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INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES | 9 Months Ended
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Sep. 30, 2016
Equity Method Investments and Joint Ventures [Abstract] |
INVESTMENTS IN AND ADVANCES TO UNCOLSOLIDATED AFFILIATES | INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES Core Portfolio The Company owns a 49% noncontrolling 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 financial or operating control. During January 2016, the Company completed the acquisition of a 49% noncontrolling 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 non-recourse 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 financial or operating control. During May 2016, the Company completed the acquisition of a 20% noncontrolling interest in a portfolio of 17 mixed-use properties, 16 of which are located in Georgetown, Washington D.C. and one which is located in Alexandria, Virginia (the "Renaissance Portfolio"). The Company accounts for this investment under the equity method as it has the ability to exercise significant influence, but does not have financial or operating control. The Company owns a 22.22% interest in an approximately one million square foot retail portfolio (the "Brandywine Portfolio") located in Wilmington, Delaware. Prior to the second quarter of 2016, the Company had a controlling interest in the Brandywine Portfolio, and it was therefore consolidated within the Company’s financial statements. During the second quarter of 2016, the arrangement with the partners of the Brandywine Portfolio was modified to change the legal ownership from a partnership to a tenancy in common (“TIC”), as well as to provide certain participating rights to the outside partners. As a result of these modifications, the Company deconsolidated the Brandywine Portfolio and accounts for its interest under the equity method of accounting. Furthermore, as the owners of the Brandywine Portfolio had consistent ownership interests before and after the modification and the underlying nets assets are unchanged, the Company has reflected the change from consolidation to equity method based upon its historical cost. 5. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED AFFILIATES (continued) Additionally, during the quarter ended June 30, 2016, the outstanding balance of $140.0 million of non-recourse debt collateralized by the Brandywine Portfolio was repaid. The Company provided a loan collateralized by the partners’ ownership interest in the TIC, as further described in Note 6, for their proportionate share of the repayment. 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 September 30, 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 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 Albertsons, 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 nine months ended September 30, 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 September 30, 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 | 21,108 |  |  | 81,594 |  |  | 4,350 |  |  | 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 |  | $ | 63,607 |  |  | $ | 155,604 |  |  | $ | 12,181 |  |  | $ | 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, 650 Bald Hill Road 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 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 its remaining 35% interest under the equity method as it has the ability to exercise significant influence, but does not have 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) | September 30, 2016 |  | December 31, 2015
Aggregate and Condensed Balance Sheets |  |  |
Assets |  |  |
Rental property, net | $ | 734,311 |  |  | $ | 302,976 |
Real estate under development | 23,486 |  |  | 35,743 |
Investment in unconsolidated affiliates | 6,853 |  |  | 6,853 |
Other assets | 95,264 |  |  | 47,083 |
Total assets | $ | 859,914 |  |  | $ | 392,655 |
Liabilities and partners’ equity |  |  |  |  |
Mortgage notes payable | $ | 499,899 |  |  | $ | 192,684 |
Other liabilities | 51,472 |  |  | 21,945 |
Partners’ equity | 308,543 |  |  | 178,026 |
Total liabilities and partners’ equity | $ | 859,914 |  |  | $ | 392,655 |
Company’s investment in and advances to unconsolidated affiliates | $ | 273,576 |  |  | $ | 173,277 |
Company's share of distributions in excess of income from, and investments in, unconsolidated affiliates | $ | (24,249 | ) |  | $ | (13,244 | )
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
(dollars in thousands) | 2016 |  | 2015 |  | 2016 |  | 2015
Aggregate and Condensed Statements of Income |  |  |  |  |  |  |
Total revenues | $ | 26,590 |  |  | $ | 10,712 |  |  | $ | 58,984 |  |  | $ | 32,727 |
Operating and other expenses | (7,066 | ) |  | (3,022 | ) |  | (18,082 | ) |  | (9,855 | )
Interest and other finance expense | (5,242 | ) |  | (2,183 | ) |  | (11,355 | ) |  | (7,080 | )
Equity in earnings of unconsolidated affiliates | — |  |  | — |  |  | — |  |  | 66,655 |
Depreciation and amortization | (15,398 | ) |  | (2,791 | ) |  | (24,262 | ) |  | (7,828 | )
(Loss) gain on disposition of property | (1,452 | ) |  | 7,416 |  |  | (1,452 | ) |  | 32,623 |
Net (loss) income | $ | (2,568 | ) |  | $ | 10,132 |  |  | $ | 3,833 |  |  | $ | 107,242 |
Company’s share of net (loss) income | $ | 377 |  |  | $ | 9,231 |  |  | $ | 4,267 |  |  | $ | 36,531 |
Amortization of excess investment | (479 | ) |  | (98 | ) |  | (675 | ) |  | (294 | )
Company’s equity in (losses) earnings of unconsolidated affiliates | $ | (102 | ) |  | $ | 9,133 |  |  | $ | 3,592 |  |  | $ | 36,237 |

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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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