Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2014

Dispositions

The following table summarizes the properties sold during the three months ended March 31, 2014 and 2013:

Address	Location	Date of Disposition	Rentable Square Feet		Sales Price		Debt Satisfied ⁽¹⁾		Gain (Loss) Recorded ⁽²⁾
2014 Dispositions:
1335 Park Center Drive	Vista, CA	1/29/2014		124,997	$	10,103,000	$	-	$	2,262,000
2900 N. Madera Road	Simi Valley, CA	3/13/2014		63,305	$	4,350,000	$	-	$	(137,000	)

2013 Dispositions:
4578 Worth Street	Los Angeles, CA	1/31/2013		79,370	$	4,100,000	$	2,500,000	$	2,409,000

(1)	Amount represents the principal paid back to the lender to release the property from a larger pool of properties serving as collateral for the respective portfolio loan.

(2)	Gain on sale of real estate is recorded as part of discontinued operations during the period of disposition.

Major Class of Assets and Liabilities Associated with Real Estate Held for Sale

Properties Held for Sale

As of March 31, 2014, we did not have any properties classified as held for sale. As of December 31, 2013, our properties located at 1335 Park Center Drive and 2900 N. Madera Road were classified as held for sale.

The major classes of assets and liabilities associated with real estate held for sale are summarized in the table below:

	December 31, 2013
Investment in real estate, net	$	10,963,000
Other		935,000
Assets associated with real estate held for sale	$	11,898,000

Mortgage loan	$	-
Accounts payable and other liabilities		260,000
Liabilities associated with real estate held for sale	$	260,000

Results of Operations

Discontinued Operations

Income from discontinued operations includes the results of operations (prior to disposition) and the gain on sale of real estate attributable to the seven properties sold during the period from January 1, 2013 through March 31, 2014. Their consolidated results of operations for the three months ended March 31, 2014 and combined results of operations for the three months ended March 31, 2013, are summarized in the table below.

				The Predecessor
	Three Months Ended March 31,
	2014			2013
Revenues	$	85,000		$	411,000
Operating expenses		(57,000	)		(169,000	)
Interest expense		-			(157,000	)
Depreciation and amortization expense		(7,000	)		(666,000	)
Loss on extinguishment of debt		-			(209,000	)
Gain on sale of real estate		2,125,000			2,409,000
Income from discontinued operations	$	2,146,000		$	1,619,000

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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