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REAL ESTATE DISPOSITIONS
 12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
REAL ESTATE DISPOSITIONS REAL ESTATE DISPOSITIONS
During the year ended December 31, 2023, the Company disposed of Madison Square School, 186 developable acres of undeveloped land and 274 residential homes. During the year ended December 31, 2022, the Company disposed of two office buildings, one hotel and approximately 67 developable acres of undeveloped land. During the year ended December 31, 2021, the Company disposed of one office building and approximately 193 developable acres of undeveloped land. As a result of the dispositions, certain assets and liabilities were reclassified to held for sale in the accompanying consolidated balance sheets and gains from the dispositions are recorded as gain on sale of real estate in the accompanying consolidated statements of operations. The purchasers were not affiliated with the Company nor the Advisor.
During the year ended December 31, 2023, the Company sold 274 residential homes, from the Company’s residential homes segment, for proceeds of $37.2 million, net of closing costs and adjustments. The Company recognized a gain on sale of real estate of $5.6 million related to the disposition. In connection with the sales, the Company repaid $17.6 million of the outstanding principal balance due under secured mortgage loans.
In October 2023, the Company sold approximately 115 developable acres of Park Highlands undeveloped land, from the Company’s strategic opportunistic properties segment, for proceeds of $46.7 million, net of closing costs and credits of $9.3 million for future development obligations and before deposits of $7.5 million. The Company recognized a pre-tax gain on sale of real estate of $43.7 million related to the disposition. In addition, the land parcels were held and sold through one of the Company’s taxable REIT subsidiaries (“TRS”) for certain tax planning purposes and to ensure preservation of the Company’s REIT status. For purposes of the determination of U.S. federal and state income taxes, the Company’s TRS record current or deferred income taxes based on differences (both permanent and timing) between the determination of their taxable income and net income under GAAP. In connection with the Park Highlands sales, the Company recorded an income tax provision of $3.3 million at the TRS level. There were no state taxes related to this disposition.
In May 2023, the Company sold the Madison Square School, from the Company’s strategic opportunistic properties segment, for proceeds of $6.4 million, before closing costs and credits of $0.3 million. The Company recognized a gain on sale of real estate of $3.3 million related to the disposition. Subsequent to the sale, the Madison Square office complex had three office buildings remaining.
In February 2023, the Company sold approximately 71 developable acres of undeveloped land in Park Highlands, from the Company’s strategic opportunistic properties segment, for proceeds of $34.5 million, net of closing costs and credits of $1.9 million for future development obligations. The Company recognized a pre-tax gain on sale of real estate of $29.5 million related to the disposition in the accompanying consolidated statements of operations. In addition, the land parcels were held and sold through one of the Company’s TRS for certain tax planning purposes and to ensure preservation of the Company’s REIT status. In connection with the Park Highlands sales, the Company recorded an income tax provision of $3.3 million at the TRS level. There were no state taxes related to this disposition.
In November 2022, the Company sold approximately 67 developable acres of Park Highlands undeveloped land, from the Company’s strategic opportunistic properties segment, for $55.0 million, before closing costs and credits. The Company recognized a pre-tax gain on sale of $42.8 million related to the land sale. In addition, the land parcels were held and sold through one of the Company’s TRS for certain tax planning purposes and to ensure preservation of the Company’s REIT status. In connection with the Park Highlands sale, the Company recorded an income tax provision of $4.9 million at the TRS level. There were no state taxes related to this disposition.
In September 2022, the Company sold the Springmaid Beach Resort, from the Company’s hotel segment for $91.0 million, before closing costs and credits. The carrying value of the Springmaid Beach Resort as of the disposition date was $87.2 million, which was net of $3.4 million of accumulated depreciation and amortization and $2.5 million of impairment charges. In connection with the sale of the Springmaid Beach Resort, the Company repaid $53.0 million of the outstanding principal balance due under the mortgage loan secured by the Springmaid Beach Resort and $1.3 million of the proceeds were held for contingent repairs related to the property.
In January 2022, the Company sold two office buildings related to the Richardson Office portfolio, from the Company’s strategic opportunistic properties segment and containing 141,950 rentable square feet in Richardson, Texas (“Greenway Buildings”) for $11.0 million, before closing costs and credits. The carrying value of the Greenway Buildings as of the disposition date was $5.6 million, which was net of $3.2 million of accumulated depreciation and amortization. In connection with the sale of the Greenway Buildings, the Company repaid $9.1 million of the outstanding principal balance due under the mortgage loan secured by the Greenway Buildings. The Company recognized a gain on sale of $3.6 million related to the disposition of the Greenway Buildings, net of closing costs and adjustments.
In July 2021, the Company sold an office building containing 435,177 rentable square feet located on approximately 4.92 acres of land in Orange, California (“City Tower”), from the Company’s strategic opportunistic properties segment for $150.5 million, before closing costs and credits. The carrying value of City Tower as of the disposition date was $145.1 million, which was net of $20.5 million of accumulated depreciation and amortization. In connection with the sale of City Tower, the Company repaid $98.1 million of the outstanding principal balance due under the mortgage loan secured by City Tower. The Company recognized a gain on sale of $0.1 million, as well as a $0.1 million loss on extinguishment of debt related to the disposition of City Tower.
In June 2021, the Company sold approximately 193 developable acres of Park Highlands undeveloped land, from the Company’s strategic opportunistic properties segment for an aggregate sales price, net of closing credits, of $50.4 million, excluding closing costs. The Company recognized a gain on sale of $30.0 million related to the land sale, which is net of deferred profit of $2.6 million related to proceeds received from the purchaser for the value of land that was contributed to a master association which is consolidated by the Company.
The following table reconciles the U.S. federal statutory income tax rate to our effective income tax rate for the transaction’s taxable gain:
Year Ended December 31,
202320222021
U.S. federal statutory income tax rate21 %21 %21 %
Net capital loss carryforwards utilized— %(3)%— %
Change in valuation allowance— %(1)%(21)%
Effective rate21 %17 %— %

There was no real estate held for sale as of December 31, 2023 and 2022, except where the Company retrospectively reclassified 2022 real estate as held for sale due to 2023 disposition activity. The operations of real estate properties sold and gain or losses on sales are included in continuing operations in the accompanying consolidated statements of operations. The following table summarizes certain revenues and expenses related to these properties for the years ended December 31, 2023, 2022 and 2021 (in thousands):
 Years Ended December 31,
 202320222021
Revenues
Rental income$4,216 $4,105 $4,666 
Hotel revenues— 20,983 25,202 
Other operating income— 17 144 
Total revenues$4,216 $25,105 $30,012 
Expenses
Operating, maintenance, and management$1,265 $1,436 $2,486 
Real estate taxes and insurance1,346 917 1,163 
Hotel expenses— 12,669 16,301 
Asset management fees to affiliate523 774 1,082 
Depreciation and amortization1,079 2,126 3,403 
Interest expense, net1,147 4,734 6,378 
Total expenses$5,360 $22,656 $30,813