Debt and Preferred Equity Investments (Tables)

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Summary of debt investments

As of June 30, 2017 and December 31, 2016, we held the following debt investments with an aggregate weighted average current yield of 9.73% at June 30, 2017 (in thousands):

Loan Type	June 30, 2017 Future Funding Obligations		June 30, 2017 Senior Financing		June 30, 2017 Carrying Value (1)		December 31, 2016 Carrying Value (1)		Maturity Date (2)
Fixed Rate Investments:
Mortgage/Jr. Mortgage Loan(3)	$	—	$	—	$	250,150	$	—	April 2017
Mortgage Loan(4)	—		—		26,338		26,311		February 2019
Mortgage Loan	—		—		311		380		August 2019
Mezzanine Loan(5a)	—		1,160,000		199,533		—		March 2020
Mezzanine Loan	—		15,000		3,500		3,500		September 2021
Mezzanine Loan	—		147,000		24,905		—		April 2022
Mezzanine Loan	—		87,724		12,696		12,692		November 2023
Mezzanine Loan(5b)	—		115,000		12,928		12,925		June 2024
Mezzanine Loan	—		95,000		30,000		30,000		January 2025
Mezzanine Loan	—		340,000		15,000		15,000		November 2026
Mezzanine Loan	—		1,712,750		55,250		—		June 2027
Mezzanine Loan(6)	—		—		—		66,129
Jr. Mortgage Participation/Mezzanine Loan (7)	—		—		—		193,422
Total fixed rate	$	—	$	3,672,474	$	630,611	$	360,359
Floating Rate Investments:
Mezzanine Loan(8)	—		40,000		15,442		15,369		September 2017
Mortgage/Mezzanine Loan	—		—		16,989		16,960		September 2017
Mortgage/Mezzanine Loan	1,361		—		22,602		20,423		October 2017
Mezzanine Loan(5c)	—		85,000		15,273		15,141		December 2017
Mezzanine Loan(5d)	—		65,000		14,773		14,656		December 2017
Mezzanine Loan(5e)	795		—		15,105		15,051		December 2017
Mortgage/Mezzanine Loan(9)	—		125,000		29,934		29,998		January 2018
Mezzanine Loan	—		40,000		19,947		19,913		April 2018
Jr. Mortgage Participation	—		175,000		34,903		34,844		April 2018
Mezzanine Loan	523		20,523		10,898		10,863		August 2018
Mortgage/Mezzanine Loan	—		—		19,889		19,840		August 2018
Mortgage Loan	—		65,000		14,916		14,880		August 2018
Mezzanine Loan	—		37,500		14,749		14,648		September 2018
Mezzanine Loan	2,325		45,025		34,686		34,502		October 2018
Mezzanine Loan	—		335,000		74,612		74,476		November 2018
Mezzanine Loan	—		33,000		26,888		26,850		December 2018
Mezzanine Loan	1,122		171,728		58,451		56,114		December 2018
Mezzanine Loan	10,758		279,563		68,437		63,137		December 2018
Mezzanine Loan	7,651		221,568		71,760		64,505		December 2018
Mezzanine Loan	—		45,000		12,138		12,104		January 2019
Mortgage/Mezzanine Loan	38,087		—		175,792		—		January 2019
Mezzanine Loan	7,277		19,733		6,588		5,410		January 2019
Mezzanine Loan	—		38,000		21,915		21,891		March 2019
Mezzanine Loan	513		172,604		36,655		—		April 2019

Loan Type	June 30, 2017 Future Funding Obligations		June 30, 2017 Senior Financing		June 30, 2017 Carrying Value (1)		December 31, 2016 Carrying Value (1)		Maturity Date (2)
Mezzanine Loan	—		265,000		24,767		24,707		April 2019
Mortgage/Jr. Mortgage Participation Loan	31,628		188,664		67,655		65,554		August 2019
Mezzanine Loan	2,500		187,500		37,353		37,322		September 2019
Mortgage/Mezzanine Loan	64,691		—		130,067		111,819		September 2019
Mortgage/Mezzanine Loan	35,106		—		34,271		33,682		January 2020
Mezzanine Loan(10)	9,918		521,213		69,408		125,911		January 2020
Jr. Mortgage Participation/Mezzanine Loan	—		60,000		15,620		15,606		July 2021
Mortgage/ Mezzanine Loan(6)	—		—		—		32,847
Mortgage/Mezzanine Loan(6)	—		—		—		22,959
Mezzanine Loan(11)	—		—		—		14,957
Mortgage/Mezzanine Loan(12)	—		—		—		145,239
Total floating rate	$	214,255	$	3,236,621	$	1,212,483	$	1,232,178
Total	$	214,255	$	6,909,095	$	1,843,094	$	1,592,537

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

(2) Represents contractual maturity, excluding any unexercised extension options.

(3) These loans were purchased at par in April and May 2017 and were in maturity default at the time of acquisition. The Company expects to collect all contractually required payments, including default interest. At June 30, 2017, $6.2 million of accrued interest on the loan is included in other assets.

(4) 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, is currently on non-accrual status and has no carrying value.

(5) Carrying value is net of the following amounts that were sold or syndicated, which are included in other assets and other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting: (a) $1.2 million, (b) $12.0 million, (c) $14.6 million, (d) $14.1 million, and (e) $5.1 million

(6) This loan was repaid in June 2017.

(7) This loan was repaid in March 2017.

(8) This loan was extended in June 2017.

(9) This loan was extended in January 2017.

(10) $66.1 million of outstanding principal was syndicated in February 2017.

(11) This loan was contributed to a joint venture in May 2017.

(12) This loan was repaid in January 2017.

Summary of preferred equity investments

As of June 30, 2017 and December 31, 2016, we held the following preferred equity investments with an aggregate weighted average current yield of 6.41% at June 30, 2017 (in thousands):

Type	June 30, 2017 Future Funding Obligations		June 30, 2017 Senior Financing		June 30, 2017 Carrying Value (1)		December 31, 2016 Carrying Value (1)		Mandatory Redemption (2)
Preferred Equity(3)	$	—	$	272,000	$	143,319	$	—	April 2021
Preferred Equity(4)	—		—		—		9,982
Preferred Equity(5)	—		—		—		37,893
Total	$	—	$	272,000	$	143,319	$	47,875

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

(2) Represents contractual maturity, excluding any unexercised extension options.

(3) In February 2016, we closed on the sale of 885 Third Avenue and retained a preferred equity position in the property. The sale did not meet the criteria for sale accounting under the full accrual method in ASC 360-20, Property, Plant and Equipment - Real Estate Sales. As a result the property remained on our consolidated balance sheet until the criteria was met in April 2017 at which time the property was deconsolidated and the preferred equity investment was recognized.

(4) This investment was redeemed in May 2017.

(5) This investment was redeemed in April 2017.