XML 28 R15.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Subordinate Loans | 12 Months Ended
--- | ---
Dec. 31, 2016
Mortgage Loans on Real Estate [Line Items] |
Loans | Schedule IV — Mortgage Loans on Real Estate December 31, 2016
Property Type | Location |  | Contractual Interest Rate |  | Final Extended Maturity Date (1) |  | Periodic Payment Terms |  | Face amount of loans |  | Carrying amount of loans |
Commercial mortgage loans |  |  |  |  |  |  |  |  |  |  |  |
Condo Construction | Maryland |  | L+15.00% |  | Apr-17 |  | Interest only |  | $51,695 |  | $52,476 |
Vacation Home Portfolio | Various |  | 7.50% |  | Apr-19 |  | Principal and interest |  | 88,876 |  | 88,195 |
Hotel | Pennsylvania |  | L+4.55% |  | May-19 |  | Interest only |  | 34,000 |  | 33,987 |
Mixed Use | Ohio |  | L+9.00% |  | May-20 |  | Interest only |  | 165,000 |  | 163,987 |
Multifamily | North Dakota |  | L+5.90% |  | Nov-19 |  | Interest only |  | 49,706 |  | 39,713 |
Vacation Home Portfolio | Various US cities |  | 7.00% |  | Nov-21 |  | Interest only |  | 59,500 |  | 59,193 |
Mixed Use | New York |  | L+7.00% |  | Mar-17 |  | Interest only |  | 85,770 |  | 86,142 |
Retail redevelopment | Florida |  | L+6.00% |  | Jan-18 |  | Interest only |  | 45,000 |  | 45,415 |
Retail | New York |  | L+7.00% |  | Mar-17 |  | Interest only |  | 23,000 |  | 23,012 |
Hotel | New York |  | L+5.25% |  | Sept-20 |  | Interest only |  | 108,857 |  | 108,768 |
Retail | New York |  | L+7.00% |  | Mar-17 |  | Interest only |  | 5,910 |  | 5,921 |
Hotel | U.S. Virgin Islands |  | L+4.95% |  | Jan-21 |  | Interest only |  | 42,000 |  | 41,795 |
Office | Virginia |  | L+5.15% |  | Jan-20 |  | Interest only |  | 54,000 |  | 53,849 |
Retail redevelopment | Florida |  | L+6.25% |  | Jan-19 |  | Interest only |  | 220,000 |  | 218,771 |
Office | Massachusetts |  | L+6.25% |  | Sept-18 |  | Interest only |  | 28,659 |  | 28,543 |
Mixed Use | New York |  | L+6.00% |  | Dec-18 |  | Interest only |  | 45,789 |  | 45,541 |
Condo Conversion | New York |  | L+6.50% |  | Jun-18 |  | Interest only |  | 41,016 |  | 40,825 |
Hotel | New York |  | L+6.30% |  | Aug-21 |  | Interest only |  | 78,140 |  | 77,297 |
Mixed Use | Illinois |  | L+5.50% |  | Oct-20 |  | Interest only |  | 129,397 |  | 128,271 |
Retail | New York |  | L+7.00% |  | Mar-17 |  | Interest only |  | 7,500 |  | 7,489 |
Data Center | Virginia |  | 8.00% |  | Aug-19 |  | Interest only |  | 80,000 |  | 79,634 |
Retail | New York |  | L+5.75% |  | Dec-18 |  | Interest only |  | 60,300 |  | 59,775 |
Office | New York |  | L+4.70% |  | Dec-18 |  | Interest only |  | 105,000 |  | 104,005 |
Mixed Use Pre-development | California |  | L+6.75% |  | Dec-20 |  | Interest only |  | 50,000 |  | 49,252 |
Total commercial mortgage loans |  |  |  |  |  |  |  | $1,659,115 |  | $1,641,856 |
Subordinate loans (2) |  |  |  |  |  |  |  |  |  |  |  |
Mixed Use | North Carolina |  | 11.10% |  | Aug - 22 |  | Interest only |  | $6,525 |  | $6,525 |
Office Complex | Missouri |  | 11.75% |  | Oct - 22 |  | Principal and interest |  | 9,414 |  | 9,414 |
Hotel Portfolio | Missouri |  | 11.00% |  | Feb - 18 |  | Principal and interest |  | 23,863 |  | 23,863 |
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 |  | 13,679 |
Ski Resort | Montana |  | 14.00% |  | Sept - 20 |  | Interest only |  | 15,000 |  | 14,773 |
Mixed Use | New York |  | L+10.50% |  | Dec - 19 |  | Interest only |  | 99,581 |  | 99,660 |
Senior Housing | United Kingdom |  | 3ML+8.25% |  | Dec - 19 |  | Principal and interest |  | 41,693 |  | 41,693 |
Hotel | California |  | 10.40% |  | Jan-20 |  | Interest only |  | 20,000 |  | 20,000 |
Multifamily Portfolio | Florida |  | L+11.50% |  | May-20 |  | Interest only |  | 22,000 |  | 21,967 |
Multifamily Portfolio | Florida |  | L+11.50% |  | May-20 |  | Interest only |  | 15,500 |  | 15,477 |
Mixed Use | Various US |  | L+9.05% |  | May-20 |  | Interest only |  | 45,000 |  | 45,174 |
Hotel | Arizona |  | 11.50% |  | Jul-25 |  | Interest only |  | 25,000 |  | 25,000 |
Hotel | Washington, DC |  | L+9.60% |  | Jul-19 |  | Interest only |  | 20,000 |  | 19,978 |
Condo Development | New York |  | L+12.75% |  | Jul-20 |  | Interest only |  | 56,925 |  | 56,693 |
Condo Conversion | New York |  | L+12.25% |  | Aug-20 |  | Interest only |  | 59,636 |  | 59,442 |
Mixed Use | New York |  | L+10.00% |  | Oct-19 |  | Interest only |  | 30,000 |  | 29,926 |
Hotel | New York |  | L+5.25% |  | Sept-20 |  | Interest only |  | 7,573 |  | 7,513 |
Destination Resort | Various US cities |  | L+8.90% |  | May-22 |  | Interest only |  | 75,000 |  | 72,877 |
Multifamily | New York |  | L+10.50% |  | May-19 |  | Interest only |  | 55,000 |  | 54,775 |
Hotel | New York |  | L+12.00% |  | Mar-17 |  | Interest only |  | 50,000 |  | 50,228 |
Condo Pre-development | United Kingdom |  | 3ML+12.50% |  | Dec-17 |  | Interest only |  | 123,400 |  | 123,400 |
Multifamily | North Dakota |  | L+5.90% |  | Nov-19 |  | Interest only |  | 5,000 |  | — |
Condo Conversion | New York |  | L+10.75% |  | Jul-20 |  | Interest only |  | 48,944 |  | 48,399 |
Healthcare Portfolio | Various US |  | L+10.00% |  | Oct-21 |  | Interest only |  | 130,000 |  | 128,856 |
Mixed Use | New York |  | L+12.00% |  | Oct-20 |  | Interest only |  | 30,175 |  | 29,924 |
Total subordinate loans |  |  |  |  |  |  |  |  | $1,061,229 |  | $1,051,236 |
Total |  |  |  |  |  |  |  | $2,720,344 |  | $2,693,092 | (3 | )
(1) | Assumes all extension options are exercised.
(2) | Subject to prior liens.
(3) | The aggregate cost for federal income tax purposes is $2,708,092.
The following table summarizes the changes in the carrying amounts of mortgage loans during 2016 and 2015. Reconciliation of Carrying Amount of Loans
| 2016 |  | 2015
Balance at beginning of year | $ | 1,925,652 |  |  | $ | 1,019,702 |
Funding of loans | 1,127,039 |  |  | 1,366,062 |
Sales | — |  |  | (136,573 | )
Collections of principal | (331,189 | ) |  | (348,516 | )
Participation sold | (24,051 | ) |  |
Discount accretion | 13,656 |  |  | 9,096 |
Provision for loan losses | (15,000 | ) |  | — |
Foreign currency loss | (33,383 | ) |  | (6,116 | )
Payment-in-kind | 30,368 |  |  | 21,997 |
Balance at the close of year | $ | 2,693,092 |  |  | $ | 1,925,652 |
Subordinate Mortgage Portfolio Segment [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, 2016:
Description | Maturity Date (1) |  | Current Principal Balance |  | Carrying Value |  | Unfunded Commitment |  | Fixed / Floating
Subordinate to the Company's commercial mortgage loans |  |  |  |  |  |  |  |  |
Hotel - New York, NY | Sept-18 |  | $ | 7,573 |  |  | $ | 7,513 |  |  | $ | 7,501 |  |  | Floating
Multifamily - Williston, ND | Nov-17 |  | 5,000 |  |  | — |  |  | — |  |  | Floating
Total - Subordinate to the Company's commercial mortgage loans |  | $ | 12,573 |  |  | $ | 7,513 |  |  | $ | 7,501 |  |  |
Subordinate to third party commercial mortgage loans |  |  |  |  |  |  |  |
Mixed Use – North Carolina | Aug-22 |  | $ | 6,525 |  |  | $ | 6,525 |  |  | $ | — |  |  | Fixed
Office Complex - Missouri | Oct-22 |  | 9,414 |  |  | 9,414 |  |  | — |  |  | Fixed
Hotel Portfolio – Rochester, MN | Feb-18 |  | 23,863 |  |  | 23,863 |  |  | — |  |  | Fixed
Warehouse Portfolio - Various | May-23 |  | 32,000 |  |  | 32,000 |  |  | — |  |  | Fixed
Office Condo - New York, NY | Jul-22 |  | 14,000 |  |  | 13,679 |  |  | — |  |  | Fixed
Ski Resort - Big Sky, MT | Sept-20 |  | 15,000 |  |  | 14,773 |  |  | — |  |  | Fixed
Mixed Use - New York, NY | Dec-17 |  | 99,581 |  |  | 99,660 |  |  | — |  |  | Floating
Senior Housing - United Kingdom | Dec-17 |  | 41,693 |  |  | 41,693 |  |  | — |  |  | Floating
Hotel - Burbank, CA | Jan-20 |  | 20,000 |  |  | 20,000 |  |  | — |  |  | Fixed
Multifamily Portfolio - Florida | May-17 |  | 22,000 |  |  | 21,967 |  |  | — |  |  | Floating
Multifamily Portfolio - Florida | May-17 |  | 15,500 |  |  | 15,477 |  |  | — |  |  | Floating
Mixed Use - Various | May-17 |  | 45,000 |  |  | 45,174 |  |  | — |  |  | Floating
Hotel - Phoenix, AZ | Jul-25 |  | 25,000 |  |  | 25,000 |  |  | — |  |  | Fixed
Hotel - Washington, DC | Jul-17 |  | 20,000 |  |  | 19,978 |  |  | — |  |  | Floating
Condo Development - New York, NY | Jul-19 |  | 56,925 |  |  | 56,693 |  |  | 19,830 |  |  | Floating
Condo Conversion - New York, NY | Aug-18 |  | 59,636 |  |  | 59,442 |  |  | — |  |  | Floating
Mixed Use - New York, NY | Oct-18 |  | 30,000 |  |  | 29,926 |  |  | — |  |  | Floating
Destination Resort - Various | May-18 |  | 75,000 |  |  | 72,877 |  |  | — |  |  | Floating
Multifamily - New York, NY | Nov-18 |  | 55,000 |  |  | 54,775 |  |  | — |  |  | Floating
Hotel - New York, NY | Mar-17 |  | 50,000 |  |  | 50,228 |  |  |  |  | Floating
Condo Pre-development - United Kingdom | Sept-17 |  | 123,400 |  |  | 123,400 |  |  | — |  |  | Floating
Condo Conversion - New York, NY | Jul-19 |  | 48,944 |  |  | 48,399 |  |  | 28,056 |  |  | Floating
Healthcare Portfolio - Various | Oct-18 |  | 130,000 |  |  | 128,856 |  |  | — |  |  | Floating
Mixed Use - New York, NY | Oct-19 |  | 30,175 |  |  | 29,924 |  |  | — |  |  | Floating
Total - Subordinate to third party commercial mortgage loans |  | $ | 1,048,656 |  |  | $ | 1,043,723 |  |  | $ | 47,886 |  |  |
Total |  | $ | 1,061,229 |  |  | $ | 1,051,236 |  |  | $ | 55,387 |  |  |
(1) | Represents contractual maturity date excluding extension options.
The Company’s subordinate loan portfolio was comprised of the following as of December 31, 2015:
Description | Maturity Date (2) |  | Current Principal Balance |  | Carrying Value |  | Unfunded Commitment |  | Fixed / Floating
Subordinate to the Company's commercial mortgage loans |  |  |  |  |  |  |  |
Condo Conversion – New York, NY (1) | Sept-16 |  | $ | 6,386 |  |  | $ | 6,415 |  |  | $— |  | Floating
Mixed Use - Brooklyn, NY (1) | Mar-17 |  | 12,347 |  |  | 12,222 |  |  | — |  | Floating
Hotel - New York, NY (1) | Sept-18 |  | 2,595 |  |  | 2,458 |  |  | 12,478 |  |  | Floating
Multifamily - Williston, ND (1) | Nov-17 |  | 5,000 |  |  | 5,000 |  |  | — |  | Floating
Total - Subordinate to the Company's commercial mortgage loans |  | $ | 26,328 |  |  | $ | 26,095 |  |  | $12,478 |  |
Subordinate to third party commercial mortgage loans |  |  |  |  |  |  |  |
Office - Michigan | Jun-20 |  | $ | 8,753 |  |  | $ | 8,753 |  |  | $— |  | Fixed
Mixed Use – North Carolina | Aug-22 |  | 6,525 |  |  | 6,525 |  |  | — |  | Fixed
Office Complex - Missouri | Oct-22 |  | 9,566 |  |  | 9,566 |  |  | — |  | Fixed
Hotel Portfolio – Rochester, MN | Feb-18 |  | 24,182 |  |  | 24,182 |  |  | — |  | Fixed
Warehouse Portfolio - Various | May-23 |  | 32,000 |  |  | 32,000 |  |  | — |  | Fixed
Office Condo - New York, NY | Jul-22 |  | 14,000 |  |  | 13,631 |  |  | — |  | Fixed
Mixed Use - Various | Dec-16 |  | 19,500 |  |  | 19,377 |  |  | — |  | Fixed
Mixed Use - London, England | Jan-16 |  | 50,676 |  |  | 50,676 |  |  | — |  | Fixed
Healthcare Portfolio - Various | Jun-16 |  | 39,223 |  |  | 39,223 |  |  | — |  | Floating
Ski Resort - Big Sky, MT | Sept-20 |  | 15,000 |  |  | 14,878 |  |  | — |  | Fixed
Mixed Use - New York, NY | Dec-17 |  | 88,368 |  |  | 87,818 |  |  | 785 |  | Floating
Senior Housing - United Kingdom | Dec-17 |  | 79,735 |  |  | 79,735 |  |  | — |  | Floating
Hotel - Burbank, CA | Jan-20 |  | 20,000 |  |  | 20,000 |  |  | — |  | Fixed
Multifamily Portfolio - Florida | May-17 |  | 22,000 |  |  | 21,895 |  |  | — |  | Floating
Multifamily Portfolio - Florida | May-17 |  | 15,500 |  |  | 15,426 |  |  | — |  | Floating
Mixed Use - Various | May-17 |  | 45,000 |  |  | 44,854 |  |  | — |  | Floating
Hotel - Phoenix, AZ | Jul-25 |  | 25,000 |  |  | 25,000 |  |  | — |  | Fixed
Hotel - Washington, DC | Jul-17 |  | 20,000 |  |  | 19,934 |  |  | — |  | Floating
Condo Development - New York, NY | Jul-19 |  | 34,184 |  |  | 33,567 |  |  | 41,160 |  | Floating
Condo Conversion - New York, NY | Aug-18 |  | 52,418 |  |  | 51,941 |  |  | — |  | Floating
Mixed Use - New York, NY | Oct-18 |  | 30,000 |  |  | 29,785 |  |  | — |  | Floating
Destination Resort - Various | May-18 |  | 75,000 |  |  | 71,362 |  |  | — |  | Floating
Multifamily - New York, NY | Nov-18 |  | 55,000 |  |  | 54,558 |  |  | — |  | Floating
Hotel - New York, NY | Mar-17 |  | 50,000 |  |  | 49,522 |  |  | — |  | Floating
Condo Pre-development - United Kingdom | Sept-16 |  | 81,048 |  |  | 81,048 |  |  | — |  | Floating
Total - Subordinate to third party commercial mortgage loans |  | $ | 912,678 |  |  | $ | 905,256 |  |  | $41,945 |  |
Total |  | $ | 939,006 |  |  | $ | 931,351 |  |  | $54,423 |  |
(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) | Represents contractual maturity date excluding extension options.
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. During the year ended December 31, 2016, the Company recorded a loan loss provision of $5,000 on a multifamily subordinate loan in Williston, ND, which was based on the difference between the fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value are the terminal capitalization rate and discount rate which are 11% and 10% respectively. As of December 31, 2016, the aggregate loan loss provision was $5,000. The Company has ceased accruing PIK interest associated with the loan. As of December 31, 2015, there were no provision for loan loss.

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 + 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_FinancingReceivablePortfolioSegmentAxis=ari_SubordinateMortgagePortfolioSegmentMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |