8. Real Estate Held-For-Sale and Real Estate Held-For-Investment at BBX Capital

BBX Capital’s real estate has been acquired through foreclosures, settlements, or deeds in lieu of foreclosure. Upon acquisition by BBX Capital, real estate is classified as real estate held-for-sale or real estate held-for investment. Real estate is classified as held-for-sale when the property is available for immediate sale in its present condition, BBX Capital’s management commits to a plan to sell the property, an active program to locate a buyer has been initiated, the property is being marketed at a price that is reasonable in relation to its current fair value and it is likely that a sale will be completed within one year. When the property does not meet the real estate held-for-sale criteria, the real estate is classified as held-for-investment.

The following table presents real estate held-for-sale at BBX Capital grouped in the following classifications (in thousands):



		As of
		June 30, 2016	December 31, 2015
Real estate held-for-sale
Land	$	25,678	25,994
Rental properties		1,748	17,162
Residential single-family		5,404	2,924
Other		24	258
Total real estate held-for-sale	$	32,854	46,338

The following table presents real estate held-for-investment grouped in the following classifications (in thousands):



		As of
		June 30, 2016	December 31, 2015
Real estate held-for-investment
Land	$	29,146	30,369
Other		900	921
Total real estate held-for-investment	$	30,046	31,290

The amount of interest capitalized to land held-for-investment associated with real estate development improvements for the three and six months ended June 30, 2015 was $245,000 and $431,000, respectively. There was no interest capitalized to land held-for-investment for the three and six months ended June 30, 2016.

The following table presents the activity in real estate held-for-sale and held-for-investment for the three and six months ended June 30, 2016 (in thousands):



		For the Three Months Ended		For the Six Months Ended
		June 30, 2016		June 30, 2016
		Real Estate		Real Estate
		Held-for-Sale	Held-for-Investment	Held-for-Sale	Held-for-Investment
Beginning of period, net	$	46,165	32,838	46,338	31,290
Acquired through foreclosure		2,837	-	3,663	-
Transfers		3,040	(3,040)	3,040	(3,040)
Transfers to property and equipment		(6,557)	-	(6,557)	-
Improvements		56	258	225	1,816
Accumulated depreciation		-	(10)	-	(20)
Sales		(10,231)	-	(11,107)	-
Impairments, net		(2,456)	-	(2,748)	-
End of period, net	$	32,854	30,046	32,854	30,046

The following table presents the activity in real estate held-for-sale and held-for-investment for the three and six months ended June 30, 2015 (in thousands):



		For the Three Months Ended		For the Six Months Ended
		June 30, 2015		June 30, 2015
		Real Estate		Real Estate
		Held-for-Sale	Held-for-Investment	Held-for-Sale	Held-for-Investment
Beginning of period, net	$	39,763	84,297	41,733	76,552
Acquired through foreclosure		271	-	2,427	-
Transfers		4,599	(4,599)	3,572	(3,572)
Purchases		10,667	-	10,667	-
Improvements		-	4,464	-	11,488
Accumulated depreciation		-	(164)	-	(245)
Sales		(16,453)	-	(19,405)	-
Impairments, net		(221)	(24)	(368)	(249)
End of period, net	$	38,626	83,974	38,626	83,974

Gains or losses on sales of real estate are presented as “other revenue” in the Company’s condensed consolidated statement of operations.

The following table presents the real estate held-for-sale valuation allowance activity for the three and six months ended June 30, 2016 and 2015 (in thousands):



		For the Three Months Ended		For the Six Months Ended
		June 30,		June 30,
		2016	2015	2016	2015
Beginning of period	$	4,570	2,417	4,400	2,940
Transfer to held-for-investment		-	-	-	(93)
Impairments, net (1)		2,456	151	2,748	298
Sales		(109)	(36)	(231)	(613)
End of period	$	6,917	2,532	6,917	2,532

(1) Tax certificate impairments are not included.