Dispositions and Impairment

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Dispositions and Impairment

Dispositions and Impairment

During the nine months ended September 30, 2022 and 2021, the Company disposed of its interests in various properties for an aggregate gross disposition price of $147,345 and $218,796, respectively, and recognized aggregate gains on sales of properties of $52,951 and $104,767, respectively.

Included in the 2021 dispositions are three non-industrial properties with an aggregate 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. There are no past due payments outstanding related to the seller financing as of September 30, 2022 and 2021.

The Company had six and eight properties classified as held for sale at September 30, 2022 and December 31, 2021, respectively. Assets and liabilities of the held for sale properties consisted of the following:

	September 30, 2022		December 31, 2021
Assets:
Real estate, at cost	$	159,963	$	170,117
Real estate, intangible assets	8,572		9,454
Accumulated depreciation and amortization	(97,251)		(99,659)
Deferred expenses, net	1,629		1,759
Other	848		915
	$	73,761	$	82,586
Liabilities:
Accounts payable and liabilities	$	1,630	$	1,908
Deferred revenue	362		483
Prepaid rent	823		1,077
	$	2,815	$	3,468

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, 2022, the Company recognized an impairment charge on real estate of $2,457 due to vacancy at the property. During the nine months ended September 30, 2021, the Company recognized impairment charges on real estate of $2,048 related to a vacant office property.