Dispositions and Impairment

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

During the nine months ended September 30, 2020 and 2019, the Company disposed of its interests in various properties for an aggregate gross disposition price of $140,573 and $448,900, respectively, and recognized aggregate gains on sales of properties of $41,876 and $176,662, respectively. Included in the 2020 dispositions are two office properties located in Charleston, South Carolina and Overland Park, Kansas which were conveyed to the lenders in forgiveness of the mortgage loan encumbering each property. The balances of the non-recourse mortgage loans were in excess of the value of the property collateral, resulting in an aggregate debt satisfaction gain, net of $29,016. Included in the 2019 dispositions, the Company recognized debt satisfaction charges, net of $4,415 relating to sold properties.

As of September 30, 2020, the Company had five properties classified as held for sale because the properties met the criteria included under the held for sale accounting guidance and sales to a third party within the next 12 months were deemed probable. As of December 31, 2019, the Company had no properties that met the held for sale criteria.

Assets and liabilities of the held for sale properties as of September 30, 2020 consisted of the following:


	September 30, 2020
Assets:
Real estate, at cost	$	180,981
Real estate, intangible assets	5,361
Accumulated depreciation and amortization	(38,405)
Rent receivable - deferred	8,066
Other	3,207
	$	159,210

Liabilities:
Mortgages and notes payable, net	$	177,784
Accounts payable and other liabilities	680
Accrued interest payable	322
Prepaid rent	266
	$	179,052

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, change in the estimated holding period of the asset, the potential sale or transfer of the property in the near future and changes in economic conditions such as the recent economic uncertainty primarily caused by the COVID-19 outbreak. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value and the Company estimates that its cost will not be recovered. During the nine months ended September 30, 2020, the Company recognized aggregate impairment charges on real estate properties of $7,792 comprised of two impairment charges of $1,617 and $6,175 on a vacant office property located in Houston, Texas and an industrial facility located in Kalamazoo, Michigan, respectively.

During the nine months ended September 30, 2019, the Company recognized aggregate impairment charges on real estate properties of $2,355 comprised of $2,106 and $249 on unencumbered and vacant retail properties in Watertown, New York and Albany, Georgia, respectively. Both of these properties were sold during 2019.