Debt and Preferred Equity Investments (Tables)

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

As of December 31, 2014 and 2013, we held the following debt investments with an aggregate weighted average current yield of 10.33% at December 31, 2014 (in thousands):



Loan Type	December 31, 2014 Future Funding Obligations		December 31, 2014 Senior Financing		December 31, 2014 Carrying Value, Net of Discounts and Deferred Origination Fees⁽¹⁾		December 31, 2013 Carrying Value, Net of Discounts and Deferred Origination Fees⁽¹⁾		Initial Maturity Date
Fixed Rate Investments:
Jr. Mortgage Participation	$	—	$	398,500	$	11,934	$	11,856	March 2015
Jr. Mortgage Participation /Mezzanine Loan	—		205,000		70,688		68,319		February 2016
Other⁽²⁾	—		—		45,611		44,742		Various⁽²⁾
Mezzanine Loan⁽³⁾	—		177,000		14,068		15,012		May 2016
Jr. Mortgage Participation	—		133,000		49,000		49,000		June 2016
Mezzanine Loan	—		165,000		71,656		71,312		November 2016
Jr. Mortgage Participation/Mezzanine Loan⁽⁴⁾	—		1,109,000		98,934		26,884		March 2017
Other⁽⁴⁾	—		—		65,770		54,099		March 2017
Mezzanine Loan⁽⁵⁾	16,424		521,750		24,608		20,954		June 2017
Mezzanine Loan	—		539,000		49,629		—		July 2018
Mortgage Loan⁽⁶⁾	—		—		26,209		—		February 2019



Mortgage Loan	—		—		637		—			August 2019
Mezzanine Loan	—		15,000		3,500		3,500			September 2021
Mezzanine Loan⁽⁷⁾	—		90,000		19,930		19,926			November 2023
Mezzanine Loan	—		95,000		30,000		—			January 2025
Total fixed rate	$	16,424	$	3,448,250	$	582,174	$	385,604
Floating Rate Investments:
Mezzanine Loan	7,785		50,000		37,322		—			April 2015
Mortgage/Mezzanine Loan	—		—		109,527		—			June 2015
Mezzanine Loan	—		110,000		49,614		49,110			September 2015
Mezzanine Loan	7,249		113,633		42,750		27,662			December 2015
Mezzanine Loan	—		775,000		73,402		72,823			March 2016
Mezzanine Loan⁽⁸⁾	—		160,000		22,573		22,526			June 2016
Mezzanine Loan	—		115,000		24,910		25,590			July 2016
Mezzanine Loan	3,641		172,105		33,726		25,725			November 2016
Mezzanine Loan	—		360,000		99,023		—			November 2016
Mezzanine Loan	333		33,833		11,835		11,798			December 2016
Mezzanine Loan	9,053		91,727		20,651		—			January 2017
Mortgage/Mezzanine Loan	2,847		110,767		38,524		—			July 2017
Mortgage/Mezzanine Loan	—		—		22,803		—			July 2017
Mortgage/Mezzanine Loan	—		—		16,848		—			September 2017
Mezzanine Loan	—		60,000		14,859		—			November 2017
Mortgage/Mezzanine Loan⁽⁹⁾	795		—		14,845		—			December 2017
Jr. Mortgage Participation/Mezzanine Loan	—		55,000		20,533		20,553			July 2018
Mortgage/Mezzanine Loan	—		—		18,083		—			February 2019
Mezzanine Loan	—		38,000		21,807		—			March 2019
Mortgage Loan⁽¹⁰⁾	—		—		—		30,000
Jr. Mortgage Participation⁽¹¹⁾	—		—		—		24,046
Jr. Mortgage Participation/Mezzanine Loan⁽¹¹⁾	—		—		—		131,724
Mezzanine Loan⁽¹²⁾	—		—		—		59,892
Jr. Mortgage Participation⁽¹²⁾	—		—		—		10,873
Mezzanine Loan⁽¹²⁾	—		—		—		38,549
Total floating rate	$	31,703	$	2,245,065	$	693,635	$	550,871
Total	$	48,127	$	5,693,315	$	1,275,809	$	936,475
Loan loss reserve					—		(1,000		)
					$	1,275,809	$	935,475

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(1)	Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.

(2)

During the fourth quarter of 2014, both our $22.6 million junior participation and our $23.0 mezzanine loan were defeased and are now collateralized by defeasance securities. In connection with the defeasance, the maturity date of the mortgage in which we are a junior participant was accelerated from the May 2016 to February 2016, per the terms of the loan agreement. The maturity date of the mezzanine loan was not changed in connection with the defeasance and will mature in May 2016.


(3)	This loan was repaid in February 2015.

(4)

During the first quarter of 2014, we recognized $10.1 million of previously unaccrued interest income which was deemed collectible as a result of the sale of the underlying property, which closed in June 2014. In connection with the sale of the underlying property, our existing $66.7 million mezzanine loan was defeased and is now shown separately, as it is collateralized by defeasance securities. The buyer assumed our $30.0 million participating interest in the mortgage and we acquired a $67.3 million participating interest in the new mezzanine loan.


(5)	Carrying value is net of $41.3 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(6)	In September 2014, we acquired a $26.4 million mortgage loan at a $0.2 million discount and a $5.7 million junior mortgage participation at a $5.7 million discount. The junior mortgage participation was a nonperforming loan at acquisition and is currently on non-accrual status.


(7)	Carrying value is net of $5.0 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(8)	Carrying value is net of $7.4 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(9)	Carrying value is net of $5.1 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(10)	This loan was repaid in May 2014.


(11)	This loan was repaid in July 2014.


(12)	This loan was repaid in August 2014.

Summary of preferred equity investments

As of December 31, 2014 and 2013, we held the following preferred equity investments with an aggregate weighted average current yield of 10.89% at December 31, 2014 (in thousands):



Type	December 31, 2014 Senior Financing		December 31, 2014 Carrying Value, Net of Discounts and Deferred Origination Fees⁽¹⁾		December 31, 2013 Carrying Value, Net of Discounts and Deferred Origination Fees⁽¹⁾		Initial Mandatory Redemption
Preferred equity⁽²⁾	$	550,000	$	123,041	$	115,198	July 2015
Preferred equity	70,000		9,954		9,940		November 2017
Preferred equity⁽³⁾	—		—		25,896
Preferred equity⁽²⁾⁽⁴⁾	—		—		218,330
	$	620,000	$	132,995	$	369,364

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(1)	Carrying value is net of discounts and deferred origination fees.


(2)	The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.


(3)	This preferred equity investment was redeemed in April 2014.


(4)	This preferred equity investment was redeemed in November 2014.

Rollforward of total allowance for loan loss reserves

The following table is a rollforward of our total loan loss reserves at December 31, 2014, 2013 and 2012 (in thousands):



	December 31,
	2014			2013			2012
Balance at beginning of year	$	1,000		$	7,000		$	50,175
Expensed	—			—			3,000
Recoveries	—			—			(2,436		)
Charge-offs and reclassifications	(1,000		)	(6,000		)	(43,739		)
Balance at end of period	$	—		$	1,000		$	7,000

Summary of impaired loans, which may include non-accrual loans

The following table presents impaired loans, which may include non-accrual loans, as of December 31, 2013 (in thousands):



	December 31, 2013
	Unpaid Principal Balance		Recorded Investment		Allowance Allocated
With no related allowance recorded:
Commercial real estate	$	—	$	—	$	—
With an allowance recorded:
Commercial real estate⁽¹⁾	10,750		10,750		1,000
Total	$	10,750	$	10,750	$	1,000

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(1)	This loan was repaid during the year ended December 31, 2014.