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DISPOSITIONS AND IMPAIRMENT CHARGES | 9 Months Ended
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Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract] |
DISPOSITIONS AND IMPAIRMENT CHARGES | DISPOSITIONS AND IMPAIRMENT CHARGES The Company closed on the following disposition during the nine months ended September 30, 2024 (dollars in thousands):
Date |  | Property Name |  | MSA |  | Property Type |  | Square Footage |  | Sales Price |  | Gain (Loss)
May 31, 2024 |  | Ashland & Roosevelt |  | Chicago |  | Multi-tenant retail |  | 104,176 |  |  | $ | 30,600 |  |  | $ | (1,234) |
In addition, during the three months ended September 30, 2024, the Company received proceeds of $0.6 million and recognized a gain of $0.6 million as a result of the receipt of an escrow related to the disposition of Reisterstown Road Plaza that previously closed on September 11, 2023. The Company closed on the following dispositions during the nine months ended September 30, 2023 (dollars in thousands):
Date |  | Property Name |  | MSA |  | Property Type |  | Square Footage |  | Sales Price |  | Gain (Loss)
May 8, 2023 |  | Kingwood Commons |  | Houston |  | Multi-tenant retail |  | 158,172 |  |  | $ | 27,350 |  |  | $ | 4,736 |
June 8, 2023 |  | Pan Am Plaza & Garage |  | Indianapolis |  | Land & garage |  | — |  |  | 52,025 |  |  | 23,635 |
September 11, 2023 |  | Reisterstown Road Plaza |  | Baltimore |  | Multi-tenant retail |  | 376,683 |  |  | 48,250 |  |  | (5,903) |
|  |  |  |  |  |  |  | 534,855 |  |  | $ | 127,625 |  |  | $ | 22,468 |
Since June 30, 2024, we have classified City Center, a 362,278 square foot multi-tenant retail property in the New York MSA, as held for sale as the Company has committed to a plan to sell this asset and expects that the sale will be completed within one year. This property qualified for held-for-sale accounting treatment upon meeting all applicable GAAP criteria as of June 30, 2024, at which time depreciation and amortization were ceased. In addition, the assets and liabilities associated with this property remain separately classified as held for sale in the accompanying consolidated balance sheet as of September 30, 2024. No properties qualified for held-for-sale accounting treatment as of December 31, 2023. As of June 30, 2024, in connection with the preparation and review of the second quarter 2024 financial statements and in conjunction with classifying City Center as held for sale, we evaluated City Center for impairment and recorded a $66.2 million impairment charge due to changes in the facts and circumstances underlying the Company’s expected future hold period of the property. A shortening of the expected future hold period is considered an impairment indicator; therefore, we assessed the recoverability of City Center by comparing the carrying value of long-lived assets of $135.1 million as of June 30, 2024 to its estimated fair value of $69.6 million, which was determined using the income approach, less estimated selling costs of $0.7 million. The income approach involves discounting the estimated income stream and reversion (presumed sale) value of a property over an estimated hold period to a present value at a risk-adjusted rate. We used capitalization rates as a significant assumption in the valuation model, which are considered to be Level 3 inputs within the fair value hierarchy. We applied capitalization rates ranging from 6.0% to 15.0% to property income streams based upon the risk profile of the respective tenants and market rent of the leasable space. Based on this analysis, we recorded a $66.2 million non-cash impairment charge on City Center during the three months ended June 30, 2024. The following table presents the assets and liabilities associated with City Center, the investment property that remains classified as held for sale as of September 30, 2024 (in thousands):
| September 30, 2024
Assets |
Net investment properties | $ | 68,567 |
Tenant and other receivables | 2,358 |
Restricted cash and escrow deposits | 225 |
Deferred costs, net | 2,638 |
Prepaid and other assets | 869 |
Assets associated with investment property held for sale | $ | 74,657 |
Liabilities |
Accounts payable and accrued expenses | $ | 461 |
Deferred revenue and other liabilities | 3,296 |
Liabilities associated with investment property held for sale | $ | 3,757 |
During the three months ended September 30, 2023, in connection with the preparation and review of the third quarter 2023 financial statements, the Company recorded a $0.5 million impairment charge in connection with the sale of Eastside, a 43,640 square foot multi-tenant retail property in the Dallas/Ft. Worth MSA, as a result of a change in the expected hold period. The Company recorded the asset at the lower of cost or fair value less estimated costs to sell, which was approximately $14.1 million. The estimated fair value of Eastside was based upon the expected sales price from an executed sales contract and determined to be a Level 3 input within the fair value hierarchy. Eastside was sold on October 24, 2023 for a gross sales price of $14.4 million. There were no discontinued operations for the nine months ended September 30, 2024 and 2023 as none of the dispositions or planned dispositions represented a strategic shift that has had, or will have, a material effect on our operations or financial results.

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- Definition Disposal Groups, Including Discontinued Operations, Disclosure And Asset Impairment Charges + References No definition available. + Details
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