Property Acquisitions (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the properties acquired during the nine months ended September 30, 2018:



Property	Acquisition Date	Property Type	Approximate Square Feet		Acquisition Price (in millions)
2 Herald Square⁽¹⁾	May 2018	Leasehold Interest	369,000		$	266.0
1231 Third Avenue⁽²⁾	July 2018	Fee Interest	39,000		55.4
Upper East Side Residential⁽³⁾	August 2018	Fee Interest	0.2	acres	30.2

(1)

In May 2018, the Company was the successful bidder for the leasehold interest in 2 Herald Square, at the foreclosure of the asset. In April and May 2017, the Company had purchased, at par, loans in maturity default, which were secured by the leasehold interest in 2 Herald Square. At the time the loans were purchased, the Company expected to collect all contractually required payments, including interest. In August 2017, the Company determined that it was probable that the loans would not be repaid in full and therefore, the loans were put on non-accrual status. No impairment was recorded as the Company believed that the fair value of the leasehold exceeded the carrying amount of the loans. In May 2018, the Company was the successful bidder at the foreclosure of the asset. We recorded the assets acquired and liabilities assumed at fair value. This resulted in the recognition of a fair value adjustment of $8.1 million, which is reflected in the Company's consolidated statement of operations within purchase price and other fair value adjustments. See Note 16, "Fair Value Measurements."


(2)	In July 2018, the Company accepted an assignment of the equity interests in the property in lieu of repayment of the Company's debt investment, and marked the assets received and liabilities assumed to fair value.


(3)	In August 2018, the Company acquired the fee interest in three additional land parcels at the Upper East Side Residential Assemblage.