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Real Estate | 6 Months Ended
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Jun. 30, 2022
Real Estate [Abstract] |
Real Estate | Note 3. Real Estate Investment in Unconsolidated Joint Venture On May 5, 2021, the Company formed a joint venture with Goldman Sachs Urban Investment Group and Asland Capital Partners (the “Joint Venture”) for the construction of an approximately 258,000 square foot six-story commercial building in Washington, D.C. consisting of approximately 240,000 square feet of office space which is 100% leased to the Washington, D.C., Department of General Services (“DGS”) for its headquarters and approximately 18,000 square feet of street-level retail. The term of the lease with DGS is for 20 years and 10 months, to commence upon substantial completion and delivery to the DGS. This building is planned as the first phase of Northeast Heights, a redevelopment of two existing shopping centers, East River Park and Senator Square, into a mixed-use residential, office and retail property. Further, the Joint Venture has secured construction financing from JP Morgan not to exceed $105 million. The construction loan initially bears interest at LIBOR plus 200 basis points and has an initial term of three years with two, one-year extension options subject to customary conditions. The Company has a 10% interest in the joint venture and is a co-general partner along with Asland Capital Partners. The Company has contributed approximately $4.8 million of capital to the Joint Venture as of June 30, 2022. The Company sold approximately $8.0 million of development costs to the Joint Venture as part of its formation on May 5, 2021. The Joint Venture currently estimates that the space will be delivered during the end of the fourth quarter 2022. Upon completion of the building, DGS will be obligated to pay initial annual net rent of approximately $5.4 million per year, subject to a 2.5% annual escalator on each anniversary of rent commencement, plus certain operating costs, property taxes and amortization of tenant improvements together totaling approximately an additional $8.1 million per year, for an aggregate total annual rent of approximately $13.5 million. The lease provides for a free rent period of 10 months immediately following rent commencement. The Lease also provides DGS with a tenant credit of approximately $6.8 million to be applied, at DGS’s election, against either annual rent or any other tenant payment obligations including tenant improvement costs, in excess of the tenant improvement allowance. Pursuant to the lease, the Joint Venture will contribute up to $155 per rentable square foot toward the cost of tenant improvements, to be amortized over 240 months. In addition, the lease provides that the Joint Venture will contribute $9.38 per rentable square foot in additional tenant improvement allowance between the 10th and 12th lease years, upon DGS’s timely election. The obligations of DGS under the Lease are subject to annual budget appropriation. Acquisitions On June 28, 2022, the Company acquired the 40% minority ownership percentage in the Crossroads joint venture for $1.0 million. Crossroads was included in the Grocery-Anchored Portfolio Sale that occurred on July 7, 2022. Dispositions The following table shows the property disposition during the six months ended June 30, 2022:
|  |  |  |  |  |  |  | Date |  | Sales |  |  |  |  |
Disposition |  | Location |  | GLA |  |  | Sold |  | Price |  |  | Impairment |
Riverview Plaza |  | Philadelphia, PA |  |  | 108,902 |  |  | 5/16/2022 |  | $ | 34,000,000 |  |  | $ | (199,000 | )
The impairment is included in operating (loss) income in the accompanying consolidated statement of operations. Real Estate Held for Sale As of June 30, 2022, Carll’s Corner, located in Bridgeton, New Jersey, the 33 grocery-anchored shopping centers and two redevelopment properties have been classified as “real estate held for sale” on the accompanying consolidated balance sheet. Discontinued Operations On July 7, 2022, the Company and certain of its subsidiaries completed the Grocery-Anchored Portfolio Sale and East River Park and Senator Square sales for total gross proceeds of approximately $879 million, including the assumed debt. The Grocery-Anchored Portfolio Sale represents a strategic shift and will have a material effect on the Company’s operations and financial results, and, therefore, the Company has determined that it is deemed a discontinued operation. Accordingly, the portfolio of 33 grocery-anchored shopping centers have been classified as held for sale and the results of their operations have been classified as discontinued operations for all periods presented herein. With the reclass to held for sale, there were additional impairments of $16.1 million recorded during the second quarter of 2022. The following is a summary of income from discontinued operations:
|  | Three months ended June 30, |  |  | Six months ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
REVENUES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenues |  | $ | 21,546,000 |  |  | $ | 21,277,000 |  |  | $ | 43,677,000 |  |  | $ | 43,771,000 |
Other |  |  | 102,000 |  |  |  | 99,000 |  |  |  | 157,000 |  |  |  | 221,000 |
Total revenues |  |  | 21,648,000 |  |  |  | 21,376,000 |  |  |  | 43,834,000 |  |  |  | 43,992,000 |
EXPENSES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating, maintenance and management |  |  | 5,108,000 |  |  |  | 4,454,000 |  |  |  | 10,441,000 |  |  |  | 9,916,000 |
Real estate and other property-related taxes |  |  | 3,278,000 |  |  |  | 3,229,000 |  |  |  | 6,534,000 |  |  |  | 6,491,000 |
General and administrative |  |  | 91,000 |  |  |  | (223,000 | ) |  |  | 151,000 |  |  |  | (99,000 | )
Depreciation and amortization |  |  | 3,964,000 |  |  |  | 7,281,000 |  |  |  | 9,726,000 |  |  |  | 15,031,000 |
Total expenses |  |  | 12,441,000 |  |  |  | 14,741,000 |  |  |  | 26,852,000 |  |  |  | 31,339,000 |
OPERATING INCOME |  |  | 9,207,000 |  |  |  | 6,635,000 |  |  |  | 16,982,000 |  |  |  | 12,653,000 |
NON-OPERATING INCOME AND EXPENSES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | (1,509,000 | ) |  |  | (1,182,000 | ) |  |  | (3,036,000 | ) |  |  | (1,709,000 | )
Total non-operating income and expenses |  |  | (1,509,000 | ) |  |  | (1,182,000 | ) |  |  | (3,036,000 | ) |  |  | (1,709,000 | )
INCOME FROM DISCONTINUED OPERATIONS |  |  | 7,698,000 |  |  |  | 5,453,000 |  |  |  | 13,946,000 |  |  |  | 10,944,000 |
Impairment charges |  |  | (16,119,000 | ) |  |  | - |  |  |  | (16,630,000 | ) |  |  | - |
Gain on sales |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,047,000 |
TOTAL (LOSS) INCOME FROM DISCONTINUED OPERATIONS |  | $ | (8,421,000 | ) |  | $ | 5,453,000 |  |  | $ | (2,684,000 | ) |  | $ | 11,991,000 |
Net cash provided by operations from discontinued operations was $25.4 million and $25.3 million for the six months ended June 30, 2022 and 2021, respectively. Net cash used in investing activities from discontinued operations was $16.0 million and $9.7 million for the six months ended June 30, 2022 and 2021, respectively.

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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 https://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 https://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 https://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 https://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 https://asc.fasb.org/topic&trid=2134617 + Details
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