Dispositions and Impairment

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

During the nine months ended September 30, 2021 and 2020, the Company disposed of its interests in various properties for an aggregate gross disposition price of $218,796 and $140,573, respectively, and recognized aggregate gains on sales of properties of $104,767 and $41,876, respectively.

Included in the 2021 dispositions are three non-industrial properties with a disposition price of $35,369, which was satisfied through (i) the redemption of 1,598,906 operating partnership units ("OP units"), (ii) the assumption of $11,610 of third party mortgage financing that encumbered two of the properties and (iii) $1,497 of seller financing. The seller financing note receivable has a fixed interest rate of 6.0% per annum and matures on August 1, 2025.

Included in the 2020 dispositions are two office properties located in Charleston, South Carolina and Overland Park, Kansas, each of which was conveyed to the lender in forgiveness of the mortgage loan encumbering the applicable property. The balance of the non-recourse mortgage loan was in excess of the value of the property collateral, resulting in a debt satisfaction gain, net of $29,016.

As of September 30, 2021, the Company had four properties classified as held for sale because the properties met the criteria included under the held for sale accounting guidance and a sale to a third party within the next 12 months was deemed probable. As of December 31, 2020, the Company had two properties that met the held for sale criteria.

Assets and liabilities of the held for sale properties as of September 30, 2021 and December 31, 2020 consisted of the following:


	September 30, 2021		December 31, 2020
Assets:
Real estate, at cost	$	37,406	$	32,629
Real estate, intangible assets	6,417		7,941
Accumulated depreciation and amortization	(14,246)		(24,312)

Other	568		272
	$	30,145	$	16,530

Liabilities:

Accounts payable and other liabilities	$	1,122	$	790

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. 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, 2021, the Company recognized an impairment charge of $2,048 related to a vacant office property located in McDonough, Georgia. During the nine months ended September 30, 2020, the Company recognized aggregate impairment charges of $7,792, consisting of two impairment charges of $1,617 and $6,175 on a vacant office property located in Houston, Texas, later sold in 2020, and an industrial property located in Kalamazoo, Michigan, respectively.