NOTES RECEIVABLE, PREFERRED EQUITY, AND OTHER REAL ESTATE RELATED INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2015

Mortgage Loans on Real Estate [Abstract]

Schedule of Notes Receivable and Preferred Equity Investments Reconciliation

The following table reconciles notes receivable investments from January 1, 2013 to December 31, 2015:



	For the years ended December 31,
(dollars in thousands)	2015			2014			2013
Beginning Balance	$	102,286		$	126,656		$	129,278
Additions during period:
New investments	48,500			31,169			45,000
Disposition of air rights through issuance of notes	29,539			—			—
Deductions during period:
Collections of principal	(15,984		)	(18,095		)	(29,583		)
Conversion to real estate through receipt of deed or through foreclosure	(13,386		)	(38,000		)	(18,500		)
Other	(3,767		)	556			461
Ending Balance	$	147,188		$	102,286		$	126,656

Schedule of Notes Receivable

Notes receivable were as follows at December 31, 2015:

ACADIA REALTY TRUST AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

5. Notes Receivable, Preferred Equity and Other Real Estate Related Investments, continued



Description	Notes	Effective interest rate (1)	First Priority Liens		Net Carrying Amount of Notes Receivable as of December 31, 2015		Net Carrying Amount of Notes Receivable as of December 31, 2014		Maturity Date	Extension Options
(dollars in thousands)
Mezzanine Loan	(2)	12.7%	$	18,900	$	—	$	8,000	10/3/2015
First Mortgage Loan		8.8%	—		7,500		7,500		11/1/2016
Zero Coupon Loan	(3) (4)	24.0%	166,200		—		4,986		1/3/2016
First Mortgage Loan		5.5%	—		4,000		4,000		4/1/2016	1 x 6 Months
First Mortgage Loan	(5)	6.0%	—		15,000		—		5/1/2016	1 x 12 Months
Preferred Equity		13.5%	—		4,000		4,000		5/9/2016
Other	(6)	17.0%	—		—		—		6/1/2016
Other	(7)	18.0%	—		3,907		3,307		7/1/2017
Preferred Equity		8.1%	20,855		13,000		13,000		9/1/2017
First Mortgage Loan	(8)	LIBOR + 7.1%	—		26,000		—		6/25/2018	1 x 12 Months
Zero Coupon Loan	(3) (9)	2.5%	—		30,234		—		5/31/2020
Mezzanine Loan		15.0%	—		30,879		30,879		11/9/2020
Other		LIBOR + 2.5%	—		—		4,000		12/30/2020
Mezzanine Loan	(10)	10.0%	87,477		—		7,983		Demand
First Mortgage Loan	(11)	7.7%	—		12,000		12,000		Demand
Individually less than 3%	(12) (13) (14)	2.5% to 11.6%	—		668		2,631		12/31/2016
Total					$	147,188	$	102,286

Notes:

(1) Includes origination and exit fees

(2) During July 2015, the Company received repayment in full of this $8.0 million note.

(3) The principal balances for these accrual-only loans are increased by the interest accrued.

(4) During April 2015, the Company converted a $5.6 million loan into an equity interest in the Route 202 Shopping Center (Note 2).

(5) During May 2015, the Company made a $15.0 million loan, which is collateralized by a property, bears interest at 6.0% and matures May 1, 2016.

(6) During June 2015, the Company made a $6.5 million loan, which bore interest at 17.0% and was scheduled to mature June 1, 2016. During October 2015, this loan was converted into an equity interest in 650 Bald Hill Road (Note 2).

(7) During 2015, the Company advanced an additional $0.6 million on this loan collateralized by a property.

(8) During June 2015, the Company made a $26.0 million loan, which is collateralized by a property.

ACADIA REALTY TRUST AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

5. Notes Receivable, Preferred Equity and Other Real Estate Related Investments, continued

(9) During June 2015, the Company made a $29.8 million loan in connection with the disposition of City Point's Phase III (Note 2), which is collateralized by the purchaser's interest in the property.

(10) Comprised of three cross-collateralized loans from one borrower, which were non-performing. During July 2015, the Company received repayment of these notes in full as well as all accrued interest and default interest and additional penalties.

(11) Loan was non-performing as of December 31, 2015. Based on the value of the underlying collateral, no reserve has been established against this loan.

(12) Consists of one loan as of December 31, 2015 and three loans as of December 31, 2014.

(13) During February 2015, the Company advanced an additional $0.4 million on this loan collateralized by a property.

(14) During June 2015, the Company converted a $1.9 million loan into an equity interest in the remaining 10% of 152-154 Spring Street.

Schedule of Allowance for Credit Losses on Notes Receivable

The following table reconciles the activity in the allowance for notes receivable from December 31, 2013 to December 31, 2015:



	Allowance for
(dollars in thousands)	Notes Receivable
Balance at December 31, 2013	$	3,681
Additional reserves	—
Recoveries	(2,724		)
Charge-offs and reclassifications	(957		)
Balance at December 31, 2014	$	—
Additional reserves	—
Recoveries	—
Charge-offs and reclassifications	—
Balance at December 31, 2015	$	—