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Disposals and Discontinued Operations
 6 Months Ended
Jun. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Disposals and Discontinued Operations
Disposals and Discontinued Operations
In the first quarter of 2014, the Company adopted ASU 2014-08, which changed the definition and criteria of property disposals classified as discontinued operations, on a prospective basis. As a result of applying this accounting guidance, the 2014 disposals listed below were not reclassified to discontinued operations as the 2013 disposals were.
2014 Dispositions
The results of operations of the properties described below, as well as any gain on extinguishment of debt and impairment losses related to those properties, are included in income from continuing operations for all periods presented, as applicable. Net proceeds from these 2014 dispositions were used to reduce the outstanding balances on the Company's credit facilities, unless otherwise noted. The following is a summary of the Company's 2014 dispositions:    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Price
 
Sales Date
 
Property
 
Property Type
 
Location
 
Gross
 
Net
 
Gain
2014 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
June
 
Foothills Plaza Expansion
 
Associated Center
 
Maryville, TN
 
$
2,640

 
$
2,387

 
$
934

May
 
Lakeshore Mall (1)
 
Mall
 
Sebring, FL
 
14,000

 
13,613

 
—

 
 
 
 
 
 
 
 
$
16,640

 
$
16,000

 
$
934

(1)
The gross sales price of $14,000 consisted of a $10,000 promissory note and $4,000 in cash. See Note 8 for additional information about the note receivable. The Company recognized a loss on impairment of real estate of $5,100 in the first quarter of 2014 when it adjusted the book value of Lakeshore Mall to its estimated fair value of $13,780 based on a binding purchase agreement signed in April 2014. The sale closed in May 2014 and the Company recognized an impairment loss of $106 in the second quarter of 2014 as a result of additional closing costs.
In January 2014, the mortgage lender for Citadel Mall completed the foreclosure on the property. The lender received the title in satisfaction of the non-recourse debt which had a balance of $68,169. A non-cash loss on impairment of $20,453 was recorded in the second quarter of 2013 to write down the book value of this property to its then estimated fair value. In the first quarter of 2014, the Company recognized a non-cash gain on extinguishment of debt of $43,909 representing the difference between the book value of the debt extinguished over the net book value of the property as of the transfer date. See Note 6 for additional information.
2013 Dispositions
The results of operations of the properties described below, as well as any gains or impairment losses related to those properties, are included in discontinued operations for all periods presented, as applicable. Net proceeds from these 2013 dispositions were used to reduce the outstanding balances on the Company's credit facilities. The following is a summary of the Company's 2013 dispositions:
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Sales Price
 
Gain/
(Loss)
Sales Date
 
Property
 
Property Type
 
Location
 
Gross
 
Net
 
2013 Activity:
 
 
 
 
 
 
 
 
 
 
 
 
August
 
Georgia Square & Georgia Square Plaza, Panama City Mall & The Shoppes at Panama City, RiverGate Mall and Village at RiverGate (1)
 
Mall & Associated Center
 
Athens, GA
Panama City, FL
Nashville, TN
 
$176,000
 
$
171,977

 
$
—

March
 
1500 Sunday Drive
 
Office Building
 
Raleigh, NC
 
8,300

 
7,862

 
(549
)
March
 
Peninsula I & II
 
Office Building
 
Newport News, VA
 
5,250

 
5,121

 
598

January
 
Lake Point & SunTrust
 
Office Building
 
Greensboro, NC
 
30,875

 
30,490

 
823

 
 
 
 
 
 
 
 
$
220,425

 
$
215,450

 
$
872

(1)
Net loss on impairment of $5,234 recorded in the third quarter of 2013 to write down the book value of six properties sold in a portfolio sale to the net sales price.

Total revenues of the properties described above that are included in discontinued operations were $6,858 and $14,767 for the three and six month periods ended June 30, 2013. The total net investment in real estate assets at the time of sale for the office buildings sold during the six months ended June 30, 2013 was $42,693. There were no outstanding mortgage loans for any of the office buildings that were sold during the six months ended June 30, 2013. Discontinued operations for the three and six month periods ended June 30, 2014 and 2013 also include settlements of estimated expenses based on actual amounts for properties sold during previous periods.