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INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES | 9 Months Ended
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Sep. 30, 2011
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] |
Investments in and Advances to Affiliates [Text Block] | INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES Core Portfolio The Company owns a 22.2% interest in an approximately one million square foot retail portfolio (the “Brandywine Portfolio”) located in Wilmington, Delaware and a 49% interest in a 311,000 square foot shopping center located in White Plains, New York (“Crossroads”). These investments are accounted for under the equity method. During September 2011, the Company acquired a 50% equity interest in the Georgetown Portfolio (Note 4). The unaffiliated venture partner for the Georgetown Portfolio maintains control over this investment and, as such, the Company accounts for this investment under the equity method. Due to this acquisition, the Company reclassified an existing $8.0 million mezzanine loan collateralized by five properties within the Georgetown Portfolio from Notes Receivable to Investments in and Advances to Unconsolidated Affiliates.
5. | INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued)
Opportunity Funds RCP Venture During 2004, the Company along with Klaff Realty, LP (“Klaff”) and Lubert-Adler Management, Inc. (“Lubert-Adler”) formed an investment group, the RCP Venture, for the purpose of making investments in surplus or underutilized properties owned by retailers. The RCP Venture is neither a single entity nor a specific investment. Any member of this group has the option of participating, or not, in any individual investment and each individual investment has been made on a stand-alone basis through a separate limited liability company (“LLC”). These investments have been made through different investment vehicles with different affiliated and unaffiliated investors and different economics to the Company. Investments under the RCP Venture are structured as separate joint ventures as there may be other investors participating in certain investments in addition to Klaff, Lubert-Adler and Acadia. The Company has made these investments through its subsidiaries, Mervyns I, Mervyns II and Fund II, (together the “Acadia Investors”), all on a non-recourse basis. Through September 30, 2011, Acadia Investors have made investments in Mervyns Department Stores (“Mervyns”) and Albertsons including additional investments in locations that are separate from these original investments (“Add-On Investments”). Additionally, Acadia Investors have invested in Shopko, Marsh and Rex Stores Corporation (collectively “Other RCP Investments”). The Acadia Investors have non-controlling interests in the individual investee LLC’s as follows:
|  |  | Acadia Investors Ownership % in:
Investment | Investee LLC | Acadia Investors Entity | Investee LLC | Underlying entity(s)
Mervyns | KLA/Mervyn’s, LLC | Mervyns I and Mervyns II | 10.5% | 5.8%
Mervyns Add-On investments | KLA/Mervyn’s, LLC | Mervyns I and Mervyns II | 10.5% | 5.8%
Albertsons | KLA A Markets, LLC | Mervyns II | 18.9% | 5.7%
Albertsons Add-On investments | KLA A Markets, LLC | Mervyns II | 20.0% | 6.0%
Shopko | KLA-Shopko, LLC | Fund II | 20.0% | 2.0%
Marsh and Add-On investments | KLA Marsh, LLC | Fund II | 20.0% | 3.3%
Rex Stores | KLAC Rex Venture, LLC | Mervyns II | 13.3% | 13.3%
The Company accounts for the original investments in Mervyns and Albertsons under the equity method of accounting as the Company has the ability to exercise significant influence, but does not have financial or operating control. The Company accounts for the Add-On Investments and Other RCP Investments under the cost method. Due to its minor ownership interest, based on the size of the investments as well as the terms of the underlying operating agreements, the Company has no influence over such entities operating and financial policies. Other than the minority investor rights to which the Company is entitled pursuant to statute, it has no rights other than to receive its pro-rata share of cash distributions as declared by the managers of the Add-On Investments and Other RCP Investments. The Company has no rights with respect to the control and operation of these investment vehicles, nor with the formulation and execution of business and investment policies. During the three months ended September 30, 2011, the Company received RCP Venture distributions totaling $4.5 million, and for the nine months ended September 30, 2011 received distributions of $6.9 million. The Operating Partnership's share of these distributions for the three and nine months ended September 30, 2011 totaled $0.9 million and $1.5 million, respectively.
5. | INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued)
The following table summarizes activity related to the RCP Venture investments from inception through September 30, 2011:
(dollars in thousands) |  |  |  | Operating Partnership Share
Investment | Year Acquired | Invested Capital and Advances | Distributions | Invested Capital and Advances | Distributions
Mervyns | 2004 | $ | 26,058 |  | $ | 45,966 |  | $ | 4,901 |  | $ | 11,251 |
Mervyns Add-On investments | 2005/2008 | 6,517 |  | 3,558 |  | 1,046 |  | 819 |
Albertsons | 2006 | 20,717 |  | 81,594 |  | 4,239 |  | 16,318 |
Albertsons Add-On investments | 2006/2007 | 2,416 |  | 1,679 |  | 388 |  | 336 |
Shopko | 2006 | 1,108 |  | 1,659 |  | 222 |  | 332 |
Marsh and Add-On investments | 2006/2008 | 2,667 |  | 2,639 |  | 533 |  | 528 |
Rex Stores | 2007 | 2,701 |  | 840 |  | 535 |  | 168 |
|  | $ | 62,184 |  | $ | 137,935 |  | $ | 11,864 |  | $ | 29,752 |
Other Opportunity Fund Investments Fund II Investments Prior to June 30, 2010, Fund II had a 24.75% interest in CityPoint, a redevelopment project located in downtown Brooklyn, NY, which was accounted for under the equity method. On June 30, 2010, Fund II acquired the remaining interest in the project from its unaffiliated partner and, as a result, now consolidates the CityPoint investment. Fund III Investments The unaffiliated venture partners for the Lincoln Road (Note 4), White Oak (Note 4) and the White City Shopping Center investments maintain control over these entities and, as such, the Company accounts for these investments under the equity method. During June 2010, Fund III, together with an unaffiliated partner, invested in an entity for the purpose of providing management services to owners of self-storage properties, including the 14 locations currently owned through Fund II and Fund III. The entity was determined to be a variable interest entity for which the Company was determined not to be the primary beneficiary. As such, the Company accounts for this investment under the equity method.
5. | INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued)
Summary of Investments in Unconsolidated Affiliates The following combined/condensed Balance Sheets and Statements of Operations, in each period, summarize the financial information of the Company’s investments in unconsolidated affiliates.
(dollars in thousands) | September 30, 2011 |  | December 31, 2010
Combined and Condensed Balance Sheets |  |  |
Assets |  |  |
Rental property, net | $ | 260,436 |  |  | $ | 186,802 |
Investment in unconsolidated affiliates | 162,240 |  |  | 192,002 |
Other assets | 29,321 |  |  | 27,841 |
Total assets | $ | 451,997 |  |  | $ | 406,645 |
Liabilities and partners’ equity |  |  |  |  |
Mortgage note payable | $ | 298,065 |  |  | $ | 267,565 |
Other liabilities | 16,787 |  |  | 13,815 |
Partners’ equity | 137,145 |  |  | 125,265 |
Total liabilities and partners’ equity | $ | 451,997 |  |  | $ | 406,645 |
Company’s investment in and advances to unconsolidated affiliates | $ | 78,420 |  |  | $ | 31,036 |
Company's share of distributions in excess of share of income and investments in unconsolidated affiliates | $ | (21,401 | ) |  | $ | (20,884 | )
| Three Months Ended |  | Nine Months Ended
(dollars in thousands) | September 30, 2011 |  | September 30, 2010 |  | September 30, 2011 |  | September 30, 2010
Combined and Condensed Statements of Operations |  |  |  |  |  |  |
Total revenues | $ | 10,290 |  |  | $ | 7,317 |  |  | $ | 30,789 |  |  | $ | 21,787 |
Operating and other expenses | 3,699 |  |  | 2,550 |  |  | 10,993 |  |  | 7,158 |
Interest expense | 4,274 |  |  | 3,392 |  |  | 12,532 |  |  | 10,107 |
Equity in earnings (losses) of unconsolidated affiliates | 13,472 |  |  | (681 | ) |  | 13,060 |  |  | 2,083 |
Depreciation and amortization | 2,222 |  |  | 1,057 |  |  | 6,467 |  |  | 3,745 |
Loss on sale of property, net | — |  |  | — |  |  | — |  |  | (2,957 | )
Net income (loss) | $ | 13,567 |  |  | $ | (363 | ) |  | $ | 13,857 |  |  | $ | (97 | )
Company’s share of net income | $ | 3,208 |  |  | $ | 241 |  |  | $ | 3,318 |  |  | $ | 904 |
Amortization of excess investment | (98 | ) |  | (98 | ) |  | (293 | ) |  | (294 | )
Company’s share of net income | $ | 3,110 |  |  | $ | 143 |  |  | $ | 3,025 |  |  | $ | 610 |

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- Definition The entire disclosure for the information required in the supplementary schedule applicable to management investment companies summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities as of the balance sheet date and for the period then ended. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14) -URI http://asc.fasb.org/extlink&oid=6955306&loc=d3e611322-123010 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 14 -Article 12 + Details
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