Property Dispositions, Discontinued Operations and Real Estate Impairment

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Property Dispositions, Discontinued Operations and Real Estate Impairment

Property Dispositions, Discontinued Operations and Real Estate Impairment

During the three months ended March 31, 2016, the Company disposed of its interests in certain properties to unrelated third parties for an aggregate gross sales price of $58,225 and a vacant parcel of land for a gross sales price of $400. During the three months ended March 31, 2015, the Company disposed of its interest in an office property to an unrelated third party for a gross sales price of $4,950, which was held for sale at December 31, 2014, and conveyed two office properties along with their escrow deposits in satisfaction of a $30,293 non-recourse secured mortgage loan. In addition, during the three months ended March 31, 2015, the Company disposed of a vacant retail property, with a zero basis, upon the expiration of the related ground lease. During the three months ended March 31, 2016 and 2015, the Company recognized aggregate gains on sales of properties of $17,015 and $1,725, respectively. In addition, during the three months ended March 31, 2016 and 2015, the Company recognized aggregate debt satisfaction gains (charges), net of $(162) and $10,466, respectively, relating to disposed properties. The results of operations for properties disposed of in 2016 and 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 March 31, 2016, the Company had one property classified as held for sale.

Assets and liabilities of held for sale properties as of March 31, 2016 and December 31, 2015 consisted of the following:

	March 31, 2016			December 31, 2015
Assets:
Real estate, at cost	$	6,011		$	16,590
Real estate, intangible assets	5,589			10,786
Accumulated depreciation and amortization	(2,077		)	(4,069		)
Rent receivable - deferred	624			1,118
	$	10,147		$	24,425
Liabilities:
Mortgage payable	$	—		$	8,373
Other	—			32
	$	—		$	8,405

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 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 three months ended March 31, 2015, the Company recognized impairment charges of $1,139 in continuing operations. 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.