5. Real Estate Held for Sale and Impairment Charges

Real Estate Held for Sale

As of March 31, 2014, we classified our property located in Sterling Heights, Michigan as held for sale under the provisions of ASC 360-10, which requires that the assets and liabilities of any properties which are held for sale, be presented separately in our condensed consolidated balance sheet in the current period presented. We received an unsolicited offer from a buyer for this property and the tenant in this building had a right of first refusal. The tenant exercised their right to purchase the building and we are currently negotiating a purchase and sale agreement for this property and we anticipate the sale to close during the second quarter of 2014. In accordance with ASC 360-10, the agreed upon purchase price with the current tenant is in excess of the carrying value of the property as of March 31, 2104, and thus the property was measured at its carrying value in our condensed consolidated balance sheet as of March 31, 2014.

The table below summarizes the components of income from real estate and related assets held for sale:

The table below summarizes the components of the assets and liabilities held for sale reflected on the accompanying consolidated balance sheet:

Impairment Charges

We performed the evaluation and analysis of our portfolio and concluded that our Roseville, Minnesota property was impaired as of March 31, 2014. We determined that the expected undiscounted cash flows based upon a revised estimated holding period of this property was below the current carrying value. The estimated holding period was revised after a potential tenant that we were anticipating to lease a large portion of the vacant space, during the three months ended March 31, 2014, did not execute a lease on the property. Consequently, we revised the holding period to coincide with the maturity of the mortgage loan in June 2014. Accordingly, we reduced the carrying value of this property to its estimated fair value, less cost to sell, and we recognized an impairment loss of $14.0 million during the three months ended March 31, 2014.

We also determined our property located in South Hadley, Massachusetts is at risk to become impaired in the future. We recently extended the lease on the property in South Hadley Massachusetts for one year, and it now expires in January 2015. There is a possibility we may have to impair this property in 2014 if we do not negotiate another lease extension on this building or find a replacement tenant.

We will continue to monitor our portfolio for any other indicators of impairment.