Fair Value Measurements
 9 Months Ended
Sep. 30, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Recurring Fair Value Measurements
The Company’s assets and liabilities that are required to be measured at fair value in the accompanying consolidated financial statements are summarized below. The following table sets forth the Company’s financial liabilities that were accounted for at fair value on a recurring basis (in thousands):
 
 
 
Fair Value Hierarchy Level
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
December 31, 2015
 
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
 
 
Interest rate swaps financial liabilities
$
(934
)
 
$
—

 
$
(934
)
 
$
—


The interest rate swaps are measured using a market approach, using prices obtained from a nationally recognized pricing service and pricing models with market observable inputs such as interest rates and volatilities. These measurements are classified as Level 2 of the fair value hierarchy.
Nonrecurring Fair Value Measurements
Fair value measurement of an asset on a nonrecurring basis occurs when events or changes in circumstances related to an asset indicate that the carrying amount of the asset is no longer recoverable. The following table sets forth the Company’s assets that were accounted for at fair value on a nonrecurring basis (in thousands):
 
 
 
 
 
Fair Value Hierarchy Level
 
Impairment
Charges (1)
Description
Fair Value
 
Dispositions
 
Level 1
 
Level 2
 
Level 3
 
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Retail
$
7,772

 
$
—

 
$
—

 
$
—

 
$
7,772

 
$
(12,612
)
Industrial
3,753

 
—

 
—

 
—

 
3,753

 
(5,432
)
Long-lived assets held and used by asset type
11,525

 
—

 
—

 
—

 
11,525

 
(18,044
)
Lease intangible assets
5,059

 
—

 
—

 
—

 
5,059

 
(8,403
)
Other assets
—

 
—

 
—

 
—

 
—

 
301

Long-lived assets held for sale
9,746

 
(33,668
)
 
—

 
—

 
43,414

 
(15,250
)
 
 
 
 
 
 
 
 
 
 
 
$
(41,396
)
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Retail
$
29,626

 
$
(3,207
)
 
$
—

 
$
—

 
$
32,833

 
$
(20,727
)
Industrial
9,598

 
—

 
—

 
—

 
9,598

 
(16,182
)
Office
21,074

 
—

 
—

 
—

 
21,074

 
(14,093
)
Long-lived assets held and used by asset type
60,298

 
(3,207
)
 
—

 
—

 
63,505

 
(51,002
)
Lease intangible assets
3,843

 
—

 
—

 
—

 
3,843

 
(3,825
)
Other assets
—

 
—

 
—

 
—

 
—

 
(324
)
Long-lived assets held for sale
15,957

 
(33,563
)
 
—

 
—

 
49,520

 
(15,578
)
 
 
 
 
 
 
 
 
 
 
 
$
(70,729
)

(1) Impairment charges are presented for the nine months ended September 30, 2016 and for the year ended December 31, 2015.
The fair values of impaired real estate and intangible assets were determined by using the following information, depending on availability, in order of preference: signed purchase and sale agreements or letters of intent; judicial foreclosure price; sales prices for comparable properties; estimates of cash flow, which consider, among other things, contractual and forecasted rental revenues, leasing assumptions, and expenses based upon market conditions; and expectations for the use of the real estate. Based on these inputs, the Company determined that its valuation of the impaired real estate and intangible assets falls within Level 3 of the fair value hierarchy.

During the nine months ended September 30, 2016 and for the year ended December 31, 2015, we determined that seven and eighteen long-lived assets held and used, respectively, were impaired. The Company estimated the fair value of these properties using weighted average sales price per square foot of comparable properties for all of the impaired properties during the nine months ended September 30, 2016 and for thirteen of the eighteen impaired properties during the year ended December 31, 2015.

The following table provides information about the weighted average sales price per square foot of comparable properties used to estimate fair value (price per square foot in dollars):
 
September 30, 2016
 
December 31, 2015
 
Range
 
Weighted Average
 
Square Footage
 
Range
 
Weighted Average
 
Square Footage
Long-lived assets held and used by asset type
 
 
 
 
 
 
 
 
 
 
Retail
$62.84 - $214.29
 
$
110.54

 
91,817

 
$41.21 - $168.30
 
$
79.90

 
153,008

Industrial
$2.50 - $38.15
 
$
21.59

 
160,477

 
$17.77 - $22.00
 
$
19.40

 
375,076

Office
N/A
 
N/A
 
N/A
 
$58.17 - $133.61
 
$
104.53

 
204,936


Estimated Fair Value of Financial Instruments
Financial assets and liabilities for which the carrying values approximate their fair values include cash and cash equivalents, restricted cash and escrow deposits, and accounts receivable and payable. Generally, these assets and liabilities are short-term in duration and are recorded at cost, which approximates fair value, on the accompanying consolidated balance sheets.
In addition to the disclosures for assets and liabilities required to be measured at fair value at the balance sheet date, companies are required to disclose the estimated fair values of all financial instruments, even if they are not carried at their fair values. The fair values of financial instruments are estimates based upon market conditions and perceived risks at September 30, 2016 and December 31, 2015. These estimates require management’s judgment and may not be indicative of the future fair values of the assets and liabilities.
The estimated fair value of the loans receivable is determined using future cash flows discounted at current replacement rates for these instruments. Cash flows are determined using contractual loan payments. The current replacement rates are determined by using yield curves calculated by aggregating comparably rated USD denominated U.S. corporate debt or the index to which these financial instruments are tied. The Revolving Credit Facilities, Term Loan, Senior Unsecured Notes, mortgages and notes payable and Convertible Notes were measured using future cash flows discounted at current replacement rates for these instruments. Cash flows are determined using a forward interest rate yield curve. The current replacement rates are determined by using the U.S. Treasury yield curve or the index to which these financial instruments are tied, and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral. These measurements are classified as Level 2 of the fair value hierarchy. The following table discloses fair value information for these financial instruments (in thousands): 
 
September 30, 2016
 
December 31, 2015
 
Carrying
Value
 
Estimated
Fair Value
 
Carrying
Value
 
Estimated
Fair Value
Loans receivable, net
$
69,218

 
$
75,749

 
$
104,003

 
$
110,019

Revolving Credit Facilities
105,000

 
107,841

 
—

 
—

Term Loan, net (1)
368,400

 
378,223

 
322,902

 
338,366

Senior Unsecured Notes, net (1)
295,215

 
300,186

 
—

 
—

Mortgages and notes payable, net (1)
2,241,783

 
2,401,124

 
3,079,787

 
3,220,239

Convertible Notes, net (1)
699,465

 
837,650

 
690,098

 
713,095


(1) The carrying value of the debt instruments are net of unamortized deferred financing costs and certain debt discounts/premiums.