Note 3. Real Estate

Real estate activity for 2015 and 2014 is comprised of the following:


	Years ended December 31,
	2015	2014
Cost
Balance, beginning of year	$ 1,476,173,000	$ 1,450,951,000
Properties held for sale	(4,599,000)	(81,223,000)
Properties acquired	65,313,000	91,241,000
Impairments	-	(6,000)
Improvements and betterments	13,140,000	15,210,000
Balance, end of the year	$ 1,550,027,000	$ 1,476,173,000

Accumulated depreciation
Balance, beginning of the year	$ 267,211,000	$ 251,605,000
Properties held for sale	(1,380,000)	(18,523,000)
Depreciation expense	35,001,000	34,129,000
Balance, end of the year	$ 300,832,000	$ 267,211,000

Net book value	$ 1,249,195,000	$ 1,208,962,000

At December 31, 2015, certain of the Company’s shopping center properties were pledged as collateral for mortgage loans payable. See Note 9 - “Mortgage Loans Payable and Credit Facilities”.

2015 Acquisitions

On January 23, 2015, the Company acquired the New London Mall joint venture partner’s 60% ownership interest, giving the Company a 100% ownership interest in this property, which is located in New London, Connecticut. The purchase price for the interest was $27.3 million, consisting of $10.9 million in cash, and $16.4 million representing the 60% share of the in-place mortgage financing. As the property was previously controlled and consolidated by the Company, the acquisition of the 60% noncontrolling ownership interest was recorded as a capital transaction.

On February 27, 2015, the Company acquired Lawndale Plaza, located in Philadelphia, Pennsylvania. The purchase price for the property, which was unencumbered, was $25.2 million. The Company incurred costs of $0.5 million in connection with this acquisition.

On December 23, 2015, the Company acquired East River Park, located in Washington D.C. The purchase price for the property was $39.0 million, of which $20.5 million was funded from the assumption of a mortgage loan payable bearing interest at the rate of 3.9% per annum and maturing in September 2022. The Company incurred costs of $0.7 million in connection with this acquisition. In addition, the purchase price has been preliminarily allocated to real estate assets and liabilities assumed, as applicable, in accordance with accounting policies for business combinations, with such valuations to be finalized when valuation studies are complete.

2014 Acquisition

On March 21, 2014, the Company acquired Quartermaster Plaza located in Philadelphia, Pennsylvania. The purchase price for the property was approximately $92.3 million, of which approximately $53.4 million was funded from the assumption of (1) a $42.1 million mortgage loan payable, bearing interest at the rate of 5.3% per annum and maturing in October 2015, and (2) an $11.3 million mortgage loan payable, bearing interest at the rate of 5.5% per annum and payable in October 2014 (repaid in June 2014), with the remainder being funded from the Company’s unsecured revolving credit facility. The Company incurred costs of $2.9 million in connection with this acquisition.

Properties Held For Sale Subsequent to December 31, 2013

At December 31, 2015, Liberty Marketplace, located in Dubois, Pennsylvania was classified as real estate held for sale. On February 11, 2016, the Company sold the property for $15.0 million, which approximated its carrying value. In addition, during 2015 and 2014, the Company sold the properties listed below which did not meet the criteria set forth in the guidance for reporting discontinued operations that was adopted in 2014:


		Date	Sales	Gain on
Property	Location	Sold	Price	Sale
2015
Kenley Village	Hagerstown, MD	5/28/2015	$ 2,275,000	$ -
Circle Plaza	Shamoking Dam, PA	7/22/2015	1,800,000	-
			$ 4,075,000	$ -

2014
Fairview Plaza	New Cumberland, PA	5/27/2014	$ 12,450,000	$3,810,000
Carbondale Plaza	Carbondale, PA	7/18/2014	10,700,000	123,000
Virginia Little Creek	Norfolk, VA	8/22/2014	9,850,000	2,209,000
Annie Land Plaza	Lovingston, VA	9/26/2014	3,500,000	-
Smithfield Plaza	Smithfield, VA	10/21/2014	12,350,000	-
St. James Square	Hagerstown, MA	11/5/2014	4,125,000	271,000
			$ 52,975,000	$6,413,000

The Company recorded reversals of impairments of $0.2 million in 2015, in addition to impairment charges of $3.4 million in 2014, relating to these properties, which are included in continuing operations in the accompanying consolidated statements of operations.

Land Parcels

During 2014 and 2013, the Company sold the following land parcels:


		Date	Sales	Gain on
Property	Location	Sold	Price	Sale
2014
Blue Mountain Commons land parcel	Harrisburg, PA	10/22/2014	$ 350,000	$ -

2013
Huntingdon Plaza land parcel	Huntingdon, PA	3/29/2013	$ 390,000	$ 266,000
Upland Square land parcel	Pottstown, PA	11/8/2013	1,700,000	215,000
Oregon Pike land parcel	Lancaster, PA	12/23/2013	1,451,000	-
			$ 3,541,000	$ 481,000

The Company recorded reversals of impairments of $0.3 million in 2014, in addition to impairment charges of $0.9 million in 2013, respectively, relating to land parcels, which are included in continuing operations in the accompanying consolidated statements of operations.