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Note 4 - Real Estate Under Development
 12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Real Estate Under Development [Text Block]
4.
Real Estate
Under Development
:
   
The Company is engaged in
various real estate development projects for long-term investment. As of
December 31, 2017,
the Company had in progress a total of
four
real estate development projects and
two
additional projects held for future development. The costs incurred to date for these projects are as follows (in thousands):
 
       
December 31,
  
Property Name
  
Location
  
201
7
    
2016
  
Grand Parkway Marketplace
(1)
  
Spring, TX
   $
43,403
     $
94,841
  
Dania Pointe
  
Dania Beach, FL
    
152,841
      
107,113
  
Mill
Station
  
Owings Mills, MD
    
34,347
      
25,119
  
Lincoln Square (
2)
  
Philadelphia, PA
    
90,479
      
-
  
Avenues Walk
(3)
  
Jacksonville, FL
    
48,573
      
73,048
  
Promenade at Christiana
(4)
  
New Castle, DE
    
32,875
      
25,521
  
Staten Island Plaza (
5)
  
Staten Island, NY
    
-
      
9,386
  
   
 
  
$
402,518
    
$
335,028
 
 
 
(
1
)
During
2017,
the Company sold a land parcel at this development project for a sales price of
$2.9
million. Additionally, effective as of
September 30, 2017,
certain aspects of this development project, aggregating
$91.0
million, were placed in service and reclassified into Land and Building and improvements on the Company’s Consolidated Balance Sheets. The remaining portion relates to the
second
phase of this project which is under development.
 
(
2
)
During
2017,
KIM Lincoln, LLC (“KIM Lincoln”), a wholly owned subsidiary of the Company, and Lincoln Square Property, LP (“Lincoln Member”) entered into a joint venture agreement wherein KIM Lincoln has a
90%
controlling interest and Lincoln Member has a
10%
noncontrolling interest. The joint venture acquired land parcels in Philadelphia, PA to be held for development for a gross purchase price of
$10.0
million. Based upon the Company
’s intent to develop the property, the Company allocated the gross purchase price to Real estate under development on the Company’s Consolidated Balance Sheets. This joint venture is accounted for as a consolidated VIE (see Footnote
9
).
 
(
3
)
Effective
April 1, 2017,
certain aspects of this development project, aggregating
$24.5
million, were placed in service and reclassified into
Land and Building and improvements on the Company’s Consolidated Balance Sheets. The remaining portion of the project consists of a mixed-use project to be developed in the future.
 
(
4
)
T
he Company is assessing the development model for this asset, which
may
include a mixed-use component, and anticipates a near term delay in the timing of development. As such, the Company considers this project as land held for future development effective
December 31, 2017.
 
(
5
)
During
2017,
the Company reclassified
this project to undeveloped land on the Company’s Consolidated Balance Sheets, as it is
no
longer anticipated to be developed by the Company.
 
D
uring the years ended
December 31, 2017
and
2016,
the Company capitalized (i) interest of
$11.0
million and
$6.9
million, (ii) real estate taxes, insurance and legal costs of
$5.7
million and
$5.2
million and (iii) payroll of
$3.3
million and
$1.8
million, respectively, in connection with these real estate development projects.
 
During
2016,
the Company acquired from its partner the remaining ownership interest in
Dania Pointe, which was held in a joint venture in which the Company has a
55.0%
noncontrolling interest for a gross purchase price of
$84.2
million. The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as a result,
no
gain on change in control of interest was recognized as there was
no
fair value adjustment associated with the Company’s previously held equity interest. Based upon the Company’s intent to develop the property, the Company allocated the gross purchase price to Real estate under development on the Company’s Consolidated Balance Sheets.
 
During
2016,
the Company acquired, in separate transactions,
three
additional land parcels adjacent to
two
existing development projects for an aggregate purchase price of
$13.8
million.