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Real Estate | 9 Months Ended
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Sep. 30, 2022
Acquisition And Disposition Of Properties And Discontinued Operations [Abstract] |
Real Estate | 2. Rea l Estate The Company’s consolidated real estate is comprised of the following for the periods presented (in thousands):
|  | September 30, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
Land |  | $ | 829,313 |  |  | $ | 739,641 |
Buildings and improvements |  |  | 2,998,230 |  |  |  | 2,892,051 |
Tenant improvements |  |  | 213,316 |  |  |  | 199,925 |
Construction in progress |  |  | 13,117 |  |  |  | 11,131 |
Right-of-use assets - finance leases (Note 11) |  |  | 25,086 |  |  |  | 25,086 |
Total |  |  | 4,079,062 |  |  |  | 3,867,834 |
Less: Accumulated depreciation and amortization |  |  | (704,609 | ) |  |  | (648,461 | )
Operating real estate, net |  |  | 3,374,453 |  |  |  | 3,219,373 |
Real estate under development |  |  | 186,360 |  |  |  | 203,773 |
Net investments in real estate |  | $ | 3,560,813 |  |  | $ | 3,423,146 |
Acquisitions and Foreclosure During the nine months ended September 30, 2022 and the year ended December 31, 2021, the Company acquired (through purchase, investment or foreclosure) the following consolidated retail properties and other real estate investments (dollars in thousands):
Property and Location |  | Percent Acquired |  | Date of Acquisition |  | Purchase Price |
2022 Acquisitions and Foreclosure |  |  |  |  |  |  |
Core |  |  |  |  |  |  |
121 Spring Street - New York, NY |  | 100% |  | Jan 12, 2022 |  | $ | 39,637 |
Williamsburg Collection - Brooklyn, NY (a) |  | (a) |  | Feb 18, 2022 |  |  | 97,750 |
8833 Beverly Boulevard - West Hollywood, CA |  | 100% |  | Mar 2, 2022 |  |  | 24,117 |
Henderson Avenue Portfolio - Dallas, TX (b) |  | 100% |  | Apr 18, 2022 |  |  | 85,192 |
Subtotal Core |  |  |  |  |  |  | 246,696 |
Fund III |  |  |  |  |  |  |
640 Broadway - New York, NY (Foreclosure) (c) |  | 100% |  | Jan 26, 2022 |  |  | 59,207 |
Subtotal Fund III |  |  |  |  |  |  | 59,207 |
Total 2022 Acquisitions and Foreclosure |  |  |  |  |  | $ | 305,903 |
2021 Acquisitions |  |  |  |  |  |  |
Core |  |  |  |  |  |  |
14th Street Portfolio - Washington, DC |  | 100% |  | Dec 23, 2021 |  | $ | 26,320 |
Subtotal Core |  |  |  |  |  |  | 26,320 |
Fund V |  |  |  |  |  |  |
Canton Marketplace - Canton, GA |  | 100% |  | Aug 20, 2021 |  |  | 50,954 |
Monroe Marketplace - Selinsgrove, PA |  | 100% |  | Sept 9, 2021 |  |  | 44,796 |
Monroe Marketplace (Parcel) - Selinsgrove, PA |  | 100% |  | Nov 12, 2021 |  |  | 1,029 |
Midstate - East Brunswick, NJ |  | 100% |  | Dec 14, 2021 |  |  | 71,867 |
Subtotal Fund V |  |  |  |  |  |  | 168,646 |
Total 2021 Acquisitions |  |  |  |  |  | $ | 194,966 |
a) The Company invested $2.8 million in its 49.99% equity interest and, through a separate lending subsidiary, provided a $64.1 million first mortgage loan and a $30.9 million mezzanine loan to subsidiaries of the venture (such equity and loans have been eliminated in consolidation). Pursuant to the entity’s operating agreement, the venture partner has a one-time right to put its 50.01% interest in the entity (the "Williamsburg NCI", which is further described in Note 10) to the Company for fair value at a future date. Given the preferred rate of return of the Company embedded in its equity interests and the accruing debt senior to the equity, the Company did not attribute any initial redemption value to the Williamsburg NCI and recognized a bargain purchase gain of $1.2 million, which is included in Realized and unrealized holding (losses) gains on investments and other in the consolidated statements of operations. b) The Henderson Avenue Portfolio comprises 14 operating retail assets, one residential building and two development and redevelopment sites. One of the development sites was sold in October 2022 (Note 15). c) The entity was previously accounted for as an equity method investment until an affiliate of Fund III acquired the venture partner's interest in a foreclosure action. Fund III now indirectly owns 100% of the entity and consolidates it (Note 4). For the nine months ended September 30, 2022 and the year ended December 31, 2021, the Company capitalized $1.2 million and $3.6 million of acquisition costs in connection with the 2022 Acquisitions and Foreclosure and the 2021 Acquisitions, respectively. In addition, during the nine months ended September 30, 2022, the Company expensed $2.0 million o f acquisition costs (including a $1.5 million acquisition fee paid to an affiliate of a joint venture partner). Acquisition costs that were expensed are included in General and administrative expenses in the consolidated statements of operations. During the nine months ended September 30, 2022, the Company assumed a $36.0 million mortgage with the consolidation of 640 Broadway and during the year ended December 31, 2021, the Company assumed a $31.8 million mortgage with the acquisition of Canton Marketplace (Note 7). Purchase Price Allocations The purchase prices for the 2022 Acquisitions and Foreclosure and 2021 Acquisitions were allocated to the acquired assets and assumed liabilities based on their estimated fair values at the dates of acquisition. The following table summarizes the allocation of the purchase price of properties acquired during the periods presented (in thousands):
|  | Nine Months Ended September 30, |  |  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |
Net Assets Acquired |  |  |  |  |  |
Land |  | $ | 119,898 |  |  | $ | 37,290 |
Buildings and improvements |  |  | 168,862 |  |  |  | 134,065 |
Acquisition-related intangible assets (Note 6) |  |  | 29,016 |  |  |  | 39,953 |
Accounts receivable, prepaids and other assets |  |  | 4,077 |  |  |  | — |
Accounts payable and other liabilities |  |  | (661 | ) |  |  | — |
Acquisition-related intangible liabilities (Note 6) |  |  | (14,126 | ) |  |  | (16,342 | )
Net assets acquired |  | $ | 307,066 |  |  | $ | 194,966 |
Consideration |  |  |  |  |  |
Cash |  | $ | 242,633 |  |  | $ | 161,846 |
Carrying value of note receivable exchanged in foreclosure (Note 3) |  |  | 5,416 |  |  |  | — |
Existing interest in previously unconsolidated investment (Note 4) |  |  | 17,822 |  |  |  | — |
Debt assumed |  |  | 35,970 |  |  |  | 31,801 |
Liabilities assumed |  |  | 4,062 |  |  |  | 1,319 |
Total consideration |  |  | 305,903 |  |  |  | 194,966 |
Gain on bargain purchase |  |  | 1,163 |  |  |  | — |
|  | $ | 307,066 |  |  | $ | 194,966 |
Dispositions During the nine months ended September 30, 2022 and the year ended December 31, 2021, the Company disposed of the following consolidated properties and other real estate investments (in thousands):
Property and Location |  | Owner |  | Date Sold |  | Sale Price |  |  | Gain on Sale |
2022 Dispositions |  |  |  |  |  |  |  |  |  |
NE Grocer Portfolio (Selected Assets) - Pennsylvania |  | Fund IV |  | Jan 26, 2022 Mar 4, 2022 |  | $ | 45,350 |  |  | $ | 13,784 |
New Towne (Parcel) - Canton, MI |  | Fund V |  | Feb 1, 2022 |  |  | 2,231 |  |  |  | 1,776 |
Cortlandt Crossing - Westchester County, NY |  | Fund III |  | Feb 9, 2022 |  |  | 65,533 |  |  |  | 13,255 |
Lincoln Place - Fairview Heights, IL |  | Fund IV |  | May 25, 2022 |  |  | 40,670 |  |  |  | 12,216 |
Wake Forest Crossing - Wake Forest, NC |  | Fund IV |  | Aug 24, 2022 |  |  | 38,919 |  |  |  | 8,885 |
Total 2022 Dispositions |  |  |  |  |  | $ | 192,703 |  |  | $ | 49,916 |
2021 Dispositions |  |  |  |  |  |  |  |  |  |
60 Orange St - Bloomfield, NJ |  | Core |  | Jan 29, 2021 |  | $ | 16,400 |  |  | $ | 4,612 |
654 Broadway - New York, NY |  | Fund III |  | May 19, 2021 |  |  | 10,000 |  |  |  | 111 |
NE Grocer Portfolio (Selected Assets) - ME |  | Fund IV |  | Jun 18, 2021 |  |  | 39,925 |  |  |  | 5,064 |
Total 2021 Dispositions (a) |  |  |  |  |  | $ | 66,325 |  |  | $ | 9,787 |
a) Does not include the gain on lease termination of $0.7 million related to the Fund IV lease at 110 University Place (Note 11). Properties Held for Sale or Sold At September 30, 2022, the Company had one property under contract for sale with assets totaling $11.1 million, which was probable of disposition. The property was classified as "held for sale" on the Company's consolidated balance sheets at September 30, 2022. The aggregate rental revenue, expenses and pre-tax income reported within continuing operations for the aforementioned consolidated properties that were sold as well as the lease that was terminated (Note 11) during the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |  |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |  |
Revenues |  | $ | 929 |  |  | $ | 4,335 |  |  | $ | 5,429 |  |  | $ | 15,997 |  |
Expenses |  |  | (620 | ) |  |  | (3,815 | ) |  |  | (4,112 | ) |  |  | (14,658 | ) |
Gain on disposition of properties |  |  | 8,885 |  |  |  | — |  |  |  | 49,916 |  |  |  | 10,521 |  |
Net income attributable to noncontrolling interests |  |  | (7,069 | ) |  |  | (401 | ) |  |  | (39,251 | ) |  |  | (5,583 | ) |
Net income attributable to Acadia |  | $ | 2,125 |  |  | $ | 119 |  |  | $ | 11,982 |  |  | $ | 6,277 |  |
Real Estate Under Development and Construction in Progress Real estate under development represents the Company’s consolidated properties that have not yet been placed into service while undergoing substantial development or construction. Development activity for the Company’s consolidated properties comprised the following during the periods presented (dollars in thousands):
|  | January 1, 2022 |  |  | Nine Months Ended September 30, 2022 |  |  | September 30, 2022 |
|  | Number of Properties |  |  | Carrying Value |  |  | Transfers In |  |  | Capitalized Costs |  |  | Transfers Out |  |  | Number of Properties |  |  | Carrying Value |
Core |  |  | — |  |  | $ | 42,517 |  |  | $ | 9,610 |  |  | $ | 1,854 |  |  | $ | — |  |  |  | 2 |  |  | $ | 53,981 |
Fund II |  |  | — |  |  |  | 35,125 |  |  |  | — |  |  |  | 1,487 |  |  |  | — |  |  |  | — |  |  |  | 36,612 |
Fund III |  |  | 1 |  |  |  | 24,296 |  |  |  | — |  |  |  | 1,077 |  |  |  | — |  |  |  | 1 |  |  |  | 25,373 |
Fund IV (a) |  |  | 1 |  |  |  | 101,835 |  |  |  | — |  |  |  | 82 |  |  |  | 31,523 |  |  |  | 1 |  |  |  | 70,394 |
Total |  |  | 2 |  |  | $ | 203,773 |  |  | $ | 9,610 |  |  | $ | 4,500 |  |  | $ | 31,523 |  |  |  | 4 |  |  | $ | 186,360 |
a) Transfers out include $12.9 million related to a portion of one Fund IV property that was transferred out of development and an impairment charge totaling $18.7 million on one Fund IV development property (Note 8).
|  | January 1, 2021 |  |  | Year Ended December 31, 2021 |  |  | December 31, 2021 |
|  | Number of Properties |  |  | Carrying Value |  |  | Transfers In |  |  | Capitalized Costs |  |  | Transfers Out |  |  | Number of Properties |  |  | Carrying Value |
Core |  |  | — |  |  | $ | 63,875 |  |  | $ | — |  |  | $ | 1,855 |  |  | $ | 23,213 |  |  |  | — |  |  | $ | 42,517 |
Fund II |  |  | — |  |  |  | 74,657 |  |  |  | — |  |  |  | 3,921 |  |  |  | 43,453 |  |  |  | — |  |  |  | 35,125 |
Fund III |  |  | 1 |  |  |  | 23,104 |  |  |  | — |  |  |  | 1,192 |  |  |  | — |  |  |  | 1 |  |  |  | 24,296 |
Fund IV (a) |  |  | 2 |  |  |  | 85,565 |  |  |  | 29,758 |  |  |  | 2,026 |  |  |  | 15,514 |  |  |  | 1 |  |  |  | 101,835 |
Total |  |  | 3 |  |  | $ | 247,201 |  |  | $ | 29,758 |  |  | $ | 8,994 |  |  | $ | 82,180 |  |  |  | 2 |  |  | $ | 203,773 |
a) Transfers in include $29.8 million related to the remaining portion of one Fund IV property that was placed in development. The number of properties in the tables above refers to projects comprising the entire property under development; however, certain projects represent a portion of a property. At September 30, 2022, consolidated development projects included: a portion of City Center and the Henderson Portfolio for the Core Portfolio, portions of City Point Phase I and II at Fund II, Broad Hollow Commons at Fund III, and a portion of 717 N. Michigan Avenue at Fund IV. In addition, at September 30, 2022, the Company had one Core unconsolidated development project, 1238 Wisconsin Avenue. During the nine months ended September 30, 2022, the Company: • placed a portion of one Fund IV property, 717 N. Michigan Avenue, into service in the first quarter; and • placed two Core properties in the Henderson Portfolio into development in the second quarter. At December 31, 2021, consolidated development projects included: a portion of City Center for Core, portions of City Point Phase I and II at Fund II, Broad Hollow Commons at Fund III and 717 N. Michigan Avenue at Fund IV. In addition, at December 31, 2021, the Company had one Core unconsolidated development project, 1238 Wisconsin Avenue. During the year ended December 31, 2021, the Company: • placed portions of one Core project, City Center, into service in the first and second quarters of 2021; • disposed of building improvements related to one Fund IV project, 110 University Place, in connection with a lease termination in the second quarter of 2021 (Note 11); • placed the remaining portion of one Fund IV property, 717 N. Michigan Avenue, into development in the fourth quarter of 2021; and • placed a portion of Fund II’s City Point Phase III into service in the fourth quarter of 2021. Construction in progress pertains to construction activity at the Company’s operating properties that are in service and continue to operate during the construction period.

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- Definition Acquisition and disposition of properties and discontinued operations. + References No definition available. + Details
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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 + Details
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