<SEC-DOCUMENT>0001193125-14-187140.txt : 20140627
<SEC-HEADER>0001193125-14-187140.hdr.sgml : 20140627
<ACCEPTANCE-DATETIME>20140507143023
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ACCESSION NUMBER:		0001193125-14-187140
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20140507

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DDR CORP
		CENTRAL INDEX KEY:			0000894315
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				341723097
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		3300 ENTERPRISE PARKWAY
		CITY:			BEACHWOOD
		STATE:			OH
		ZIP:			44122
		BUSINESS PHONE:		2167555500

	MAIL ADDRESS:	
		STREET 1:		3300 ENTERPRISE PARKWAY
		CITY:			BEACHWOOD
		STATE:			OH
		ZIP:			44122

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DEVELOPERS DIVERSIFIED REALTY CORP
		DATE OF NAME CHANGE:	19940218
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">May&nbsp;7, 2014 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>CORRESPONDENCE FILING VIA EDGAR</U> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States
Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">Attention:&nbsp;&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Kevin Woody, Branch Chief </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">&nbsp;Jennifer Monick, Senior Staff Accountant </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="8%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>&nbsp;Re:</B></TD>
<TD ALIGN="left" VALIGN="top"><B>DDR Corp.</B> </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>Form 10-K for year ended December&nbsp;31, 2013</B> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>Filed on February&nbsp;28, 2014</B> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><B>File No.&nbsp;001-11690</B> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies and
Gentlemen: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">DDR Corp., an Ohio corporation (the &#147;Company&#148; or &#147;we,&#148; &#147;us&#148; or &#147;our&#148;), is submitting
this letter in response to the comment letter from the staff (the &#147;Staff&#148;) of the Securities and Exchange Commission (the &#147;Commission&#148;), dated April&nbsp;24, 2014 (the&nbsp;&#147;Comment Letter&#148;), with respect to the
Company&#146;s Annual Report on Form 10-K for the fiscal year ended December&nbsp;31, 2013 (the &#147;2013 Form 10-K&#148;), filed February&nbsp;28, 2014. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Below are the Company&#146;s responses. For the convenience of the Staff, the Company has repeated each of the Staff&#146;s comments before
the corresponding response. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Form 10-K for the year ended December&nbsp;31, 2013 </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Financial Statements, page F-1 </U></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Notes to Consolidated
Financial Statements, page F-8 </U></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>2. Investments in and Advances to Joint Ventures, page F-17 </U></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top">We note you have fully reserved certain amounts receivable from joint ventures. Please tell us how you accounted for these reserved amounts. Your response should address if you accounted for these reserved amounts as
capital transactions in accordance with paragraph 2 of ASC 470-50-40. </TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><U>Response: </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The amount reflected as Notes and accrued interest payable to the Company in the condensed combined balance sheet of its unconsolidated joint
ventures in the Notes to the Consolidated Financial Statements of the Company was $127.7 million at December&nbsp;31, 2013. Of that amount, $125.0 million consisted of a mezzanine construction loan (the &#147;Mezzanine Loan&#148;) provided by the
Company to a joint venture entity, Coventry II DDR Bloomfield LLC (the &#147;Bloomfield Joint Venture&#148;), in which the Company owns a minority equity interest. The Mezzanine Loan was comprised of $58.1 million in principal and $66.9 million in
accrued interest at December&nbsp;31, 2013. As disclosed in Footnote 2 of the Notes to the Consolidated Financial Statements included in the Company&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2009 (see page F-26), the
Company reserved the full amount of the then outstanding Mezzanine Loan of $66.9 million, which included $8.8 million in accrued interest. Although the Mezzanine Loan continues to accrue interest expense on the books of the Bloomfield Joint Venture,
it was determined to be nonperforming and the Company ceased recording interest income in 2009. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Mezzanine Loan was originally advanced
to the Bloomfield Joint Venture through a series of draws, primarily in 2008, to fund construction of a development project in Bloomfield Hills, Michigan (the &#147;Project&#148;). The Project was secured by a senior loan (&#147;Senior Land
Loan&#148;) with a third-party lender, the proceeds of which were used to acquire the land for the Project. The Company and its partner (the &#147;JV Partner&#148;) both provided partial payment guaranties to the senior lender on a 20% and 80%
basis, respectively. The Mezzanine Loan is subordinate to the Senior Land Loan. In the fourth quarter of 2008, the Mezzanine Loan proceeds were exhausted and the Bloomfield Joint Venture did not have sufficient funds for the continued development of
the Project. As a result, construction was suspended. In February 2009, the senior lender sent the Bloomfield Joint Venture a formal notice of default. In March 2009, the Company sent the Bloomfield Joint Venture a formal notice of default related
to its Mezzanine Loan, triggered by the default under the Senior Land Loan. The Company fully paid its 20% payment guaranty of the Senior Land Loan, but the JV Partner&#146;s 80% guaranty remained outstanding. The senior lender filed a foreclosure
action and initiated legal proceedings against the JV Partner for its failure to pay its 80% payment guaranty. The Bloomfield Joint Venture also had claims from construction contractors totaling more than $27.0 million, which were preferential to
the Mezzanine Loan. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">As disclosed in Footnote 9 of the Notes to the Consolidated Financial Statements included in
the 2013 Form 10-K (see <FONT STYLE="white-space:nowrap">page&nbsp;F-35),</FONT> the Company is involved in litigation with the JV Partner related to the various joint ventures in which the Company and the JV Partner co-invested, including the
Bloomfield Joint Venture. The JV Partner initially filed a lawsuit against the Company in the fourth quarter of 2009, and the litigation has been ongoing since that time. The Company continues to believe the allegations in the lawsuit are without
merit and that it has strong defenses to the JV Partner&#146;s claims. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">As initially disclosed in Footnote 2 in the Notes to the
Consolidated Financial Statements included in the Company&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2009 (see page F-26), during the fourth quarter of 2009, the Company determined that due to the status of the senior
lender foreclosure action and other litigation related to the Project, as well as then-current market and economic conditions, management of the Bloomfield Joint Venture had not definitively or formally made a determination as to whether development
of the Project would be resumed. Consequently, the Company determined that the fair value of the joint venture assets, consisting of land and development costs, was insufficient to repay the Company&#146;s Mezzanine Loan. As a result, the Company
recorded a reserve of $66.9 million related to the amount of the Mezzanine Loan accrued as of that date. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Both the Senior Land Loan and the
Mezzanine Loan remain outstanding and are obligations of the Bloomfield Joint Venture. Neither instrument has been legally extinguished as of the current date. As a result, the Company does not believe the provisions of paragraph 2 of Accounting
Standards Codification (&#147;ASC&#148;) 470-50-40 apply to this particular fact pattern. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">The Company continues to disclose the status of
its aggregate investment with the JV Partner. The most recent disclosure is in the Off-Balance Sheet Arrangements section of Management&#146;s Discussion and Analysis included in the 2013 Form 10-K (see pages 73-74). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Form 10-K/A for the year ended December&nbsp;31, 2013 </U></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Exhibit 99.1 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE="font-family:Times New Roman; font-size:10pt">We note you provided Rule 3-09 financial statements for DDRM Properties LLC in your Form 10-K/A for the year ended December 31, 2012 filed on March
19, 2013; specifically, we noted that you provided audited financial statements for the year ended December 31, 2012 and unaudited financial statements for the years ended December 31, 2011 or 2010. We note you continue to provide Rule 3-09
financial statements for </P></TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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<TD WIDTH="4%">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">
DDRM Properties LLC in your Form 10-K/A for the year ended December&nbsp;31, 2013 filed on March&nbsp;20, 2014; specifically, we noted that you provided audited financial statements for the year
ended December&nbsp;31, 2013 and unaudited financial statements for the years ended December&nbsp;31, 2012 or 2011. Please tell us how you determined it was not necessary to continue to provide audited financial statements as of and for the year
ended December&nbsp;31, 2012. Please refer to Rule 3-09 of Regulation S-X. </TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><U>Response: </U></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">In the 2013 Form 10-K, the consolidated statements of operations for the three years then ended were recast in accordance with ASC 205-20,
Discontinued Operations, to reflect the impact of property sales that had occurred through December&nbsp;31, 2013. In applying Rule 3-09 of Regulation S-X, the Company performed the significant subsidiary test for the three years ended
December&nbsp;31, 2013, and recast the denominator for income from continuing operations as reported in the 2013 Form 10-K for the three years ended December&nbsp;31, 2013. As a result, DDRM Properties LLC no longer qualified as a significant
subsidiary for the year ended December&nbsp;31, 2012 based upon the revised income from continuing operations. Accordingly, the financial statements for DDRM Properties LLC for the years ended December&nbsp;31, 2012 and 2011 that were included in
Amendment No.&nbsp;1 to the Company&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2013, which was filed on March&nbsp;20, 2014, were not presented as audited even though the financial statements were unchanged from the
prior-year presentation. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">********** </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In connection with the above response, the Company acknowledges that: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">the Company is responsible for the adequacy and accuracy of the disclosure in its filing; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing; and </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. </TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">United States Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If you have any questions regarding these matters, please do not hesitate to contact the
undersigned at 216-755-6453. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top">Very truly yours,</TD></TR>
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<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">/s/ David J. Oakes</TD></TR>
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<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">David J. Oakes</TD></TR>
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<TD VALIGN="top">President&nbsp;&amp; Chief Financial Officer</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">cc:&nbsp;&nbsp;Christa A. Vesy, Executive Vice President </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:2%; font-size:10pt; font-family:Times New Roman">&nbsp;&nbsp;&amp; Chief Accounting Officer </P>
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