these significant accounting estimates and critical accounting policies include : revenue recognition our rental income is primarily related to rent received from tenants in our mobs and triple-net leased healthcare facilities . rent from tenants in our mob and triple-net leased healthcare facilities operating segments is recorded in accordance with the terms of each lease on a straight-line basis over the initial term of the lease . because many of the leases provide for rental increases at specified intervals , accounting principles generally accepted in the united states ( `` gaap `` ) require us to record a receivable , and include in revenues on a straight-line basis , unbilled rent receivables that we will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease . when we acquire a property , the acquisition date is considered to be the commencement date for purposes of this calculation . for new leases after acquisition , the commencement date is considered to be the date the tenant takes control of the space . for lease modifications , the commencement date is considered to be the date the lease is executed . we defer the revenue related to lease payments received from tenants in advance of their due dates . cost recoveries from tenants are included in operating expense reimbursement in the period the related costs are incurred , as applicable . resident services and fee income primarily relates to rent from residents in our seniors housing — operating properties ( `` shop `` ) held using a structure permitted by the reit investment diversification and empowerment act of 2007 and to fees for ancillary services performed for residents in our shops . rental income from residents of our shop operating segment is recognized as earned . residents pay monthly rent that covers occupancy of their unit and basic services , including utilities , meals and some housekeeping services . the terms of the rent are short term in nature , primarily month-to-month . fees for ancillary services are recorded in the period in which the services are performed . we defer the revenue related to lease payments received from tenants and residents in advance of their due dates . we continually review receivables related to rent and unbilled rent receivables and determine collectability by taking into consideration the tenant 's payment history , the financial condition of the tenant , business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located . in the event that the collectability of a receivable is in doubt , we record an increase in the allowance for uncollectible accounts on the consolidated balance sheets or record a direct write-off of the receivable in the consolidated statements of operations and comprehensive loss . real estate investments investments in real estate are recorded at cost . improvements and replacements are capitalized when they extend the useful life or improve the productive capacity of the asset . costs of repairs and maintenance are expensed as incurred . we evaluate the inputs , processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition . if an acquisition qualifies as a business combination , the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive loss . if an acquisition qualifies as an asset acquisition , the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets . in business combinations , we allocate the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values . tangible assets may include land , land improvements , buildings , fixtures and tenant improvements . intangible assets may include the value of in-place leases and above- and below-market leases . in addition , any assumed mortgages receivable or payable and any assumed or issued non-controlling interests are recorded at their estimated fair values . we generally determine the value of construction in progress based upon the replacement cost . during the construction period , we capitalize interest , insurance and real estate taxes until the development has reached substantial completion . the fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant , and the “ as-if-vacant ” value is then allocated to the tangible assets based on the fair value of the tangible assets . the fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods , current market conditions , as well as costs to execute similar leases . the fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of the fair market lease rate for the corresponding in-place lease , measured over the remaining term of the lease including any below-market fixed rate renewal options for below-market leases . in making estimates of fair values for purposes of allocating purchase price , we utilize a number of sources , including real estate valuations prepared by independent valuation firms . we also consider information and other factors including market conditions , the industry that the tenant operates in , characteristics of the real estate , i.e . location , size , demographics , value and comparative rental rates , tenant credit profile and the importance of the location of the real estate to the operations of the tenant 's business . in allocating the fair value to assumed mortgages , amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows , which is calculated to account for either above- or below-market interest rates . story_separator_special_tag as a result , we evaluated the impact on our ability to recover the carrying value of such properties based on the expected cash flows over our intended holding period . we determined that the carrying value of six of the held for use properties exceeded their estimated fair values and , as a result , recognized the impairment charge . impairment related to the sale of real estate investments during the year ended december 31 , 2016 related to two real estate investments held for sale with an accepted sales price less than the carrying value . this resulted in an impairment of $ 0.4 million during the period . operating fees to related parties operating fees to related parties increased $ 1.7 million to $ 22.3 million for the year ended december 31 , 2017 from $ 20.6 million for the year ended december 31 , 2016 . our advisor and property manager are paid for asset management and property management services for managing our properties on a day-to-day basis . effective february 17 , 2017 , we pay a base management fee equal to $ 1.6 million per month , while the variable portion of the base management fee is equal , per month , to one twelfth per month of 1.25 % of the cumulative net proceeds of any equity raised ( excluding drip proceeds ) subsequent to february 17 , 2017. during the year ended december 31 , 2016 , our asset management fee was equal to a percentage of the lesser of ( a ) cost of assets and ( b ) fair value of assets . asset management fees increased $ 0.5 million to $ 19.2 million for the year ended december 31 , 2017 from $ 17.6 million for the year ended december 31 , 2016 . we incurred $ 3.1 million and $ 3.0 million in property management fees during the year s ended december 31 , 2017 and december 31 , 2016 , respectively . property management fees increase or decrease in direct correlation with gross revenues of the properties managed . see note 9 — related party transactions and arrangements to our consolidated financial statements provides detail on our fees and expense reimbursements . 59 acquisition and transaction related expenses acquisition and transaction related expenses generally increase in direct correlation with the number and contract purchase price of properties acquired or sold during the period and the level of activity surrounding any contemplated transaction or strategic process . acquisition and transaction related expenses of $ 3.0 million for the year ended december 31 , 2017 . acquisition and transaction related expenses of approximately $ 3.2 million for the year ended december 31 , 2016 , primarily related to the board 's evaluation of potential strategic alternatives and costs associated with property acquisitions . general and administrative expenses general and administrative expenses increased $ 3.6 million to $ 15.7 million for the year ended december 31 , 2017 compared to $ 12.1 million for the year ended december 31 , 2016 , which includes $ 8.1 million and $ 5.1 million incurred in expense reimbursements and distributions on partnership units of the op designated as `` class b units `` ( `` class b units `` ) to related parties . general and administrative expenses primarily relate to professional fees for audit , transfer agent and legal services as well as certain expenses reimbursed to related parties . depreciation and amortization expenses depreciation and amortization expense decreased $ 21.3 million to $ 77.6 million for the year ended december 31 , 2017 from $ 98.9 million for the year ended december 31 , 2016 . same store depreciation and amortization decreased $ 22.2 million , of which $ 15.5 million was related to the same store shop portfolio . this change was primarily attributed to several intangible assets becoming fully amortized in late 2016 as well as lower depreciation base in 2017 due to the $ 19.0 million asset impairment discussed above . interest expense interest expense increased $ 10.4 million to $ 30.3 million for the year ended december 31 , 2017 from $ 19.9 million for the year ended december 31 , 2016 . the increase in interest expense is related to higher overall outstanding debt including new borrowings under the fannie mae facilities . our increased outstanding debt also includes a multi-property mortgage loan with capital one , national association , along with certain other lenders , that was entered into june 30 , 2017 for $ 250.0 million ( the `` mob loan `` ) and an $ 82.0 million multi-property mortgage loan ( the `` bridge loan `` ) entered into in december 2017. our interest expense in future periods will vary based on our level of future borrowings , the cost of borrowings and the opportunity to acquire real estate assets which meet our investment objectives . interest and other income interest and other income increased to approximately $ 0.3 million for the year ended december 31 , 2017 from approximately $ 47 thousand for the year ended december 31 , 2016 . interest and other income includes income from our investment securities and interest income earned on cash and cash equivalents held during the period . the increase resulted from the recognition of a prospective buyer 's non-refundable deposit on an unconsummated sale of a vacant land parcel during the year ended december 31 , 2017 . loss on non-designated derivative instruments loss on non-designated derivative instruments for the year ended december 31 , 2017 related to interest rate caps that are designed to protect us from adverse interest rate changes in connection with our fannie credit facilities , which have floating interest rates . the 2017 loss of approximately $ 0.2 million reflects mark-to-market fair value adjustments for the interest rate caps , which have not been designated as cash flow hedges . gain on sale of real estate investment gain on

cash flows from investing activities net cash used in investing activities during the year ended december 31 , 2017 was $ 194.4 million . the cash used in investing activities included $ 188.9 million for investments in real estate , including the asset purchase from american realty capital healthcare trust iii , inc. ( see note 9 — related party transactions and arrangements ) , and to fund the ongoing development property in jupiter , florida , as well as $ 8.3 million of capital expenditures . these cash outflows were partially offset by proceeds from the sale of real estate of $ 0.8 million , proceeds from asset acquisitions of $ 0.9 million and proceeds from a deposit for a potential real estate sale of $ 1.1 million . net cash used in investing activities during the year ended december 31 , 2016 was $ 19.1 million . the cash used in investing activities included $ 38.7 million to fund the ongoing development property in jupiter , florida as well as $ 7.5 million of capital expenditures . these cash outflows were partially offset by proceeds from the sale of real estate of $ 25.9 million , proceeds from the sale of investment securities of $ 1.1 million and proceeds from a deposit for a potential real estate sale of $ 0.1 million . net cash used in investing activities during the year ended december 31 , 2015 was $ 556.8 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows from investing activities net cash used in investing activities during the year ended december 31 , 2017 was $ 194.4 million . the cash used in investing activities included $ 188.9 million for investments in real estate , including the asset purchase from american realty capital healthcare trust iii , inc. ( see note 9 — related party transactions and arrangements ) , and to fund the ongoing development property in jupiter , florida , as well as $ 8.3 million of capital expenditures . these cash outflows were partially offset by proceeds from the sale of real estate of $ 0.8 million , proceeds from asset acquisitions of $ 0.9 million and proceeds from a deposit for a potential real estate sale of $ 1.1 million . net cash used in investing activities during the year ended december 31 , 2016 was $ 19.1 million . the cash used in investing activities included $ 38.7 million to fund the ongoing development property in jupiter , florida as well as $ 7.5 million of capital expenditures . these cash outflows were partially offset by proceeds from the sale of real estate of $ 25.9 million , proceeds from the sale of investment securities of $ 1.1 million and proceeds from a deposit for a potential real estate sale of $ 0.1 million . net cash used in investing activities during the year ended december 31 , 2015 was $ 556.8 million .
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 Suspicious Activity Report : these significant accounting estimates and critical accounting policies include : revenue recognition our rental income is primarily related to rent received from tenants in our mobs and triple-net leased healthcare facilities . rent from tenants in our mob and triple-net leased healthcare facilities operating segments is recorded in accordance with the terms of each lease on a straight-line basis over the initial term of the lease . because many of the leases provide for rental increases at specified intervals , accounting principles generally accepted in the united states ( `` gaap `` ) require us to record a receivable , and include in revenues on a straight-line basis , unbilled rent receivables that we will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease . when we acquire a property , the acquisition date is considered to be the commencement date for purposes of this calculation . for new leases after acquisition , the commencement date is considered to be the date the tenant takes control of the space . for lease modifications , the commencement date is considered to be the date the lease is executed . we defer the revenue related to lease payments received from tenants in advance of their due dates . cost recoveries from tenants are included in operating expense reimbursement in the period the related costs are incurred , as applicable . resident services and fee income primarily relates to rent from residents in our seniors housing — operating properties ( `` shop `` ) held using a structure permitted by the reit investment diversification and empowerment act of 2007 and to fees for ancillary services performed for residents in our shops . rental income from residents of our shop operating segment is recognized as earned . residents pay monthly rent that covers occupancy of their unit and basic services , including utilities , meals and some housekeeping services . the terms of the rent are short term in nature , primarily month-to-month . fees for ancillary services are recorded in the period in which the services are performed . we defer the revenue related to lease payments received from tenants and residents in advance of their due dates . we continually review receivables related to rent and unbilled rent receivables and determine collectability by taking into consideration the tenant 's payment history , the financial condition of the tenant , business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located . in the event that the collectability of a receivable is in doubt , we record an increase in the allowance for uncollectible accounts on the consolidated balance sheets or record a direct write-off of the receivable in the consolidated statements of operations and comprehensive loss . real estate investments investments in real estate are recorded at cost . improvements and replacements are capitalized when they extend the useful life or improve the productive capacity of the asset . costs of repairs and maintenance are expensed as incurred . we evaluate the inputs , processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition . if an acquisition qualifies as a business combination , the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive loss . if an acquisition qualifies as an asset acquisition , the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets . in business combinations , we allocate the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values . tangible assets may include land , land improvements , buildings , fixtures and tenant improvements . intangible assets may include the value of in-place leases and above- and below-market leases . in addition , any assumed mortgages receivable or payable and any assumed or issued non-controlling interests are recorded at their estimated fair values . we generally determine the value of construction in progress based upon the replacement cost . during the construction period , we capitalize interest , insurance and real estate taxes until the development has reached substantial completion . the fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant , and the “ as-if-vacant ” value is then allocated to the tangible assets based on the fair value of the tangible assets . the fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods , current market conditions , as well as costs to execute similar leases . the fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of the fair market lease rate for the corresponding in-place lease , measured over the remaining term of the lease including any below-market fixed rate renewal options for below-market leases . in making estimates of fair values for purposes of allocating purchase price , we utilize a number of sources , including real estate valuations prepared by independent valuation firms . we also consider information and other factors including market conditions , the industry that the tenant operates in , characteristics of the real estate , i.e . location , size , demographics , value and comparative rental rates , tenant credit profile and the importance of the location of the real estate to the operations of the tenant 's business . in allocating the fair value to assumed mortgages , amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows , which is calculated to account for either above- or below-market interest rates . story_separator_special_tag as a result , we evaluated the impact on our ability to recover the carrying value of such properties based on the expected cash flows over our intended holding period . we determined that the carrying value of six of the held for use properties exceeded their estimated fair values and , as a result , recognized the impairment charge . impairment related to the sale of real estate investments during the year ended december 31 , 2016 related to two real estate investments held for sale with an accepted sales price less than the carrying value . this resulted in an impairment of $ 0.4 million during the period . operating fees to related parties operating fees to related parties increased $ 1.7 million to $ 22.3 million for the year ended december 31 , 2017 from $ 20.6 million for the year ended december 31 , 2016 . our advisor and property manager are paid for asset management and property management services for managing our properties on a day-to-day basis . effective february 17 , 2017 , we pay a base management fee equal to $ 1.6 million per month , while the variable portion of the base management fee is equal , per month , to one twelfth per month of 1.25 % of the cumulative net proceeds of any equity raised ( excluding drip proceeds ) subsequent to february 17 , 2017. during the year ended december 31 , 2016 , our asset management fee was equal to a percentage of the lesser of ( a ) cost of assets and ( b ) fair value of assets . asset management fees increased $ 0.5 million to $ 19.2 million for the year ended december 31 , 2017 from $ 17.6 million for the year ended december 31 , 2016 . we incurred $ 3.1 million and $ 3.0 million in property management fees during the year s ended december 31 , 2017 and december 31 , 2016 , respectively . property management fees increase or decrease in direct correlation with gross revenues of the properties managed . see note 9 — related party transactions and arrangements to our consolidated financial statements provides detail on our fees and expense reimbursements . 59 acquisition and transaction related expenses acquisition and transaction related expenses generally increase in direct correlation with the number and contract purchase price of properties acquired or sold during the period and the level of activity surrounding any contemplated transaction or strategic process . acquisition and transaction related expenses of $ 3.0 million for the year ended december 31 , 2017 . acquisition and transaction related expenses of approximately $ 3.2 million for the year ended december 31 , 2016 , primarily related to the board 's evaluation of potential strategic alternatives and costs associated with property acquisitions . general and administrative expenses general and administrative expenses increased $ 3.6 million to $ 15.7 million for the year ended december 31 , 2017 compared to $ 12.1 million for the year ended december 31 , 2016 , which includes $ 8.1 million and $ 5.1 million incurred in expense reimbursements and distributions on partnership units of the op designated as `` class b units `` ( `` class b units `` ) to related parties . general and administrative expenses primarily relate to professional fees for audit , transfer agent and legal services as well as certain expenses reimbursed to related parties . depreciation and amortization expenses depreciation and amortization expense decreased $ 21.3 million to $ 77.6 million for the year ended december 31 , 2017 from $ 98.9 million for the year ended december 31 , 2016 . same store depreciation and amortization decreased $ 22.2 million , of which $ 15.5 million was related to the same store shop portfolio . this change was primarily attributed to several intangible assets becoming fully amortized in late 2016 as well as lower depreciation base in 2017 due to the $ 19.0 million asset impairment discussed above . interest expense interest expense increased $ 10.4 million to $ 30.3 million for the year ended december 31 , 2017 from $ 19.9 million for the year ended december 31 , 2016 . the increase in interest expense is related to higher overall outstanding debt including new borrowings under the fannie mae facilities . our increased outstanding debt also includes a multi-property mortgage loan with capital one , national association , along with certain other lenders , that was entered into june 30 , 2017 for $ 250.0 million ( the `` mob loan `` ) and an $ 82.0 million multi-property mortgage loan ( the `` bridge loan `` ) entered into in december 2017. our interest expense in future periods will vary based on our level of future borrowings , the cost of borrowings and the opportunity to acquire real estate assets which meet our investment objectives . interest and other income interest and other income increased to approximately $ 0.3 million for the year ended december 31 , 2017 from approximately $ 47 thousand for the year ended december 31 , 2016 . interest and other income includes income from our investment securities and interest income earned on cash and cash equivalents held during the period . the increase resulted from the recognition of a prospective buyer 's non-refundable deposit on an unconsummated sale of a vacant land parcel during the year ended december 31 , 2017 . loss on non-designated derivative instruments loss on non-designated derivative instruments for the year ended december 31 , 2017 related to interest rate caps that are designed to protect us from adverse interest rate changes in connection with our fannie credit facilities , which have floating interest rates . the 2017 loss of approximately $ 0.2 million reflects mark-to-market fair value adjustments for the interest rate caps , which have not been designated as cash flow hedges . gain on sale of real estate investment gain on

