REAL ESTATE ACTIVITIES

Investments in real estate as of September 30, 2017 and December 31, 2016 were comprised of the following:



(in thousands of dollars)	As of September 30, 2017			As of December 31, 2016
Buildings, improvements and construction in progress	$	2,727,880		$	2,794,213
Land, including land held for development	492,374			505,801
Total investments in real estate	3,220,254			3,300,014
Accumulated depreciation	(1,082,840		)	(1,060,845		)
Net investments in real estate	$	2,137,414		$	2,239,169

Capitalization of Costs

The following table summarizes our capitalized interest, salaries, commissions, benefits and real estate taxes for the three and nine months ended September 30, 2017 and 2016:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands of dollars)	2017		2016		2017		2016
Development/Redevelopment Activities:
Interest	$	2,209	$	851	$	5,358	$	2,221
Salaries and benefits	362		339		1,058		880
Real estate taxes	496		176		651		202

Leasing Activities:
Salaries, commissions and benefits	1,536		1,378		4,633		4,394

Dispositions

The following table presents our dispositions for the nine months ended September 30, 2017:



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)
2017 Activity:
January	Beaver Valley Mall, Monaca, Pennsylvania	Mall	15.6	%	$	24.2	$	—
	Crossroads Mall, Beckley, West Virginia	Mall	15.5	%	24.8		—
August	Logan Valley Mall Altoona, Pennsylvania	Mall	16.5	%	33.2		—

Other Real Estate Activity

In 2017, we sold two non operating parcels located at Valley Mall and Beaver Valley Mall for an aggregate of $4.2 million, and recorded aggregate gains of $0.5 million on these parcels.

Acquisitions

In 2017, we purchased vacant anchor stores from Macy’s located at Moorestown Mall, Valley View Mall and Valley Mall for an aggregate of $13.9 million. We have executed a lease with a replacement tenant for the Valley View Mall location and this tenant opened in September 2017.

Impairment of Assets

In September 2017, we recorded a loss on impairment of assets on a land parcel located in Gainesville, Florida of $1.3 million in connection with negotiations with the potential 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.

In September 2017, we recorded a loss on impairment of assets on a land parcel located at Sunrise Plaza in Forked River, New Jersey of $0.2 million in connection with negotiations with the potential 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.

In June and August 2017, we recorded an aggregate loss on impairment of assets on Logan Valley Mall, in Altoona, Pennsylvania of $38.7 million in connection with negotiations with the potential 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. We sold Logan Valley Mall in August 2017.

In June 2017, we recorded a loss on impairment of assets on Valley View Mall, in La Crosse, Wisconsin of $15.5 million in connection with our decision to market the property for sale. In connection with this decision, 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 our estimates, 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. Our fair value analysis was based on an estimated capitalization rate of approximately 12% for Valley View Mall, which was determined using management’s assessment of property operating performance and general market conditions. We have also determined that Valley View Mall meets the criteria of “assets held for sale,” and this property has been reflected in the accompanying consolidated balance sheets as such.