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, based on Level 3 inputs. 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 non-core 249,177 square foot open-air shopping, dining and entertainment destination in Peoria, Arizona. The sale allows for us to redeploy the net cash proceeds from this unleveraged asset into our existing developments. We recognized a $35.7 million impairment charge during the third quarter 2016 due to our shorter than previously anticipated holding period. The $34.9 million net carrying value of Park West, after the impairment, represented our best estimate of its current fair market value at that date. As discussed in Note 4 – Acquisitions and Dispositions, on December 29, 2016, we sold Park West for $32.5 million and recognized a loss of $1.1 million, net of transaction costs, in conjunction with this sale.

The following table summarizes our provision for impairment:


			Provision for impairment as of December 31,
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	$	—

There were no impairment charges for the years ended December 31, 2015 or 2014. No impairment charges were recorded for any of our Investments in Real Estate and Other Affiliates for the years ended December 31, 2016, 2015 or 2014.