In accordance with GAAP, the Company classifies properties as held for sale when certain criteria are met. On the day that the criteria are met, the Company suspends depreciation on the properties held for sale, including depreciation for tenant improvements and additions, as well as the amortization of acquired in-place leases. The assets and liabilities associated with those investment properties that are held for sale are classified separately on the consolidated balance sheets for all reporting periods and recorded at the lesser of the carrying value or fair value less costs to sell. At September 30, 2014 and December 31, 2013, these assets were recorded at their carrying value. The operations for the periods presented are classified on the consolidated statements of operations and comprehensive income as discontinued operations for all periods presented, as this represents both a strategic shift for the Company and has a major impact on the consolidated financial statements.

On September 17, 2014, the Company entered into a purchase agreement to sell a portfolio of lodging assets, consisting of 52 select service lodging properties with 6,976 rooms in a transaction valued at approximately $1,100,000. According to the purchase agreement, the sale is expected to close in a single transaction no later than November 17, 2014, with net proceeds from the sale resulting in a gain.

On August 8, 2013, the Company entered into a purchase agreement to sell a portfolio of net lease assets, consisting of 294 retail, office, and industrial properties in an all-cash transaction valued at approximately $2,300,000. In accordance with the terms of the purchase agreement, the buyer elected to “kick-out” of the transaction 13 properties valued at approximately $180,100, leaving the remaining properties to be classified as held for sale. Of these remaining properties, the Company has sold 280 as of May 8, 2014. During the final closing on May 8, 2014, the purchaser terminated the purchase agreement solely with respect to the equity interest in a subsidiary owning a net lease asset with a disposal price of $228,400, and in connection with such termination, purchaser paid to the Company $10,000 of the deposit posted into escrow. This asset has been re-classified as held and used and was re-measured at the lesser of the carrying value or fair value as of May 8, 2014, resulting in an asset impairment charge of $67,647.

The major classes of assets and liabilities associated with held for sale properties as of September 30, 2014 and December 31, 2013 are as follows:



	September 30, 2014			December 31, 2013
Land	$	173,266		$	443,909
Building and other improvements	1,130,500			2,174,097
Total	1,303,766			2,618,006
Less accumulated depreciation	(379,752		)	(576,977		)
Net investment properties	924,014			2,041,029
Restricted cash and escrows	—			1,643
Accounts and rents receivable	7,837			37,910
Intangible assets, net	195			48,017
Deferred costs and other assets	5,348			15,045
Total Assets	$	937,394		$	2,143,644

Debt	510,272			1,338,309
Accounts payable and accrued expenses	11,946			5,208
Intangible liabilities, net	4,651			5,878
Other liabilities	6,211			55,792
Total Liabilities	$	533,080		$	1,405,187