XML 82 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Notes Receivable
 9 Months Ended
Sep. 30, 2013
Receivables [Abstract]  
Notes Receivable

4. NOTES RECEIVABLE

The Company has notes receivable, including accrued interest, that are collateralized by certain rights in development projects, partnership interests, sponsor guaranties and/or real estate assets, some of which are subordinate to other financings.

Notes receivable consist of the following (in thousands):

 

     September 30,
2013		      December 31,
2012		  

Loans receivable

    $ 71,645       $ 60,378   

Other notes

      1,038         3,093   

Tax Increment Financing Bonds (“TIF Bonds”)(A)

      5,174         5,247   
  

 

 

     

 

 

  
   $ 77,857       $ 68,718   
  

 

 

     

 

 

  

 

(A) Principal and interest are payable solely from the incremental real estate taxes, if any, generated by the respective shopping center and development project pursuant to the terms of the financing agreement.

As of September 30, 2013 and December 31, 2012, the Company had seven and six loans receivable outstanding, respectively. The following table reconciles the loans receivable on real estate for the nine-month periods ended September 30, 2013 and 2012 (in thousands):

 

     2013     2012  

Balance at January 1

    $ 60,378     $ 84,541  

Additions:

     

New mortgage loans

      21,967       592  

Interest

      319       790  

Accretion of discount

      651       615  

Deductions:

     

Payments of principal and interest

      (11,670 )      —    

Other(A)

      —         (31,700 ) 
  

 

 

    

 

 

  

Balance at September 30

    $ 71,645     $ 54,838  
  

 

 

    

 

 

  

 

(A) Loan assumed by the Company’s unconsolidated joint venture BRE DDR Retail Holdings I and reclassified into Investments in and Advances to Joint Ventures in the Company’s consolidated balance sheet at December 31, 2012, upon the Company’s acquisition of its equity interest of the joint venture. This loan was applied toward funding of the Company’s acquisition of its joint venture partner’s interest in 30 prime power centers that were previously owned by BRE DDR Retail Holdings I (the “Blackstone Acquisition”) (Note 17).

In addition, at September 30, 2013, the Company had one loan outstanding aggregating $9.8 million that matured in September 2011 and was more than 90 days past due. The Company is no longer accruing interest income on this note as no payments have been received. A loan loss reserve of $4.3 million was established in 2012 based on the estimated value of the underlying real estate collateral.