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Real Estate Properties | 9 Months Ended
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Sep. 30, 2018
Real Estate [Abstract] |
Real Estate Properties | Real Estate Properties At September 30, 2018, we owned 443 properties (469 buildings) located in 42 states and Washington, D.C. Acquisitions: We have accounted for our 2018 acquisitions as acquisitions of assets unless otherwise noted. We funded our 2018 acquisitions using cash on hand and borrowings under our revolving credit facility, unless otherwise noted. MOBs: In January 2018, we acquired three MOBs (three buildings) located in Kansas, Missouri and California with a total of approximately 400,000 square feet for an aggregate purchase price of approximately $91,698, including closing costs of $544. In March 2018, we acquired one MOB (one building) located in Virginia with approximately 135,000 square feet for a purchase price of approximately $23,275, including our assumption of a $11,050 mortgage note and closing costs of $525. The table below represents the purchase price allocations (including net closing adjustments) of the MOB acquisitions that closed during the nine months ended September 30, 2018, as described above:
Date |  | Location |  | Number of Properties |  | Number of Buildings |  | Square Feet (000’s) |  | Cash Paid Plus Assumed Debt (1) |  | Land |  | Building and Improvements |  | Acquired Real Estate Leases (2) |  | Assumed Debt
January 2018 |  | 3 States |  | 3 |  | 3 |  | 400 |  |  | $ | 91,698 |  |  | $ | 16,873 |  |  | $ | 54,605 |  |  | $ | 20,220 |  |  | $ | — |
March 2018 |  | Virginia |  | 1 |  | 1 |  | 135 |  |  | 23,275 |  |  | 2,863 |  |  | 11,105 |  |  | 9,307 |  |  | 11,050 |
|  |  |  | 4 |  | 4 |  | 535 |  |  | $ | 114,973 |  |  | $ | 19,736 |  |  | $ | 65,710 |  |  | $ | 29,527 |  |  | $ | 11,050 |
(1) | Cash paid plus assumed debt, if any, includes closing costs.
(2) | The weighted average amortization period for acquired real estate leases as of the acquisition dates was 5.8 years.
Senior Living Community Acquisitions: In November 2017, we entered a transaction agreement with Five Star Senior Living Inc., or Five Star, pursuant to which we agreed to acquire six senior living communities from Five Star. In December 2017, we acquired two of these senior living communities located in Alabama and Indiana with a combined 229 living units for $39,457, including closing costs of $307. In January 2018, we acquired one of these senior living communities located in Tennessee with 88 living units for $19,868, including closing costs of $201. In February 2018, we acquired one of these senior living communities located in Arizona with 127 living units for $22,622, including our assumption of approximately $16,748 of mortgage debt principal and closing costs of $372. In June 2018, we acquired the remaining two of these senior living communities located in Tennessee with a combined 151 living units for $23,860, including our assumption of approximately $16,588 of mortgage debt principal and closing costs of $560. In connection with our acquisitions of these senior living communities, we entered management and pooling agreements with Five Star for Five Star to manage these senior living communities for us. The table below represents the purchase price allocations (including net closing adjustments) of the senior living community acquisitions that closed during the nine months ended September 30, 2018, as described above:
Date |  | Location |  | Leased/Managed |  | Number of Properties |  | Units |  | Cash Paid Plus Assumed Debt (1) |  | Land |  | Building and Improvements |  | FF&E |  | Acquired Real Estate Intangible Assets |  | Assumed Debt |  | Premium on Assumed Debt
January 2018 |  | Tennessee |  | Managed |  | 1 |  | 88 |  |  | $ | 19,868 |  |  | $ | 580 |  |  | $ | 14,884 |  |  | $ | 1,209 |  |  | $ | 3,195 |  |  | $ | — |  |  | $ | — |
February 2018 |  | Arizona |  | Managed |  | 1 |  | 127 |  |  | 22,622 |  |  | 2,017 |  |  | 17,123 |  |  | 390 |  |  | 4,451 |  |  | 16,748 |  |  | (1,359 | )
June 2018 |  | Tennessee |  | Managed |  | 2 |  | 151 |  |  | 23,860 |  |  | 965 |  |  | 17,910 |  |  | 1,628 |  |  | 3,843 |  |  | 16,588 |  |  | (486 | )
|  |  |  |  |  | 4 |  | 366 |  |  | $ | 66,350 |  |  | $ | 3,562 |  |  | $ | 49,917 |  |  | $ | 3,227 |  |  | $ | 11,489 |  |  | $ | 33,336 |  |  | $ | (1,845 | )
(1) | Cash paid plus assumed debt, if any, includes closing costs.
Impairment: We periodically evaluate our assets for impairment. Impairment indicators may include declining tenant or resident occupancy, weak or declining profitability from the property, decreasing tenant cash flows or liquidity, our decision to dispose of an asset before the end of its estimated useful life, and legislative, market or industry changes that could permanently reduce the value of an asset. If indicators of impairment are present, we evaluate the carrying value of the affected asset by comparing it to the expected future undiscounted net cash flows to be generated from that asset. If the sum of these expected future net cash flows is less than the carrying value, we reduce the net carrying value of the asset to its estimated fair value. During the three and nine months ended September 30, 2018, we recorded impairment of assets charges of $4,525 and $5,073, respectively, to write off unamortized assets related to lease defaults at two of our senior living communities located in California and Colorado that were leased to third party private operators. In June 2018, we reached an agreement with the tenant leasing the senior living community in California and its guarantor to settle past due amounts, terminate the lease and transfer operations, and, in connection with this agreement, we received $2,150 of settlement proceeds. We reached an agreement with the tenant leasing the senior living community in Colorado to terminate the lease and transfer operations in November 2018. We entered management agreements with Five Star to operate these communities for our account under TRS structures. We did not record any impairment charges for our real estate properties during the three and nine months ended September 30, 2017. See Note 5 for further information regarding other than temporary impairment losses recorded in 2017 relating to our investments in equity securities. Dispositions: In March 2018, we sold two senior living communities that were leased to Sunrise Senior Living LLC, or Sunrise, for an aggregate sales price of $217,000, excluding closing costs, resulting in a gain of $181,154. In May 2018, we sold one senior living community leased to Sunrise for a sales price of $96,000, excluding closing costs, resulting in a gain of $78,856. We recognized rental income of $0 and $3,505 during the three and nine months ended September 30, 2018, respectively, related to these three senior living communities. We currently have $94,348 of proceeds from the sale of the senior living community in May 2018 that are being held in trust and were intended to fund future acquisitions. These proceeds from the sale are classified as restricted cash in our condensed consolidated balance sheets and will be released to us in November 2018. In June 2018, we sold one skilled nursing facility, or SNF, a type of senior living community, that was leased to Five Star and one senior living community that was leased to a private operator, where the tenant exercised its purchase option, for a combined sales price of approximately $21,865, excluding closing costs, resulting in a net gain of $1,906. Pursuant to the terms of our lease with Five Star, our annual rental income decreased by $650 from the sale of the SNF that was previously leased to Five Star. We recognized rental income of $0 and $664 during the three and nine months ended September 30, 2018, respectively, related to the senior living community that was leased to a private operator.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 + Details
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