Notes Receivable

12 Months Ended

Dec. 31, 2015

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 consisted of the following (in thousands):

	December 31,				Maturity Date at	Interest Rate at
	2015		2014		December 31, 2015	December 31, 2015
Loans receivable	$	41,988	$	52,444	September 2017– June 2023	5.7%–10.0%
Other		546		3,801	September 2017– July 2026	5.6%–12.0%
	$	42,534	$	56,245

As of December 31, 2015 and 2014, the Company had three and six loans receivable outstanding, respectively. The following table reconciles the loans receivable on real estate (in thousands):

	2015			2014
Balance at January 1	$	52,444		$	72,218
Additions:
Interest		—			810
Accretion of discount		980			926
Deductions:
Collections of principal and interest		(11,436	)		(460	)
Loan loss reserve^(A)		—			(500	)
Other^(B)		—			(20,550	)
Balance at December 31	$	41,988		$	52,444

(A)

Amount classified in Other Income (Expense), Net in the consolidated statement of operations for the year ended December 31, 2014.

(B)

Loan applied toward the purchase price of the asset acquired in Chicago, Illinois (Note 3).

At December 31, 2015, the Company did not have any loans outstanding that were past due. The following table summarizes the activity in the loan loss reserve (in thousands):

	2015			2014		2013
Balance at January 1	$	15,606		$	15,106	$	15,106
Additions:
Loan loss reserve		—			500		—
Deductions:
Write-offs^(A)		(15,606	)		—		—
Balance at December 31	$	—		$	15,606	$	15,106

(A)

In 2015, the Company sold a note receivable with a face value, including accrued interest, of $9.8 million and a net value of $5.0 million, for proceeds of $7.9 million. As a result, the related loan loss reserve of $4.8 million was reversed and income of $2.9 million was recognized and classified as Gain on Disposition of Real Estate in the consolidated statements of operations. In connection with this transaction, the Company wrote off a cross collateralized fully reserved note receivable with a face value including accrued interest of $10.8 million. The aggregate write-down in the loan loss reserve related to this transaction was $15.6 million.