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INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES | 12 Months Ended
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Dec. 31, 2014
Equity Method Investments and Joint Ventures [Abstract] |
Investments in and Advances to Unconsolidated Affiliates | Investments In and Advances to Unconsolidated Affiliates Core Portfolio The Company owns a 49% interest in a 311,000 square foot shopping center located in White Plains, New York ("Crossroads), a 50% interest in a 28,000 square foot retail portfolio located in Georgetown, Washington D.C. (the "Georgetown Portfolio"), a 22.22% interest in a 20,000 square foot retail property located in Wilmington, Delaware ("Route 202 Shopping Center") and a 88.43% tenancy in common interest in an 87,000 square foot retail property located in Chicago, Illinois. As our unaffiliated partners in these investments maintain operating control, these are accounted for under the equity method. Funds Fund Investments During 2014, Fund IV, entered into a joint venture (the "Broughton Street Portfolio") with an unaffiliated entity, to acquire and operate properties located in Savannah, Georgia. Fund IV invested $8.1 million of equity and made a loan commitment of up to $69.0 million of which $28.4 million was funded to the joint venture as of December 31, 2014. As of December 31, 2014, the joint venture had acquired 24 properties for an aggregate purchase price of $33.9 million. In addition, Fund IV, through a joint venture with an unaffiliated entity, purchased a shopping center in Bear, Delaware for $25.4 million. During the third quarter of 2014, an unconsolidated joint venture between Fund III and an unaffiliated entity sold three properties located on Lincoln Road in Miami, Florida for an aggregate sales price of $141.8 million. In addition, an unconsolidated joint venture between Fund IV and an unaffiliated entity sold three properties located on Lincoln Road in Miami, Florida for an aggregate sales price of $200.2 million during the third quarter of 2014. The sales of the Fund III and Fund IV Lincoln Road portfolios resulted in gains of $86.6 million and $54.6 million, respectively. The unaffiliated partners in Fund II's investment in Albee Tower I Owners, Fund III's investments in Parkway Crossing, Arundel Plaza and the White City Shopping Center as well as Fund IV's investments in 1701 Belmont Avenue, 2819 Kennedy Boulevard, Promenade at Manassas, Eden Square and the Broughton Street Portfolio, maintain control over these entities. The Company accounts for these investments under the equity method as it has the ability to exercise significant influence, but does not have any rights with respect to financial or operating control. Self-Storage Management, a Fund III investment, was determined to be a variable interest entity. Management has evaluated the applicability of ASC Topic 810 to this joint venture and determined that the Company is not the primary beneficiary and, therefore, consolidation of this venture is not required. The Company accounts for this investment using the equity method of accounting. RCP Venture The Funds, together with two unaffiliated partners formed an investment group, the RCP Venture, for the purpose of making investments in surplus or underutilized properties owned by retailers and, in some instances, the retailers' operating company. The RCP Venture is neither a single entity nor a specific investment and the Company has no control or rights with respect to the formation and operation of these investments. 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 December 31, 2014, the 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, they have invested in Shopko, Marsh and Rex Stores Corporation (collectively "Other RCP Investments"). ACADIA REALTY TRUST AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4. Investments In and Advances to Unconsolidated Affiliates, continued The following table summarizes activity related to the RCP Venture investments from inception through December 31, 2014:
|  |  |  |  |  |  |  | Operating Partnership Share
Investment |  | Year Acquired |  | Invested Capital and Advances |  | Distributions |  | Invested Capital and Advances |  | Distributions
Mervyns |  | 2004 |  | $ | 26,058 |  |  | $ | 48,547 |  |  | $ | 4,901 |  |  | $ | 11,801 |
Mervyns Add-On investments |  | 2005/2008 |  | 7,547 |  |  | 5,789 |  |  | 1,252 |  |  | 1,284 |
Albertsons |  | 2006 |  | 20,717 |  |  | 81,594 |  |  | 4,239 |  |  | 16,318 |
Albertsons Add-On investments |  | 2006/2007 |  | 2,416 |  |  | 4,864 |  |  | 388 |  |  | 972 |
Shopko |  | 2006 |  | 1,110 |  |  | 2,460 |  |  | 222 |  |  | 492 |
Marsh and Add-On investments |  | 2006/2008 |  | 2,667 |  |  | 2,639 |  |  | 533 |  |  | 528 |
Rex Stores |  | 2007 |  | 2,701 |  |  | 3,729 |  |  | 535 |  |  | 747 |
Total |  |  |  | $ | 63,216 |  |  | $ | 149,622 |  |  | $ | 12,070 |  |  | $ | 32,142 |
The Company accounts for the original investments in Mervyns and Albertson’s 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. 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, L.L.C |  | Mervyns I and Mervyns II |  | 10.5% |  | 5.8%
Mervyns Add-On Investments |  | KLA/Mervyn's, L.L.C |  | 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 |  | KA-Shopko, LLC |  | Fund II |  | 20.0% |  | 2.0%
Marsh and Add-On Investments |  | KA Marsh, LLC |  | Fund II |  | 20.0% |  | 3.3%
Rex Stores |  | KLAC Rex Venture, LLC |  | Mervyns II |  | 13.3% |  | 13.3%
ACADIA REALTY TRUST AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4. Investments In and Advances to Unconsolidated Affiliates, continued Summary of Investments in Unconsolidated Affiliates The following combined and condensed Balance Sheets and Statements of Income, in each period, summarize the financial information of the Company’s investments in unconsolidated affiliates.
(dollars in thousands) |  | December 31, 2014 |  | December 31, 2013
Combined and Condensed Balance Sheets |  |  |  |  |  |
Assets: |  |  |  |  |  |
Rental property, net |  | $ | 387,739 |  |  | $ | 380,268 |
Real estate under development |  | 60,476 |  |  | 5,573 |
Investment in unconsolidated affiliates |  | 11,154 |  |  | 63,745 |
Other assets |  | 62,862 |  |  | 66,895 |
Total assets |  | $ | 522,231 |  |  | $ | 516,481 |
Liabilities and partners’ equity: |  |  |  |  |  |
Mortgage notes payable |  | $ | 315,897 |  |  | $ | 265,982 |
Other liabilities |  | 66,116 |  |  | 43,733 |
Partners’ equity |  | 140,218 |  |  | 206,766 |
Total liabilities and partners’ equity |  | $ | 522,231 |  |  | $ | 516,481 |
Company’s investment in and advances to unconsolidated affiliates |  | $ | 184,352 |  |  | $ | 181,322 |
Company's share of distributions in excess of income and investments in unconsolidated affiliates |  | $ | (12,564 | ) |  | $ | (8,701 | )
ACADIA REALTY TRUST AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4. Investments In and Advances to Unconsolidated Affiliates, continued
|  | Years Ended December 31,
(dollars in thousands) |  | 2014 |  | 2013 |  | 2012
Combined and Condensed Statements of Income |  |  |  |  |  |  |  |  |
Total revenues |  | $ | 44,422 |  |  | $ | 51,638 |  |  | $ | 49,729 |
Operating and other expenses |  | (17,069 | ) |  | (18,700 | ) |  | (18,919 | )
Interest expense |  | (9,363 | ) |  | (8,943 | ) |  | (18,547 | )
Equity in (losses) earnings of unconsolidated affiliates |  | (328 | ) |  | 13,651 |  |  | 583 |
Depreciation and amortization |  | (10,967 | ) |  | (10,599 | ) |  | (9,551 | )
Loss on debt extinguishment |  | (187 | ) |  | — |  |  | (293 | )
Gain on disposition of properties |  | 142,615 |  |  | — |  |  | 3,402 |
Net income |  | $ | 149,123 |  |  | $ | 27,047 |  |  | $ | 6,404 |
Company’s share of net income |  | $ | 111,970 |  |  | $ | 12,774 |  |  | $ | 1,971 |
Amortization of excess investment |  | (392 | ) |  | (392 | ) |  | (392 | )
Company’s equity in earnings of unconsolidated affiliates |  | $ | 111,578 |  |  | $ | 12,382 |  |  | $ | 1,579 |

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- Definition The entire disclosure for the information 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. + 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=34726532&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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