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INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES | 3 Months Ended
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Mar. 31, 2016
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 an approximately 28,000 square foot retail portfolio located in Georgetown, Washington D.C. (the "Georgetown Portfolio") and an 88.43% tenancy-in-common interest in an 87,000 square foot retail property located in Chicago, Illinois ("840 N. Michigan"). 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. During January 2016, the Company completed the acquisition of a 49% interest in an approximately 123,000 square foot retail property located in Manhattan, New York ("Gotham Plaza"), for a purchase price of $39.8 million. Consideration for this purchase consisted of the assumption of 49% of the existing debt of $21.4 million and the issuance of both Common and Preferred OP Units. The Company accounts for this investment 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. 5. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued) Funds 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 March 31, 2016, 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"). The Company accounts for its investments in Mervyns and Albertsons on 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. The Company accounts for its investments in its Add-On Investments and Other RCP Investments on the cost method as it does not have any influence over such entities' operating and financial policies nor any rights with respect to the control and operation of these entities. During the three months ended March 31, 2016, the Company received distributions from its RCP Venture of $0.1 million, of which the Operating Partnership's aggregate share was $0.02 million. The following table summarizes activity related to the RCP Venture investments from inception through March 31, 2016:
(dollars in thousands) |  | Fund Share |  | Operating Partnership Share
Investment | Year Acquired | Invested Capital and Advances |  | Distributions |  | Invested Capital and Advances |  | Distributions
Mervyns | 2004 | $ | 26,058 |  |  | $ | 48,648 |  |  | $ | 4,901 |  |  | $ | 11,821 |
Mervyns Add-On investments | 2005/2008 | 7,547 |  |  | 9,272 |  |  | 1,252 |  |  | 2,017 |
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 |  |  | 3,358 |  |  | 222 |  |  | 672 |
Marsh and Add-On investments | 2006/2008 | 2,667 |  |  | 2,941 |  |  | 533 |  |  | 588 |
Rex Stores | 2007 | 2,701 |  |  | 4,927 |  |  | 535 |  |  | 986 |
Total |  | $ | 63,216 |  |  | $ | 155,604 |  |  | $ | 12,070 |  |  | $ | 33,374 |
Other Fund Investments The unaffiliated partners in Fund III's investments in Arundel Plaza 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. During January 2016, Fund III completed the disposition of a 65% interest in Cortlandt Town Center for a sales price of $107.3 million. The Company now accounts for this investment 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. 5. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued) Summary of Investments in Unconsolidated Affiliates The following Aggregate and Condensed Balance Sheets and Statements of Income summarize the financial information of the Company’s investments in unconsolidated affiliates:
(dollars in thousands) | March 31, 2016 |  | December 31, 2015
Aggregate and Condensed Balance Sheets |  |  |
Assets |  |  |
Rental property, net | $ | 553,827 |  |  | $ | 302,976 |
Real estate under development | 40,059 |  |  | 35,743 |
Investment in unconsolidated affiliates | 6,853 |  |  | 6,853 |
Other assets | 47,813 |  |  | 47,083 |
Total assets | $ | 648,552 |  |  | $ | 392,655 |
Liabilities and partners’ equity |  |  |  |  |
Mortgage notes payable | $ | 340,417 |  |  | $ | 192,684 |
Other liabilities | 22,950 |  |  | 21,945 |
Partners’ equity | 285,185 |  |  | 178,026 |
Total liabilities and partners’ equity | $ | 648,552 |  |  | $ | 392,655 |
Company’s investment in and advances to unconsolidated affiliates | $ | 210,309 |  |  | $ | 173,277 |
Company's share of distributions in excess of income from, and investments in, unconsolidated affiliates | $ | (23,613 | ) |  | $ | (13,244 | )
| Three Months Ended
| March 31,
(dollars in thousands) | 2016 |  | 2015
Aggregate and Condensed Statements of Income |  |  |
Total revenues | $ | 13,372 |  |  | $ | 11,930 |
Operating and other expenses | (3,730 | ) |  | (3,857 | )
Interest and other finance expense | (2,736 | ) |  | (2,638 | )
Equity in earnings of unconsolidated affiliates | — |  |  | 66,655 |
Depreciation and amortization | (3,880 | ) |  | (2,307 | )
Net income | $ | 3,026 |  |  | $ | 69,783 |
Company’s share of net income | $ | 2,052 |  |  | $ | 6,691 |
Amortization of excess investment | (98 | ) |  | (98 | )
Company’s equity in earnings of unconsolidated affiliates | $ | 1,954 |  |  | $ | 6,593 |

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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=50485924&loc=d3e611322-123010 + Details
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