REAL ESTATE INVESTMENTS

9 Months Ended

Sep. 30, 2024

3. REAL ESTATE INVESTMENTS

As of September 30, 2024 and December 31, 2023, the gross carrying value of the Properties, reflected in the line item “Operating properties” in the Company's consolidated balance sheets, was as follows (in thousands):


	September 30, 2024		December 31, 2023
Land	$	369,098	$	394,669
Building and improvements	2,577,361		2,671,024
Tenant improvements	463,146		476,539


Total	$	3,409,605	$	3,542,232

Dispositions

During the three months ended September 30, 2024, the Company sold the Plymouth Meeting Executive Center, comprised of five office properties totaling a 521,288 square feet located in Plymouth Meeting, Pennsylvania for a gross sales price of $65.5 million, and after closing costs and seller credits, received $44.1 million of net cash proceeds and $15.5 million in seller financing to the purchaser which is subordinate to a first mortgage. The seller financing is subject to mandatory redemption by no later than the tenth anniversary of the closing date of the sale and is classified within “Other Asset” on the consolidated balance sheet. Prior to the sale and during the three months ended September 30, 2024, the Company recognized a provision for impairment of $3.3 million on the properties based upon the executed purchase and sale agreement.

During the three months ended September 30, 2024, the Company sold 11 acres of land in Gibbsboro, New Jersey for $6.5 million and provided seller financing of $4.4 million. Prior to the sale and during the three months ended September 30, 2024, the Company recognized a provision for impairment of $0.6 million on the property based upon the executed purchase and sale agreement.

Held for Use Impairment

For the quarter ended September 30, 2024, the Company recognized impairment losses totaling $34.1 million on three properties, two of which are located in the Austin, Texas segment and one of which is in the Other segment. The estimated fair value is considered Level 3 in accordance with ASC 820 and was based upon purchase and sale agreements as of September 30, 2024. The closings under the purchase and sales agreements have not been consummated and there can be no assurance that the Company will complete the dispositions.