Real Estate Activities

3 Months Ended

Mar. 31, 2015

Real Estate [Abstract]

Real Estate Activities

REAL ESTATE ACTIVITIES

Investments in real estate as of March 31, 2015 and December 31, 2014 were comprised of the following:

(in thousands of dollars)	As of March 31, 2015			As of December 31, 2014
Buildings, improvements and construction in progress	$	3,184,555		$	2,843,326
Land, including land held for development	559,230			442,078
Total investments in real estate	3,743,785			3,285,404
Accumulated depreciation	(1,082,959		)	(1,061,051		)
Net investments in real estate	$	2,660,826		$	2,224,353

Capitalization of Costs

The following table summarizes our capitalized salaries, commissions, benefits and interest for the three months ended March 31, 2015 and 2014:

	Three Months Ended   March 31,
(in thousands of dollars)	2015		2014
Development/Redevelopment Activities:
Salaries and benefits	$	154	$	394
Interest	35		103
Leasing Activities:
Salaries, commissions and benefits	1,655		1,420

Acquisition

On March 31, 2015, we acquired Springfield Town Center in Springfield, Virginia for aggregate consideration of $486.6 million, consisting of the following components: (i) the assumption and immediate payoff of $263.8 million of indebtedness owed to affiliates of Vornado Realty L.P.; (ii) 6,250,000 OP Units valued at $145.2 million, (iii) liabilities relating to tenant improvements and allowances of $14.8 million, (iv) the estimated present value of the “Earnout” (as described below) of $7.7 million, and (v) the remainder in cash. The seller is potentially entitled to receive consideration under the terms of the Contribution Agreement (the “Earnout”) which will be calculated as of March 31, 2018. Our initial allocation of the purchase price is as follows (amounts are subject to change pending final determination of fair values of assets acquired and liabilities assumed):

(in thousands of dollars)
Land		$	119,934
Building		315,845
Site improvements and tenant improvements		36,424
Intangible assets (liabilities):
	In-place lease value	18,126
	Above market lease value	260
	Below market lease value	(393		)
	Above market ground lease value (as lessor)	(5,882		)
Deferred and other assets		2,290
Total		$	486,604

Impairment of Assets

Uniontown Mall

In March 2015, we recorded a loss on impairment of assets at Uniontown Mall in Uniontown, Pennsylvania (“Uniontown Mall”) of $6.2 million. In April 2015, we entered into negotiations with a prospective buyer of the property, which are ongoing and could result in changes to our underlying assumptions. As a result of these negotiations, we determined that the holding period for the property was less than had been previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible asset impairment at this property. Based upon the purchase and sale agreement with the prospective buyer of the property, we determined that the estimated undiscounted cash flows, net of estimated capital expenditures, for Uniontown Mall were less than the carrying value of the property, and recorded the loss on impairment of assets.