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Real Estate | 12 Months Ended
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Dec. 31, 2019
Real Estate [Abstract] |
Real Estate | Note 3. Real Estate Real estate activity for 2019 and 2018 is composed of the following:
|  | Years ended December 31, |
|  | 2019 |  |  | 2018 |
Cost |  |  |  |  |  |  |  |
Balance, beginning of year |  | $ | 1,508,682,000 |  |  | $ | 1,534,599,000 |
Properties transferred to held for sale |  |  | (36,265,000 | ) |  |  | (61,505,000 | )
Property acquisitions |  |  | 9,333,000 |  |  |  | 6,481,000 |
Asset write-offs |  |  | (3,633,000 | ) |  |  | — |
Improvements and betterments |  |  | 37,089,000 |  |  |  | 29,107,000 |
Balance, end of the year |  | $ | 1,515,206,000 |  |  | $ | 1,508,682,000 |
Accumulated depreciation |  |  |  |  |  |  |  |
Balance, beginning of the year |  | $ | 361,969,000 |  |  | $ | 341,943,000 |
Properties transferred held for sale |  |  | (10,143,000 | ) |  |  | (14,886,000 | )
Asset write-offs |  |  | (3,107,000 | ) |  |  | — |
Depreciation expense |  |  | 41,142,000 |  |  |  | 34,912,000 |
Balance, end of the year |  | $ | 389,861,000 |  |  | $ | 361,969,000 |
Net book value |  | $ | 1,125,345,000 |  |  | $ | 1,146,713,000 |
At December 31, 2019, Franklin Village Plaza was pledged as collateral for a mortgage loan payable. See Note 8 - “Mortgage Loans Payable and Credit Facilities”. 2019 Acquisition On June 19, 2019, the Company purchased Girard Plaza, a shopping center adjacent to its South Philadelphia property, located in Philadelphia, Pennsylvania. The purchase price for the property was $8.5 million, which has been allocated to real estate assets and liabilities. 2018 Land Parcel Acquisition On August 8, 2018, the Company purchased a land parcel adjacent to its Riverview Plaza property, located in Philadelphia, Pennsylvania. The purchase price for the land parcel was $1.0 million, which was comprised of $25,000 in cash and approximately 208,000 OP Units (based on the market price of the Company’s common stock). 2018 Shopping Center Acquisition On August 21, 2018, the Company entered into a deed of lease for Senator Square, a shopping center located in Washington, D.C. The deed of lease conveys fee title in the buildings to the Company and contains future options to acquire fee title in the land at its then fair-value. The purchase price has been allocated to real estate assets and liabilities. This lease was originally presented in the Company’s financial statements as two separate components as follows: (1) a $5.7 million capital lease obligation for the fee interest in the buildings, and (2) an operating lease for the land. The capital lease obligation was computed through the date of the Company’s first purchase option, as discussed below, and reflects an interest rate of 5.3%. Effective January 1, 2019, based upon the adoption of the new lease accounting standard, the component of the lease that was originally recorded as a capital lease obligation is now classified as a finance lease obligation, and is being presented as such for all years presented. The lease initially requires monthly payments of $75,000 through maturity in August 2117 unless the Company exercises one of its options to acquire the land. The first such option will be available between the 25th and 33rd anniversaries of the lease, depending on certain property benchmarks, with additional purchase options every 10 years thereafter during the lease term. The lease also provides for 1.5% annual increases which begin on approximately the 8th anniversary of the lease, depending on the aforementioned property benchmarks. In addition, at the time the Company’s first purchase option becomes available, the lease payments will be adjusted to the greater of then fair-value or the current payment amount. The lease payments are subject to similar adjustments at the 25th and 50th anniversaries of such first purchase option. The Company has also issued a $3.5 million interest only mortgage note receivable to the lessor of Senator Square, which bears interest at 4.5% per annum. The maturity date of this mortgage note can range from 26.5 years to 34.5 years from the date of issuance, based on the aforementioned property benchmarks. Dispositions During 2019, 2018 and 2017, the Company sold the properties listed below:
|  |  |  | Date |  | Sales |  |  | Gain on |
Property |  | Location |  | Sold |  | Price |  |  | Sale |
2019 |  |  |  |  |  |  |  |  |  |  |  |
Maxatawny Marketplace |  | Maxatawny, PA |  | 2/15/2019 |  | $ | 10,330,000 |  |  | $ | 101,000 |
Fort Washington Center |  | Fort Washington, PA |  | 6/26/2019 |  |  | 9,048,000 |  |  |  | 2,841,000 |
|  |  |  |  |  | $ | 19,378,000 |  |  | $ | 2,942,000 |
2018 |  |  |  |  |  |  |  |  |  |  |  |
Mechanicsburg Center |  | Mechanicsburg, PA |  | 8/28/2018 |  | $ | 16,100,000 |  |  | $ | 4,864,000 |
West Bridgewater Plaza |  | West Bridgewater, MA |  | 9/28/2018 |  |  | 3,500,000 |  |  |  | - |
|  |  |  |  |  | $ | 19,600,000 |  |  | $ | 4,864,000 |
2017 |  |  |  |  |  |  |  |  |  |  |  |
Outparcel Building adjacent to Camp Hill |  | Camp Hill, PA |  | 2/1/2017 |  | $ | 10,650,000 |  |  | $ | 7,099,000 |
Fredericksburg Way |  | Fredericksburg, VA |  | 12/29/2017 |  |  | 2,200,000 |  |  |  | - |
|  |  |  |  |  | $ | 12,850,000 |  |  | $ | 7,099,000 |
The Company recorded impairment charges of $9.4 million relating to West Bridgewater Plaza during 2018, and $9.5 million relating to Fredericksburg Way during 2017, which are included in continuing operations in the accompanying consolidated statements of operations. Real Estate Held for Sale As of December 31, 2019, Carll’s Corner, located in Bridgeton, New Jersey, Suffolk Plaza, located in Suffolk, Virginia, and The Commons, located in Dubois, Pennsylvania, have been classified as “real estate held for sale” on the accompanying consolidated balance sheet. The Company recorded an impairment charge of $8.9 million in connection with The Commons in 2019 and $11.3 million in connection with Carll’s Corner during 2018.

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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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