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Sale of Properties
 6 Months Ended
Jun. 30, 2016
Sale of Properties  
Sale of Properties

 

Note 5 — Sale of Properties

 

The following chart details the Company’s sales of real estate during the six months ended June 30, 2016 (amounts in thousands):

 

Description of Property

 

Date Sold

 

Sales Price

 

Gain on Sale of
Real Estate, Net

 

Portfolio of eight retail properties,
Louisiana and Mississippi (a)

 

February 1, 2016

 

$
13,750 

 

$
787 

 

Retail property,
Killeen, Texas (b)

 

May 19, 2016

 
3,100 

 
980 

 

Land,
Sandy Springs, Georgia

 

June 15, 2016

 
8,806 

 
2,278 

 

Industrial property,
Tomlinson, Pennsylvania (c)

 

June 30, 2016

 
14,800 

 
5,660 

 

 

 

 

 

 

 

 

 

Totals

 

 

 

$
40,456 

 

$
9,705 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

In connection with the sale, the Company paid off the $7,801 mortgage balance on these properties and incurred a $380 expense for the early termination of the mortgage (included in Prepayment costs on debt) and a $26 write-off of deferred financing costs (included in Amortization and write-off of deferred financing costs).  As a result of the sale, the Company also wrote-off, as a reduction to Gain on sale of real estate, net, $706 of unbilled straight-line rent receivable, $79 of intangible lease assets and $54 of tenant origination costs.  At December 31, 2015, the Company classified the net book value of the land and buildings, intangible lease assets and tenant origination costs totaling $12,259 as Properties held-for-sale.

(b)

As a result of the sale, the Company wrote-off, as a reduction to Gain on sale of real estate, net, $37 of unbilled straight-line rent receivable.

(c)

In connection with the sale, the Company paid off the $5,272 mortgage balance on this property and incurred a $154 swap termination fee (included in Prepayment costs on debt) and a $30 write-off of deferred financing costs (included in Amortization and write-off of deferred financing costs).  As a result of the sale, the Company wrote-off, as a reduction to Gain on sale of real estate, net, $1,262 of unbilled straight-line rent receivable, $36 of intangible lease assets and $75 of tenant origination costs.

 

On January 13, 2015, a consolidated joint venture of the Company sold a property located in Cherry Hill, New Jersey for $16,025,000, net of closing costs.  The sale resulted in a gain of $5,392,000, recorded as Gain on sale of real estate, net, for the six months ended June 30, 2015. In connection with the sale, the Company paid off the $7,376,000 mortgage balance on this property and incurred a $472,000 swap termination fee (included in Prepayment costs on debt) and a $249,000 write-off of deferred financing costs (included in Amortization and write-off of deferred financing costs). The non-controlling interest’s share of income from the transaction was $1,320,000 and is included in net income attributable to non-controlling interests.