Real Estate Activities

3 Months Ended

Mar. 31, 2016

REAL ESTATE ACTIVITIES

Investments in real estate as of March 31, 2016 and December 31, 2015 were comprised of the following:



(in thousands of dollars)	As of March 31, 2016			As of December 31, 2015
Buildings, improvements and construction in progress	$	2,855,977		$	2,847,986
Land, including land held for development	521,968			519,903
Total investments in real estate	3,377,945			3,367,889
Accumulated depreciation	(1,046,632		)	(1,015,647		)
Net investments in real estate	$	2,331,313		$	2,352,242

Capitalization of Costs

The following table summarizes our capitalized salaries, commissions, benefits, real estate taxes and interest for the three months ended March 31, 2016 and 2015:



	Three Months Ended March 31,
(in thousands of dollars)	2016		2015
Development/Redevelopment Activities:
Salaries and benefits	$	274	$	154
Real estate taxes	19		—
Interest	703		35
Leasing Activities:
Salaries, commissions and benefits	1,737		1,655

Dispositions

The following table presents our dispositions for the three months ended March 31, 2016:



Sale Date	Property and Location	Description of Real Estate Sold	Capitalization Rate		Sale Price		Gain
Sale Date	Property and Location	Description of Real Estate Sold	Capitalization Rate		(in millions)
2016 Activity:
March 2016	Lycoming Mall Pennsdale, Pennsylvania	Mall	18.0	%	$	26.4	$	0.3
March 2016	Gadsden Mall, Gadsden, Alabama, New River Valley Mall, Christiansburg, Virginia, and Wiregrass Commons Mall, Dothan, Alabama ⁽¹⁾	Three Malls (single combined transaction)	17.4	%	66.0		1.6
February 2016	Palmer Park Mall, Easton, Pennsylvania	Mall	13.6	%	18.0		0.1

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⁽¹⁾In connection with this transaction, we issued a mortgage loan to the buyer for $17.0 million, which is recorded in “Deferred costs and other assets, net” on our consolidated balance sheet. The mortgage loan is secured by Wiregrass Commons Mall, bears interest at the rate of 6.00% per annum and has a maturity date of April 2026.

Impairment of Assets

In March 2016 we recorded a loss on impairment of assets on an office building located in Voorhees, New Jersey of $0.6 million in connection with negotiations with a prospective buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets.