Note 3. Real Estate

Real estate activity for 2016 and 2015 is composed of the following:

	Years ended December 31,
	2016			2015
Cost
Balance, beginning of year	$	1,550,027,000		$	1,476,173,000
Properties transferred to held for sale		(96,596,000	)		(4,599,000	)
Properties acquired		39,456,000			65,313,000
Write-off fully-depreciated assets		(12,130,000	)		—
Improvements and betterments		15,672,000			13,140,000
Balance, end of the year	$	1,496,429,000		$	1,550,027,000

Accumulated depreciation
Balance, beginning of the year	$	300,832,000		$	267,211,000
Properties transferred held for sale		(11,280,000	)		(1,380,000	)
Write-off fully-depreciated assets		(12,130,000	)		—
Depreciation expense		35,648,000			35,001,000
Balance, end of the year	$	313,070,000		$	300,832,000

Net book value	$	1,183,359,000		$	1,249,195,000

At December 31, 2016, certain of the Company’s shopping center properties were pledged as collateral for mortgage loans payable. See Note 9 - “Mortgage Loans Payable and Credit Facilities”.

2017 Acquisition

On February 22, 2017, the Company acquired Christina Crossing, located in Wilmington, Delaware. The purchase price for the property, which was unencumbered, was $29.3 million.

2016 Acquisitions

On February 25, 2016, the Company acquired Shoppes at Arts District, located in Hyattsville, Maryland. The purchase price for the property was $20.5 million, of which $8.5 million was funded from the assumption of a mortgage loan payable bearing interest at the rate of 5.2% per annum and maturing in April 2022.

On May 4, 2016, the Company acquired Glenwood Village, located in Bloomfield, New Jersey. The purchase price for the property, which was unencumbered, was $19.5 million.

2015 Acquisitions

On January 23, 2015, the Company acquired the New London Mall joint venture partner’s 60% ownership interest, giving the Company a 100% ownership interest in this property, which is located in New London, Connecticut. The purchase price for the interest was $27.3 million, consisting of $10.9 million in cash, and $16.4 million representing the 60% share of the in-place mortgage financing. As the property was previously controlled and consolidated by the Company, the acquisition of the 60% noncontrolling ownership interest was recorded as a capital transaction.

On February 27, 2015, the Company acquired Lawndale Plaza, located in Philadelphia, Pennsylvania. The purchase price for the property, which was unencumbered, was $25.2 million. The Company incurred costs of $0.5 million in connection with this acquisition.

On December 23, 2015, the Company acquired East River Park, located in Washington, D.C. The purchase price for the property was $39.0 million, of which $20.5 million was funded from the assumption of a mortgage loan payable bearing interest at the rate of 3.9% per annum and maturing in September 2022. The Company incurred costs of $0.7 million in connection with this acquisition.

Properties Held For Sale Subsequent to December 31, 2013

During 2016, 2015 and 2014, the Company sold the properties listed below which did not meet the criteria set forth in the guidance for reporting discontinued operations that was adopted in 2014:

		Date	Sales			Gain on
Property	Location	Sold	Price			Sale
2016
Liberty Marketplace	Dubois, PA	2/11/2016	$	15,000,000		$	-
Upland Square	Pottstown, PA	11/2/2016		83,250,000	(a)		—
			$	98,250,000		$	-
2015
Kenley Village	Hagerstown, MD	5/28/2015	$	2,275,000		$	-
Circle Plaza	Shamokin Dam, PA	7/22/2015		1,800,000			—
			$	4,075,000		$	-
2014
Fairview Plaza	New Cumberland, PA	5/27/2014	$	12,450,000		$	3,810,000
Carbondale Plaza	Carbondale, PA	7/18/2014		10,700,000			123,000
Virginia Little Creek	Norfolk, VA	8/22/2014		9,850,000			2,209,000
Annie Land Plaza	Lovingston, VA	9/26/2014		3,500,000			—
Smithfield Plaza	Smithfield, VA	10/21/2014		12,350,000			—
Blue Mountain Commons land parcel	Harrisburg, PA	10/22/2014		350,000			—
St. James Square	Hagerstown, MA	11/5/2014		4,125,000			271,000
			$	53,325,000		$	6,413,000

(a)

The company recorded a $6.3 million impairment charge in connection with the sale of this property.

The Company recorded impairment charges of $6.3 million and $3.1 million in 2016 and 2014, respectively, in addition to reversals of impairments of $0.2 million in 2015, relating to these properties, which are included in continuing operations in the accompanying consolidated statements of operations.