XML 71 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Commercial Mortgage Loans | 12 Months Ended
--- | ---
Dec. 31, 2012
Commercial Mortgage Loans | Note 5 – Commercial Mortgage Loans The Company’s commercial mortgage loan portfolio was comprised of the following at December 31, 2012:
Description |  | Date of Investment |  |  | Maturity Date |  |  | Original Face Amount |  |  | Current Face Amount |  |  | Carrying Value |  |  | Coupon |  |  | Amortization Schedule |  | Property Size
Hotel - NY, NY |  |  | Jan-10 |  |  |  | Feb-15 |  |  | $ | 32,000 |  |  | $ | 31,571 |  |  | $ | 31,571 |  |  |  | 8.25 | % |  | 30 year |  | 151 rooms
Office Condo (Headquarters) - NY, NY |  |  | Feb-10 |  |  |  | Feb-15 |  |  |  | 28,000 |  |  |  | 27,419 |  |  |  | 27,419 |  |  |  | 8.00 |  |  | 30 year |  | 73,419 sq. ft.
Hotel - Silver Spring, MD |  |  | Mar-10 |  |  |  | Apr-15 |  |  |  | 26,000 |  |  |  | 25,273 |  |  |  | 25,273 |  |  |  | 9.00 |  |  | 25 year |  | 263 rooms
Mixed Use - South Boston, MA (1) |  |  | Apr-12 |  |  |  | Dec-13 |  |  |  | 23,844 |  |  |  | 17,287 |  |  |  | 14,105 |  |  |  | 1.98 |  |  | Interest only |  | 20 acres
Condo Conversion - NY, NY (2) |  |  | Dec-12 |  |  |  | Jan-15 |  |  |  | 45,000 |  |  |  | 45,000 |  |  |  | 44,553 |  |  |  | 9.00 |  |  | Interest only |  | 119,000 sq. ft.
Total/Weighted Average |  |  |  |  |  |  |  |  |  | $ | 154,844 |  |  | $ | 146,550 |  |  | $ | 142,921 |  |  |  | 7.82 | % |  |  |  |
(1) | This loan is a senior sub-participation interest in a $120,000 first mortgage that bears interest at a rate of LIBOR plus 172 basis points and includes a one-year extension option subject to repayment of $33,000 of the entire first mortgage (of which the Company will receive its pro rata portion) and the payment of a 0.50% fee of the outstanding balance of the entire first mortgage.
(2) | Includes a 1.00% origination fee, a LIBOR floor of 0.50%, two one-year extension options subject to certain conditions and the payment of a 0.50% fee for each extension.
During April 2012, a $24,000 two-year fixed rate first mortgage loan on a 155-room boutique hotel in midtown Manhattan was repaid. The loan had an interest rate of 8.00%. The Company repaid $15,444 of borrowings under the Company’s $100,000 master repurchase facility entered into with JPMorgan Chase Bank, N.A. (the “JPMorgan Facility”) in conjunction with this repayment. The Company’s commercial mortgage loan portfolio was comprised of the following at December 31, 2011:
Description |  | Date of Investment |  |  | Maturity Date |  |  | Original Face Amount |  |  | Current Face Amount |  |  | Coupon |  |  | Amortization Schedule |  | Property Size
Hotel – NY, NY |  |  | Jan-10 |  |  |  | Feb-15 |  |  | $ | 32,000 |  |  | $ | 31,798 |  |  |  | 8.25 | % |  | 30 year |  | 151 rooms
Office Condo (Headquarters) – NY, NY |  |  | Feb-10 |  |  |  | Feb-15 |  |  |  | 28,000 |  |  |  | 27,644 |  |  |  | 8.00 |  |  | 30 year |  | 73,419 sq. ft.
Hotel – Silver Spring, MD |  |  | Mar-10 |  |  |  | Apr-15 |  |  |  | 26,000 |  |  |  | 25,564 |  |  |  | 9.00 |  |  | 25 year |  | 263 rooms
Hotel – NY, NY |  |  | Aug-10 |  |  |  | Aug-12 |  |  |  | 24,000 |  |  |  | 24,000 |  |  |  | 8.00 |  |  | Interest only |  | 155 rooms
Total |  |  |  |  |  |  |  |  |  | $ | 110,000 |  |  | $ | 109,006 |  |  |  | 8.31 | % |  |  |  |
The Company evaluates its loans for possible impairment on a quarterly basis. The Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations are sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan, and/or (iii) the property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such loan loss analyses are completed and reviewed by asset management and finance personnel, who utilize various data sources, including (i) periodic financial data such as debt service coverage ratio, property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, and (iii) current credit spreads and discussions with market participants. An allowance for loan loss is established when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. The Company has determined that an allowance for loan losses was not necessary at December 31, 2012 and 2011.

X
- Definition Commercial Mortgage Loans [Text Block] + References No definition available. + Details
Name: | ari_CommercialMortgageLoansTextBlock
Namespace Prefix: | ari_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration