Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value of Assets and Liabilities

Schedule of fair value and carrying value of financial instruments

At September 30, 2013, the fair values of our financial instruments approximated their carrying values in our condensed consolidated financial statements, except as follows:

	Carrying Amount		Fair Value
Mortgage note payable, 5.73% interest rate, including unamortized premium of $463, due in 2015	$	48,607	$	50,095
Mortgage note payable, 6.21% interest rate, due in 2016	24,223		26,361
Mortgage note payable, 7.00% interest rate, including unamortized premium of $782, due in 2019	10,003		10,578
Mortgage note payable, 8.15% interest rate, including unamortized premium of $556, due in 2021	8,510		9,404
	$	91,343	$	96,438

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 September 30, 2013, categorized by the level of inputs used in the valuation of each asset and liability:

			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
Description	Total		(Level 1)		(Level 2)		(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 September 30, 2013 of the two properties for which a loss on asset impairment was recognized 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 three months ended September 30, 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 at September 30, 2013.  The $958 increase in the fair value of the additional consideration is included in acquisition related costs in our condensed consolidated income statements for the three months ended September 30, 2013.