Impairment Charges

6 Months Ended

Jun. 30, 2021

Asset Impairment Charges [Abstract]

Impairment Charges

Impairment ChargesThe Company reviews each real estate asset owned, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable.

The Company measures and records impairment charges, and reduces the carrying value of owned properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. For its unconsolidated joint venture investments, the Company measures and records impairment losses, and reduces the carrying value of the equity investment when indicators of impairment are present and the expected discounted cash flows related to the investment is less than the carrying value.

When the Company does not expect to recover its carrying value on properties held for use, the Company reduces its carrying value to fair value, and for properties held for sale, the Company reduces its carrying value to the fair value less costs to sell. When the Company does not expect to recover its carrying value on unconsolidated joint ventures that are under contract for sale, the Company, when it is determined that the sale is probable, reduces its carrying value to its fair value.

During the three and six months ended June 30, 2021, the Company recorded an impairment charge of $520,000 related to its investment in the OPOP Tower and Lofts properties, St Louis, MO, as the carrying value exceeded the fair value by that amount. The fair value is based upon the contract price of a sale agreement which the Company has entered into.