Real Estate Investments

The major components of real estate investments as of June 30, 2016 and December 31, 2015 are as follows:



	June 30, 2016		December 31, 2015
Land	$	15,233	17,297
Buildings and improvements	46,700		57,015
Intangibles	149		329
Subtotal	62,082		74,641
Less: accumulated depreciation and amortization	11,090		13,207
Total	$	50,992	61,434

Depreciation and amortization is computed using the straight-line method over the estimated life of the respective assets, ranging from 5 to 39 years.

In 2015, SJW Land Company was notified by the Arizona Department of Transportation (“ADOT”) that in order to achieve their goals of developing a new freeway extension, they, in conjunction with the Federal Highway Commission, would be exercising their powers of eminent domain for SJW Land Company's warehouse building located in Phoenix, Arizona. During the second quarter of 2016, management negotiated a settlement value with ADOT. Final settlement is expected by the end of 2016. The company has reclassified the Arizona property as held-for-sale in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2016. Reclassification to held-for-sale represents a change in circumstances in the intended use of such facility and as such, the company has reviewed the asset for impairment. SJW Corp. performed a recoverability test of estimated sales proceeds less cost to sell the property in accordance with FASB ASC Topic 360 - “Property, Plant and Equipment.” As a result of this recoverability test, SJW Corp. determined that the carrying value was recoverable and no impairment exists. The mortgage loan for the Arizona warehouse building was due on July 1, 2016. SJW Land Company paid off the remaining loan balance of $2,938 on June 30, 2016.

The Arizona warehouse building is included in SJW Corp.'s “Real Estate Services” reportable segment as disclosed in Note 5. Prior to reclassification of the property as held-for-sale, depreciation expense on the building was $68 and $135 for the three and six months ended June 30, 2016. The following represents the major components of the Arizona warehouse building recorded in long-lived assets held-for-sale on SJW Corp.'s condensed consolidated balance sheets as of June 30, 2016:



	June 30, 2016
Land	$	2,064
Buildings and improvements	10,563
Subtotal	12,627
Less: accumulated depreciation and amortization	2,720
Total	$	9,907