Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Schedule Of Carrying Value And Fair Value Disclosure [Table Text Block]

The following table presents the carrying value in the Condensed Consolidated Balance Sheets, and approximate fair value of financial instruments at June 30, 2013 and December 31, 2012:

	June 30, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Lending investments ^{(1), (2)}	$	-	$	-	$	784,135	$	816,283
CMBS ⁽²⁾	$	-	$	-	$	932,265	$	932,265
Derivative instruments ⁽²⁾	$	-	$	-	$	173	$	173
Retained CDO Bonds ⁽³⁾	$	7,645	$	7,645	$	-	$	-
Financial liabilities:
Collateralized debt obligations ^{(1), (2)}	$	-	$	-	$	2,188,579	$	1,474,236
Derivative instruments ⁽²⁾	$	-	$	-	$	173,623	$	173,623
Mortgage notes payable ⁽¹⁾	$	48,714	$	48,218	$	-	$	-

⁽¹⁾	Lending investments, mortgages notes payable, and CDOs are classified as Level III due to the significance of unobservable inputs which are based upon management assumptions.
⁽²⁾	In connection with the disposal of Gramercy Finance, lending investments, CMBS investments, derivative instruments, and collateralized debt obligations were classified as held-for-sale as of December 31, 2012.
⁽³⁾	Retained CDO Bonds represent the CDOs’ subordinate bonds, preferred shares, and ordinary shares, which were retained subsequent to the disposal of Gramercy Finance and were previously eliminated in consolidation.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis are categorized in the table below based upon the lowest level of significant input to the valuations.

At June 30, 2013	Total		Level I		Level II		Level III
Financial assets:
Derivative instruments:
Interest rate caps	$	-	$	-	$	-	$	-
Interest rate swaps		-		-		-		-
	$	-	$	-	$	-	$	-
CMBS available for sale:
Investment grade	$	-	$	-	$	-	$	-
Non-investment grade		-		-		-		-
	$	-	$	-	$	-	$	-
Retained CDO Bonds:
Non-investment grade, subordinate CDO bonds	$	7,645	$	-	$	-	$	7,645
	$	7,645	$	-	$	-	$	7,645
Financial liabilities:
Derivative instruments:
Interest rate caps	$	-	$	-	$	-	$	-
Interest rate swaps		-		-		-		-
	$	-	$	-	$	-	$	-

At December 31, 2012	Total		Level I		Level II		Level III
Financial assets:
Derivative instruments:
Interest rate caps	$	173	$	-	$	-	$	173
Interest rate swaps		-		-		-		-
	$	173	$	-	$	-	$	173
CMBS available for sale:
Investment grade	$	281,495	$	-	$	-	$	281,495
Non-investment grade		650,770		-		-		650,770
	$	932,265	$	-	$	-	$	932,265
Financial liabilities:
Derivative instruments:
Interest rate caps	$	173,623	$	-	$	-	$	173,623
Interest rate swaps		-		-		-		-
	$	173,623	$	-	$	-	$	173,623

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

Quantitative information regarding the valuation techniques and the range of significant unobservable Level III inputs used to determine fair value measurements of the Retained CDO Bonds on a non-recurring basis as of June 30, 2013 are:

	At June 30, 2013
Financial Asset	Fair Value		Valuation Technique	Unobservable Inputs	Range
Retained CDO Bonds
Non-investment grade, subordinate CDO bonds	$	7,645	Discounted cash flows	Discount rate	25.00% to 40.00%

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table reconciles the beginning and ending balances of financial assets measured at fair value on a recurring basis using Level III inputs:

	CMBS Available for sale - Investment Grade		CMBS Available for sale - Non-Investment Grade		Derivative Instruments		Retained CDO Bonds
Balance as of December 31, 2012	$	281,495	$	650,770	$	173	$	-
Change in CMBS investment
Change in CMBS investment status		(1,506)		1,506		-		-
Amortization of discounts or premiums		1,264		6,075		-		652
Proceeds from CMBS principal repayments		(10,526)		-		-		-
Gramercy Finance disposal		(274,133)		(670,387)		(219)		8,492
Adjustments to fair value:
Included in other comprehensive income		3,406		19,677		46		183
Other-than-temporary impairments		-		(7,641)		-		(1,682)
Balance as of June 30, 2013	$	-	$	-	$	-	$	7,645

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following roll forward table reconciles the beginning and ending balances of financial liabilities measured at fair value on a recurring basis using Level III inputs:

	Derivative Instruments - Interest Rate Swaps
Balance as of December 31, 2012	$	173,623
Gramercy Finance disposal		(163,716)
Adjustments to fair value:
Unrealized loss		(9,907)
Balance as of June 30, 2013	$	-

Fair Value Measurements, Nonrecurring [Table Text Block]

At June 30, 2013, the Company did not measure any assets at fair value on a non-recurring basis. The following table shows the fair value hierarchy for those assets measured at fair value on a non-recurring basis based upon the lowest level of significant input to the valuations for which a non-recurring change in fair value has been recorded during the year ended December 31, 2012.

At December 31, 2012	Total		Level I		Level II		Level III
Financial assets:
Lending investments - held-for-sale (allowance for loan loss):
Whole loans	$	60,335	$	-	$	-	$	60,335
Subordinate interests in whole loans		9,131		-		-		9,131
Mezzanine loans		-		-		-		-
Preferred equity		-		-		-		-
	$	69,466	$	-	$	-	$	69,466
Lending investments - held-for-sale (impairment for lower of cost or fair value):
Whole loans	$	174,477	$	-	$	-	$	174,477
Subordinate interests in whole loans		1,649		-		-		1,649
Mezzanine loans		20,422		-		-		20,422
Preferred equity		-		-		-		-
	$	196,548	$	-	$	-	$	196,548
Real estate investments:
Office	$	3,593	$	-	$	-	$	3,593
Land		24,195		-		-		24,195
Hotel		24,034		-		-		24,034
Branch		4,749		-		-		4,749
Industrial		-		-		-		-
	$	56,571	$	-	$	-	$	56,571

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details