XML 28 R15.htm IDEA: XBRL DOCUMENT v3.3.1.900

Subordinate Loans

12 Months Ended

Dec. 31, 2015

Mortgage Loans on Real Estate [Line Items]

Loans

Schedule IV — Mortgage Loans on Real Estate

December 31, 2015

Property Type	Location		Interest Rate			Final Extended Maturity Date		Periodic Payment Terms		Face amount of loans				Carrying amount of loans
Commercial mortgage loans
Condo Conversion	New York		7.00	%		Sept - 16		Interest only		24,114				24,289
Condo Construction	Maryland		10.50	%		Mar-17		Interest only		65,125				65,087
Vacation Home Portfolio	Various		7.50	%		Apr-19		Principal and interest		94,147				93,277
Hotel	Pennsylvania		4.74	%		May-19		Interest only		34,000				33,994
Condo Construction	Maryland		10.75	%		Jun-17		Interest only		50,000				49,960
Multifamily	New York		4.41	%		Aug-19		Interest only		34,500				34,886
Mixed Use	Ohio		9.25	%		May-20		Interest only		165,000				163,173
Condo Conversion	New York		3.75	%		Jun-16		Interest only		67,300				67,038
Multifamily	North Dakota		6.15	%		Nov-19		Principal and interest		49,691				49,665
Vacation Home Portfolio	Various US cities		7.00	%		Nov-21		Interest only		50,000				49,595
Mixed Use	New York		7.25	%		Mar-17		Interest only		85,770				85,658
Retail redevelopment	Florida		6.25	%		Jan-18		Interest only		45,000				44,925
Retail redevelopment	Florida		6.25	%		Jul-17		Interest only		33,000				32,804
Retail	New York		10.25	%		Mar-17		Interest only		1,653				1,636
Hotel	New York		5.50	%		Sept-20		Interest only		98,373				97,381
Retail	New York		7.25	%		Mar-17		Interest only		5,910				5,858
Hotel	U.S. Virgin Islands		5.27	%		Jan-21		Interest only		42,000				41,600
Office	Virginia		5.53	%		Jan-20		Principal and interest		54,000				53,475
Total commercial mortgage loans										999,583				994,301
Subordinate loans (1)
Office	Michigan		13.00	%		Jun - 20		Principal and interest		8,753				8,753
Mixed Use	North Carolina		11.10	%		Aug - 22		Interest only		6,525				6,525
Office Complex	Missouri		11.75	%		Oct - 22		Principal and interest		9,566				9,566
Hotel Portfolio	Missouri		11.00	%		Feb - 18		Principal and interest		24,182				24,182
Warehouse Portfolio	Various US cities		11.50	%		May - 23		Interest only		32,000				32,000
Office Condo	New York		11.25	%		Jul - 22		Interest only		14,000				13,631
Condo Conversion	New York		7.00	%		Sept - 16		Interest only		6,386				6,415
Mixed Use	Various US cities		14.00	%		Dec - 18		Interest only		19,500				19,377
Mixed Use	England		10.25	%		Jan - 16		Interest only		50,676				50,676
Healthcare Portfolio	Various US		9.47	%		Jun - 19		Interest only		39,223				39,223
Ski Resort	Montana		14.00	%		Sept - 20		Interest only		15,000				14,878
Mixed Use	New York		10.69	%		Dec - 19		Interest only		88,368				87,818
Senior Housing	United Kingdom		8.83	%		Dec - 19		Principal and interest		79,735				79,735
Hotel	California		10.40	%		Jan-20		Principal and interest		20,000				20,000

Multifamily Portfolio	Florida		11.70	%		May-20		Interest only		22,000				21,895
Multifamily Portfolio	Florida		11.70	%		May-20		Interest only		15,500				15,426
Mixed Use	Various US		9.30	%		May-20		Interest only		45,000				44,854
Hotel	Arizona		11.50	%		Jul-25		Interest only		25,000				25,000
Hotel	Washington, DC		9.80	%		Jul-19		Interest only		20,000				19,934
Condo Development	New York		13.00	%		Jul-20		Interest only		34,184				33,567
Condo Conversion	New York		12.75	%		Jul-20		Interest only		52,418				51,941
Mixed Use	New York		10.25	%		Mar-17		Interest only		12,347				12,222
Mixed Use	New York		10.50	%		Oct-19		Interest only		30,000				29,785
Hotel	New York		5.50	%		Sept-20		Interest only		2,595				2,458
Destination Resort	Various US cities		9.10	%		May-22		Interest only		75,000				71,362
Multifamily	New York		10.75	%		May-19		Interest only		55,000				54,558
Hotel	New York		12.36	%		Mar-17		Interest only		50,000				49,522
Condo Pre-development	United Kingdom		11.14	%		Dec-16		Interest only		81,048				81,048
Multifamily	North Dakota		6.15	%		Nov-19		Interest only		5,000				5,000
Total subordinate loans										939,006				931,351
Total										$	1,938,589			$	1,925,652		(2	)

(1) Subject to prior liens.

(2) The aggregate cost for federal income tax purposes is $1,925,652.

The following table summarizes the changes in the carrying amounts of mortgage loans during 2015 and 2014.

Reconciliation of Carrying Amount of Loans

	2015				2014
Balance at beginning of year	$	1,019,702			$	658,583
New loans	1,366,062				802,664
Sales	(136,573		)		(4,950		)
Collections of principal	(348,516		)		(299,551		)
Discount accretion	9,096				4,316
Foreign currency loss	(6,116		)		(4,095		)
Payment-in-kind	21,997				16,570
Exchange for CMBS (held-to-maturity)	—				(153,835		)
Balance at the close of year	$	1,925,652			$	1,019,702

Subordinate Loans [Member]

Mortgage Loans on Real Estate [Line Items]

Loans

Subordinate Loans

The Company’s subordinate loan portfolio was comprised of the following as of December 31, 2015:

Description	Date of Investment		Maturity Date		Original Face Amount				Current Face Amount				Carrying Value				Coupon
Subordinate to the Company's commercial mortgage loans
Condo Conversion – New York, NY (1)	Aug-13		Sept-16		$	29,400			$	6,386			$	6,415			Floating
Mixed Use - Brooklyn, NY (1)	Aug-15		Mar-17		12,347				12,347				12,222				Floating
Hotel - New York, NY (1)(2)	Sept-15		Sept-18		2,562				2,595				2,458				Floating
Multifamily - Williston, ND (1)(3)	Dec-15		Nov-17		5,000				5,000				5,000				Floating
Total - Subordinate to the Company's commercial mortgage loans					$	49,309			$	26,328			$	26,095
Subordinate to third party commercial mortgage loans
Office - Michigan	May-10		Jun-20		$	9,000			$	8,753			$	8,753			Fixed
Mixed Use – North Carolina	Jul-12		Aug-22		6,525				6,525				6,525				Fixed
Office Complex - Missouri	Sept-12		Oct-22		10,000				9,566				9,566				Fixed
Hotel Portfolio – Rochester, MN	Jan-13		Feb-18		25,000				24,182				24,182				Fixed
Warehouse Portfolio - Various	May-13		May-23		32,000				32,000				32,000				Fixed
Office Condo - New York, NY	Jul-13		Jul-22		14,000				14,000				13,631				Fixed
Mixed Use - Various (3)	Dec-13		Dec-16		17,000				19,500				19,377				Fixed
Mixed Use - London, England	Apr-14		Jan-16		50,009				50,676				50,676				Fixed
Healthcare Portfolio - Various (4)	Jun-14		Jun-16		50,000				39,223				39,223				Floating
Ski Resort - Big Sky, MT	Aug-14		Sept-20		15,000				15,000				14,878				Fixed
Mixed Use - New York, NY (5)	Dec-14		Dec-17		81,715				88,368				87,818				Floating
Senior Housing - United Kingdom (3)	Jan-15		Dec-17		82,063				79,735				79,735				Floating
Hotel - Burbank, CA	Feb-15		Jan-20		20,000				20,000				20,000				Fixed
Multifamily Portfolio - Florida (4)	Apr-15		May-17		22,000				22,000				21,895				Floating
Multifamily Portfolio - Florida (4)	Apr-15		May-17		15,500				15,500				15,426				Floating
Mixed Use - Various (4)	Jun-15		May-17		45,000				45,000				44,854				Floating
Hotel - Phoenix, AZ	Jun-15		Jul-25		25,000				25,000				25,000				Fixed
Hotel - Washington, DC (3)	Jun-15		Jul-17		20,000				20,000				19,934				Floating
Condo Development - New York, NY (6)	Jun-15		Jul-19		33,840				34,184				33,567				Floating
Condo Conversion - New York, NY (3)	Jul-15		Aug-18		50,000				52,418				51,941				Floating
Mixed Use - New York, NY (7)	Sept-15		Oct-18		30,000				30,000				29,785				Floating
Destination Resort - Various (8)	Sept-15		May-18		75,000				75,000				71,362				Floating
Multifamily - New York, NY (9)	Oct-15		Nov-18		55,000				55,000				54,558				Floating
Hotel - New York, NY (10)	Dec-15		Mar-17		50,000				50,000				49,522				Floating
Condo Pre-development - United Kingdom (10)	Dec-15		Sept-16		81,994				81,048				81,048				Floating
Total - Subordinate to third party commercial mortgage loans					$	915,646			$	912,678			$	905,256
Total/Weighted Average					$	964,955			$	939,006			$	931,351			11.34	%

(1) At December 31, 2015, this loan was pledged to secure borrowings under the JPMorgan Facility. See Note 8 – Borrowings for a description of this facility.

(2) Includes two one-year extension options subject to certain conditions and the payment of an extension fee. As of December 31, 2015, the Company had $12,478 of unfunded loan commitments related to this loan.

(3) Includes two one-year extension options subject to certain conditions and the payment of an extension fee.

(4) Includes three one-year extension options subject to certain conditions and the payment of an extension fee.

(5) Includes a two one-year extension options subject to certain conditions and the payment of an extension fee. As of December 31, 2015, the Company had $785 of unfunded loan commitments related to this loan.

(6) Includes a one-year extension option subject to certain conditions and the payment of an extension fee. As of December 31, 2015, the Company had $41,160 of unfunded loan commitments related to this loan.

(7) Includes a one-year extension option subject to certain conditions and the payment of an extension fee.

(8) Includes four one-year extension options subject to certain conditions and the payment of an extension fee.

(9) Includes a six-month extension option subject to certain conditions and the payment of a fee.

(10) Includes a three-month extension option subject to certain conditions and the payment of a fee.

During June 2015, the Company received the full repayment of a subordinate loan secured by a pledge of the equity interest in a borrower that owns a mixed use property located in the central business district of Pittsburgh, Pennsylvania.

During July 2015, the Company received the full repayment of a subordinate loan secured by the pledge of the equity interests in a borrower that acquired five adjacent commercial buildings in the Gramercy Park neighborhood of New York City.

During August 2015, the Company sold a subordinate loan secured by a pledge of the equity interest in a borrower that owns a portfolio of hotels throughout the United States and retained an interest only strip that bore interest at 3.4%. The loan was repaid in December 2015.

During August 2015, the Company sold a subordinate loan secured by a pledge of the equity interest in a borrower that owns a hotel in New York, New York. The Company retained the rights to the prepayment penalty and received a prepayment fee $333 during December 2015.

During September 2015, the Company received the full repayment of a subordinate loan secured by a pledge of the equity interest in a borrower that owns a ski resort in California.

During October 2015, the Company received the full repayment of a subordinate loan secured by a pledge of the equity interest in a borrower that owns a condominium town in the TriBeCa neighborhood of New York City.

During October 2015, the Company received the full repayment of a subordinate loan secured by a pledge of the equity interests in the owner of two buildings in midtown Manhattan.

The Company’s subordinate loan portfolio was comprised of the following as of December 31, 2014:

Description	Date of Investment		Maturity Date		Original Face Amount				Current Face Amount				Carrying Value				Coupon
Subordinate to the Company's commercial mortgage loans
Condo Conversion – New York, NY (1)	Aug-13		Sept-15		$	29,400			$	29,751			$	29,762			Floating
Total - Subordinate to the Company's commercial mortgage loans					$	29,400			$	29,751			$	29,762
Subordinate to third party commercial mortgage loans
Office - Michigan	May-10		Jun-20		$	9,000			$	8,813			$	8,813			Fixed
Ski Resort - California	Apr-11		May-17		40,000				40,000				39,771				Fixed
Mixed Use – North Carolina	Jul-12		Aug-22		6,525				6,525				6,525				Fixed
Office Complex - Missouri	Sept-12		Oct-22		10,000				9,711				9,711				Fixed
Hotel Portfolio – Various (1)	Nov-12		Nov-15		50,000				34,042				33,995				Floating
Condo Construction – New York, NY (1)	Jan-13		Jul-17		60,000				76,344				76,005				Fixed
Multifamily Conversion – New York, NY (1)	Jan-13		Dec-15		18,000				14,608				14,703				Floating
Hotel Portfolio – Rochester, MN	Jan-13		Feb-18		25,000				24,486				24,486				Fixed
Warehouse Portfolio - Various	May-13		May-23		32,000				32,000				32,000				Fixed
Multifamily Conversion – New York, NY (2)	May-13		Feb-15		44,000				44,000				43,989				Floating
Office Condo - New York, NY	Jul-13		Jul-22		14,000				14,000				13,596				Fixed
Mixed Use - Pittsburgh, PA (3)	Aug-13		Aug-16		22,500				22,500				22,473				Floating
Mixed Use - Various (3)	Dec-13		Dec-16		17,000				19,464				19,294				Fixed
Mixed Use - London, England	Apr-14		Jan-15		50,009				52,355				52,355				Fixed
Healthcare Portfolio - Various (4)	Jun-14		Jun-16		50,000				50,000				50,000				Floating
Hotel - New York, NY (4)	Jul-14		Jul-16		20,000				20,000				19,870				Floating
Ski Resort - Big Sky, MT	Aug-14		Sept-20		15,000				15,000				14,861				Fixed
Mixed Use - New York, NY (5)	Dec-14		Dec-17		50,000				50,000				48,973				Floating
Total - Subordinate to third party commercial mortgage loans					$	533,034			$	533,848			$	531,420
Total/Weighted Average					$	562,434			$	563,599			$	561,182			11.34	%

(1) Includes a one-year extension option subject to certain conditions and the payment of an extension fee.

(2) Includes a three-month extension option subject to certain conditions and the payment of an extension fee.

(3) Includes two one-year extension options subject to certain conditions and the payment of a fee for each extension.

(4) Includes three one-year extension options subject to certain conditions and the payment of an extension fee.

(5) Includes two one-year extension options subject to certain conditions and the payment of a fee for each extension. At December 31, 2014, the Company had $32,500 of unfunded loan commitments related to this loan.

During January 2014, the Company received a $15,000 principal repayment from a subordinate loan secured by a pledge of the equity interests in the owner of a New York City hotel.

During June 2014, the Company received a $47,000 principal repayment from a mezzanine loan secured by a pledge of the equity interests in a portfolio of skilled nursing facilities.

During August 2014, the Company received the final repayment from a $50,000 mezzanine loan secured by a pledge of the equity interests in a borrower that owns a portfolio of seven office parks throughout Florida.

During November 2014, the Company received the final repayment from a $28,250 mezzanine loan secured by a pledge of the equity interests in a borrower that owns the leasehold interest in a hotel in New York City.

During the fourth quarter of 2014, the Company received the full repayment from a subordinate loan secured by a condominium conversion project in New York City.

The Company evaluates its loans for possible impairment on a quarterly basis. See Note 5 – Commercial Mortgage Loans for a summary of the metrics reviewed. The Company has determined that an allowance for loan loss was not necessary at December 31, 2015 and December 31, 2014.

X

- Definition

The entire disclosure for mortgage loans on real estate, this includes the supplemental information pertaining to each mortgage loan receivable that equals or exceeds three percent of the carrying amount of mortgages.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 948
-SubTopic 310
-Section S99
-Paragraph 1
-Subparagraph (SX 210.12-29)
-URI http://asc.fasb.org/extlink&oid=6589523&loc=d3e617274-123014

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section S99
-Paragraph 6
-Subparagraph (SX 210.5-04.(c) Schedule IV)
-URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 29
-Article 12

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph c
-Subparagraph Schedule IV
-Article 5

+ Details

Name:	us-gaap_MortgageLoansOnRealEstateByLoanDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

No definition available.

+ Details

Name:	us-gaap_MortgageLoansOnRealEstateLineItems
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	us-gaap_MortgageLoansOnRealEstateLoanTypeAxis=ari_SubordinateMortgageLoansMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type: