Commitments and Contingencies Legal Proceedings We and the Operating Partnership are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our properties which could have a material adverse effect. Management believes the costs, if any, incurred by us related to this litigation will not materially affect our financial position, operating results or liquidity. Environmental Matters Our management believes that the properties are in compliance in all material respects with applicable Federal, state and local ordinances and regulations regarding environmental issues. Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows. Management is unaware of any instances in which it would incur significant environmental cost if any of our properties were sold. Capital and Ground Leases Arrangements The following is a schedule of future minimum lease payments under capital lease and noncancellable operating leases with initial terms in excess of one year as of September 30, 2014 (in thousands): Capital lease Non-cancellable operating leases Remaining 2014 $ 36 $ 8,147 2015 145 30,491 2016 170 30,612 2017 291 30,845 2018 291 30,845 Thereafter 56,884 751,559 Total minimum lease payments 57,817 $ 882,499 Less amount representing interest (37,089 ) Capitalized lease obligations $ 20,728