Quarterly report pursuant to Section 13 or 15(d)

Properties, Net

v3.7.0.1
Properties, Net
 3 Months Ended
Mar. 31, 2017
Real Estate [Abstract]  
Properties, Net
Properties, Net
 
Operating properties, net consisted of the following (in thousands): 
 
March 31,
2017
 
December 31,
2016
Land
$
430,364

 
$
433,311

Buildings and improvements
2,972,164

 
2,944,905

Less: Accumulated depreciation
(732,371
)
 
(706,385
)
Operating properties, net
$
2,670,157

 
$
2,671,831



Projects in development or held for future development consisted of the following (in thousands):
 
March 31,
2017
 
December 31,
2016
Land
$
195,727

 
$
195,521

Development in progress, excluding land
227,130

 
206,010

Projects in development or held for future development
$
422,857

 
$
401,531



Our properties held for sale included:

•
as of March 31, 2017: six operating properties in White Marsh, Maryland (included in our Regional Office segment); one operating property in our Fort Meade/BW Corridor sub-segment; and land in White Marsh; and
•
as of December 31, 2016: eight operating properties in White Marsh (included primarily in our Regional Office segment); one operating property in our Northern Virginia Defense/IT sub-segment; and land in White Marsh and Northern Virginia.

The table below sets forth the components of assets held for sale on our consolidated balance sheet for these properties (in thousands):
 
 
March 31, 2017
 
December 31, 2016
Properties, net
$
38,018

 
$
85,402

Deferred rent receivable
1,546

 
4,241

Intangible assets on real estate acquisitions, net
338

 
338

Deferred leasing costs, net
1,109

 
3,636

Lease incentives, net
380

 
1,037

Assets held for sale, net
$
41,391

 
$
94,654



2017 Dispositions

On February 15, 2017, we completed the disposition of 3120 Fairview Park Drive, an operating property totaling 190,000 square feet in Falls Church, Virginia (in our Northern Virginia Defense/IT sub-segment), for $39.0 million, with no gain recognized.

We also sold land in the three months ended March 31, 2017 for $14.3 million and recognized a gain on sale of $4.2 million.

2017 Construction Activities

During the three months ended March 31, 2017, we placed into service 86,000 square feet in three redeveloped properties (including a partially operational property). As of March 31, 2017, we had eight office properties under construction, or for which we were contractually committed to construct, that we estimate will total 1.3 million square feet upon completion (including two properties completed but held for future lease to the United States Government) and one office property under redevelopment that we estimate will total 14,000 square feet upon completion.