Annual report pursuant to Section 13 and 15(d)

Real Estate

v3.20.4
Real Estate
12 Months Ended
Dec. 31, 2020
Real Estate [Abstract]  
Real Estate Real Estate
    
Investment properties consist of the following (in thousands):
  December 31,
  2020 2019
Land and land improvements $ 97,117  $ 100,599 
Buildings and improvements 354,738  366,082 
Investment properties at cost 451,855  466,681 
Less accumulated depreciation (59,191) (50,466)
     Investment properties, net $ 392,664  $ 416,215 
The Company’s depreciation expense on investment properties was $11.32 million and $12.02 million for the years ended December 31, 2020 and 2019, respectively.
 
A significant portion of the Company’s land, buildings and improvements serve as collateral for its mortgage loans. Accordingly, restrictions exist as to the encumbered property's transferability, use and other common rights typically associated with property ownership.
    
Assets Held for Sale and Dispositions

At December 31, 2020, assets held for sale included Columbia Fire Station, Berkley Shopping Center, a .75 acre land parcel at Berkley and two outparcels at Rivergate Shopping Center, as the Company has committed to a plan to sell each property. At December 31, 2019, assets held for sale included St. Matthews.

Impairment expenses on assets held for sale are a result of reducing the carrying value for the amount that exceeded the property's fair value less estimated selling costs. The valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 inputs. The impairment expenses during the years ended December 31, 2020 and 2019 are as follows (in thousands):    

Years Ended December 31,
2020 2019
Columbia Fire Station $ 600  $ — 
St. Matthews —  451 
Perimeter Square —  1,147 
Total $ 600  $ 1,598 

    
As of December 31, 2020 and 2019, assets held for sale and associated liabilities consisted of the following (in thousands):
December 31,
2020 2019
Investment properties, net $ 12,593  $ 1,651 
Rents and other tenant receivables, net 132  77 
Above market leases, net 153  — 
Deferred costs and other assets, net 194 
Total assets held for sale $ 13,072  $ 1,737 
December 31,
2020 2019
Loans payable $ 12,838  $ 1,974 
Below market leases, net 25  — 
Accounts payable, accrued expenses and other liabilities 261  52 
Total liabilities associated with assets held for sale $ 13,124  $ 2,026 

The following properties were sold during the years ending December 31, 2020 and 2019:
Disposal Property Contract Price Gain (Loss) Net Proceeds
(in thousands)
December 31, 2020 Riversedge North $ 3,000  $ 49  $ 2,843 
January 21, 2020 St. Matthews 1,775  (26) 1,665 
July 12, 2019 Perimeter Square 7,200  (95) — 
March 18, 2019 Graystone Crossing 6,000  1,433  1,744 
February 7, 2019 Harbor Pointe Land Parcel (1.28 acres) 550  —  19 
January 11, 2019 Jenks Plaza 2,200  387  1,840 

In May 2019, an approximate 10,000 square foot outparcel at the JANAF property was demolished resulting in a $331 thousand write-off to make way for a new approximate 20,000 square foot building constructed by a new grocer tenant, Aldi.

JANAF Executive Building

In April 2019, the Company absorbed an approximate 25,000 square foot outparcel at JANAF as a result of an unlawful detainer with a delinquent tenant, Mariner Investments, LTD.