REAL ESTATE DISPOSITIONS AND DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

REAL ESTATE DISPOSITIONS AND DISCONTINUED OPERATIONS

3. REAL ESTATE DISPOSITIONS AND DISCONTINUED OPERATIONS

Olmos Creek - Our Olmos Creek mortgage of $11.2 million matured unpaid on November 1, 2011. We entered into a settlement agreement with the new owner of the mortgage and delivered the property to the new owner on February 6, 2012, in exchange for a release of the obligations under the Olmos Creek mortgage. The settlement of the debt resulted in a gain on debt extinguishment of approximately $1.5 million as reported in income (loss) from discontinued operations on the Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2012.

Lantern Lane - On June 25, 2014, we sold our Lantern Lane property to AmREIT for $22.7 million, which generated net sales proceeds of approximately $7.4 million, net of closing costs and the repayment of the mortgage loan secured by the property. We have presented the operating results of this property as discontinued operations in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) for all periods presented. A summary of our discontinued operations for the periods presented is detailed below (amounts in thousands):

	For the year ended December 31,
	2014			2013			2012
Revenues:
Rental income from operating leases	$	1,122		$	2,229		$	2,012
Total revenues		1,122			2,229			2,012
Expenses:
General and administrative		25			44			17
Property expense		336			635			694
Property management fees - related		43			80			71
Legal and professional		7			9			100
Depreciation and amortization		315			660			778
Total operating expenses		726			1,428			1,660
Operating income (loss)		396			801			352
Other income (expense):
Interest and other income		-			3			35
Interest expense		(232	)		(526	)		(708	)
Total other expense		(232	)		(523	)		(673	)
Income (loss) from real estate		164			278			(321	)
Gain on debt extinguishment		-			-			1,533
Gain on sale of real estate		6,781			-			-
Income from discontinued operations	$	6,945		$	278		$	1,212