7. Real Estate

The Company’s real estate consisted of the following (in thousands):

During the years ended December 31, 2022, 2021, and 2020, the Company sold various real estate assets that were classified as held-for-sale. As a result of these sales, the Company recognized total net gains on sales of real estate of $24.3 million, $0.6 million, and $0.3 million, respectively, and received aggregate net proceeds of $27.3 million, $2.4 million, and $2.6 million, respectively. Included in the net gains on sales of real estate for the year ended December 31, 2022 was a gain of $23.0 million recognized upon the sale of 119 acres of vacant land in St. Lucie County, Florida in December 2022. The vacant land was a legacy asset acquired by a predecessor of BBXRE and had a carrying value of approximately $0.4 million on the sale date.

The Company’s real estate inventory is primarily comprised of land and development costs related to BBXRE’s Beacon Lake Community development. During the year ended  December 31, 2022, BBXRE sold 146 single-family lots and 32 townhome lots in its Beacon Lake Community development, as compared to 299 undeveloped lots, 291 single-family lots, and 94 townhome lots during the year ended  December 31, 2021 and 157 single-family lots and 70 townhome lots during the year ended December 31, 2020. During the years ended December 31, 2022, 2021, and 2020, the Company recognized gross profits related to these sales of $16.3 million, $35.8 million, and $7.2 million, respectively.

Impairment Testing

As a result of economic and market conditions, including disruptions and uncertainty in the U.S. and global economies that arose in 2020 as a result of, among other things, the COVID-19 pandemic and disruptions in global supply chains, as well as the rise in interest rates and inflationary pressures, the Company evaluated various factors, including asset-specific factors and overall economic and market conditions and concluded that there had not been a significant decline in the fair value of BBXRE's real estate assets during the years ended December 31, 2022, 2021, and 2020, respectively, that required the Company to recognize any material impairment losses. As part of this evaluation, the Company considered the excess of the expected profits associated with BBXRE’s real estate assets in relation to their carrying amounts, sales at BBXRE’s single-family home developments, sales of its multifamily apartment communities, and appraisals of certain of its real estate held-for-sale and held-for-investment.