Real Estate Held-for-Investment and Real Estate Held-for-Sale

3 Months Ended

Mar. 31, 2016

Real Estate Held-for-Investment and Real Estate Held-for-Sale [Abstract]

Real Estate Held-for-Investment and Real Estate Held-for-Sale

6. Real Estate Held-for-Investment and Real Estate Held-for-Sale

BBX Capital’s real estate has been acquired through foreclosures, settlements, or deeds in lieu of foreclosure. Upon acquisition, real estate is classified as real estate held-for-sale or real estate held-for-investment. Real estate is classified as held-for-sale when the property is available for immediate sale in its present condition, management commits to a plan to sell the property, an active program to locate a buyer has been initiated, the property is being marketed at a price that is reasonable in relation to its current fair value and it is likely that a sale will be completed within one year. When the property does not meet the real estate held-for-sale criteria, the real estate is classified as held-for-investment.

The following table presents real estate held-for-sale grouped in the following classifications (in thousands):



		As of
		March 31, 2016	December 31, 2015
Real estate held-for-sale
Land	$	25,531	25,994
Rental properties		17,146	17,162
Residential single-family		3,230	2,924
Other		258	258
Total real estate held-for-sale	$	46,165	46,338

The following table presents real estate held-for-investment grouped in the following classifications (in thousands):



		As of
		March 31, 2016	December 31, 2015
Real estate held-for-investment
Land	$	31,927	30,369
Other		911	921
Total real estate held-for-investment	$	32,838	31,290

The amount of interest capitalized to land held-for-investment associated with real estate development improvements for the three months ended March 31, 2015 was $186,000. There was no interest capitalized to land held-for-investment for the three months ended March 31, 2016.

The following table presents the activity in real estate held-for-sale and held-for-investment for the three months ended March 31, 2016 and 2015 (in thousands):



		For the Three Months Ended
		March 31, 2016		March 31, 2015
		Real Estate		Real Estate
		Held-for-Sale	Held-for-Investment	Held-for-Sale	Held-for-Investment
Beginning of period, net	$	46,338	31,290	41,733	76,552
Acquired through foreclosure		826	-	2,156	-
Transfers		-	-	(1,027)	1,027
Improvements		169	1,558	-	7,024
Accumulated depreciation		-	(10)	-	(81)
Sales		(876)	-	(2,952)	-
Impairments, net		(292)	-	(147)	(225)
End of period, net	$	46,165	32,838	39,763	84,297

The following table presents the real estate held-for-sale valuation allowance activity for the three months ended March 31, 2016 and 2015 (in thousands):



		For the Three Months Ended
		March 31,
		2016	2015
Beginning of period	$	4,400	2,940
Transfer to held-for-investment		-	(93)
Impairments, net (1)		292	147
Sales		(122)	(577)
End of period	$	4,570	2,417

(1)

Tax certificate impairments are not included.