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NOTES RECEIVABLE, PREFERRED EQUITY, AND OTHER REAL ESTATE RELATED INVESTMENTS | 12 Months Ended
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Dec. 31, 2014
Mortgage Loans on Real Estate [Abstract] |
Notes Receivable, Preferred Equity and Other Real Estate Related Investments | Notes Receivable, Preferred Equity and Other Real Estate Related Investments During 2014, the Company made total investments in notes receivable and preferred equity investments of $31.2 million and total collections of $18.1 million. The following table reconciles notes receivable investments from January 1, 2012 to December 31, 2014:
|  | For the years ended December 31,
(dollars in thousands) |  | 2014 |  | 2013 |  | 2012
Beginning Balance |  | $ | 126,656 |  |  | $ | 129,278 |  |  | $ | 59,989 |
Additions during period: |  |  |  |  |  |
New investments |  | 31,169 |  |  | 45,000 |  |  | 108,629 |
Deductions during period: |  |  |  |  |  |
Collections of principal |  | (18,095 | ) |  | (29,583 | ) |  | (25,388 | )
Conversion to real estate through receipt of deed or through foreclosure |  | (38,000 | ) |  | (18,500 | ) |  | (14,000 | )
Non-cash accretion of notes receivable |  | 556 |  |  | 461 |  |  | 453 |
Reserves |  | — |  |  | — |  |  | (405 | )
Ending Balance |  | $ | 102,286 |  |  | $ | 126,656 |  |  | $ | 129,278 |
As of December 31, 2014, the Company’s notes receivable, net, approximated $102.3 million and were collateralized by the underlying properties, the borrower’s ownership interest in the entities that own the properties and/or by the borrower’s personal guarantee. Notes receivable were as follows at December 31, 2014: ACADIA REALTY TRUST AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5. Notes Receivable, Preferred Equity and Other Real Estate Related Investments, continued
Note Description |  | Effective interest rate (1) |  | First Priority Liens |  | Net Carrying Amount of Notes Receivable as of December 31, 2014 |  | Net Carrying Amount of Notes Receivable as of December 31, 2013 |  | Maturity Date |  | Extension Options
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
First Mortgage Loan |  | 7.7% |  | $ | — |  |  | $ | 12,000 |  |  | $ | 12,000 |  |  | 1/1/2015 |  | — |
Mezzanine Loan |  | 12.7% |  | 18,900 |  |  | 8,000 |  |  | — |  |  | 10/3/2015 |  |  |
First Mortgage Loan |  | 8.8% |  | — |  |  | 7,500 |  |  | — |  |  | 10/31/2015 |  | 1 x 12 Months |
Zero Coupon Loan (2) |  | 24.0% |  | 166,200 |  |  | 4,986 |  |  | 4,431 |  |  | 1/3/2016 |  | — |
First Mortgage Loan |  | 5.5% |  | — |  |  | 4,000 |  |  | 42,000 |  |  | 4/1/2016 |  | 1 x 6 Months |
Preferred Equity |  | 13.5% |  | — |  |  | 4,000 |  |  | — |  |  | 5/9/2016 |  |  |
Other |  | 18.0% |  | — |  |  | 3,307 |  |  | — |  |  | 7/1/2017 |  |  |
Preferred Equity |  | 8.1% |  | 20,855 |  |  | 13,000 |  |  | 13,000 |  |  | 9/1/2017 |  | — |
Mezzanine Loan |  | 15.0% |  | — |  |  | 30,879 |  |  | 30,879 |  |  | 11/9/2020 |  | — |
First Mortgage Loan |  | 6.0% |  | — |  |  | — |  |  | 6,400 |  |  | Demand |  | — |
Other |  | LIBOR + 2.5% |  | — |  |  | 4,000 |  |  | 3,000 |  |  | 12/30/2020 |  |  |
Mezzanine Loan (3) |  | 10.0% |  | 87,477 |  |  | 7,983 |  |  | 9,089 |  |  | Demand |  | — |
Mezzanine Loan |  | 15.0% |  | 16,668 |  |  | — |  |  | 3,834 |  |  | Upon Capital Event |  | — |
Individually less than 3% (4) |  | 2.7% to 17.5% |  | — |  |  | 2,631 |  |  | 2,023 |  |  | 12/31/2015 to 5/1/2024 |  | — |
Total |  |  |  |  |  | $ | 102,286 |  |  | $ | 126,656 |  |  |  |  |
Notes: (1) Includes origination and exit fees (2) The principal balance for this accrual-only loan is increased by the interest accrued (3) Comprised of three cross-collateralized loans from one borrower, which are non-performing (4) Consists of three loans as of December 31, 2014 During January 2014, the Company received a repayment of $6.4 million, representing the full principal amount on a note receivable. During January 2014, the Company also received a payment of $1.4 million for a mezzanine loan with a carrying value, net of reserves, of $0.7 million. The Company recognized income of approximately $0.7 million relating to the payoff, which is included in Other, a component of revenue for the year ended December 31, 2014. During April 2014, the Company made a $13.0 million loan, which is collateralized by a property and bears interest at 12.7% and matures October 2015. During July 2014, the borrower repaid $5.0 million of the loan. The outstanding balance at December 31, 2014 was $8.0 million. During April 2014, the Company made a $1.9 million loan, which is collateralized by a property, bears interest at LIBOR plus 375 basis points and matures May 2024. During April 2014, the Company converted a $38.0 million loan into an equity interest in 152-154 Spring Street (Note 4). ACADIA REALTY TRUST AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5. Notes Receivable, Preferred Equity and Other Real Estate Related Investments, continued During April 2014, the Company received payment of $10.3 million representing principal and accrued interest on a mezzanine loan for which the Company had a carrying value of $8.3 million, net of a $2.0 million reserve. Following the full collection of all amounts due under this note, the Company recognized income of approximately $2.0 million, which is included in Other, a component of revenue for the year ended December 31, 2014. During May 2014, the Company made a $4.0 million preferred equity investment in an entity which owns a property located in the Bronx. The investment has a preferred return of 13.5% and matures May 2016. During July 2014, the Company made an additional $1.0 million loan, which is collateralized by Common OP Units, to an existing borrower, bringing the total outstanding amount to $4.0 million. This loan bears interest at LIBOR plus 250 basis points and matures 12/20/20. During July 2014, the Company made a $4.8 million loan, which is collateralized by the borrower's interest in a property, bears interest at 18% and matures July 2017. As of December 31, 2014, $3.3 million has been drawn down on the loan. During September 2014, the Company received payment of $1.9 million on a note, representing $0.7 million of accrued interest and $1.2 million of principal. During October 2014, the Company made a $7.5 million loan, which is collateralized by a property, bears interest at 8.8% and matures October 2015. The Company monitors the credit quality of its notes receivable on an ongoing basis and considers indicators of credit quality such as loan payment activity, the estimated fair value of the underlying collateral, the seniority of the Company's loan in relation to other debt secured by the collateral and the prospects of the borrower. As of December 31, 2014, the Company held three non-performing notes. The following table reconciles the activity in the allowance for notes receivable from December 31, 2012 to December 31, 2014:
|  | Allowance for
(dollars in thousands) |  | Notes Receivable
Balance at December 31, 2012 |  | $ | 3,681 |
Additional reserves |  | — |
Recoveries |  | — |
Charge-offs and reclassifications |  | — |
Balance at December 31, 2013 |  | $ | 3,681 |
Additional reserves |  | — |
Recoveries |  | (2,724 | )
Charge-offs and reclassifications |  | (957 | )
Balance at December 31, 2014 |  | $ | — |

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- Definition The entire disclosure for mortgage loans on real estate, this includes the supplemental information pertaining to each mortgage loan receivable that equals or exceeds three percent of the carrying amount of mortgages. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04.(c) Schedule IV) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 29 -Article 12 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Subparagraph Schedule IV -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 948 -SubTopic 310 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-29) -URI http://asc.fasb.org/extlink&oid=6589523&loc=d3e617274-123014 + Details
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