Commercial Group Land Sales

12 Months Ended

Jan. 31, 2012

Commercial Group Land Sales [Abstract]

Commercial Group Land Sales

K. Commercial Group Land Sales

On January 31, 2011, the Company closed on the sale of two parcels of land, with air rights, to Rock Ohio Caesars Cleveland, LLC for development of a casino in downtown Cleveland. The land is adjacent to the Company’s Tower City Center mixed-use complex. The sales price for one parcel, an approximate 6 acre land parcel and air rights (“Parcel #1”), was $45,000,000. The sales price for the second parcel, an approximate 10 acre land parcel and air rights (“Parcel #2”), was $40,000,000.

At January 31, 2011, the Company received cash deposits of $8,550,000 and $2,500,000 on Parcel #1 and Parcel #2, respectively. During the three months ended April 30, 2011, the Company received $33,950,000 of the purchase price of Parcel #1. With the receipt of this payment the buyer’s initial and continuing investment on the sale of Parcel #1 was adequate for gain recognition under the full accrual method in accordance with accounting guidance for sales of real estate. As such, the entire sales price is included in revenues from real estate operations and the related cost of land is included in operating expenses, resulting in a gain on sale of approximately $42,622,000 for the year ended January 31, 2012. The final $2,500,000 of the purchase price of Parcel #1 was received during the three months ended October 31, 2011.

During the year ended January 31, 2012, the Company received an additional installment of $4,500,000 of the purchase price of Parcel #2. The minimum initial investment related to Parcel #2 still has not been met at January 31, 2012 and accordingly, the deposits received are recorded as a deposit liability under the deposit method in accordance with accounting guidance for sales of real estate and included in accounts payable, accrued expenses and other liabilities at January 31, 2012. During February 2012, the Company received the final installment of the purchase price of Parcel #2. The Company expects to recognize a gain on sale of approximately $36,400,000 during the first quarter of 2012.