Property Dispositions, Discontinued Operations and Real Estate Impairment

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Property Dispositions, Discontinued Operations and Real Estate Impairment

Property Dispositions, Discontinued Operations and Real Estate Impairment

During the nine months ended September 30, 2015, the Company disposed of its interests in certain properties to unrelated third parties for a gross disposition price of $217,675 and conveyed two vacant office properties, along with their escrow deposits, in satisfaction of a $30,293 non-recourse secured mortgage loan. In addition, during the nine months ended September 30, 2015, the Company disposed of a vacant retail property, with a zero basis, upon the expiration of the related ground lease. During the nine months ended September 30, 2014, the Company disposed of its interest in certain properties to unrelated third parties for a gross disposition price of $105,180 and conveyed one property along with its escrow deposits in satisfaction of the $9,900 non-recourse secured mortgage loan. During the nine months ended September 30, 2015 and 2014, the Company recognized aggregate gains on sales of properties of $24,884 and $22,052, respectively, and impairment charges on properties sold of $32,931 and $11,062, respectively. In addition, during the nine months ended September 30, 2015 and 2014, the Company recognized aggregate net gains (charges) on debt satisfaction of $10,106 and $(299), respectively, relating to disposed properties. The results of operations for properties disposed of in 2015, that were not classified as held for sale as of December 31, 2014, are included within continuing operations in the unaudited condensed consolidated financial statements in accordance with recent guidance issued by the FASB. As of September 30, 2015, the Company had no properties classified as held for sale.

The Company assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant reduction in utilization of a property, tenant financial instability and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value. During the nine months ended September 30, 2015 and 2014, in addition to the impairment charges discussed above, the Company recognized impairment charges of $1,139 and $18,864, respectively. The Company determined that the expected undiscounted cash flows based upon the revised estimated holding periods of certain assets were below the current carrying values. Accordingly, the Company reduced the carrying value of the properties to their estimated then fair values of $475 and $5,574, respectively.