NOTE 6 IMPAIRMENT

We review our real estate assets for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. GAAP related to the impairment or disposal of long‑lived assets requires that if impairment indicators exist and expected undiscounted cash flows generated by the asset over our anticipated holding period are less than its carrying amount, an impairment provision should be recorded to write down the carrying amount of the asset to its fair value. The impairment analysis does not consider the timing of future cash flows and whether the asset is expected to earn an above or below market rate of return.

During the third quarter 2016, we implemented a plan to sell Park West, a 249,177 square foot open-air shopping, dining and entertainment destination in Peoria, Arizona that is one of our non-core operating assets. As of September 30, 2016, the property met the criteria to be classified as held for sale. Those criteria specify that the asset must be available for immediate sale in its present condition, sale of the asset must be probable and its transfer expect to qualify for recognition as a completed sale within one year. A sale will allow us to redeploy the net cash proceeds from this unleveraged asset into our existing developments. Consistent with prior financial statements where we noted that a decrease by 10% of the estimated undiscounted cash to be received from this property would result in an impairment, we have recognized a $35.7 million impairment charge due to our shorter anticipated holding period. The $34.9 million net carrying value of Park West, after the impairment, represents our best estimate of its current fair market value. There can be no assurance that we will ultimately recover this amount through a sale.

The following table summarizes our provision for impairment:


			Provision for impairment as of September 30,
Impaired Asset	Location	Method of Determining Fair Value	2016		2015
			(In thousands)
Operating Assets:
Park West	Peoria, AZ	Discounted cash flow analysis using capitalization rate of 6.75%	$	35,734	$	—

Each investment in Real Estate and Other Affiliates as discussed in Note 8 – Real Estate and Other Affiliates is evaluated periodically for recoverability and valuation declines that are other-than-temporary. If the decrease in value of our investment in a Real Estate and Other Affiliate is deemed to be other-than-temporary, our investment in such Real Estate and Other Affiliate is reduced to its estimated fair value.

No impairment charges were recorded for any of our investments in Real Estate and Other Affiliates during the three and nine months ended September 30, 2016 or September 30, 2015.