Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Registrant Name | City Office REIT, Inc. | |
Entity Central Index Key | 0001593222 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 43,554,375 | |
Entity Address, State or Province | BC | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity File Number | 001-36409 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 98-1141883 | |
Entity Address, City or Town | Vancouver | |
Entity Address, Address Line One | 666 Burrard Street | |
Entity Address, Address Line Two | Suite 3210 | |
Entity Address, Postal Zip Code | V6C 2X8 | |
City Area Code | 604 | |
Local Phone Number | 806-3366 | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | CIO | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock | |
6.625% Series A Cumulative Redeemable Preferred Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | CIO.PrA | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | 6.625% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Real estate properties | ||
Land | $ 169,984 | $ 204,289 |
Building and improvement | 744,818 | 777,184 |
Tenant improvement | 102,683 | 104,694 |
Furniture, fixtures and equipment | 664 | 642 |
Real estate properties, gross | 1,018,149 | 1,086,809 |
Accumulated depreciation | (149,901) | (131,220) |
Real estate properties, net | 868,248 | 955,589 |
Cash and cash equivalents | 17,697 | 25,305 |
Restricted cash | 52,484 | 20,646 |
Rents receivable, net | 29,221 | 32,968 |
Deferred leasing costs, net | 18,415 | 16,829 |
Acquired lease intangible assets, net | 30,183 | 44,143 |
Other assets | 17,753 | 15,758 |
Assets held for sale | 118,382 | 46,054 |
Total Assets | 1,152,383 | 1,157,292 |
Liabilities: | ||
Debt | 603,334 | 677,242 |
Accounts payable and accrued liabilities | 32,096 | 25,414 |
Deferred rent | 10,460 | 7,295 |
Tenant rent deposits | 5,542 | 4,801 |
Acquired lease intangible liabilities, net | 3,868 | 6,035 |
Other liabilities | 47,662 | 18,099 |
Liabilities related to assets held for sale | 2,873 | 531 |
Total Liabilities | 705,835 | 739,417 |
Commitments and Contingencies (Note 9) | ||
Equity: | ||
6.625% Series A Preferred stock, $0.01 par value per share, 5,600,000 shares authorized, 4,480,000 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 112,000 | 112,000 |
Common stock, $0.01 par value per share, 100,000,000 shares authorized, 43,554,375 and 43,397,117 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 435 | 433 |
Additional paid-in capital | 481,345 | 479,411 |
Accumulated deficit | (146,930) | (172,958) |
Accumulated other comprehensive loss | (1,063) | (1,960) |
Total Stockholders' Equity | 445,787 | 416,926 |
Non-controlling interests in properties | 761 | 949 |
Total Equity | 446,548 | 417,875 |
Total Liabilities and Equity | $ 1,152,383 | $ 1,157,292 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Statement of Financial Position [Abstract] | ||
Preferred stock, Dividend rate percentage | 6.625% | 6.625% |
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,600,000 | 5,600,000 |
Preferred stock, shares issued | 4,480,000 | 4,480,000 |
Preferred stock, shares outstanding | 4,480,000 | 4,480,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 43,554,375 | 43,397,117 |
Common stock, shares outstanding | 43,554,375 | 43,397,117 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Rental and other revenues | $ 44,889 | $ 41,261 | $ 124,369 | $ 121,000 |
Operating expenses: | ||||
Property operating expenses | 15,180 | 14,886 | 43,477 | 43,666 |
General and administrative | 7,900 | 2,546 | 13,768 | 8,025 |
Depreciation and amortization | 14,648 | 15,189 | 44,017 | 45,222 |
Total operating expenses | 37,728 | 32,621 | 101,262 | 96,913 |
Operating income | 7,161 | 8,640 | 23,107 | 24,087 |
Interest expense: | ||||
Contractual interest expense | (5,650) | (6,620) | (17,533) | (19,773) |
Amortization of deferred financing costs and debt fair value | (267) | (328) | (869) | (993) |
Interest expense, net | (5,917) | (6,948) | (18,402) | (20,766) |
Net gain on sale of real estate property | 1,347 | 47,400 | 1,347 | |
Net income | 1,244 | 3,039 | 52,105 | 4,668 |
Net income attributable to non-controlling interests in properties | (378) | (153) | (760) | (514) |
Net income attributable to the Company | 866 | 2,886 | 51,345 | 4,154 |
Preferred stock distributions | (1,855) | (1,855) | (5,565) | (5,565) |
Net (loss)/income attributable to common stockholders | $ (989) | $ 1,031 | $ 45,780 | $ (1,411) |
Net (loss)/income per common share: | ||||
Basic | $ (0.02) | $ 0.02 | $ 1.05 | $ (0.03) |
Diluted | $ (0.02) | $ 0.02 | $ 1.04 | $ (0.03) |
Weighted average common shares outstanding: | ||||
Basic | 43,554 | 43,593 | 43,478 | 48,508 |
Diluted | 43,554 | 44,014 | 44,091 | 48,508 |
Dividend distributions declared per common share | $ 0.15 | $ 0.15 | $ 0.45 | $ 0.45 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,244 | $ 3,039 | $ 52,105 | $ 4,668 |
Other comprehensive income/(loss): | ||||
Unrealized cash flow hedge (loss)/gain | (22) | (7) | 458 | (3,091) |
Amounts reclassified to interest expense | 150 | 141 | 439 | 186 |
Other comprehensive income/(loss) | 128 | 134 | 897 | (2,905) |
Comprehensive income | 1,372 | 3,173 | 53,002 | 1,763 |
Comprehensive income attributable to non-controlling interests in properties | (378) | (153) | (760) | (514) |
Comprehensive income attributable to the Company | $ 994 | $ 3,020 | $ 52,242 | $ 1,249 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total stockholders' equity [Member] | Non-controlling Interests in Properties [Member] |
Beginning balance at Dec. 31, 2019 | $ 549,132 | $ 112,000 | $ 545 | $ 577,131 | $ (142,383) | $ 715 | $ 548,008 | $ 1,124 |
Beginning balance, shares at Dec. 31, 2019 | 4,480,000 | 54,591,000 | ||||||
Restricted stock award grants and vesting, values | 520 | 599 | (79) | 520 | ||||
Restricted stock award grants and vesting, shares | 35,000 | |||||||
Common stock repurchased, values | (11,622) | $ (14) | (11,608) | (11,622) | ||||
Common stock repurchased, shares | (1,451,000) | |||||||
Common stock dividend distribution declared | (7,771) | (7,771) | (7,771) | |||||
Preferred stock dividend distribution declared | (1,855) | (1,855) | (1,855) | |||||
Contributions | 3 | 3 | ||||||
Distributions | (200) | (200) | ||||||
Net income | 1,006 | 824 | 824 | 182 | ||||
Other comprehensive income/loss | (2,741) | (2,741) | (2,741) | |||||
Ending balance at Mar. 31, 2020 | 526,472 | $ 112,000 | $ 531 | 566,122 | (151,264) | (2,026) | 525,363 | 1,109 |
Ending balance, shares at Mar. 31, 2020 | 4,480,000 | 53,175,000 | ||||||
Beginning balance at Dec. 31, 2019 | $ 549,132 | $ 112,000 | $ 545 | 577,131 | (142,383) | 715 | 548,008 | 1,124 |
Beginning balance, shares at Dec. 31, 2019 | 4,480,000 | 54,591,000 | ||||||
Common stock repurchased, shares | 11,363,851 | |||||||
Net income | $ 4,668 | |||||||
Other comprehensive income/loss | (2,905) | |||||||
Ending balance at Sep. 30, 2020 | 425,118 | $ 112,000 | $ 433 | 478,774 | (164,917) | (2,190) | 424,100 | 1,018 |
Ending balance, shares at Sep. 30, 2020 | 4,480,000 | 43,397,000 | ||||||
Beginning balance at Mar. 31, 2020 | 526,472 | $ 112,000 | $ 531 | 566,122 | (151,264) | (2,026) | 525,363 | 1,109 |
Beginning balance, shares at Mar. 31, 2020 | 4,480,000 | 53,175,000 | ||||||
Restricted stock award grants and vesting, values | 595 | $ 2 | 659 | (66) | 595 | |||
Restricted stock award grants and vesting, shares | 135,000 | |||||||
Common stock repurchased, values | (78,049) | $ (88) | (77,961) | (78,049) | ||||
Common stock repurchased, shares | (8,799,000) | |||||||
Common stock dividend distribution declared | (6,649) | (6,649) | (6,649) | |||||
Preferred stock dividend distribution declared | (1,855) | (1,855) | (1,855) | |||||
Distributions | (184) | (184) | ||||||
Net income | 623 | 444 | 444 | 179 | ||||
Other comprehensive income/loss | (298) | (298) | (298) | |||||
Ending balance at Jun. 30, 2020 | 440,655 | $ 112,000 | $ 445 | 488,820 | (159,390) | (2,324) | 439,551 | 1,104 |
Ending balance, shares at Jun. 30, 2020 | 4,480,000 | 44,511,000 | ||||||
Restricted stock award grants and vesting, values | 587 | 636 | (49) | 587 | ||||
Common stock repurchased, values | (10,694) | $ (12) | (10,682) | (10,694) | ||||
Common stock repurchased, shares | (1,114,000) | |||||||
Common stock dividend distribution declared | (6,509) | (6,509) | (6,509) | |||||
Preferred stock dividend distribution declared | (1,855) | (1,855) | (1,855) | |||||
Distributions | (239) | (239) | ||||||
Net income | 3,039 | 2,886 | 2,886 | 153 | ||||
Other comprehensive income/loss | 134 | 134 | 134 | |||||
Ending balance at Sep. 30, 2020 | 425,118 | $ 112,000 | $ 433 | 478,774 | (164,917) | (2,190) | 424,100 | 1,018 |
Ending balance, shares at Sep. 30, 2020 | 4,480,000 | 43,397,000 | ||||||
Beginning balance at Dec. 31, 2020 | 417,875 | $ 112,000 | $ 433 | 479,411 | (172,958) | (1,960) | 416,926 | 949 |
Beginning balance, shares at Dec. 31, 2020 | 4,480,000 | 43,397,000 | ||||||
Restricted stock award grants and vesting, values | 645 | 695 | (50) | 645 | ||||
Common stock dividend distribution declared | (6,510) | (6,510) | (6,510) | |||||
Preferred stock dividend distribution declared | (1,855) | (1,855) | (1,855) | |||||
Distributions | (220) | (220) | ||||||
Net income | 49,009 | 48,817 | 48,817 | 192 | ||||
Other comprehensive income/loss | 669 | 669 | 669 | |||||
Ending balance at Mar. 31, 2021 | 459,613 | $ 112,000 | $ 433 | 480,106 | (132,556) | (1,291) | 458,692 | 921 |
Ending balance, shares at Mar. 31, 2021 | 4,480,000 | 43,397,000 | ||||||
Beginning balance at Dec. 31, 2020 | $ 417,875 | $ 112,000 | $ 433 | 479,411 | (172,958) | (1,960) | 416,926 | 949 |
Beginning balance, shares at Dec. 31, 2020 | 4,480,000 | 43,397,000 | ||||||
Common stock repurchased, shares | 0 | |||||||
Net income | $ 52,105 | |||||||
Other comprehensive income/loss | 897 | |||||||
Ending balance at Sep. 30, 2021 | 446,548 | $ 112,000 | $ 435 | 481,345 | (146,930) | (1,063) | 445,787 | 761 |
Ending balance, shares at Sep. 30, 2021 | 4,480,000 | 43,554,000 | ||||||
Beginning balance at Mar. 31, 2021 | 459,613 | $ 112,000 | $ 433 | 480,106 | (132,556) | (1,291) | 458,692 | 921 |
Beginning balance, shares at Mar. 31, 2021 | 4,480,000 | 43,397,000 | ||||||
Restricted stock award grants and vesting, values | 449 | $ 2 | 523 | (76) | 449 | |||
Restricted stock award grants and vesting, shares | 157,000 | |||||||
Common stock dividend distribution declared | (6,533) | (6,533) | (6,533) | |||||
Preferred stock dividend distribution declared | (1,855) | (1,855) | (1,855) | |||||
Contributions | 2 | 2 | ||||||
Distributions | (204) | (204) | ||||||
Net income | 1,852 | 1,662 | 1,662 | 190 | ||||
Other comprehensive income/loss | 100 | 100 | 100 | |||||
Ending balance at Jun. 30, 2021 | 453,424 | $ 112,000 | $ 435 | 480,629 | (139,358) | (1,191) | 452,515 | 909 |
Ending balance, shares at Jun. 30, 2021 | 4,480,000 | 43,554,000 | ||||||
Restricted stock award grants and vesting, values | 666 | 716 | (50) | 666 | ||||
Common stock dividend distribution declared | (6,533) | (6,533) | (6,533) | |||||
Preferred stock dividend distribution declared | (1,855) | (1,855) | (1,855) | |||||
Contributions | 10 | 10 | ||||||
Distributions | (536) | (536) | ||||||
Net income | 1,244 | 866 | 866 | 378 | ||||
Other comprehensive income/loss | 128 | 128 | 128 | |||||
Ending balance at Sep. 30, 2021 | $ 446,548 | $ 112,000 | $ 435 | $ 481,345 | $ (146,930) | $ (1,063) | $ 445,787 | $ 761 |
Ending balance, shares at Sep. 30, 2021 | 4,480,000 | 43,554,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | |||
Net income | $ 3,039 | $ 52,105 | $ 4,668 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 15,189 | 44,017 | 45,222 |
Amortization of deferred financing costs and debt fair value | 328 | 869 | 993 |
Amortization of above and below market leases | 281 | (70) | |
Straight-line rent/expense | 428 | (2,354) | |
Non-cash stock compensation | 1,976 | 1,745 | |
Net gain on sale of real estate property | (1,347) | (47,400) | (1,347) |
Changes in non-cash working capital: | |||
Rents receivable, net | 635 | (235) | |
Other assets | (560) | (110) | |
Accounts payable and accrued liabilities | 8,558 | (151) | |
Deferred rent | 3,468 | (490) | |
Tenant rent deposits | 1,354 | (240) | |
Net Cash Provided By Operating Activities | 65,731 | 47,631 | |
Cash Flows from/(to) Investing Activities: | |||
Additions to real estate properties | (12,431) | (17,105) | |
Acquisition of real estate. | (43,256) | ||
Net proceeds from sale of real estate. | 122,103 | 6,340 | |
Deferred leasing costs | (6,830) | (4,479) | |
Net Cash Provided by/(Used In) Investing Activities | 59,586 | (15,244) | |
Cash Flows to Financing Activities: | |||
Proceeds from borrowings | 106,000 | 130,000 | |
Repayment of borrowings | (180,806) | (59,707) | |
Dividend distributions paid to stockholders | (25,117) | (32,814) | |
Distributions to non-controlling interests in properties | (960) | (623) | |
Shares withheld for payment of taxes on restricted stock unit vesting | (216) | (43) | |
Contributions from non-controlling interests in properties . | 12 | 3 | |
Repurchases of common stock | (100,365) | ||
Net Cash Used In Financing Activities | (101,087) | (63,549) | |
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash | 24,230 | (31,162) | |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | 45,951 | 87,523 | |
Cash, Cash Equivalents and Restricted Cash, End of Period | 56,361 | 70,181 | 56,361 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash: | |||
Cash and Cash Equivalents, End of Period | 38,399 | 17,697 | 38,399 |
Restricted Cash, End of Period | 17,962 | 52,484 | 17,962 |
Cash, Cash Equivalents and Restricted Cash, End of Period | $ 56,361 | 70,181 | 56,361 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | 17,568 | 19,681 | |
Purchase of additions in real estate properties included in accounts payable | 4,804 | 9,778 | |
Purchase of deferred leasing costs included in accounts payable | $ 1,351 | $ 797 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business City Office REIT, Inc. (the “Company”) was organized in the state of Maryland on November 26, 2013. On April 21, 2014, the Company completed its initial public offering (“IPO”) of shares of the Company’s common stock. The Company contributed the net proceeds of the IPO to City Office REIT Operating Partnership, L.P., a Maryland limited partnership (the “Operating Partnership”), in exchange for common units of limited partnership interest in the Operating Partnership (“common units”). The Company’s interest in the Operating Partnership entitles the Company to share in distributions from, and allocations of profits and losses of, the Operating Partnership in proportion to the Company’s percentage ownership of common units. As the sole general partner of the Operating Partnership, the Company has the exclusive power under the Operating Partnership’s partnership agreement The Company has elected to be taxed and will continue to |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with Securities and Exchange Commission (“SEC”) rules and regulations and generally accepted accounting principles in the United States of America (“US GAAP”) and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (the “FASB”) established Topic 848, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, by issuing Accounting Standards Update (“ASU”) No. 2020-04 2020-04”). 2020-04 No. 2021-01 2021-01”), 2021-01 2020-04 2021-01 2020-04 2021-01 In July 2021, the FASB issued ASU No. 2021-05 2021-05”), 2021-05 pre-ASU 2016-02 2021-05 |
Real Estate Investments
Real Estate Investments | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Real Estate Investments | 3. Real Estate Investments Acquisitions During the nine months ended September 30, 2021 and 2020 the Company acquired the following properties: Property Date Acquired Percentage Owned 5910 Pacific Center and 9985 Pacific Heights (1) May 2021 100 % (1) 5910 Pacific Center and 9985 Pacific Heights have been added to the existing Sorrento Mesa portfolio of properties (collectively “Sorrento Mesa”). T The following table summarizes the Company’s allocation of the purchase price of assets acquired and liabilities assumed during the nine months ended September 30, 2021 (in thousands): 5910 Pacific Land $ 37,294 Building and improvement 2,979 Tenant improvement 917 Lease intangible assets 2,469 Other assets 19 Accounts payable and other liabilities (319 ) Lease intangible liabilities (103 ) Net assets acquired $ 43,256 Sale of Real Estate Property On February 10, 2021, the Company sold the Cherry Creek property in Denver, Colorado for a gross sales price of $95.0 million, resulting in an aggregate gain of $47.4 million net of disposal-related costs, which has been classified as net gain on sale of real estate property in the condensed consolidated statements of operations. On July 23, 2020, the Company sold a land parcel at the Circle Point property in Denver, Colorado for $6.5 million, resulting in an aggregate gain of $1.3 million net of disposal-related costs, which has been classified as net gain on sale of real estate property in the condensed consolidated statements of operations. Assets Held for Sale On August 19, 2021, the Company entered into a purchase and sale agreement $395.1 million. The sale is scheduled to close in the fourth quarter of 2021, subject to customary closing conditions. As of September 30, 2021, the Company received a deposit of $19.8 million, which was recorded in restricted cash along with a corresponding liability in other liabilities on the Company’s condensed consolidated balance sheet. Also on August 19, 2021, the Company entered into a purchase and sale agreement million. The sale was initially scheduled to close in the first quarter of 2023, subject to customary closing conditions. The Company had the ability to accelerate the closing date with forty-five (45) days prior written notice thereof and subsequent to quarter end the Company exercised its option to accelerate the closing date to December 2021. As of September 30, 2021, the Company received a deposit of $9.0 million, which was recorded in restricted cash along with a corresponding liability in other liabilities on the Company’s condensed consolidated balance sheet . The company determined that both the North Disposition and South Disposition met the criteria for classification as an asset held for sale as of September 30, 2021 (in thousands): Sorrento Mesa North South Total Real estate properties, net $ 77,870 $ 30,717 $ 108,587 Deferred leasing costs, net 3,308 — 3,308 Acquired lease intangible assets, net 2,225 1,268 3,493 Rents receivable, prepaid expenses and other assets 2,977 17 2,994 Assets held for sale $ 86,380 $ 32,002 $ 118,382 Acquired lease intangible liabilities, net $ (1,005 ) $ — $ (1,005 ) Accounts payable, accrued expenses, deferred rent and tenant rent deposits (1,502 ) (366 ) (1,868 ) Liabilities related to assets held for sale $ (2,507 ) $ (366 ) $ (2,873 ) On November 18, 2020, the Company entered into a purchase and sale agreement e e The property was classified as held for sale as of December 31, 2020 (in thousands): Cherry Creek December 31, Real estate properties, net $ 40,849 Deferred leasing costs, net 150 Acquired lease intangible assets, net 2,256 Rents receivable, prepaid expenses and other assets 2,799 Assets held for sale $ 46,054 Accounts payable, accrued expenses, deferred rent and tenant rent deposits $ (531 ) Liabilities related to assets held for sale $ (531 ) |
Lease Intangibles
Lease Intangibles | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Lease Intangibles | 4. Lease Intangibles Lease intangibles and th e Lease Intangible Assets Lease Intangible Liabilities September 30, 2021 Above Market In Place Leases Leasing Total Below Below Total Cost $ 14,135 $ 71,416 $ 27,847 $ 113,398 $ (9,641 ) $ (138 ) $ (9,779 ) Accumulated amortization (9,240 ) (55,820 ) (18,155 ) (83,215 ) 5,864 47 5,911 $ 4,895 $ 15,596 $ 9,692 $ 30,183 $ (3,777 ) $ (91 ) $ (3,868 ) Lease Intangible Assets Lease Intangible Liabilities December 31, 2020 Above Market In Place Leases Leasing Total Below Below Total Cost $ 14,894 $ 80,259 $ 30,284 $ 125,437 $ (13,093 ) $ (138 ) $ (13,231 ) Accumulated amortization (8,497 ) (55,636 ) (17,161 ) (81,294 ) 7,152 44 7,196 $ 6,397 $ 24,623 $ 13,123 $ 44,143 $ (5,941 ) $ (94 ) $ (6,035 ) The estimated aggregate amortization expense for lease intangibles for the next five years and in the aggregate are as follows (in thousands): 2021 $ 2,381 2022 7,699 2023 5,281 2024 2,994 2025 2,751 Thereafter 5,209 $ 26,315 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt The following table summarizes th e s Property September 30, 2021 December 31, Interest Rate as 2021 (1) Maturity Unsecured Credit Facility (2)(3) $ 88,000 $ 75,000 LIBOR +1.40 % (4) March 2022 Term Loan (3) 50,000 50,000 LIBOR +1.25 % (4) September 2024 Mission City 47,000 47,000 3.78 % November 2027 Canyon Park (5) 40,612 40,950 4.30 % March 2027 190 Office Center 39,749 40,236 4.79 % October 2025 Circle Point 39,650 39,650 4.49 % September 2028 SanTan 33,022 33,444 4.56 % March 2027 Intellicenter 32,026 32,442 4.65 % October 2025 The Quad 30,600 30,600 4.20 % September 2028 FRP Collection 27,719 28,263 3.10 % September 2023 2525 McKinnon 27,000 27,000 4.24 % April 2027 Greenwood Blvd 22,048 22,425 3.15 % December 2025 Cascade Station 21,676 21,952 4.55 % May 2024 5090 N. 40th St 21,337 21,640 3.92 % January 2027 AmberGlen 20,000 20,000 3.69 % May 2027 Lake Vista Pointe 17,108 17,375 4.28 % August 2024 Central Fairwinds 16,813 17,127 3.15 % June 2024 FRP Ingenuity Drive 16,528 16,736 4.44 % December 2024 Carillon Point 15,286 15,585 3.10 % October 2023 Midland Life Insurance (6) — 83,537 — — Total Principal 606,174 680,962 Deferred financing costs, net (3,209 ) (4,195 ) Unamortized fair value adjustments 369 475 Total $ 603,334 $ 677,242 (1) All interest rates are fixed interest rates with the exception of the Unsecured Credit Facility (the “Unsecured Credit Facility”) and the Term Loan (the “Term Loan”), as explained in footnotes 2 and 3 below. (2) In March 2018, the Company entered into the Credit Agreement March 2022 March 2023 a (3) In September 2019, the Company entered into a five-year $50 million Term Loan increasing its authorized borrowings under the Unsecured Credit Facility from $250 million to $300 million. Borrowings under the Term Loan bear interest at a rate equal to the LIBOR rate plus a margin between 125 to 215 basis points depending upon the Company’s consolidated leverage ratio. In conjunction with the Term Loan, the Company also entered into a five-year interest rate swap for a notional amount of $50 million (the “Interest Rate Swap”). Pursuant to the Interest Rate Swap, the Company will pay a fixed rate of approximately 1.27% of the notional amount annually, payable monthly, and receive floating rate 30-day (4) As of September 30, 2021, the one-month (5) The mortgage loan anticipated repayment date (“ARD”) is March 1, 2027. The final scheduled maturity date can be extended up to 5 years beyond the ARD. If the loan is not paid off at ARD, loan’s interest rate shall be adjusted to the greater of (i) the initial interest rate plus 200 basis points or (ii) the yield on the five year “on the run” treasury reported by Bloomberg market data service plus 450 basis points. (6) The mortgage loan was cross-collateralized by Cherry Creek, City Center and 7595 Tech (formerly “DTC Crossroads”). In February 2021, the loan balance of $83.5 million was repaid in full. The scheduled principal repayments o f s : 2021 $ 1,524 2022 94,539 2023 48,539 2024 124,736 2025 91,997 Thereafter 244,839 $ 606,174 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1 Inputs – quoted prices in active markets for identical assets or liabilities Level 2 Inputs – observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3 Inputs – unobservable inputs In September 2019, the Company entered into the Interest Rate Swap for a notional amount of $50 million. Pursuant to the Interest Rate Swap, the Company will pay a fixed rate of approximately 1.27% of the notional amount annually, payable monthly, and receive floating rate 30-day The Interest Rate Swap has been designated and qualifies as a cash flow hedge and has been recognized on the condensed consolidated balance sheets at fair value. Gains and losses resulting from changes in the fair value of derivatives that have been designated and qualify as cash flow hedges are reported as a component of other comprehensive income/(loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. As of September 30, 2021, the Interest Rate Swap was reported as a liability at its fair value of approximately $1.1 million, which is included in other liabilities on the Company’s condensed consolidated balance sheet. For the nine months ended September 30, 2021, approximately $0.4 million of realized losses were reclassified to interest expense due to payments made to the swap counterparty. For the nine months ended September 30, 2020, approximately $0.2 million of realized losses were reclassified to interest expense due to payments made to the swap counterparty. As of December 31, 2020, the Interest Rate Swap was reported as a liability at its fair value of approximately $2.0 million, which is included in other liabilities on the Company’s condensed consolidated balance sheet. Cash, Cash Equivalents, Restricted Cash, Rents Receivable, Accounts Payable and Accrued Liabilities The Company estimates that the fair value approximates carrying value due to the relatively short-term nature of these instruments. Fair Value of Financial Instruments Not Carried at Fair Value With the exception of fixed rate mortgage loans payable, the carrying amounts of the Company’s financial instruments approximate their fair value. The Company determines the fair value of its fixed rate mortgage loan payable based on a discounted cash flow analysis using a discount rate that approximates the current borrowing rates for instruments of similar maturities. Based on this, the Company has determined that the fair value of these instruments was $474.0 million and $573.6 million (compared to a carrying value of $468.2 million and $556.0 million) as of September 30, 2021 and December 31, 2020, respectively. Accordingly, the fair value of mortgage loans payable have been classified as Level 3 fair value measurements. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions Administrative Services Agreement For the nine months ended September 30, 2021 and 2020, the Company earned $0.5 million and $0.5 million, respectively, in administrative services performed for Second City Real Estate II Corporation, Clarity Real Estate Ventures GP, Limited Partnership and their affiliates. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 8. Leases Lessor Accounting The Company is focused on acquiring, owning and operating high-quality office properties for lease to a stable and diverse tenant base. Our properties have both full-service gross and net leases which are generally classified as operating leases. Rental income related to such leases is recognized on a straight-line basis over the remaining lease term. The Company’s total revenue includes fixed base rental payments provided under the lease and variable payments which principally consist of tenant expense reimbursements for certain property operating expenses. The Company recognized fixed and variable lease payments for the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020 as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Fixed payments $ 38,963 $ 35,071 $ 106,825 $ 103,070 Variable payments 5,868 6,151 17,404 17,864 $ 44,831 $ 41,222 $ 124,229 $ 120,934 Future minimum lease payments t o non-cancellable 2021 $ 29,967 2022 111,708 2023 92,205 2024 72,917 2025 59,773 Thereafter 182,296 $ 548,866 The Company’s leases may include various provisions such as scheduled rent increases, renewal options and termination options. The majority of the Company’s leases include defined rent increases rather than variable payments based on an index or unknown rate. Lessee Accounting As a lessee, the Company has ground and office leases which are classified as operating and financing leases. As of September 30, 2021, these leases had remaining terms of under one year to 67 years an d Right-of-use September 30, 2021 December 31, 2020 Right-of-use $ 14,238 $ 12,739 Lease liability – operating leases $ 9,374 $ 7,719 Right-of-use $ 37 $ 55 Lease liability – financing leases $ 37 $ 55 Lease liabilities are measured at the commencement date based on the present value of future lease payments. One of the Company’s operating ground leases includes rental payment increases over the lease term based on increases in the Consumer Price Index (“CPI”). Changes in the CPI were not estimated as part of the measurement of the operating lease liability. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The Company used a weighted average discount rate of 6.2% in determining its lease liabilities. The discount rates were derived from the Company’s assessment of the credit quality of the Company and adjusted to reflect secured borrowing, estimated yield curves and long-term spread adjustments . Right-of-use Operating lease expenses for the three and nine months ended September 30, 2021 were $0.2 million and $0.7 million, respectively. Operating lease expenses for the three and nine months ended September 30, 2020 were $0.2 million and $0.6 million, respectively. Financing lease expenses for the three and nine months ended September 30, 2021 and 2020 were nominal. Future minimum lease payments to be paid by the Company as a lessee for operating and financing leases as of September 30, 2021 for the next five years and thereafter are as follows (in thousands): Operating Financing Leases 2021 $ 89 $ 7 2022 971 27 2023 836 4 2024 770 — 2025 770 — Thereafter 27,875 — Total future minimum lease payments 31,311 38 Discount (21,937 ) (1 ) Total $ 9,374 $ 37 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies The Company is obligated under certain tenant leases t o Under various federal, state and local laws, ordinances and regulations relating to the protection of the environment, a current or previous owner or operator of real estate may be liable for the cost of removal or remediation of certain hazardous or toxic substances disposed, stored, generated, released, manufactured or discharged from, on, at, under, or in a property. As such, the Company may be potentially liable for costs associated with any potential environmental remediation at any of its formerly or currently owned properties. The Company believes that it is in compliance in all material respects with all federal, state and local ordinances and regulations regarding hazardous or toxic substances. Management is not aware of any environmental liability that it believes would have a material adverse impact on the Company’s financial position or results of operations. Management is unaware of any instances in which the Company would incur significant environmental costs if any or all properties were sold, disposed of or abandoned. However, there can be no assurance that any such non-compliance, The Company is involved from time to time in lawsuits and other disputes which arise in the ordinary course of business. As of September 30, 2021, management believes that these matters will not have a material adverse effect, individually or in the aggregate, on the Company’s financial position or results of operations. |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
Stockholder's Equity | 10. Stockholders’ Equity Share Repurchase Plan On March 9, 2020, the Company’s Board of Directors approved a share repurchase plan authorizing the Company to repurchase up to $100 million of its outstanding shares of common stock. In July 2020, the Company completed the full March 2020 share repurchase plan. On August 5, 2020, the Company’s Board of Directors approved an additional share repurchase plan authorizing the Company to repurchase up to an additional aggregate amount of $50 million of its outstanding shares of common stock. Under the share repurchase programs, the shares may be repurchased from time to time using a variety of methods, which may include open market transactions, privately negotiated transactions or otherwise, all in accordance with the rules of the SEC and other applicable legal requirements. Repurchased shares of common stock will be classified as authorized and unissued shares. The Company recognizes the cost of shares of common stock it repurchases, including direct costs incurred, as a reduction in stockholders’ equity. Such reductions of stockholders equity due to the repurchases of shares of common stock will be applied first, to reduce common stock in the amount of the par value associated with the shares of common stock repurchased and second, to reduce additional paid-in There were no shares repurchased during the nine months ended September 30, 2021. During the nine months ended September 30, 2020, the Company completed the repurchase of 11,363,851 shares of its common stock for approximately $100.0 million. Common Stock and Common Unit Distributions On September 16, 2021, the Company’s Board of Directors approved and the Company declared a cash dividend distribution of $0.15 per common share for the quarterly period ended September 30, 2021. The dividend was paid subsequent to quarter end on October 22, 2021 to common stockholders and common unitholders of record as of the close of business on October 8, 2021, resulting in an aggregate payment of $6.5 million. Preferred Stock Distributions On September 16, 2021, the Company’s Board of Directors approved and the Company declared a cash dividend distribution of $0.4140625 per share of the Company’s 6.625% Series A Preferred Stock (“Series A Preferred Stock”) for an aggregate amount of $1.9 million for the quarterly period ended September 30, 2021. The dividend was paid subsequent to quarter end on October 22, 2021 to the holders of record of Series A Preferred Stock as of the close of business on October 8, 2021. Equity Incentive Plan The Company has an equity incentive plan non-executive On January 27, 2020, each of the Board of Directors and the Compensation Committee approved a new form of performance-based restricted unit award agreement that will be used to grant performance-based restricted stock unit awards (“Performance RSU Awards”) pursuant to the Equity Incentive Plan. The Performance RSU Awards are based upon the total stockholder return (“TSR”) of the Company’s common stock over a three-year measurement period beginning January 1, 2020 and ending on December 31, 2022 (the “Measurement Period”) relative to the TSR of the companies in the SNL US REIT Office index as of January 2, 2020 (the “2020 RSU Peer Group”). The payouts under the Performance RSU Awards are evaluated on a sliding scale as follows: TSR below the 30th percentile of the 2020 RSU Peer Group would result in a 50% payout; TSR at the 50th percentile of the 2020 RSU Peer Group would result in a 100% payout; and TSR at or above the 75th percentile of the 2020 RSU Peer Group would result in a 150% payout. Payouts are mathematically interpolated between these stated percentile targets, subject to a 150% maximum. To the extent earned, the payouts of the Performance RSU Awards are intended to be settled in the form of shares of the Company’s common stock, pursuant to the Equity Incentive Plan. Upon satisfaction of the vesting conditions, dividend equivalents in an amount equal to all regular and special dividends declared with respect to the Company’s common stock during each annual measurement period during the Measurement Period are determined and paid on a cumulative, reinvested basis over the term of the applicable Performance RSU Award, at the time such award vests and based on the number of shares of the Company’s common stock that are earned . During the nine months ended September 30, 2021, 169,500 restricted stock units (“RSUs”) were granted to executive officers, directors and certain non-executive three RSUs. During the nine months ended September 30, 2021, 120,000 Performance RSU Awards were granted to executive officers with a fair value of $1.2 million. The Performance RSU Awards will vest on the last day of the three-year measurement period of January 1, 2021 through December 31, 2023. For the three and nine months ended September 30, 2021, the Company recognized net compensation expense of $0.2 million and $0.6 million, respectively, related to the Performance RSU Awards. For the three and nine months ended September 30, 2020, the Company recognized net compensation expense of $0.1 million and $0.3 million, respectively, related to the Performance RSU Awards. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Summary of Significant Accounting Policies | Basis of Preparation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements have been prepared by the Company in accordance with Securities and Exchange Commission (“SEC”) rules and regulations and generally accepted accounting principles in the United States of America (“US GAAP”) and in the opinion of management contain all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (the “FASB”) established Topic 848, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, by issuing Accounting Standards Update (“ASU”) No. 2020-04 2020-04”). 2020-04 No. 2021-01 2021-01”), 2021-01 2020-04 2021-01 2020-04 2021-01 In July 2021, the FASB issued ASU No. 2021-05 2021-05”), 2021-05 pre-ASU 2016-02 2021-05 |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Line Items] | |
Schedule of Acquired Properties | During the nine months ended September 30, 2021 and 2020 the Company acquired the following properties: Property Date Acquired Percentage Owned 5910 Pacific Center and 9985 Pacific Heights (1) May 2021 100 % (1) 5910 Pacific Center and 9985 Pacific Heights have been added to the existing Sorrento Mesa portfolio of properties (collectively “Sorrento Mesa”). |
Schedule of Allocation of Purchase Price of Assets Acquired and Liabilities Assumed | The following table summarizes the Company’s allocation of the purchase price of assets acquired and liabilities assumed during the nine months ended September 30, 2021 (in thousands): 5910 Pacific Land $ 37,294 Building and improvement 2,979 Tenant improvement 917 Lease intangible assets 2,469 Other assets 19 Accounts payable and other liabilities (319 ) Lease intangible liabilities (103 ) Net assets acquired $ 43,256 |
Schedule of Property Classified as Held for Sale | The property was classified as held for sale as of December 31, 2020 (in thousands): Cherry Creek December 31, Real estate properties, net $ 40,849 Deferred leasing costs, net 150 Acquired lease intangible assets, net 2,256 Rents receivable, prepaid expenses and other assets 2,799 Assets held for sale $ 46,054 Accounts payable, accrued expenses, deferred rent and tenant rent deposits $ (531 ) Liabilities related to assets held for sale $ (531 ) |
Sorrento Mesa [Member] | |
Real Estate [Line Items] | |
Schedule of Property Classified as Held for Sale | The company determined that both the North Disposition and South Disposition met the criteria for classification as an asset held for sale as of September 30, 2021 (in thousands): Sorrento Mesa North South Total Real estate properties, net $ 77,870 $ 30,717 $ 108,587 Deferred leasing costs, net 3,308 — 3,308 Acquired lease intangible assets, net 2,225 1,268 3,493 Rents receivable, prepaid expenses and other assets 2,977 17 2,994 Assets held for sale $ 86,380 $ 32,002 $ 118,382 Acquired lease intangible liabilities, net $ (1,005 ) $ — $ (1,005 ) Accounts payable, accrued expenses, deferred rent and tenant rent deposits (1,502 ) (366 ) (1,868 ) Liabilities related to assets held for sale $ (2,507 ) $ (366 ) $ (2,873 ) |
Lease Intangibles (Tables)
Lease Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Lease Intangibles and Value of Assumed Lease Obligations | Lease intangibles and th e Lease Intangible Assets Lease Intangible Liabilities September 30, 2021 Above Market In Place Leases Leasing Total Below Below Total Cost $ 14,135 $ 71,416 $ 27,847 $ 113,398 $ (9,641 ) $ (138 ) $ (9,779 ) Accumulated amortization (9,240 ) (55,820 ) (18,155 ) (83,215 ) 5,864 47 5,911 $ 4,895 $ 15,596 $ 9,692 $ 30,183 $ (3,777 ) $ (91 ) $ (3,868 ) Lease Intangible Assets Lease Intangible Liabilities December 31, 2020 Above Market In Place Leases Leasing Total Below Below Total Cost $ 14,894 $ 80,259 $ 30,284 $ 125,437 $ (13,093 ) $ (138 ) $ (13,231 ) Accumulated amortization (8,497 ) (55,636 ) (17,161 ) (81,294 ) 7,152 44 7,196 $ 6,397 $ 24,623 $ 13,123 $ 44,143 $ (5,941 ) $ (94 ) $ (6,035 ) |
Estimated Aggregate Amortization Expense for Lease Intangibles | The estimated aggregate amortization expense for lease intangibles for the next five years and in the aggregate are as follows (in thousands): 2021 $ 2,381 2022 7,699 2023 5,281 2024 2,994 2025 2,751 Thereafter 5,209 $ 26,315 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Indebtness | The following table summarizes th e s Property September 30, 2021 December 31, Interest Rate as 2021 (1) Maturity Unsecured Credit Facility (2)(3) $ 88,000 $ 75,000 LIBOR +1.40 % (4) March 2022 Term Loan (3) 50,000 50,000 LIBOR +1.25 % (4) September 2024 Mission City 47,000 47,000 3.78 % November 2027 Canyon Park (5) 40,612 40,950 4.30 % March 2027 190 Office Center 39,749 40,236 4.79 % October 2025 Circle Point 39,650 39,650 4.49 % September 2028 SanTan 33,022 33,444 4.56 % March 2027 Intellicenter 32,026 32,442 4.65 % October 2025 The Quad 30,600 30,600 4.20 % September 2028 FRP Collection 27,719 28,263 3.10 % September 2023 2525 McKinnon 27,000 27,000 4.24 % April 2027 Greenwood Blvd 22,048 22,425 3.15 % December 2025 Cascade Station 21,676 21,952 4.55 % May 2024 5090 N. 40th St 21,337 21,640 3.92 % January 2027 AmberGlen 20,000 20,000 3.69 % May 2027 Lake Vista Pointe 17,108 17,375 4.28 % August 2024 Central Fairwinds 16,813 17,127 3.15 % June 2024 FRP Ingenuity Drive 16,528 16,736 4.44 % December 2024 Carillon Point 15,286 15,585 3.10 % October 2023 Midland Life Insurance (6) — 83,537 — — Total Principal 606,174 680,962 Deferred financing costs, net (3,209 ) (4,195 ) Unamortized fair value adjustments 369 475 Total $ 603,334 $ 677,242 (1) All interest rates are fixed interest rates with the exception of the Unsecured Credit Facility (the “Unsecured Credit Facility”) and the Term Loan (the “Term Loan”), as explained in footnotes 2 and 3 below. (2) In March 2018, the Company entered into the Credit Agreement March 2022 March 2023 a (3) In September 2019, the Company entered into a five-year $50 million Term Loan increasing its authorized borrowings under the Unsecured Credit Facility from $250 million to $300 million. Borrowings under the Term Loan bear interest at a rate equal to the LIBOR rate plus a margin between 125 to 215 basis points depending upon the Company’s consolidated leverage ratio. In conjunction with the Term Loan, the Company also entered into a five-year interest rate swap for a notional amount of $50 million (the “Interest Rate Swap”). Pursuant to the Interest Rate Swap, the Company will pay a fixed rate of approximately 1.27% of the notional amount annually, payable monthly, and receive floating rate 30-day (4) As of September 30, 2021, the one-month (5) The mortgage loan anticipated repayment date (“ARD”) is March 1, 2027. The final scheduled maturity date can be extended up to 5 years beyond the ARD. If the loan is not paid off at ARD, loan’s interest rate shall be adjusted to the greater of (i) the initial interest rate plus 200 basis points or (ii) the yield on the five year “on the run” treasury reported by Bloomberg market data service plus 450 basis points. (6) The mortgage loan was cross-collateralized by Cherry Creek, City Center and 7595 Tech (formerly “DTC Crossroads”). In February 2021, the loan balance of $83.5 million was repaid in full. |
Schedule of Principal Repayments of Mortgage Payable | The scheduled principal repayments o f s : 2021 $ 1,524 2022 94,539 2023 48,539 2024 124,736 2025 91,997 Thereafter 244,839 $ 606,174 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Operating Lease Lease Income | The Company recognized fixed and variable lease payments for the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020 as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Fixed payments $ 38,963 $ 35,071 $ 106,825 $ 103,070 Variable payments 5,868 6,151 17,404 17,864 $ 44,831 $ 41,222 $ 124,229 $ 120,934 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments t o non-cancellable 2021 $ 29,967 2022 111,708 2023 92,205 2024 72,917 2025 59,773 Thereafter 182,296 $ 548,866 |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Right-of-use September 30, 2021 December 31, 2020 Right-of-use $ 14,238 $ 12,739 Lease liability – operating leases $ 9,374 $ 7,719 Right-of-use $ 37 $ 55 Lease liability – financing leases $ 37 $ 55 |
Schedule future minimum lease payments to be paid | Future minimum lease payments to be paid by the Company as a lessee for operating and financing leases as of September 30, 2021 for the next five years and thereafter are as follows (in thousands): Operating Financing Leases 2021 $ 89 $ 7 2022 971 27 2023 836 4 2024 770 — 2025 770 — Thereafter 27,875 — Total future minimum lease payments 31,311 38 Discount (21,937 ) (1 ) Total $ 9,374 $ 37 |
Organization and Description _2
Organization and Description of Business - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company formation date | Nov. 26, 2013 |
Operation commencement date | Apr. 21, 2014 |
Real Estate Investments - Sched
Real Estate Investments - Schedule of Acquired Properties through Operating Partnership (Detail) - 5910 Pacific Center and 9985 Pacific Heights [Member] | 9 Months Ended |
Sep. 30, 2021 | |
Acquisitions [Line Items] | |
Real estate property, date acquired, asset acquisitions | 2021-05 |
Real estate property, percentage owned, asset acquisitions | 100.00% |
Real Estate Investments - Sch_2
Real Estate Investments - Schedule of Allocation of Purchase Price of Assets Acquired and Liabilities Assumed (Detail) - 5910 Pacific Center and 9985 Pacific Heights [Member] $ in Thousands | Sep. 30, 2021USD ($) |
Acquisitions [Line Items] | |
Land | $ 37,294 |
Buildings and improvements | 2,979 |
Tenant improvements | 917 |
Lease intangible assets | 2,469 |
Other assets | 19 |
Accounts payable and other liabilities | (319) |
Lease intangible liabilities | (103) |
Net assets acquired | $ 43,256 |
Real Estate Investments - Addit
Real Estate Investments - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 19, 2021 | Feb. 10, 2021 | Nov. 18, 2020 | Jul. 23, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Real Estate [Line Items] | |||||||
Net gain on sale of real estate property | $ 1,347 | $ 47,400 | $ 1,347 | ||||
Sorrento Mesa [Member] | North Disposition [Member] | |||||||
Real Estate [Line Items] | |||||||
Proceeds of sale of property | $ 395,100 | ||||||
Sorrento Mesa [Member] | North Disposition [Member] | Restricted Cash [Member] | |||||||
Real Estate [Line Items] | |||||||
Non-refundable deposit received | 19,800 | ||||||
Sorrento Mesa [Member] | North Disposition [Member] | Other Liabilities [Member] | |||||||
Real Estate [Line Items] | |||||||
Non-refundable deposit received | 19,800 | ||||||
Sorrento Mesa [Member] | South Disposition [Member] | |||||||
Real Estate [Line Items] | |||||||
Proceeds of sale of property | $ 180,900 | ||||||
Sorrento Mesa [Member] | South Disposition [Member] | Restricted Cash [Member] | |||||||
Real Estate [Line Items] | |||||||
Non-refundable deposit received | 9,000 | ||||||
Sorrento Mesa [Member] | South Disposition [Member] | Other Liabilities [Member] | |||||||
Real Estate [Line Items] | |||||||
Non-refundable deposit received | $ 9,000 | ||||||
Circle Point Land [Member] | |||||||
Real Estate [Line Items] | |||||||
Proceeds of sale of property | $ 6,500 | ||||||
Net gain on sale of real estate property | $ 1,300 | ||||||
Cherry Creek [Member] | |||||||
Real Estate [Line Items] | |||||||
Proceeds of sale of property | $ 95,000 | $ 95,000 | |||||
Net gain on sale of real estate property | $ 47,400 |
Real Estate Investments - Sch_3
Real Estate Investments - Schedule of Portfolio Classified as Held for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | $ 118,382 | $ 46,054 |
Liabilities related to assets held for sale | 2,873 | $ 531 |
Sorrento Mesa [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 118,382 | |
Liabilities related to assets held for sale | (2,873) | |
Sorrento Mesa [Member] | North Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 86,380 | |
Liabilities related to assets held for sale | (2,507) | |
Sorrento Mesa [Member] | South Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 32,002 | |
Liabilities related to assets held for sale | (366) | |
Sorrento Mesa [Member] | Real Estate Properties [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 108,587 | |
Sorrento Mesa [Member] | Real Estate Properties [Member] | North Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 77,870 | |
Sorrento Mesa [Member] | Real Estate Properties [Member] | South Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 30,717 | |
Sorrento Mesa [Member] | Deferred Leasing Costs [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 3,308 | |
Sorrento Mesa [Member] | Deferred Leasing Costs [Member] | North Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 3,308 | |
Sorrento Mesa [Member] | Acquired Lease Intangible Assets [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 3,493 | |
Sorrento Mesa [Member] | Acquired Lease Intangible Assets [Member] | North Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 2,225 | |
Sorrento Mesa [Member] | Acquired Lease Intangible Assets [Member] | South Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 1,268 | |
Sorrento Mesa [Member] | Rents Receivable, Prepaid Expenses And Other Assets [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 2,994 | |
Sorrento Mesa [Member] | Rents Receivable, Prepaid Expenses And Other Assets [Member] | North Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 2,977 | |
Sorrento Mesa [Member] | Rents Receivable, Prepaid Expenses And Other Assets [Member] | South Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 17 | |
Sorrento Mesa [Member] | Acquired lease intangibles liabilities [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | (1,005) | |
Sorrento Mesa [Member] | Acquired lease intangibles liabilities [Member] | North Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | (1,005) | |
Sorrento Mesa [Member] | Accounts Payable, Accrued Expenses, Deferred Rent And Tenant Rent Deposits [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | (1,868) | |
Sorrento Mesa [Member] | Accounts Payable, Accrued Expenses, Deferred Rent And Tenant Rent Deposits [Member] | North Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | (1,502) | |
Sorrento Mesa [Member] | Accounts Payable, Accrued Expenses, Deferred Rent And Tenant Rent Deposits [Member] | South Disposition [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | $ (366) |
Real Estate Investments - Sch_4
Real Estate Investments - Schedule of Property Classified as Held for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | $ 118,382 | $ 46,054 |
Liabilities related to assets held for sale | $ 2,873 | 531 |
Cherry Creek [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 46,054 | |
Liabilities related to assets held for sale | (531) | |
Cherry Creek [Member] | Real estate properties, net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 40,849 | |
Cherry Creek [Member] | Deferred leasing costs, net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 150 | |
Cherry Creek [Member] | Acquired lease intangible assets, net [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 2,256 | |
Cherry Creek [Member] | Rents receivable, prepaid expenses and other assets [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | 2,799 | |
Cherry Creek [Member] | Accounts payable, accrued expenses, deferred rent and tenant rent deposits [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Liabilities related to assets held for sale | $ (531) |
Lease Intangibles - Schedule of
Lease Intangibles - Schedule of Lease Intangibles and Value of Assumed Lease Obligations (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | $ 113,398 | $ 125,437 |
Accumulated amortization, Lease Intangible Assets | (83,215) | (81,294) |
Total, Lease Intangible Assets | 30,183 | 44,143 |
Cost, Lease Intangible Liabilities | (9,779) | (13,231) |
Accumulated amortization, Lease Intangible Liabilities | 5,911 | 7,196 |
Total, Lease Intangible Liabilities | (3,868) | (6,035) |
Above Market Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 14,135 | 14,894 |
Accumulated amortization, Lease Intangible Assets | (9,240) | (8,497) |
Total, Lease Intangible Assets | 4,895 | 6,397 |
In Place Leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 71,416 | 80,259 |
Accumulated amortization, Lease Intangible Assets | (55,820) | (55,636) |
Total, Lease Intangible Assets | 15,596 | 24,623 |
Leasing Commissions [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Assets | 27,847 | 30,284 |
Accumulated amortization, Lease Intangible Assets | (18,155) | (17,161) |
Total, Lease Intangible Assets | 9,692 | 13,123 |
Below Market Tenant Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Liabilities | (9,641) | (13,093) |
Accumulated amortization, Lease Intangible Liabilities | 5,864 | 7,152 |
Total, Lease Intangible Liabilities | (3,777) | (5,941) |
Below Market Ground Lease [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost, Lease Intangible Liabilities | (138) | (138) |
Accumulated amortization, Lease Intangible Liabilities | 47 | 44 |
Total, Lease Intangible Liabilities | $ (91) | $ (94) |
Lease Intangibles - Estimated A
Lease Intangibles - Estimated Aggregate Amortization Expense for Lease Intangibles (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 2,381 |
2022 | 7,699 |
2023 | 5,281 |
2024 | 2,994 |
2025 | 2,751 |
Thereafter | 5,209 |
Total | $ 26,315 |
Debt - Summary of Outstanding I
Debt - Summary of Outstanding Indebtedness (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Indebtedness | $ 606,174 | $ 680,962 |
Deferred financing costs, net | (3,209) | (4,195) |
Unamortized fair value adjustments | 369 | 475 |
Total | 603,334 | 677,242 |
Unsecured Debt [Member] | Term loan [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 50,000 | 50,000 |
Interest Rate, terms | LIBOR +1.25 | |
Interest Rate, spread | 1.25% | |
Maturity | 2024-09 | |
Credit Facility [Member] | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 88,000 | 75,000 |
Interest Rate, terms | LIBOR +1.40 | |
Interest Rate, spread | 1.40% | |
Maturity | 2022-03 | |
Midland Life Insurance [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | 83,537 | |
Mission City [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 47,000 | 47,000 |
Interest Rate | 3.78% | |
Maturity | 2027-11 | |
190 Office Center [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 39,749 | 40,236 |
Interest Rate | 4.79% | |
Maturity | 2025-10 | |
Canyon Park [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 40,612 | 40,950 |
Interest Rate | 4.30% | |
Maturity | 2027-03 | |
Circle Point [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 39,650 | 39,650 |
Interest Rate | 4.49% | |
Maturity | 2028-09 | |
SanTan [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 33,022 | 33,444 |
Interest Rate | 4.56% | |
Maturity | 2027-03 | |
Intellicenter [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 32,026 | 32,442 |
Interest Rate | 4.65% | |
Maturity | 2025-10 | |
The Quad [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 30,600 | 30,600 |
Interest Rate | 4.20% | |
Maturity | 2028-09 | |
FRP Collection [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 27,719 | 28,263 |
Interest Rate | 3.10% | |
Maturity | 2023-09 | |
2525 McKinnon [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 27,000 | 27,000 |
Interest Rate | 4.24% | |
Maturity | 2027-04 | |
Cascade Station [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 21,676 | 21,952 |
Interest Rate | 4.55% | |
Maturity | 2024-05 | |
Greenwood Blvd [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 22,048 | 22,425 |
Interest Rate | 3.15% | |
Maturity | 2025-12 | |
5090 N 40th St [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 21,337 | 21,640 |
Interest Rate | 3.92% | |
Maturity | 2027-01 | |
AmberGlen Property [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 20,000 | 20,000 |
Interest Rate | 3.69% | |
Maturity | 2027-05 | |
Lake Vista Pointe [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 17,108 | 17,375 |
Interest Rate | 4.28% | |
Maturity | 2024-08 | |
Central Fairwinds [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 16,813 | 17,127 |
Interest Rate | 3.15% | |
Maturity | 2024-06 | |
FRP Ingenuity Drive [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 16,528 | 16,736 |
Interest Rate | 4.44% | |
Maturity | 2024-12 | |
Carillon Point [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Indebtedness | $ 15,286 | $ 15,585 |
Interest Rate | 3.10% | |
Maturity | 2023-10 |
Debt - Summary of Outstanding_2
Debt - Summary of Outstanding Indebtedness (Parenthetical) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Feb. 25, 2021 | Mar. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||||
Loan repaid | $ 180,806 | $ 59,707 | |||
Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, Fixed Interest Rate | 1.27% | ||||
Derivative, Notional Amount | $ 50,000 | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, authorized amount | $ 250,000 | 300,000 | |||
Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Term loan | $ 50,000 | ||||
Midland Life Insurance [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan repaid | $ 83,500 | ||||
Canyon Park [Member] | Secured Debt [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 200.00% | ||||
Canyon Park [Member] | Secured Debt [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 450.00% | ||||
Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, outstanding | $ 4,200 | ||||
Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 125.00% | ||||
Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 215.00% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving Credit Facility, authorized amount | $ 250,000 | ||||
Revolving Credit Facility, outstanding | $ 88,000 | ||||
Loan maturity date | Mar. 31, 2022 | ||||
Loan expected extended maturity date | Mar. 31, 2023 | ||||
Revolving Credit Facility, maximum borrowing capacity | $ 500,000 | ||||
Interest Rate, Description | 1.40% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
One month LIBOR rate | 0.08% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Fixed charge coverage ratio | 1.50% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 140.00% | ||||
Credit Facility [Member] | Unsecured Debt [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate, Description | 225.00% |
Debt - Schedule of Principal Re
Debt - Schedule of Principal Repayments of Mortgage Payable (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2021 | $ 1,524 | |
2022 | 94,539 | |
2023 | 48,539 | |
2024 | 124,736 | |
2025 | 91,997 | |
Thereafter | 244,839 | |
Total | $ 606,174 | $ 680,962 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Amounts reclassified to interest expense | $ 150 | $ 141 | $ 439 | $ 186 | ||
Debt instrument carrying amount | 606,174 | 606,174 | $ 680,962 | |||
Interest Rate Swap [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Notional amount | $ 50,000 | |||||
Fixed interest rate | 1.27% | |||||
Amounts reclassified to interest expense | 400 | $ 200 | ||||
Interest Rate Swap [Member] | Other Liabilities [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Derivative Liability | 1,100 | 1,100 | 2,000 | |||
Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Mortgage loans payable, fair value | 474,000 | 474,000 | 573,600 | |||
Debt instrument carrying amount | $ 468,200 | $ 468,200 | $ 556,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Administrative Services Agreement [Member] | Second City Funds [Member] | Clarity Real Estate Ventures GP, Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Annual payment receivable for services | $ 0.5 | $ 0.5 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lease cost | $ 0.2 | $ 0.2 | $ 0.7 | $ 0.6 |
Operating Lease, Weighted Average Remaining Lease Term | 50 years | 50 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 6.20% | 6.20% | ||
Maximum [Member] | ||||
Remaining lease terms | 67 years | 67 years | ||
Minimum [Member] | ||||
Remaining lease terms | 1 year | 1 year |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fixed payments | $ 38,963 | $ 35,071 | $ 106,825 | $ 103,070 |
Variable payments | 5,868 | 6,151 | 17,404 | 17,864 |
Operating Lease, Lease Income | $ 44,831 | $ 41,222 | $ 124,229 | $ 120,934 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments under Non-cancellable Operating Leases (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 29,967 |
2022 | 111,708 |
2023 | 92,205 |
2024 | 72,917 |
2025 | 59,773 |
Thereafter | 182,296 |
Total future minimum lease payments to be received | $ 548,866 |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating Right-of-Use Assets and Lease Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Lease liability – operating leases | $ 9,374 | |
Lease liability – financing leases | 37 | |
Other Assets [Member] | ||
Right-of-use asset - operating leases | 14,238 | $ 12,739 |
Right-of-use asset – financing leases | 37 | 55 |
Other Liabilities [Member] | ||
Lease liability – operating leases | 9,374 | 7,719 |
Lease liability – financing leases | $ 37 | $ 55 |
Leases - Schedule Future Minimu
Leases - Schedule Future Minimum Lease Payments To Be Paid (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
2021 | $ 89 |
2022 | 971 |
2023 | 836 |
2024 | 770 |
2025 | 770 |
Thereafter | 27,875 |
Total future minimum lease payments | 31,311 |
Discount | (21,937) |
Total | 9,374 |
2021 | 7 |
2022 | 27 |
2023 | 4 |
Total future minimum lease payments | 38 |
Discount | (1) |
Total | $ 37 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Oct. 22, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Aug. 05, 2020 | Mar. 09, 2020 | May 02, 2019 |
Class of Stock [Line Items] | |||||||||||
Preferred stock, Dividend rate percentage | 6.625% | 6.625% | |||||||||
Maximum number of shares issued under Equity Incentive Plan | 2,263,580 | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 50 | $ 100 | |||||||||
Stock Repurchased During Period, Shares | 0 | 11,363,851 | |||||||||
Stock Repurchase During Period Before Commission, Value | $ 100 | ||||||||||
Schedule of Share Based Compensation Arrangement by Share Based Payment Award For Defined Performance | The payouts under the Performance RSU Awards are evaluated on a sliding scale as follows: TSR below the 30th percentile of the 2020 RSU Peer Group would result in a 50% payout; TSR at the 50th percentile of the 2020 RSU Peer Group would result in a 100% payout; and TSR at or above the 75th percentile of the 2020 RSU Peer Group would result in a 150% payout. Payouts are mathematically interpolated between these stated percentile targets, subject to a 150% maximum. | ||||||||||
Series A Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, Dividend rate percentage | 6.625% | ||||||||||
Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Declared cash dividend distribution per share | $ 0.15 | $ 0.15 | |||||||||
Dividends paid, declared date | Sep. 16, 2021 | ||||||||||
Dividends paid date | Oct. 22, 2021 | ||||||||||
Dividends paid, date of record | Oct. 8, 2021 | ||||||||||
Dividend paid | $ 6.5 | ||||||||||
Stock Repurchased During Period, Shares | (1,114,000) | (8,799,000) | (1,451,000) | ||||||||
Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Declared cash dividend distribution per share | $ 0.4140625 | $ 0.4140625 | |||||||||
Dividends paid, declared date | Sep. 16, 2021 | ||||||||||
Dividends paid date | Oct. 22, 2021 | ||||||||||
Dividends paid, date of record | Oct. 8, 2021 | ||||||||||
Dividend paid | $ 1.9 | ||||||||||
Executive Officer [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share-based Payment Award, Award Vesting Period | 3 years | ||||||||||
Restricted Stock Units (RSUs) [Member] | Directors and Non-Executive Employees [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock units granted to executive officers, directors and non-executive employees | 169,500 | ||||||||||
Stock units grant date fair value | $ 1.6 | ||||||||||
Net compensation expense | $ 0.5 | $ 0.5 | $ 1.4 | 1.4 | |||||||
Share-based Payment Award, Award Vesting Period | 3 years | ||||||||||
Performance Restricted Stock Unit [Member] | Executive Officer [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock units granted to executive officers, directors and non-executive employees | 120,000 | ||||||||||
Stock units grant date fair value | $ 1.2 | ||||||||||
Net compensation expense | $ 0.2 | $ 0.1 | $ 0.6 | $ 0.3 | |||||||
Share-based Payment Award, Award Vesting Period | 3 years |