Company: CIO
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-023714
Chunk: 90

Company: City Office REIT, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 6
Chunk 90
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0 million. For the year ended December 31, 2023, the Company recognized a loss on deconsolidation of $0.1 million, which has been included within net loss/gain 

 66

 on disposition of real estate property on the Company’s consolidated statement of operations and statement of cash flows. During the fourth quarter of 2023, title of the property was transferred to the lender.Lake Vista PointeDuring the first quarter of 2022, the sole tenant at the Lake Vista Pointe property exercised its lease option to purchase the building and the Company signed a purchase and sale agreement with the tenant. At the time the tenant exercised the option, the Company reassessed the lease classification of the lease, in accordance with ASC 842 – Leases, and determined that the lease should be reclassified from an operating lease to a sales-type lease. This reclassification resulted in a gain on sale of $21.7 million net of disposal related costs. On June 15, 2022, the Company sold the Lake Vista Pointe property in Dallas, Texas for a gross sales price of $43.8 million.Assets Held for SaleOn November 1, 2024, the Company entered into a purchase and sale agreement to sell the Superior Pointe property for $12.0 million, which excludes closing costs and credits. The Company determined that the property met the criteria for classification as held for sale as of December 31, 2024. Upon classification as held for sale, the Company recognized an impairment of $8.5 million to lower the carrying amount of the property to its estimated fair value less cost to sell. Refer to “Impairment of Real Estate” below. As of December 31, 2024, the Company had received a deposit of $0.3 million, which was recorded in restricted cash along with a corresponding liability in other liabilities on the Company’s consolidated balance sheets. On January 14, 2025, the Company completed the sale of the Superior Pointe property.  The property was classified as held for sale as of December 31, 2024 (in thousands): 

          Superior Pointe
          
         December 31, 2024

         Real estate properties, net
          
         $
         10,637

         Deferred leasing costs, net

         382

         Rents receivable, prepaid expenses and other assets

         1,569

         Assets held for sale