Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value of Assets and Liabilities

Schedule of fair value and carrying value of financial instruments

At December 31, 2013, the fair values of our financial instruments approximated their carrying values in our consolidated financial statements, except as follows:

	Carrying Amount		Fair Value
Mortgage note payable, 5.73% interest rate, including unamortized premium of $409, due in 2015	$	48,377	$	49,924
Mortgage note payable, 6.21% interest rate, due in 2016		24,147		26,251
Mortgage note payable, 7.00% interest rate, including unamortized premium of $749, due in 2019		9,919		10,448
Mortgage note payable, 8.15% interest rate, including unamortized premium of $525, due in 2021		8,284		8,762
	$	90,727	$	95,385

Schedule of assets and liabilities measured on a non-recurring basis at fair value, categorized by the level of inputs used in the valuation of each asset and liability

The table below presents certain of our assets and liabilities measured on a non-recurring basis at fair value at December 31, 2013, categorized by the level of inputs used in the valuation of each asset and liability:

Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Non-Recurring Fair Value Measurements
Properties held for sale(1)	$	14,560	$	—	$	—	$	14,560
Additional purchase consideration(2)		1,231		—		—		1,231

(1)

The estimated fair values at December 31, 2013 of the two properties for which a loss on asset impairment was recognized during the year ended December 31, 2013 are based upon broker estimates of value less estimated sales costs (Level 3 inputs as defined in the fair value hierarchy under GAAP).

(2)

In December 2012, we acquired a property located in Florence, KY. Pursuant to the terms of the purchase agreement for this property, the seller is entitled to up to $1,800 of additional purchase consideration based upon the property's 2013 real estate tax assessment. In accounting for this acquisition in 2012, we had estimated the fair value (based on Level 3 inputs as defined in the fair value hierarchy under GAAP) of this additional consideration to be $273. During the year ended December 31, 2013, we received the 2013 real estate tax assessment for this property and increased the estimated fair value (based on Level 3 inputs as defined in the fair value hierarchy under GAAP) of the additional consideration to $1,231, which amount is included in accounts payable and accrued expenses in our consolidated balance sheet at December 31, 2013. The $958 increase in the fair value of the additional consideration is included in acquisition related costs in our consolidated income statements for the year months ended December 31, 2013. The $1,231 of additional purchase consideration was paid to the seller in February 2014.