ 175,100 | ||||
Series A-1 Preferred Interest | |||||
Class of Stock [Line Items] | |||||
Current preferred interest percent distribution | 48.13% | ||||
Series A Preferred Interest | |||||
Class of Stock [Line Items] | |||||
Current preferred interest percent distribution | 51.87% | ||||
Common Component of Series A Interest | |||||
Class of Stock [Line Items] | |||||
Preferred interest percent distribution after liquidation preference reduced to zero | 47.66% | ||||
Common Component of Series B Interest | |||||
Class of Stock [Line Items] | |||||
Preferred interest percent distribution after liquidation preference reduced to zero | 52.34% |
Mezzanine Equity - Senior Parti
Mezzanine Equity - Senior Participating Preferred Interest - Narrative (Details) - USD ($) $ in Thousands | Oct. 15, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||||
Distributions to noncontrolling interests | $ (30,141) | $ (470) | $ (616) | ||
Contribution from noncontrolling interests | 0 | 112,012 | 63,280 | ||
Redemption value | 1,015,889 | 990,749 | 829,532 | $ 726,595 | |
Senior Participating Preferred Interest | |||||
Class of Stock [Line Items] | |||||
Distributions to noncontrolling interests | (3,600) | (500) | (600) | ||
Contribution from noncontrolling interests | 500 | ||||
Redemption value | $ 23,443 | $ 25,548 | $ 25,019 | $ 23,207 | |
DTLA Holdings | Senior Participating Preferred Interest | 333 South Hope and EYP Realty | |||||
Class of Stock [Line Items] | |||||
Participating interest in residual value | 4.00% |
Mezzanine Equity - Series B Pre
Mezzanine Equity - Series B Preferred Interest - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 15, 2013 | |
Class of Stock [Line Items] | |||||
Issuance of Series B preferred interest | $ 0 | $ 111,492 | $ 63,280 | ||
Distributions to noncontrolling interests | (30,141) | (470) | (616) | ||
Redemption value | 1,015,889 | 990,749 | 829,532 | $ 726,595 | |
Series B preferred interest | |||||
Class of Stock [Line Items] | |||||
Maximum funding commitment | $ 260,000 | ||||
Future funding commitment available | 85,200 | ||||
Issuance of Series B preferred interest | 0 | $ 111,492 | $ 63,280 | ||
Preferred return rate | 9.00% | 9.00% | |||
Distributions to noncontrolling interests | (26,600) | ||||
Redemption value | 181,698 | $ 190,291 | $ 65,364 | $ 0 | |
Liquidation value | 174,800 | ||||
Unpaid preferred returns | $ 6,900 |
Mezzanine Equity - Summary of C
Mezzanine Equity - Summary of Change in Mezzanine Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Balance, beginning | $ 990,749 | $ 829,532 | $ 726,595 |
Issuance of Series B preferred interest | 0 | 111,492 | 63,280 |
Current dividends | 35,838 | 35,761 | 35,761 |
Current preferred return | 17,961 | 13,435 | 2,084 |
Redemption measurement adjustment | 1,482 | 479 | 2,428 |
Contribution from holders | 520 | ||
Distributions to holders | (30,141) | (470) | (616) |
Balance, ending | 1,015,889 | 990,749 | 829,532 |
Series A Preferred Stock | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Balance, beginning | $ 391,400 | $ 372,852 | $ 354,304 |
Balance, beginning (in shares) | 9,730,370 | 9,730,370 | 9,730,370 |
Current dividends | $ 18,532 | $ 18,548 | $ 18,548 |
Balance, ending | $ 409,932 | $ 391,400 | $ 372,852 |
Balance, ending (in shares) | 9,730,370 | 9,730,370 | 9,730,370 |
Series A-1 Preferred Interest | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Balance, beginning | $ 383,510 | $ 366,297 | $ 349,084 |
Current dividends | 17,306 | 17,213 | 17,213 |
Balance, ending | 400,816 | 383,510 | 366,297 |
Senior Participating Preferred Interest | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Balance, beginning | 25,548 | 25,019 | 23,207 |
Current dividends | 0 | 0 | 0 |
Redemption measurement adjustment | 1,482 | 479 | 2,428 |
Contribution from holders | 520 | ||
Distributions to holders | (3,587) | (470) | (616) |
Balance, ending | 23,443 | 25,548 | 25,019 |
Series B Preferred Interest | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Balance, beginning | 190,291 | 65,364 | 0 |
Issuance of Series B preferred interest | 0 | 111,492 | 63,280 |
Current dividends | 0 | 0 | 0 |
Current preferred return | 17,961 | 13,435 | 2,084 |
Distributions to holders | (26,554) | 0 | 0 |
Balance, ending | $ 181,698 | $ 190,291 | $ 65,364 |
Stockholders' Deficit - Common
Stockholders' Deficit - Common Stock - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares issued (in shares) | 1,000 | 1,000 | |
Common stock, shares outstanding (in shares) | 1,000 | 1,000 | |
Dividends declared on common stock (in USD per share) | $ 0 | $ 0 | $ 0 |
Stockholders' Deficit - Capital
Stockholders' Deficit - Capital Contributions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Contributions from DTLA Holdings | $ 1,615 | $ 0 | $ 2,500 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Change in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Loss [Roll Forward] | |||
Other comprehensive income before reclassifications | $ 1,548 | $ 2,799 | $ 2,042 |
Amounts reclassified from accumulated other comprehensive loss | (1,198) | 0 | 0 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Loss [Roll Forward] | |||
Balance at beginning of year | (574) | (3,373) | (5,415) |
Other comprehensive income before reclassifications | 1,548 | 2,799 | 2,042 |
Amounts reclassified from accumulated other comprehensive loss | (1,198) | 0 | 0 |
Net current-year other comprehensive income | 350 | 2,799 | 2,042 |
Balance at end of year | $ (224) | $ (574) | $ (3,373) |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 288,000,000 | $ 240,000,000 |
Unrecognized tax benefits | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets (Liabilities) Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate cash flow hedge derivatives at fair value | $ 974 | $ (574) | $ (3,373) |
Interest Rate Swap | Quoted Prices in Active Markets for Identical Assets (Liabilities) (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate cash flow hedge derivatives at fair value | 0 | 0 | 0 |
Interest Rate Swap | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate cash flow hedge derivatives at fair value | 974 | (574) | (3,373) |
Interest Rate Swap | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate cash flow hedge derivatives at fair value | 0 | 0 | 0 |
Interest Rate Cap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate derivative instruments not designated as hedging instruments at fair value | 11 | 15 | 53 |
Interest Rate Cap | Quoted Prices in Active Markets for Identical Assets (Liabilities) (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate derivative instruments not designated as hedging instruments at fair value | 0 | 0 | 0 |
Interest Rate Cap | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate derivative instruments not designated as hedging instruments at fair value | 11 | 15 | 53 |
Interest Rate Cap | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Interest rate derivative instruments not designated as hedging instruments at fair value | $ 0 | $ 0 | $ 0 |
Financial Instruments - Summary
Financial Instruments - Summary of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Interest Rate Swap | |||
Derivatives, Fair Value | |||
Interest rate cash flow hedge derivatives at fair value | $ 974 | $ (574) | $ (3,373) |
Prepaid and Other Assets, Net | Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivatives, Fair Value | |||
Interest rate cash flow hedge derivatives at fair value | 974 | ||
Prepaid and Other Assets, Net | Interest Rate Cap | Cash Flow Hedging | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value | |||
Interest rate cash flow hedge derivatives at fair value | $ 11 | 15 | |
Accounts Payable and Other Liabilities | Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivatives, Fair Value | |||
Interest rate cash flow hedge derivatives at fair value | $ (574) |
Financial Instruments - Summa_2
Financial Instruments - Summary of Effect of Derivative Instruments (Details) - Interest Rate Swap - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative | |||
Amount of Gain Recognized in AOCL | $ 1,548 | $ 2,799 | $ 2,042 |
Amount of Gain Reclassified from AOCL to Statement of Operations | $ 1,198 | $ 0 | $ 0 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Interest Rate Swaps (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Mar. 29, 2018 | |
Interest Rate Swap Agreement One | EY Plaza | ||
Derivative | ||
Notional amount | $ 172,600 | |
Swap rate | 2.18% | |
LIBOR spread | 1.65% | |
Effective interest rate | 3.83% | |
Interest Rate Swap Agreement Two | EY Plaza | ||
Derivative | ||
Notional amount | $ 54,206 | $ 54,200 |
Swap rate | 2.47% | 2.47% |
LIBOR spread | 1.65% | |
Effective interest rate | 4.12% | 4.12% |
Interest Rate Swap | ||
Derivative | ||
Notional amount | $ 226,806 | |
Swap rate | 2.27% | |
LIBOR spread | 1.65% | |
Effective interest rate | 3.90% |
Financial Instruments - Interes
Financial Instruments - Interest Rate Swaps - Narrative (Details) - EY Plaza - Interest Rate Swap Agreement Two - Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 29, 2018 |
Derivative | ||
Notional amount | $ 54,206 | $ 54,200 |
Swap rate | 2.47% | 2.47% |
Effective interest rate | 4.12% | 4.12% |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Interest Rate Caps (Details) - Interest Rate Cap - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Dec. 31, 2018 | Nov. 05, 2018 | Oct. 15, 2018 | Sep. 21, 2018 | Mar. 29, 2018 | Dec. 31, 2017 |
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | $ 1,045,000 | $ 960,000 | ||||
Wells Fargo Center - North Tower | ||||||
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | $ 500,000 | |||||
Wells Fargo Center - North Tower | Variable Rate Debt - Mortgage Loan | ||||||
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | 400,000 | 370,000 | ||||
Wells Fargo Center - North Tower | Variable Rate Debt - Mezzanine A Loan | ||||||
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | 65,000 | 55,000 | ||||
Wells Fargo Center - North Tower | Variable Rate Debt - Mezzanine B Loan | ||||||
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | 35,000 | 45,000 | ||||
Wells Fargo Center - South Tower | ||||||
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | $ 290,000 | |||||
Wells Fargo Center - South Tower | Variable Rate Loans | ||||||
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | 290,000 | 270,000 | ||||
777 Tower | ||||||
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | $ 220,000 | |||||
777 Tower | Variable Rate Loans | ||||||
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | 220,000 | 220,000 | ||||
EY Plaza | ||||||
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | $ 35,000 | |||||
EY Plaza | Variable Rate Debt - Mezzanine A Loan | ||||||
Derivative Instruments, Interest Rate Caps | ||||||
Notional amount | $ 35,000 | $ 0 |
Financial Instruments - Inter_2
Financial Instruments - Interest Rate Caps - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Nov. 05, 2018 | Oct. 15, 2018 | Sep. 21, 2018 | Mar. 29, 2018 | Dec. 31, 2017 |
Interest Rate Cap | Not Designated as Hedging Instrument | ||||||
Derivative | ||||||
Notional amount | $ 1,045,000 | $ 960,000 | ||||
EY Plaza | LIBOR | ||||||
Derivative | ||||||
Cap interest rate | 3.50% | |||||
Wells Fargo Center - North Tower | LIBOR | ||||||
Derivative | ||||||
Cap interest rate | 4.25% | |||||
777 Tower | LIBOR | ||||||
Derivative | ||||||
Cap interest rate | 5.75% | |||||
Wells Fargo Center - South Tower | LIBOR | ||||||
Derivative | ||||||
Cap interest rate | 4.50% | |||||
EY Plaza | Interest Rate Cap | Not Designated as Hedging Instrument | ||||||
Derivative | ||||||
Notional amount | $ 35,000 | |||||
Wells Fargo Center - North Tower | Interest Rate Cap | Not Designated as Hedging Instrument | ||||||
Derivative | ||||||
Notional amount | $ 500,000 | |||||
777 Tower | Interest Rate Cap | Not Designated as Hedging Instrument | ||||||
Derivative | ||||||
Notional amount | $ 220,000 | |||||
Wells Fargo Center - South Tower | Interest Rate Cap | Not Designated as Hedging Instrument | ||||||
Derivative | ||||||
Notional amount | $ 290,000 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Estimated Fair Value and Carrying Amount of Mortgage and Mezzanine Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Estimated fair value | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Mortgage and mezzanine loans | $ 2,142,813 | $ 2,003,600 |
Carrying amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Mortgage and mezzanine loans | $ 2,151,686 | $ 2,001,831 |
Related Party Transactions - Ma
Related Party Transactions - Management Agreements - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Property Management Fee | |
Related Party Transaction | |
Related party transaction rate | 2.75% |
Asset Management Fee | |
Related Party Transaction | |
Related party transaction rate | 0.75% |
Leasing Management Fee | Minimum | |
Related Party Transaction | |
Related party transaction rate | 1.00% |
Leasing Management Fee | Maximum | |
Related Party Transaction | |
Related party transaction rate | 4.00% |
Construction Management Fee | |
Related Party Transaction | |
Related party transaction rate | 3.00% |
Related Party Transactions - Su
Related Party Transactions - Summary of Costs Incurred Under Agreements with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property management fee expense | |||
Related Party Transaction | |||
Related party transaction expense | $ 8,111 | $ 8,136 | $ 7,964 |
Asset management fee expense | |||
Related Party Transaction | |||
Related party transaction expense | 6,330 | 6,330 | 6,330 |
Leasing and construction management fee expense | |||
Related Party Transaction | |||
Related party transaction expense | 3,209 | 5,198 | 3,049 |
General, administrative and reimbursable expenses | |||
Related Party Transaction | |||
Related party transaction expense | 3,007 | 2,613 | 2,466 |
Insurance expense | |||
Related Party Transaction | |||
Related party transaction expense | $ 8,026 | $ 7,795 | $ 7,948 |
Related Party Transactions - In
Related Party Transactions - Insurance Agreements - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Related Party Transactions [Abstract] | |
Real Estate Insurance, All Risk Property and Business Interruption, Aggregate Limit per Occurrence | $ 2,500 |
Real Estate Insurance, Earthquake, Aggregate Limit | 437.5 |
Real Estate Insurance, Flood and Weather Catastrophe, Aggregate Limit | 372.5 |
Real Estate Insurance, Terrorism Insurance per Occurrence Maximum | $ 4,000 |
Related Party Transactions - Ot
Related Party Transactions - Other Related Party Transactions with BAM Affiliates - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Rental income and tenant reimbursements revenue | |||
Related Party Transaction | |||
Related party transaction revenue | $ 1,928 | $ 0 | $ 0 |
Rental property operating and maintenance expense | |||
Related Party Transaction | |||
Related party transaction expense | $ 862 | $ 579 | $ 0 |
Rental Income - Schedule of Fut
Rental Income - Schedule of Future Minimum Base Rental Income Under Executed Noncancelable Tenant Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 160,732 |
2020 | 162,373 |
2021 | 162,175 |
2022 | 147,958 |
2023 | 130,674 |
Thereafter | 587,950 |
Total | $ 1,351,862 |
Rental Income - Narrative (Deta
Rental Income - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Percentage rental income earned | $ 2 | $ 3.1 | $ 2.8 |
Commitments and Contingencies -
Commitments and Contingencies - Concentration of Tenant Credit Risk - Narrative (Details) - customer | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Customer concentration risk | Revenue | |||
Concentration Risk [Line Items] | |||
Number of tenants | 0 | 0 | 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Concentration of Property Revenue Risk - Narrative (Details) - EY Plaza, BOA Plaza, Wells Fargo Center North Tower, Wells Fargo Center South Tower, Gas Company Tower And 777 Tower - Revenue - Properties | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Number of real estate properties | 6 | 6 | 6 |
Product Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of consolidated revenue generated by six properties | 98.00% | 100.00% | 100.00% |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Schedule of Quarterly Financial Information (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information [Line Items] | |||||||||||
Revenues | $ 79,124 | $ 77,151 | $ 84,194 | $ 75,211 | $ 77,270 | $ 77,067 | $ 76,070 | $ 75,915 | $ 315,680 | $ 306,322 | $ 310,692 |
Expenses | 94,100 | 91,789 | 89,458 | 84,990 | 87,163 | 86,204 | 84,571 | 86,021 | 360,337 | 343,959 | 348,859 |
Net loss | (14,976) | (14,638) | (5,264) | (9,779) | (9,893) | (9,137) | (8,501) | (10,106) | (44,657) | (37,637) | (38,167) |
Series B common interest – allocation of net income (loss) | 65,458 | (14,531) | (9,889) | (12,695) | (12,053) | (11,738) | (11,050) | (10,858) | 28,343 | (45,699) | (41,055) |
Net loss attributable to Brookfield DTLA | (89,864) | (8,595) | (4,367) | (6,923) | (6,338) | (6,052) | (5,424) | (5,251) | (109,749) | (23,065) | (18,837) |
Net loss available to common interest holders of Brookfield DTLA | (94,485) | (13,232) | (9,004) | (11,560) | (10,975) | (10,689) | (10,061) | (9,888) | (128,281) | (41,613) | (37,385) |
Series A-1 preferred interest | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Current dividends | 4,397 | 4,303 | 4,303 | 4,303 | 4,304 | 4,303 | 4,303 | 4,303 | 17,306 | 17,213 | 17,213 |
Senior participating preferred interest | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Redemption measurement adjustment | (1,163) | 220 | 768 | 1,657 | 229 | 385 | (191) | 56 | 1,482 | 479 | 2,428 |
Series B preferred interest | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Current preferred return | 6,196 | 3,965 | 3,921 | 3,879 | 3,965 | 3,965 | 3,861 | 1,644 | 17,961 | 13,435 | 2,084 |
Series A preferred stock | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Current dividends | $ 4,621 | $ 4,637 | $ 4,637 | $ 4,637 | $ 4,637 | $ 4,637 | $ 4,637 | $ 4,637 | $ 18,532 | $ 18,548 | $ 18,548 |
Investments in Real Estate - Su
Investments in Real Estate - Summary of Information Related to Investments in Real Estate (Details) - USD ($) $ in Thousands | Oct. 15, 2013 | Oct. 06, 2006 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | $ 2,151,686 | |||||
Initial Cost to Company | ||||||
Land | 227,555 | |||||
Buildings and Improvements | 2,198,772 | |||||
Costs Capitalized Subsequent to Acquisition | ||||||
Improvements | 408,123 | |||||
Carrying Costs | 0 | |||||
Gross Amount at Which Carried at Close of Period | ||||||
Land | 227,555 | |||||
Buildings and Improvements | 2,606,895 | |||||
Total | 2,834,450 | $ 2,756,322 | $ 2,740,773 | $ 2,675,249 | ||
Accumulated Depreciation | 418,205 | $ 342,465 | $ 329,149 | $ 256,130 | ||
Office properties | Wells Fargo Center – North Tower 333 S. Grand Avenue | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | 500,000 | |||||
Initial Cost to Company | ||||||
Land | 41,024 | |||||
Buildings and Improvements | 456,363 | |||||
Costs Capitalized Subsequent to Acquisition | ||||||
Improvements | 94,924 | |||||
Carrying Costs | 0 | |||||
Gross Amount at Which Carried at Close of Period | ||||||
Land | 41,024 | |||||
Buildings and Improvements | 551,287 | |||||
Total | 592,311 | |||||
Accumulated Depreciation | 70,932 | |||||
Year Acquired | Oct. 15, 2013 | |||||
Office properties | BOA Plaza 333 S. Hope Street | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | 400,000 | |||||
Initial Cost to Company | ||||||
Land | 54,163 | |||||
Buildings and Improvements | 354,422 | |||||
Costs Capitalized Subsequent to Acquisition | ||||||
Improvements | 48,130 | |||||
Carrying Costs | 0 | |||||
Gross Amount at Which Carried at Close of Period | ||||||
Land | 54,163 | |||||
Buildings and Improvements | 402,552 | |||||
Total | 456,715 | |||||
Accumulated Depreciation | 106,833 | |||||
Year Acquired | Oct. 6, 2006 | |||||
Office properties | Wells Fargo Center – South Tower 355 S. Grand Avenue | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | 258,186 | |||||
Initial Cost to Company | ||||||
Land | 21,231 | |||||
Buildings and Improvements | 401,149 | |||||
Costs Capitalized Subsequent to Acquisition | ||||||
Improvements | 44,677 | |||||
Carrying Costs | 0 | |||||
Gross Amount at Which Carried at Close of Period | ||||||
Land | 21,231 | |||||
Buildings and Improvements | 445,826 | |||||
Total | 467,057 | |||||
Accumulated Depreciation | 50,528 | |||||
Year Acquired | Oct. 15, 2013 | |||||
Office properties | Gas Company Tower 525-555 W. Fifth Street | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | 450,000 | |||||
Initial Cost to Company | ||||||
Land | 20,742 | |||||
Buildings and Improvements | 396,159 | |||||
Costs Capitalized Subsequent to Acquisition | ||||||
Improvements | 65,881 | |||||
Carrying Costs | 0 | |||||
Gross Amount at Which Carried at Close of Period | ||||||
Land | 20,742 | |||||
Buildings and Improvements | 462,040 | |||||
Total | 482,782 | |||||
Accumulated Depreciation | 51,813 | |||||
Year Acquired | Oct. 15, 2013 | |||||
Office properties | EY Plaza 725 S. Figueroa Street | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | 323,500 | |||||
Initial Cost to Company | ||||||
Land | 47,385 | |||||
Buildings and Improvements | 286,982 | |||||
Costs Capitalized Subsequent to Acquisition | ||||||
Improvements | 118,822 | |||||
Carrying Costs | 0 | |||||
Gross Amount at Which Carried at Close of Period | ||||||
Land | 47,385 | |||||
Buildings and Improvements | 405,804 | |||||
Total | 453,189 | |||||
Accumulated Depreciation | 95,304 | |||||
Year Acquired | Oct. 6, 2006 | |||||
Office properties | 777 Tower 777 S. Figueroa Street | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | 220,000 | |||||
Initial Cost to Company | ||||||
Land | 38,010 | |||||
Buildings and Improvements | 303,697 | |||||
Costs Capitalized Subsequent to Acquisition | ||||||
Improvements | 24,759 | |||||
Carrying Costs | 0 | |||||
Gross Amount at Which Carried at Close of Period | ||||||
Land | 38,010 | |||||
Buildings and Improvements | 328,456 | |||||
Total | 366,466 | |||||
Accumulated Depreciation | 42,795 | |||||
Year Acquired | Oct. 15, 2013 | |||||
Development site | Development site at 755 S. Figueroa Street | ||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||||
Encumbrances | 0 | |||||
Initial Cost to Company | ||||||
Land | 5,000 | |||||
Buildings and Improvements | 0 | |||||
Costs Capitalized Subsequent to Acquisition | ||||||
Improvements | 10,930 | |||||
Carrying Costs | 0 | |||||
Gross Amount at Which Carried at Close of Period | ||||||
Land | 5,000 | |||||
Buildings and Improvements | 10,930 | |||||
Total | 15,930 | |||||
Accumulated Depreciation | $ 0 |
Investments in Real Estate - _2
Investments in Real Estate - Summary of Information Related to Investments in Real Estate (Footnote) (Details) $ in Billions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Investment in real estate for federal income tax purposes | $ 2.6 |
Buildings | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Useful life | 60 years |
Estimated salvage value | 5.00% |
Building Improvements | Minimum | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Useful life | 7 years |
Building Improvements | Maximum | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |
Useful life | 25 years |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Reconciliation of Investments in Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments in Real Estate | |||
Balance at beginning of year | $ 2,756,322 | $ 2,740,773 | $ 2,675,249 |
Improvements | 78,128 | 75,847 | 65,524 |
Other deductions | 0 | 60,298 | 0 |
Balance at end of year | 2,834,450 | 2,756,322 | 2,740,773 |
Accumulated Depreciation | |||
Balance at beginning of year | 342,465 | 329,149 | 256,130 |
Depreciation expense | 75,740 | 73,614 | 73,019 |
Other deductions | 0 | 60,298 | 0 |
Balance at end of year | $ 418,205 | $ 342,465 | $ 329,149 |