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Related Party Transactions (UNITED DOMINION REALTY, L.P.) (United Dominion Reality L.P. [Member])
 9 Months Ended
Sep. 30, 2014
United Dominion Reality L.P. [Member]
  
Entity Information [Line Items]  
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS
Payable/(Receivable) Due To/(From) the General Partner
The Operating Partnership participates in the General Partner’s central cash management program, wherein all the Operating Partnership’s cash receipts are remitted to the General Partner and all cash disbursements are funded by the General Partner. In addition, other miscellaneous costs such as administrative expenses are incurred by the General Partner on behalf of the Operating Partnership. As a result of these various transactions between the Operating Partnership and the General Partner, the Operating Partnership had net payable/(receivable) balances of $795,000 and $(9.9) million at September 30, 2014 and December 31, 2013, respectively, which is reflected as an increase and a reduction of capital, respectively, on the Consolidated Balance Sheets.
Allocation of General and Administrative Expenses
The General Partner provides various general and administrative and other overhead services for the Operating Partnership including legal assistance, acquisitions analysis, marketing and advertising, and allocates these expenses to the Operating Partnership first on the basis of direct usage when identifiable, with the remainder allocated based on its pro-rata portion of UDR’s total apartment homes. The general and administrative expenses allocated to the Operating Partnership by UDR were $6.6 million and $20.5 million during the three and nine months ended September 30, 2014, respectively, and $6.5 million and $17.4 million during the three and nine months ended September 30, 2013, respectively, and are included in General and administrative on the Consolidated Statements of Operations. In the opinion of management, this method of allocation reflects the level of services received by the Operating Partnership from the General Partner.
During the three and nine months ended September 30, 2014, the Operating Partnership incurred $3.2 million and $9.4 million, respectively, and during the three and nine months ended September 30, 2013 incurred $3.1 million and $9.1 million, respectively, of related party management fees related to a management agreement entered into in 2011 with wholly-owned subsidiaries of RE3. (See further discussion in paragraph below.) These related party management fees are initially recorded in General and administrative on the Consolidated Statements of Operations, and a portion related to management fees charged by the taxable REIT subsidiary (“TRS”) of the General Partner is reclassified to Property management on the Consolidated Statements of Operations. (See further discussion below.)
Management Fee
In 2011, the Operating Partnership entered into a management agreement with wholly owned subsidiaries of RE3. Under the management agreement, the Operating Partnership is charged a management fee equal to 2.75% of gross rental revenues, which is classified in Property management on the Consolidated Statements of Operations.
Notes Payable to General Partner
As of September 30, 2014 and December 31, 2013, the Operating Partnership had $88.7 million of unsecured notes payable to the General Partner at annual interest rates between 5.18% and 5.34%. Certain limited partners of the Operating Partnership have provided guarantees related to these notes payable. The guarantees were provided by the limited partners in conjunction with their contribution of properties to the Operating Partnership. The notes mature on August 31, 2021 and December 31, 2023 and interest payments are made monthly. The Operating Partnership recognized interest expense on the notes payable of $1.2 million and $3.5 million during the three and nine months ended September 30, 2014, respectively, and $267,000, and $801,000 during the three and nine months ended September 30, 2013, respectively.