this change in the sale methodology resulted in the need to extend the period to complete the sale of the remainder of the lending segment beyond one year . on december 17 , 2015 , pursuant to the modified plan , we sold substantially all of our commercial mortgage loans with a carrying value of $ 77,121,000 to an unrelated third party and recognized a gain of $ 5,151,000 . in september 2016 , we discontinued our efforts to sell the sba 7 ( a ) lending platform , and the activities related to the sba 7 ( a ) lending platform have been reclassified to continuing operations for all periods presented . on december 29 , 2016 , we sold our commercial real estate lending subsidiary , which was classified as held for sale and had a carrying value of $ 27,587,000 , which was equal to management 's estimate of fair value , to a fund managed by an affiliate of cim group . we did not recognize any gain or loss in connection with the transaction . management 's estimate of fair value was determined with assistance from an independent third party valuation firm . business overview our principal business is to invest in , own , and operate class a and creative office investments in vibrant and improving urban communities throughout the united states . these communities are located in areas that include traditional downtown areas and suburban main streets , which have high barriers to entry , high population density , improving demographic trends and a propensity for growth . we believe that the critical mass of redevelopment in such areas creates positive externalities , which enhance the value of substantially stabilized assets in the area . we believe that these assets will provide greater returns than similar assets in other markets , as a result of the improving demographics , public commitment , and significant private investment that characterize these areas . our two primary goals are ( a ) consistently growing our nav and cash flows per share of common stock through our principal business and ( b ) providing liquidity to our common stockholders at prices reflecting our nav and cash flow prospects . in that regard , in june 2016 we completed a tender offer for 10 million shares of common stock at a price of $ 21.00 per share of common stock , and in september 2016 , we repurchased in a privately negotiated transaction , 3,628,116 shares of our common stock at $ 22.00 per share from urban ii . in furtherance of our two primary goals , we anticipate additional such transactions in the future . we are also exploring alternative means of providing liquidity to the stockholders that did not participate in the september 2016 and or any subsequent private repurchases , to allow those stockholders to receive the economic benefit of such private repurchase ( s ) . we are managed by affiliates of cim group . cim group is a vertically-integrated , full-service investment manager with multidisciplinary expertise and in-house research , acquisition , investment , development , finance , leasing , and management capabilities . cim group is headquartered in los angeles , california and has offices in oakland , california ; bethesda , maryland ; dallas , texas ; and new york , new york . we seek to utilize the cim platform to acquire and improve assets within cim 's qualified communities . we believe assets in these markets provide greater returns as a result of improving demographics , public commitment , and significant private investment within the areas . over time , we seek to expand our real estate investments in communities targeted by cim group for investment , supported by cim group 's broad real estate investment capabilities , as part of our plan to prudently grow market value and earnings . as a matter of prudent management , we also regularly evaluate each investment within our portfolio as well as our strategies . such review may result in dispositions when an investment no longer fits our overall objectives or investment strategies or when our view of the market value of such investment is equal to or exceeds its intrinsic value . as a result of such review , we sold an office building in santa ana , california in november 2015 , a hotel in oakland , california in february 2016 , a hotel in los angeles , california in july 2016 and we entered into an agreement in february 2017 to sell an office building in san francisco , california . such review is likely to result in additional dispositions in 2017. the net proceeds of such dispositions may be used to provide liquidity to our common stockholders at prices reflecting our nav and cash flow prospects . 59 properties as of december 31 , 2016 , our real estate portfolio consisted of 31 assets , all of which are fee-simple properties except one leasehold property . as of december 31 , 2016 , our 24 office properties ( including two parking garages , one of which has street level retail space , and two development sites , one of which is being used as a parking lot ) , totaling approximately 5.6 million rentable square feet , were 85.7 % occupied ; our multifamily properties , comprised of 930 units , were 92.0 % occupied ; and one hotel , which has a total of 503 rooms , had revpar of $ 119.44 for the year ended december 31 , 2016 . strategy our investment strategy is to continue to primarily invest in class a and creative office investments in vibrant and improving urban communities throughout the united states in a manner that will allow us to increase our nav and cash flows per share of common stock . our investment strategy is centered around cim 's community qualification process . story_separator_special_tag expenses office expenses : office expenses increased by 2.1 % to $ 82,451,000 for the year ended december 31 , 2016 compared to $ 80,785,000 for the year ended december 31 , 2015 . the increase is primarily due to an increase in real estate taxes at certain of our california properties , due to supplemental tax assessments received during 2016 , and an increase in earthquake insurance premiums at our california properties . the increase at our california properties is partially offset by a decrease in electricity expense at our washington d.c. properties , a decrease in certain other tenant reimbursable expenses at one of our washington d.c. properties , and a decrease in expenses associated with our santa ana , california property sold in november 2015. further , the pending sale of an office building in san francisco , if completed , will , and the sale of any additional office properties during 2017 would , cause office expenses to decline in 2017. however , the magnitude of any such decrease can not be predicted with much accuracy as it will depend on a number of factors such as the number of dispositions that may occur in 2017 and changes to expenses at existing properties . hotel expenses : hotel expenses decreased to $ 32,459,000 , or by 22.7 % , for the year ended december 31 , 2016 compared to $ 41,974,000 for the year ended december 31 , 2015 . the decrease is primarily due to the sale of our hotel properties in february and july 2016 , partially offset by an increase at our remaining hotel property in operating costs and an increase in real estate taxes due to a reduction in tax accruals during 2015 following the receipt of the actual tax assessment . our hotel expenses are expected to decline materially in 2017 as we sold two of our hotels in 2016 . multifamily expenses : multifamily expenses increased to $ 12,357,000 , or by 1.6 % , for the year ended december 31 , 2016 compared to $ 12,168,000 for the year ended december 31 , 2015 . the increase is primarily due to an increase in legal fees in 2016 at our new york property , as well as increases in real estate taxes at our dallas properties , partially offset by lower expenses associated with operating our new york property , which was in the process of being re-leased as individual units during 2015 following the termination of the lease by our corporate housing tenant . lending expenses : represents expenses from our lending subsidiaries included in continuing operations , including general and administrative expenses and fees to related party , related to the operation of the lending business . lending expenses decreased by 8.2 % to $ 5,258,000 for the year ended december 31 , 2016 compared to $ 5,727,000 for the year ended december 31 , 2015 , primarily due to a decrease in the amount of reimbursement of fees to related party as a result of decreased payroll and related expenses , and lower interest expense as a result of secured borrowing prepayments and amortization of related deferred premiums . asset management and other fees to related parties : asset management fees totaled $ 25,753,000 for the year ended december 31 , 2016 compared to $ 24,882,000 for the year ended december 31 , 2015 . asset management fees are calculated based on a percentage of the daily average adjusted fair value of cim urban 's investments , which are appraised in the fourth quarter of each year . the higher fees reflect a net increase in the fair value of cim urban 's real estate investments based on the december 31 , 2015 appraised values , as well as incremental capital expenditures during 2016 , offset by decreases as a result of dispositions . cim commercial also pays a base service fee to the manager , a related party , which totaled $ 1,043,000 for the year ended december 31 , 2016 compared to $ 1,010,000 for the year ended december 31 , 2015 . in addition , the manager may receive compensation and or reimbursement for performing certain services for cim commercial and its subsidiaries that are not covered under the base service fee . for the years ended december 31 , 2016 and 2015 , we expensed $ 3,120,000 and $ 2,993,000 for such services , respectively . for the years ended december 31 , 2016 and 2015 , we also expensed $ 411,000 and $ 434,000 , respectively , related to corporate services subject to reimbursement by us under the cim sba staffing and reimbursement agreement . interest expense : interest expense , which is not allocated to our operating segments , was $ 33,848,000 for the year ended december 31 , 2016 , an increase of $ 11,063,000 , as compared to $ 22,785,000 for the year ended december 31 , 2015 . the increase is mainly due to higher average outstanding loan balances under the unsecured credit and term loan facilities during 2016 compared to 2015 combined with a higher overall interest rate including the impact of interest rate swaps , and interest expense on our $ 392,000,000 mortgage loans entered into in june 2016 , partially offset by lower interest expense as a result of the repayment of $ 71,237,000 in fixed rate mortgages in april and september 2015. our interest expense is expected to increase in 2017 , as the mortgage loans entered into in 2016 will be outstanding for the full year in 2017. however , the 65 magnitude of any such increase can not be predicted with much accuracy as it will depend on a number of factors such as usage of our revolving credit facility and whether any sale of encumbered properties occurs . general and administrative expenses : general and administrative expenses , which have not been allocated to our operating segments , were $

cash flow analysis comparison of the year ended december 31 , 2016 to the year ended december 31 , 2015 our cash and cash equivalents , inclusive of cash associated with assets held for sale , totaled $ 144,449,000 and $ 140,572,000 at december 31 , 2016 and 2015 , respectively . our cash flows from operating activities are primarily dependent upon the occupancy level of our real estate assets , the rental rates achieved through our leases , and the collectability of rent and recoveries from our tenants . our cash flows from operating activities are also impacted by fluctuations in operating expenses 71 and other general and administrative costs . net cash provided by operating activities totaled $ 51,873,000 for the year ended december 31 , 2016 compared to $ 77,035,000 for the year ended december 31 , 2015 . the decrease is mainly due to a decrease of $ 21,261,000 in net income adjusted for the gain on real estate and gain on disposition of assets held for sale , a decrease of $ 8,615,000 resulting from increased funding for loans , and a decrease of $ 9,444,000 resulting from a higher level of working capital used , partially offset by an increase of $ 10,562,000 in proceeds from sale of guaranteed loans . our cash flows from investing activities are primarily related to property investments and sales , expenditures for development and redevelopment projects , capital expenditures and cash flows associated with loans originated at our lending segment . net cash provided by investing activities for the year ended december 31 , 2016 was $ 29,526,000 compared to $ 64,272,000 in the corresponding period in 2015 .


 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 flow analysis comparison of the year ended december 31 , 2016 to the year ended december 31 , 2015 our cash and cash equivalents , inclusive of cash associated with assets held for sale , totaled $ 144,449,000 and $ 140,572,000 at december 31 , 2016 and 2015 , respectively . our cash flows from operating activities are primarily dependent upon the occupancy level of our real estate assets , the rental rates achieved through our leases , and the collectability of rent and recoveries from our tenants . our cash flows from operating activities are also impacted by fluctuations in operating expenses 71 and other general and administrative costs . net cash provided by operating activities totaled $ 51,873,000 for the year ended december 31 , 2016 compared to $ 77,035,000 for the year ended december 31 , 2015 . the decrease is mainly due to a decrease of $ 21,261,000 in net income adjusted for the gain on real estate and gain on disposition of assets held for sale , a decrease of $ 8,615,000 resulting from increased funding for loans , and a decrease of $ 9,444,000 resulting from a higher level of working capital used , partially offset by an increase of $ 10,562,000 in proceeds from sale of guaranteed loans . our cash flows from investing activities are primarily related to property investments and sales , expenditures for development and redevelopment projects , capital expenditures and cash flows associated with loans originated at our lending segment . net cash provided by investing activities for the year ended december 31 , 2016 was $ 29,526,000 compared to $ 64,272,000 in the corresponding period in 2015 .
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 Suspicious Activity Report : this change in the sale methodology resulted in the need to extend the period to complete the sale of the remainder of the lending segment beyond one year . on december 17 , 2015 , pursuant to the modified plan , we sold substantially all of our commercial mortgage loans with a carrying value of $ 77,121,000 to an unrelated third party and recognized a gain of $ 5,151,000 . in september 2016 , we discontinued our efforts to sell the sba 7 ( a ) lending platform , and the activities related to the sba 7 ( a ) lending platform have been reclassified to continuing operations for all periods presented . on december 29 , 2016 , we sold our commercial real estate lending subsidiary , which was classified as held for sale and had a carrying value of $ 27,587,000 , which was equal to management 's estimate of fair value , to a fund managed by an affiliate of cim group . we did not recognize any gain or loss in connection with the transaction . management 's estimate of fair value was determined with assistance from an independent third party valuation firm . business overview our principal business is to invest in , own , and operate class a and creative office investments in vibrant and improving urban communities throughout the united states . these communities are located in areas that include traditional downtown areas and suburban main streets , which have high barriers to entry , high population density , improving demographic trends and a propensity for growth . we believe that the critical mass of redevelopment in such areas creates positive externalities , which enhance the value of substantially stabilized assets in the area . we believe that these assets will provide greater returns than similar assets in other markets , as a result of the improving demographics , public commitment , and significant private investment that characterize these areas . our two primary goals are ( a ) consistently growing our nav and cash flows per share of common stock through our principal business and ( b ) providing liquidity to our common stockholders at prices reflecting our nav and cash flow prospects . in that regard , in june 2016 we completed a tender offer for 10 million shares of common stock at a price of $ 21.00 per share of common stock , and in september 2016 , we repurchased in a privately negotiated transaction , 3,628,116 shares of our common stock at $ 22.00 per share from urban ii . in furtherance of our two primary goals , we anticipate additional such transactions in the future . we are also exploring alternative means of providing liquidity to the stockholders that did not participate in the september 2016 and or any subsequent private repurchases , to allow those stockholders to receive the economic benefit of such private repurchase ( s ) . we are managed by affiliates of cim group . cim group is a vertically-integrated , full-service investment manager with multidisciplinary expertise and in-house research , acquisition , investment , development , finance , leasing , and management capabilities . cim group is headquartered in los angeles , california and has offices in oakland , california ; bethesda , maryland ; dallas , texas ; and new york , new york . we seek to utilize the cim platform to acquire and improve assets within cim 's qualified communities . we believe assets in these markets provide greater returns as a result of improving demographics , public commitment , and significant private investment within the areas . over time , we seek to expand our real estate investments in communities targeted by cim group for investment , supported by cim group 's broad real estate investment capabilities , as part of our plan to prudently grow market value and earnings . as a matter of prudent management , we also regularly evaluate each investment within our portfolio as well as our strategies . such review may result in dispositions when an investment no longer fits our overall objectives or investment strategies or when our view of the market value of such investment is equal to or exceeds its intrinsic value . as a result of such review , we sold an office building in santa ana , california in november 2015 , a hotel in oakland , california in february 2016 , a hotel in los angeles , california in july 2016 and we entered into an agreement in february 2017 to sell an office building in san francisco , california . such review is likely to result in additional dispositions in 2017. the net proceeds of such dispositions may be used to provide liquidity to our common stockholders at prices reflecting our nav and cash flow prospects . 59 properties as of december 31 , 2016 , our real estate portfolio consisted of 31 assets , all of which are fee-simple properties except one leasehold property . as of december 31 , 2016 , our 24 office properties ( including two parking garages , one of which has street level retail space , and two development sites , one of which is being used as a parking lot ) , totaling approximately 5.6 million rentable square feet , were 85.7 % occupied ; our multifamily properties , comprised of 930 units , were 92.0 % occupied ; and one hotel , which has a total of 503 rooms , had revpar of $ 119.44 for the year ended december 31 , 2016 . strategy our investment strategy is to continue to primarily invest in class a and creative office investments in vibrant and improving urban communities throughout the united states in a manner that will allow us to increase our nav and cash flows per share of common stock . our investment strategy is centered around cim 's community qualification process . story_separator_special_tag expenses office expenses : office expenses increased by 2.1 % to $ 82,451,000 for the year ended december 31 , 2016 compared to $ 80,785,000 for the year ended december 31 , 2015 . the increase is primarily due to an increase in real estate taxes at certain of our california properties , due to supplemental tax assessments received during 2016 , and an increase in earthquake insurance premiums at our california properties . the increase at our california properties is partially offset by a decrease in electricity expense at our washington d.c. properties , a decrease in certain other tenant reimbursable expenses at one of our washington d.c. properties , and a decrease in expenses associated with our santa ana , california property sold in november 2015. further , the pending sale of an office building in san francisco , if completed , will , and the sale of any additional office properties during 2017 would , cause office expenses to decline in 2017. however , the magnitude of any such decrease can not be predicted with much accuracy as it will depend on a number of factors such as the number of dispositions that may occur in 2017 and changes to expenses at existing properties . hotel expenses : hotel expenses decreased to $ 32,459,000 , or by 22.7 % , for the year ended december 31 , 2016 compared to $ 41,974,000 for the year ended december 31 , 2015 . the decrease is primarily due to the sale of our hotel properties in february and july 2016 , partially offset by an increase at our remaining hotel property in operating costs and an increase in real estate taxes due to a reduction in tax accruals during 2015 following the receipt of the actual tax assessment . our hotel expenses are expected to decline materially in 2017 as we sold two of our hotels in 2016 . multifamily expenses : multifamily expenses increased to $ 12,357,000 , or by 1.6 % , for the year ended december 31 , 2016 compared to $ 12,168,000 for the year ended december 31 , 2015 . the increase is primarily due to an increase in legal fees in 2016 at our new york property , as well as increases in real estate taxes at our dallas properties , partially offset by lower expenses associated with operating our new york property , which was in the process of being re-leased as individual units during 2015 following the termination of the lease by our corporate housing tenant . lending expenses : represents expenses from our lending subsidiaries included in continuing operations , including general and administrative expenses and fees to related party , related to the operation of the lending business . lending expenses decreased by 8.2 % to $ 5,258,000 for the year ended december 31 , 2016 compared to $ 5,727,000 for the year ended december 31 , 2015 , primarily due to a decrease in the amount of reimbursement of fees to related party as a result of decreased payroll and related expenses , and lower interest expense as a result of secured borrowing prepayments and amortization of related deferred premiums . asset management and other fees to related parties : asset management fees totaled $ 25,753,000 for the year ended december 31 , 2016 compared to $ 24,882,000 for the year ended december 31 , 2015 . asset management fees are calculated based on a percentage of the daily average adjusted fair value of cim urban 's investments , which are appraised in the fourth quarter of each year . the higher fees reflect a net increase in the fair value of cim urban 's real estate investments based on the december 31 , 2015 appraised values , as well as incremental capital expenditures during 2016 , offset by decreases as a result of dispositions . cim commercial also pays a base service fee to the manager , a related party , which totaled $ 1,043,000 for the year ended december 31 , 2016 compared to $ 1,010,000 for the year ended december 31 , 2015 . in addition , the manager may receive compensation and or reimbursement for performing certain services for cim commercial and its subsidiaries that are not covered under the base service fee . for the years ended december 31 , 2016 and 2015 , we expensed $ 3,120,000 and $ 2,993,000 for such services , respectively . for the years ended december 31 , 2016 and 2015 , we also expensed $ 411,000 and $ 434,000 , respectively , related to corporate services subject to reimbursement by us under the cim sba staffing and reimbursement agreement . interest expense : interest expense , which is not allocated to our operating segments , was $ 33,848,000 for the year ended december 31 , 2016 , an increase of $ 11,063,000 , as compared to $ 22,785,000 for the year ended december 31 , 2015 . the increase is mainly due to higher average outstanding loan balances under the unsecured credit and term loan facilities during 2016 compared to 2015 combined with a higher overall interest rate including the impact of interest rate swaps , and interest expense on our $ 392,000,000 mortgage loans entered into in june 2016 , partially offset by lower interest expense as a result of the repayment of $ 71,237,000 in fixed rate mortgages in april and september 2015. our interest expense is expected to increase in 2017 , as the mortgage loans entered into in 2016 will be outstanding for the full year in 2017. however , the 65 magnitude of any such increase can not be predicted with much accuracy as it will depend on a number of factors such as usage of our revolving credit facility and whether any sale of encumbered properties occurs . general and administrative expenses : general and administrative expenses , which have not been allocated to our operating segments , were $

