x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES | |
EXCHANGE ACT OF 1934 |
OR | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES | |
EXCHANGE ACT OF 1934 |
Maryland | 27-1065431 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
405 Park Ave., 14th Floor, New York, NY | 10022 | |
(Address of principal executive offices) | (Zip Code) |
(212) 415-6500 |
(Registrant's telephone number, including area code) |
Securities registered pursuant to section 12(b) of the Act: None |
Securities registered pursuant to section 12 (g) of the Act: Common stock, $0.01 par value per share (Title of class) |
Large accelerated filer x | Accelerated filer o |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Page | ||
• | Our board continues to explore and evaluate strategic alternatives to enhance stockholder value and there can be no assurance regarding the form or substance of any potential transaction or transactions that may be identified or consummated as a result of this process or how long the process may take; |
• | All of our executive officers are also officers, managers or holders of a direct or indirect interest in New York Recovery Advisors, LLC (our "Advisor") and other entities affiliated with AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global"); as a result, our executive officers, our Advisor and its affiliates face conflicts of interest, including significant conflicts created by our Advisor’s compensation arrangements with us and other investor entities advised by AR Global affiliates, and conflicts in allocating time among these entities and us, which could negatively impact our operating results; |
• | We depend on tenants for revenue, and, accordingly, our revenue is dependent upon the success and economic viability of our tenants; |
• | We may not be able to achieve our rental rate objectives on new and renewal leases and our expenses could be greater, which may impact our results of operations; |
• | Our properties may be adversely affected by economic cycles and risks inherent to the New York metropolitan statistical area (“MSA”), especially New York City; |
• | We may be unable to pay or maintain cash dividends or increase dividends over time. Amounts paid to our stockholders may be a return of capital and not a return on a stockholder's investment; |
• | We are obligated to pay fees, which may be substantial, to our Advisor and its affiliates, including fees payable upon the sale of properties; |
• | We may fail to continue to qualify to be treated as a real estate investment trust for U.S. federal income tax purposes (“REIT”); |
• | Because investment opportunities that are suitable for us may also be suitable for other AR Global-advised programs or investors, our Advisor and its affiliates may face conflicts of interest relating to the purchase of properties and other investments and such conflicts may not be resolved in our favor, meaning that we could invest in less attractive assets, which could reduce the investment return to our stockholders; |
• | We are party to an investment opportunity allocation agreement (the "Allocation Agreement") with another program that is sponsored by American Realty Capital III, LLC (our "Sponsor"), pursuant to which we may not have the first opportunity to acquire all properties identified by our Advisor and its affiliates; and |
• | We may be adversely affected by changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes in conditions of United States or international lending, capital and financing markets. |
• | Focus on New York City — Acquisition of high-quality commercial real estate in New York City, and, in particular, properties located in Manhattan; |
• | Focus on Income Producing Properties — Acquisition of income producing commercial real estate with an emphasis on office and retail properties with 80% or greater occupancy at the time of purchase; |
• | Maintain Low Leverage - Stabilize at a leverage level of not more than 40% to 50% loan-to-enterprise value; |
• | Pay Monthly Dividends - Pay monthly dividends; and |
• | Maximize Total Returns - Maximize total returns to our stockholders through a combination of appreciation and current income. |
As of December 31, 2015 | Total | Manhattan | Brooklyn | Queens | |||||||||
Total square feet by property type: | |||||||||||||
Office | 2,779,259 | 2,749,768 | 29,491 | — | |||||||||
Retail (1) | 328,101 | 260,429 | 57,905 | 9,767 | |||||||||
Hotel | 128,612 | 128,612 | — | — | |||||||||
Parking (2) | 120,589 | 120,589 | — | — | |||||||||
Storage | 17,677 | 17,677 | — | — | |||||||||
Total owned square feet (end of period) (2) | 3,374,238 | 3,277,075 | 87,396 | 9,767 | |||||||||
Total | Manhattan | Brooklyn | Queens | ||||||||||
% of total square feet by property type: | |||||||||||||
Office | 82 | % | 84 | % | 34 | % | — | % | |||||
Retail (1) | 10 | % | 8 | % | 66 | % | 100 | % | |||||
Hotel | 4 | % | 4 | % | — | % | — | % | |||||
Parking (2) | 3 | % | 3 | % | — | % | — | % | |||||
Storage | 1 | % | 1 | % | — | % | — | % | |||||
Total owned square feet (end of period) (2) | 100 | % | 97.1 | % | 2.6 | % | 0.3 | % |
(1) | Includes 105,514 square feet of stand-alone retail and 222,587 square feet of retail associated with our office portfolio. |
(2) | Excludes 15,055 square foot parking garage at 416 Washington Street, which is being operated under a management agreement with a third party. |
December 31, | ||||||||
Property Portfolio | Tenant | 2015 | 2014 | 2013 | ||||
Worldwide Plaza(1) | Cravath, Swaine & Moore, LLP | 16% | 16% | 18% | ||||
Worldwide Plaza(1) | Nomura Holdings America, Inc. | 11% | 11% | 12% |
(1) | Annualized cash rent reflects our 48.9% pro rata share of Worldwide Plaza |
• | general market conditions; |
• | the market’s perception of our growth potential; |
• | our ability to access the capital markets quickly, which may be limited due to our ineligibility to use our currently effective shelf registration statement on Form S-3 through April 2016; |
• | our current debt levels; |
• | our current and expected future earnings; |
• | our cash flow and cash dividends; and |
• | the market price per share of our common stock. |
Tenant | Percentage of Annualized Cash Rent | |
Cravath, Swaine & Moore, LLP | 16.0% | |
Nomura Holding America Inc. | 10.6% | |
Twitter, Inc. | 8.1% | |
Macy's, Inc. | 6.1% |
• | we may acquire properties that are not accretive and we may not successfully manage and lease those properties to meet our expectations; |
• | we may be unable to generate sufficient cash from operations, or obtain the necessary debt or equity financing to consummate an acquisition or, if obtainable, financing may not be on satisfactory terms; |
• | we may need to spend more than budgeted amounts to make necessary improvements or renovations to acquired properties; |
• | agreements for the acquisition of properties are typically subject to customary conditions to closing, including satisfactory completion of due diligence investigations, and we may spend significant time and money on potential acquisitions that we do not consummate; |
• | the process of acquiring or pursuing the acquisition of a new property may divert the attention of our management team from our existing business operations; |
• | we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations; |
• | market conditions may result in future vacancies and lower-than expected rental rates; and |
• | we may acquire properties without recourse, or with only limited recourse, for liabilities, whether known or unknown, such as cleanup of environmental contamination, claims by tenants, vendors or other persons against the former owners of the properties and claims for indemnification by general partners, directors, officers and others indemnified by the former owners of the properties. |
• | changes in general economic or local conditions; |
• | changes in supply of or demand for similar or competing properties in an area; |
• | changes in interest rates and availability of mortgage funds that may render the sale of a property difficult or unattractive; |
• | increases in operating expenses; |
• | vacancies and inability to lease or sublease space; |
• | changes in tax, real estate, environmental and zoning laws; and |
• | periods of high interest rates and tight money supply. |
• | result in misstated financial reports, violations of loan covenants, missed reporting deadlines and/or missed permitting deadlines; |
• | affect our ability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT; |
• | result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of, proprietary, confidential, sensitive or otherwise valuable information (including information about guests at our hotel or tenants), which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes; |
• | result in our inability to maintain the building systems relied upon by our tenants for the efficient use of their leased space; |
• | require significant management attention and resources to remedy any damages that result; |
• | subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; or |
• | adversely impact our reputation among our tenants, guests at our hotel and investors generally. |
• | our financial condition and performance; |
• | the financial condition of our tenants, including the extent of tenant bankruptcies or defaults; |
• | actual or anticipated quarterly fluctuations in our operating results and financial condition; |
• | our dividend policy; |
• | the reputation of REITs and real estate investments generally and the attractiveness of REIT equity securities in comparison to other equity securities, including securities issued by other real estate companies, and fixed income securities; |
• | our reputation and the reputation of our Sponsor, Advisor and their affiliates; |
• | uncertainty and volatility in the equity and credit markets; |
• | fluctuations in interest rates; |
• | uncertainty related to our strategic alternatives process; |
• | changes in revenue or earnings estimates or publication of research reports and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REITs; |
• | future sales of our common stock, or the perception that such sales could occur; |
• | failure to meet analysts’ revenue or earnings estimates; |
• | speculation in the press or investment community; |
• | strategic actions by us or our competitors, such as acquisitions or restructurings; |
• | the extent of institutional investor interest in us; |
• | the extent of short-selling of our common stock and the shares of our competitors; |
• | fluctuations in the stock price and operating results of our competitors; |
• | general financial and economic market conditions and, in particular, developments related to market conditions for REITs and other real estate related companies; |
• | domestic and international economic factors unrelated to our performance; and |
• | all other risk factors addressed elsewhere in this Annual Report on Form 10-K. |
• | any person who beneficially owns 10% or more of the voting power of the corporation's outstanding voting stock; or |
• | an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then-outstanding stock of the corporation. |
• | 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and |
• | two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder. |
• | increases in supply of hotel rooms that exceed increases in demand; |
• | increases in energy costs and other travel expenses that reduce business and leisure travel; |
• | reduced business and leisure travel due to continued geo-political uncertainty, including terrorism, or for other reasons; |
• | reduced business and leisure travel from other countries to the United States due to the strength of the U.S. Dollar as compared to the currencies of other countries; |
• | adverse effects of declines in general and local economic activity; |
• | increased competition from other existing hotels in our markets and with alternative lodging companies, such as Airbnb; |
• | new hotels entering our markets, which may adversely affect the occupancy levels and average daily rates of our lodging properties; |
• | an increase in internet bookings, which may enable internet booking intermediaries to obtain higher commissions, reduced room rates or other significant contract concessions from our third-party hotel property manager; |
• | increases in operating costs due to inflation and other factors that may not be offset by increased room rates; |
• | unavailability of labor; |
• | changes in, and the related costs of compliance with, governmental laws and regulations, fiscal policies and zoning ordinances; |
• | inability to adapt to dominant trends in the hotel industry or introduce new concepts and products that take advantage of opportunities created by changing consumer spending patterns and demographics; and |
• | adverse effects of international, national, regional and local economic and market conditions. |
• | wage and benefit costs; |
• | repair and maintenance expenses; |
• | energy costs; |
• | property taxes; |
• | insurance costs; and |
• | other operating expenses. |
• | our cash flow could be insufficient to pay dividends at expected levels and meet required payments of principal and interest; |
• | our debt financing contains prepayment penalties, assumption fees or other provisions that restrict our ability to transfer assets; |
• | we might be required to use a substantial portion of our cash flow from operations to pay our indebtedness, thereby reducing the availability of our cash flow to fund our business, including acquisitions, capital expenditures and other general corporate purposes; |
• | our ability to obtain additional financing for working capital, capital expenditures, satisfaction of debt service requirements, acquisitions and general corporate or other purposes could be limited; |
• | our debt service obligations could limit our flexibility in planning for, or reacting to, changes in our business or market conditions and place us at a competitive disadvantage compared to our competitors who may be better positioned to take advantage of opportunities that our leverage prevents us from exploiting; |
• | we may not be able to refinance existing indebtedness (which requires substantial principal payments at maturity) and, if we can, the terms of such refinancing might not be as favorable as the terms of existing indebtedness; |
• | if principal payments due at maturity cannot be refinanced, extended or paid with proceeds of other capital transactions, such as new equity capital, our cash flow will not be sufficient in all years to repay all maturing debt; and |
• | prevailing interest rates or other factors at the time of refinancing (such as the possible reluctance of lenders to make commercial real estate loans) may result in higher interest rates, which could adversely affect net income, cash flow and our ability to service debt and pay dividends to stockholders. |
Property | Ownership | Rentable Square Feet(1) | Percent Occupied(2) | Annualized Cash Rent (in thousands)(3) | Annualized Cash Rent Per Square Foot | Number of Leases | |||||||||||||
Manhattan Office Properties - Office | |||||||||||||||||||
Design Center | 100.0% | 81,082 | 100.0 | % | $ | 4,130 | $ | 50.94 | 17 | ||||||||||
416 Washington Street | 100.0% | 1,565 | 100.0 | % | 58 | 37.10 | 1 | ||||||||||||
256 West 38th Street | 100.0% | 89,763 | 66.7 | % | 2,418 | 40.38 | 9 | ||||||||||||
229 West 36th Street | 100.0% | 129,436 | 90.3 | % | 5,179 | 44.33 | 7 | ||||||||||||
218 West 18th Street | 100.0% | 165,670 | 100.0 | % | 9,337 | 56.36 | 7 | ||||||||||||
50 Varick Street | 100.0% | 158,574 | 100.0 | % | 7,623 | 48.07 | 1 | ||||||||||||
333 West 34th Street | 100.0% | 317,040 | 100.0 | % | 14,402 | 45.43 | 3 | ||||||||||||
1440 Broadway | 100.0% | 711,800 | 84.7 | % | 32,854 | 54.47 | 11 | ||||||||||||
One Worldwide Plaza | 48.9% | 878,614 | 100.0 | % | 58,485 | 66.57 | 9 | ||||||||||||
245-249 West 17th Street | 100.0% | 214,666 | 100.0 | % | 14,842 | 69.14 | 1 | ||||||||||||
Manhattan Office Properties - Office Total | 2,748,210 | 94.5 | % | 149,328 | 57.50 | 66 | |||||||||||||
Manhattan Office Properties - Retail | |||||||||||||||||||
256 West 38th Street | 100.0% | 27,280 | 100.0 | % | 1,179 | 43.22 | 3 | ||||||||||||
229 West 36th Street | 100.0% | 20,132 | 100.0 | % | 1,012 | 50.28 | 1 | ||||||||||||
333 West 34th Street | 100.0% | 29,688 | 100.0 | % | 1,446 | 48.72 | 1 | ||||||||||||
1440 Broadway | 100.0% | 37,619 | 95.5 | % | 5,004 | 139.27 | 7 | ||||||||||||
One Worldwide Plaza | 48.9% | 123,213 | 100.0 | % | 5,009 | 40.65 | 20 | ||||||||||||
245-249 West 17th Street | 100.0% | 66,628 | 100.0 | % | 5,552 | 83.33 | 3 | ||||||||||||
Manhattan Office Properties - Retail Total | 304,560 | 99.4 | % | 19,202 | 63.40 | 35 | |||||||||||||
Sub-Total/Weighted Average Manhattan Office Properties - Office and Retail | 3,052,770 | 95.0 | % | 168,530 | 58.12 | 101 | |||||||||||||
Manhattan Stand Alone Retail | |||||||||||||||||||
367-387 Bleecker Street | 100.0% | 9,724 | 100.0 | % | 2,733 | 281.02 | 5 | ||||||||||||
33 West 56th Street (garage) | 100.0% | 12,856 | 100.0 | % | 460 | 35.81 | 1 | ||||||||||||
416 Washington Street | 100.0% | 7,436 | 100.0 | % | 469 | 63.12 | 2 | ||||||||||||
One Jackson Square | 100.0% | 8,392 | 100.0 | % | 1,676 | 199.72 | 4 | ||||||||||||
350 West 42nd Street | 100.0% | 42,774 | 100.0 | % | 1,769 | 41.36 | 4 | ||||||||||||
350 Bleecker Street | 100.0% | 14,511 | 84.6 | % | 733 | 59.68 | 2 | ||||||||||||
Sub-Total/Weighted Average Manhattan Stand Alone Retail | 95,693 | 97.7 | % | 7,840 | 83.89 | 18 | |||||||||||||
Outer-Borough Properties | |||||||||||||||||||
Foot Locker(4) | 100.0% | 6,118 | 100.0 | % | 497 | 81.14 | 1 | ||||||||||||
Duane Reade(4) | 100.0% | 9,767 | 100.0 | % | 1,094 | 112.02 | 1 | ||||||||||||
1100 Kings Highway | 100.0% | 61,318 | 100.0 | % | 2,807 | 45.78 | 5 | ||||||||||||
1623 Kings Highway(4) | 100.0% | 19,960 | 100.0 | % | 1,132 | 56.71 | 3 | ||||||||||||
Sub-Total/Weighted Average Outer-Borough Properties | 97,163 | 100.0 | % | 5,530 | 56.91 | 10 | |||||||||||||
Portfolio Total | 3,245,626 | 95.2 | % | $ | 181,900 | $ | 58.86 | 129 |
(1) | Does not include 128,612 square feet at the Viceroy Hotel, antenna leases at Worldwide Plaza or 15,055 square feet at the garage at 416 Washington Street, which is being operated under a management contract with a third party. |
(2) | Inclusive of leases signed but not yet commenced. |
(3) | Cash rent at the end of the reporting period, including operating expense reimbursements, excluding electric. Real estate tax reimbursements are typically multiplied by two because they are paid semi-annually. Free rent periods are excluded from annualized cash rent. |
(4) | Held for sale as of December 31, 2015. In November 2015, we entered into agreements to sell Duane Reade and 1623 Kings Highway. In December 2015, we entered into an agreement to sell Foot Locker. The sales of Duane Reade and 1623 Kings Highway were completed in February 2016. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Subsequent Events. |
(In thousands) | Future Minimum Base Rent Payments | |||
2016 | $ | 104,174 | ||
2017 | 106,823 | |||
2018 | 104,931 | |||
2019 | 96,911 | |||
2020 | 97,330 | |||
2021 | 95,970 | |||
2022 | 90,556 | |||
2023 | 86,331 | |||
2024 | 74,583 | |||
2025 | 48,439 | |||
Thereafter | 166,473 | |||
Total | $ | 1,072,521 |
Year of Expiration | Number of Leases Expiring | Expiring Annualized Cash Rent(1) | Expiring Annualized Cash Rent as a Percentage of the Total Portfolio(1) | Leased Rentable Square Feet(2) | Percent of Portfolio Leased Rentable Square Feet Expiring | ||||||||||
(In thousands) | |||||||||||||||
2016 | 10 | $ | 6,488 | 3 | % | 102,541 | 3 | % | |||||||
2017 | 17 | 7,296 | 3 | % | 106,379 | 3 | % | ||||||||
2018 | 17 | 9,440 | 4 | % | 159,320 | 5 | % | ||||||||
2019 | 6 | 1,238 | 1 | % | 32,077 | 1 | % | ||||||||
2020 | 8 | 6,153 | 3 | % | 83,945 | 2 | % | ||||||||
2021 | 10 | 6,469 | 3 | % | 155,631 | 5 | % | ||||||||
2022 | 16 | 11,839 | 6 | % | 198,477 | 6 | % | ||||||||
2023 | 3 | 3,894 | 2 | % | 58,632 | 2 | % | ||||||||
2024 | 12 | 49,352 | 23 | % | 613,731 | 18 | % | ||||||||
2025 | 9 | 34,476 | 16 | % | 420,328 | 12 | % | ||||||||
Total | 108 | $ | 136,645 | 64 | % | 1,931,061 | 57 | % |
(1) | Expiring annualized cash rent represents contractual cash base rents at the time of lease expiration added to current reimbursements from tenants, excluding electric reimbursements and free rent. |
(2) | Excludes 122,896 square feet of the Viceroy Hotel (which excludes space leased to the hotel restaurant tenant). Total vacant square footage at December 31, 2015 was 155,087 square feet. |
Tenant | Rented Square Feet(1) | Rented Square Feet as a % of Total Portfolio | Lease Expiration | Remaining Lease Term(2) | Renewal Options | Annualized Cash Rent(1) (3) | ||||||||||
(In thousands) | ||||||||||||||||
Nomura Holdings America, Inc. | 400,934 | 11.9% | Sep. 2033 | 17.8 | (4) | $ | 19,330 |
(1) | Rentable square feet and annualized cash rent reflect our 48.9% pro rata share of Worldwide Plaza. |
(2) | Remaining lease term in years as of December 31, 2015. |
(3) | Annualized cash rent as of December 31, 2015 includes operating expense reimbursements, excluding electric charges and free rent. |
(4) | Nomura Holdings America, Inc. has up to four options to renew its lease. The first two options are for renewal terms of five or ten years each and the second two options are for five years each. In total, the renewal options allow for a maximum of 20 years of extended term. |
Tenant | Rented Square Feet(1) | Rented Square Feet as a % of Total Worldwide Plaza | Lease Expiration | Remaining Lease Term(2) | Renewal Options | Annualized Cash Rent(1) (3) | |||||||||
(In thousands) | |||||||||||||||
Nomura Holdings America, Inc. | 400,934 | 40.0% | Sep. 2033 | 17.8 | (4) | $ | 19,330 | ||||||||
Cravath Swaine & Moore, LLP | 301,779 | 30.1% | Aug. 2024 | 8.7 | None | $ | 29,273 |
(1) | Rented square feet and annualized cash rent reflect our 48.9% pro rata share of the building. |
(2) | Remaining lease term in years as of December 31, 2015. |
(3) | Annualized cash rent as of December 31, 2015 includes operating expense reimbursements, excluding electric charges and free rent. |
(4) | Nomura Holdings America, Inc. has up to four options to renew its lease. The first two options are for renewal terms of five or ten years each and the second two options are for five years each. In total, the renewal options allow for a maximum of 20 years of extended term. |
Tenant | Rented Square Feet | Rented Square Feet as a % of Total 1440 Broadway | Lease Expiration | Remaining Lease Term(1) | Renewal Options | Annualized Cash Rent(2) | |||||||||
(In thousands) | |||||||||||||||
Macy's Inc. | 203,196 | 27.1% | Jan. 2024 | 8.1 | None | $ | 11,064 | ||||||||
Ford Foundation | 104,525 | 13.9% | Dec. 2018 | 3.0 | None | $ | 6,481 |
(1) | Remaining lease term in years as of December 31, 2015. |
(2) | Annualized cash rent as of December 31, 2015 includes operating expense reimbursements, excluding electric charges and free rent. |
Tenant | Rented Square Feet | Rented Square Feet as a % of Total 333 West 34th Street | Lease Expiration | Remaining Lease Term(1) | Renewal Options | Annualized Cash Rent(2) | |||||||||
(In thousands) | |||||||||||||||
The Segal Company (Eastern States) Inc. | 144,307 | (3) | 41.6% | Feb. 2025 | 9.2 | None | $ | 8,701 | |||||||
Metropolitan Transportation Authority (MTA) | 130,443 | (4) | 37.6% | Jan. 2021 | (5) | 5.1 | None | $ | 4,079 | ||||||
Godiva Chocolatier, Inc. | 42,290 | 12.2% | Feb. 2027 | 11.2 | None | $ | 1,621 |
(1) | Remaining lease term in years as of December 31, 2015. |
(2) | Annualized cash rent as of December 31, 2015 includes operating expense reimbursements, excluding electric charges and free rent. |
(3) | The Metropolitan Transportation Authority (MTA) is contractually obligated to surrender 17,503 rentable square feet of the 5th floor to The Segal Company (Eastern States), Inc. by December 31, 2016. |
(4) | Includes 17,503 rentable square feet to be surrendered to the Segal Company (Eastern States), Inc. in 2016. |
(5) | Early termination at the tenant's option available at any time in exchange for a termination payment. |
Tenant | Rented Square Feet | Rented Square Feet as a % of Total 245-249 West 17th Street | Lease Expiration | Remaining Lease Term(1) | Renewal Options | Annualized Cash Rent(2) | |||||||||
(In thousands) | |||||||||||||||
Twitter, Inc. | 214,666 | 76.3% | Apr. 2025 | 9.3 | 2 - 5 year | $ | 14,842 | ||||||||
Room & Board, Inc. | 60,161 | 21.4% | Oct. 2034 | 18.8 | 1 - 5 year | $ | 4,658 |
(1) | Remaining lease term in years as of December 31, 2015. |
(2) | Annualized cash rent as of December 31, 2015 includes operating expense reimbursements, excluding electric charges and free rent. |
Outstanding Loan Amount | |||||||||||||
Portfolio | Encumbered Properties | December 31, 2015 | Effective Interest Rate | Interest Rate | Maturity | ||||||||
(In thousands) | |||||||||||||
Design Center | 1 | $ | 19,798 | 4.4 | % | Fixed | Dec. 2021 | ||||||
Foot Locker | 1 | 3,250 | 4.6 | % | Fixed | Jun. 2016 | |||||||
Duane Reade(2) | 1 | 8,400 | 3.6 | % | Fixed | Nov. 2016 | |||||||
1100 Kings Highway | 1 | 20,200 | 3.4 | % | (1) | Fixed | Aug. 2017 | ||||||
1623 Kings Highway(2) | 1 | 7,288 | 3.3 | % | (1) | Fixed | Nov. 2017 | ||||||
256 West 38th Street | 1 | 24,500 | 3.1 | % | (1) | Fixed | Dec. 2017 | ||||||
1440 Broadway(5) | 1 | 305,000 | 3.9 | % | (3) | Variable | Oct. 2019 | ||||||
7 | $ | 388,436 | 3.8 | % | (4) |
(1) | Fixed through an interest rate swap agreement. |
(2) | Subsequent to December 31, 2015, we repaid the mortgages securing Duane Reade and 1623 Kings Highway as a result of the sale of the properties. |
(3) | LIBOR portion is capped through an interest rate cap agreement. |
(4) | Calculated on a weighted average basis for all mortgages outstanding as of December 31, 2015. |
(5) | Total commitments of $325.0 million; additional $20.0 million available, subject to lender approval, to fund certain tenant allowances, capital expenditures and leasing costs. |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
2015: | ||||||||||||||||
High | $ | 10.85 | $ | 10.61 | $ | 10.44 | $ | 11.90 | ||||||||
Low | $ | 9.82 | $ | 8.87 | $ | 9.39 | $ | 10.28 | ||||||||
Dividends paid per share | $ | 0.115 | $ | 0.115 | $ | 0.115 | $ | 0.115 | ||||||||
2014: | ||||||||||||||||
High | N/A | $ | 12.32 | $ | 11.05 | $ | 11.41 | |||||||||
Low | N/A | $ | 9.51 | $ | 9.87 | $ | 10.22 | |||||||||
Dividends paid per share | $ | 0.149 | $ | 0.130 | $ | 0.115 | $ | 0.115 |
Year Ended December 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Return of capital | $ | 0.45 | 98.0 | % | $ | 0.51 | 100.0 | % | ||||||
Capital gain dividends | 0.01 | 2.0 | % | — | — | % | ||||||||
Total | $ | 0.46 | 100.0 | % | $ | 0.51 | 100.0 | % |
(In thousands) | Total Dividends Paid | Total Dividends Declared | ||||||
2015: | ||||||||
1st Quarter 2015 | $ | 19,247 | $ | 19,244 | ||||
2nd Quarter 2015 | 19,419 | 19,452 | ||||||
3rd Quarter 2015 | 19,332 | 19,307 | ||||||
4th Quarter 2015(1) | 19,312 | 19,314 | ||||||
Total 2015 | $ | 77,310 | $ | 77,317 | ||||
2014: | ||||||||
1st Quarter 2014 | $ | 25,950 | $ | 26,165 | ||||
2nd Quarter 2014 | 22,104 | 13,074 | ||||||
3rd Quarter 2014 | 18,950 | 18,967 | ||||||
4th Quarter 2014 | 19,031 | 19,016 | ||||||
Total 2014 | $ | 86,035 | $ | 77,222 |
(1) | Excludes distributions paid to our non-controlling partner in 163 Washington Avenue as a result of the sale of the property in October 2015. |
December 31, | ||||||||||||||||||||
Balance sheet data (In thousands) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Total real estate investments, at cost | $ | 1,822,903 | $ | 1,888,366 | $ | 1,542,805 | $ | 360,857 | $ | 125,626 | ||||||||||
Total assets | 2,071,755 | 2,120,835 | 2,048,305 | 367,850 | 136,964 | |||||||||||||||
Mortgage notes payable | 388,436 | 172,242 | 172,716 | 185,569 | 75,250 | |||||||||||||||
Credit Facility | 485,000 | 635,000 | 305,000 | 19,995 | — | |||||||||||||||
Notes payable | — | — | — | — | 5,933 | |||||||||||||||
Total liabilities | 979,486 | 925,158 | 599,046 | 225,419 | 85,773 | |||||||||||||||
Total equity | 1,092,269 | 1,195,677 | 1,449,259 | 142,431 | 51,191 |
Year Ended December 31, | ||||||||||||||||||||
Operating data (In thousands, except share and per share data) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Total revenues | $ | 174,521 | $ | 155,567 | $ | 55,887 | $ | 15,422 | $ | 7,535 | ||||||||||
Operating expenses | 195,415 | 227,540 | 65,105 | 16,787 | 6,888 | |||||||||||||||
Operating income (loss) | (20,894 | ) | (71,973 | ) | (9,218 | ) | (1,365 | ) | 647 | |||||||||||
Total other expenses | (19,375 | ) | (22,312 | ) | (10,093 | ) | (5,007 | ) | (3,912 | ) | ||||||||||
Net loss | (40,269 | ) | (94,285 | ) | (19,311 | ) | (6,372 | ) | (3,265 | ) | ||||||||||
Net loss (income) attributable to non-controlling interests | 1,188 | 1,257 | 32 | 33 | (154 | ) | ||||||||||||||
Net loss attributable to stockholders | $ | (39,081 | ) | $ | (93,028 | ) | $ | (19,279 | ) | $ | (6,339 | ) | $ | (3,419 | ) | |||||
Other data: | ||||||||||||||||||||
Cash flows provided by operations | $ | 37,725 | $ | 6,535 | $ | 9,428 | $ | 3,030 | $ | 263 | ||||||||||
Cash flows provided by (used in) investing activities | 61,907 | (327,835 | ) | (1,309,508 | ) | (145,753 | ) | (25,736 | ) | |||||||||||
Cash flows provided by (used in) financing activities | (23,540 | ) | 110,435 | 1,528,103 | 137,855 | 35,346 | ||||||||||||||
Per share data: | ||||||||||||||||||||
Net loss per common share - basic and diluted | $ | (0.24 | ) | $ | (0.56 | ) | $ | (0.26 | ) | $ | (0.52 | ) | $ | (2.31 | ) | |||||
Dividends and distributions declared per common share | $ | 0.460 | $ | 0.490 | $ | 0.605 | $ | 0.605 | $ | 0.605 | ||||||||||
Weighted-average number of common shares outstanding, basic and diluted | 162,165,580 | 166,959,316 | 73,074,872 | 12,187,623 | 2,070,184 |
• | During the year ended December 31, 2015, one of our tenants at 256 W. 38th Street rejected their lease in bankruptcy and approximately 47,000 square feet at that building became vacant. We subsequently re-leased approximately 17,000 square feet. This lease commenced in January 2016. |
• | During the fourth quarter of 2015, approximately 184,000 square feet of space became vacant at 1440 Broadway. We re-leased 104,000 square feet in that same quarter and expect this lease to commence in April 2016. |
• | As of December 31, 2014, Worldwide Plaza was 93.2% leased. During the year ended December 31, 2015, the remaining vacant space at Worldwide Plaza was leased, and Worldwide Plaza was 100% occupied as of December 31, 2015. |
Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | Total | |||||||||||||||||
Leasing activity: | |||||||||||||||||||||
Leases executed | 5 | 1 | 7 | 1 | 14 | ||||||||||||||||
Total square feet leased | 129,889 | 2,811 | 185,247 | 22,185 | 340,132 | ||||||||||||||||
Company's share of square feet leased | 125,727 | 2,811 | 114,548 | 22,185 | 265,271 | ||||||||||||||||
Initial rent | $ | 62.14 | $ | 158.42 | $ | 56.51 | $ | 157.76 | $ | 66.08 | |||||||||||
Weighted average lease term (years) | 4.2 | 10.0 | 12.9 | 15.5 | 10.1 | ||||||||||||||||
Replacement leases:(1) | |||||||||||||||||||||
Replacement leases executed | 4 | — | 3 | 1 | 8 | ||||||||||||||||
Square feet | 123,002 | — | 30,579 | 5,058 | 158,639 | ||||||||||||||||
Cash basis: | |||||||||||||||||||||
Initial rent | $ | 67.09 | $ | — | $ | 48.70 | $ | 356.79 | 107.45 | ||||||||||||
Prior escalated rent (2) | $ | 54.62 | $ | — | $ | 36.64 | $ | 250.90 | 70.46 | ||||||||||||
Percentage increase (decrease) | 23 | % | — | % | 33 | % | 42 | % | 52 | % | |||||||||||
GAAP basis: | |||||||||||||||||||||
Initial rent | $ | 69.61 | $ | — | $ | 51.75 | $ | 381.19 | 114.35 | ||||||||||||
Prior escalated rent (2) | $ | 54.66 | $ | — | $ | 40.69 | $ | 249.32 | 70.75 | ||||||||||||
Percentage increase (decrease) | 27 | % | — | % | 27 | % | 53 | % | 62 | % | |||||||||||
Tenant improvements on replacement leases per square foot | $ | 17.40 | $ | — | $ | 98.62 | $ | 78.88 | $ | 39.82 | |||||||||||
Leasing commissions on replacement leases per square foot | $ | 11.92 | $ | — | $ | 31.61 | $ | 178.40 | $ | 27.85 |
(1) | Replacement leases are for space that was leased during the period that was previously leased to another expired or terminated tenant at some time during the prior twelve months. |
(2) | Prior escalated rent is calculated as total annualized income less electric charges. It includes base rent, excluding recoveries. |
Total | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | |||||||||||||||||||||||
Combined:(1) | |||||||||||||||||||||||||||||
Leases expiring | 137 | 10 | 17 | 17 | 6 | 8 | 79 | ||||||||||||||||||||||
Expiring Annualized Cash Rent (in thousands)(2)(3) | $ | 214,905 | $ | 6,488 | $ | 7,296 | $ | 9,440 | $ | 1,238 | $ | 6,153 | $ | 184,290 | |||||||||||||||
Expiring square feet(3) | 3,096,255 | 102,541 | 106,379 | 159,320 | 32,077 | 83,945 | 2,611,993 | ||||||||||||||||||||||
% of total square feet expiring | 100.0 | % | 3.3 | % | 3.4 | % | 5.1 | % | 1.0 | % | 2.7 | % | 84.5 | % | |||||||||||||||
Annualized Cash Rent per square foot(2) (3) | $ | 69.41 | $ | 63.28 | $ | 68.58 | $ | 59.25 | $ | 38.62 | $ | 73.30 | $ | 70.56 | |||||||||||||||
Consolidated properties: | |||||||||||||||||||||||||||||
Leases expiring | 103 | 7 | 16 | 13 | 5 | 7 | 55 | ||||||||||||||||||||||
Expiring Annualized Cash Rent (in thousands)(2)(3) | $ | 142,792 | $ | 6,436 | $ | 6,284 | $ | 9,096 | $ | 1,227 | $ | 5,805 | $ | 113,944 | |||||||||||||||
Expiring square feet(3)(4) | 2,094,428 | 102,394 | 89,959 | 157,487 | 32,077 | 82,800 | 1,629,711 | ||||||||||||||||||||||
% of total square feet expiring | 100.0 | % | 4.9 | % | 4.3 | % | 7.5 | % | 1.5 | % | 4.0 | % | 77.8 | % | |||||||||||||||
Annualized Cash Rent per square foot(2) (3)(4) | $ | 68.18 | $ | 62.86 | $ | 69.85 | $ | 57.75 | $ | 38.27 | $ | 70.10 | $ | 69.92 | |||||||||||||||
Unconsolidated joint ventures: | |||||||||||||||||||||||||||||
Leases expiring | 34 | 3 | 1 | 4 | 1 | 1 | 24 | ||||||||||||||||||||||
Expiring Annualized Cash Rent (in thousands)(2)(4) | $ | 72,113 | $ | 52 | $ | 1,012 | $ | 344 | $ | 11 | $ | 348 | $ | 70,346 | |||||||||||||||
Expiring square feet(5) | 1,001,827 | 147 | 16,420 | 1,833 | — | 1,145 | 982,282 | ||||||||||||||||||||||
% of total square feet expiring | 100.0 | % | — | % | 1.6 | % | 0.2 | % | — | % | 0.1 | % | 98.1 | % | |||||||||||||||
Annualized Cash Rent per square foot(2)(4) | $ | 71.98 | $ | 354.97 | $ | 61.61 | $ | 187.58 | $ | — | $ | 304.17 | $ | 71.61 |
(1) | Combined reflects 100% of consolidated properties plus our pro rata share of unconsolidated properties. |
(2) | Expiring annualized cash rent represents contractual cash base rents at the time of lease expiration and reimbursements from tenants, excluding electric reimbursements and free rent. |
(3) | Excludes 122,896 square feet of the hotel (which excludes 5,716 square feet leased to the hotel restaurant tenant). Total vacant square footage at December 31, 2015 was 155,087 square feet. |
(4) | Reflects our pro rata share of our unconsolidated joint venture. |
Three Months Ended | Year Ended | |||||||||||||||||||
(In thousands) | March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | December 31, 2015 | |||||||||||||||
Net loss (in accordance with GAAP)(1) | $ | (8,777 | ) | $ | (9,239 | ) | $ | (13,509 | ) | $ | (8,744 | ) | $ | (40,269 | ) | |||||
Gain on sale of real estate investment, net | — | — | — | (7,523 | ) | (7,523 | ) | |||||||||||||
Depreciation and amortization, net of adjustments related to joint venture(2) | 21,671 | 22,140 | 20,477 | 18,398 | 82,686 | |||||||||||||||
Depreciation and amortization related to unconsolidated joint venture(3) | 6,431 | 6,443 | 6,478 | 6,512 | 25,864 | |||||||||||||||
FFO | 19,325 | 19,344 | 13,446 | 8,643 | 60,758 | |||||||||||||||
Acquisition and transaction-related(4) | 125 | 96 | 2,850 | 700 | 3,771 | |||||||||||||||
Gain on sale of investment securities | (48 | ) | — | (54 | ) | (7 | ) | (109 | ) | |||||||||||
Non-core other income | (158 | ) | — | — | (1,795 | ) | (1,953 | ) | ||||||||||||
Non-core general and administrative expense(5) | 500 | 1,500 | — | — | 2,000 | |||||||||||||||
Non-core write-off of below-market lease(2) | (947 | ) | — | — | — | (947 | ) | |||||||||||||
Non-core straight-line rent bad debt expense | 529 | 8 | — | 19 | 556 | |||||||||||||||
Non-core derivative losses | — | — | 423 | — | 423 | |||||||||||||||
Non-core deferred financing costs(6) | — | — | 1,060 | 40 | 1,100 | |||||||||||||||
Core FFO | 19,326 | 20,948 | 17,725 | 7,600 | 65,599 | |||||||||||||||
Non-cash compensation expense(7) | 248 | 2,189 | 4,081 | 8,727 | 15,245 | |||||||||||||||
Deferred financing costs | 1,138 | 1,162 | 1,179 | 2,457 | 5,936 | |||||||||||||||
Seller free rent credit | 3,679 | 872 | 197 | — | 4,748 | |||||||||||||||
Amortization of market lease intangibles | (2,124 | ) | (1,842 | ) | (1,843 | ) | (1,610 | ) | (7,419 | ) | ||||||||||
Mark-to-market adjustments on derivatives | 4 | — | 117 | 34 | 155 | |||||||||||||||
Straight-line rent | (5,870 | ) | (2,856 | ) | (2,525 | ) | (2,431 | ) | (13,682 | ) | ||||||||||
Straight-line ground rent | 987 | 787 | 719 | 686 | 3,179 | |||||||||||||||
Tenant improvements - second generation | — | — | — | (43 | ) | (43 | ) | |||||||||||||
Leasing commissions - second generation | (3 | ) | (3 | ) | (12 | ) | (194 | ) | (212 | ) | ||||||||||
Building improvements - second generation | (9 | ) | (51 | ) | (201 | ) | (962 | ) | (1,223 | ) | ||||||||||
Proportionate share of straight-line rent related to unconsolidated joint venture | (714 | ) | (773 | ) | (988 | ) | (884 | ) | (3,359 | ) | ||||||||||
AFFO | $ | 16,662 | $ | 20,433 | $ | 18,449 | $ | 13,380 | $ | 68,924 |
(1) | During the fourth quarter of 2015, we identified certain immaterial errors impacting interest expense in our previously issued quarterly financial statements. Interest expense and net loss were understated by $0.3 million for each of the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015. Quarterly amounts in the table above have been revised to reflect the corrected amounts. |
(2) | During the fourth quarter of 2015, we reclassified the write-off of a terminated below-market lease from depreciation and amortization expense to revenue, which impacted the first quarter of 2015. Depreciation and amortization for the quarter ended March 31, 2015 has been revised to reflect this reclassification. The impact of the below-market lease write-off was deemed to be non-core to our business and is now being included in the reconciliation to Core FFO. |
(3) | Proportionate share of depreciation and amortization related to unconsolidated joint venture and amortization of difference in basis. |
(4) | Acquisition and transaction-related expenses for the third quarter of 2015 primarily represent costs associated with mortgage payoffs and our Credit Facility amendment. For the fourth quarter of 2015, these costs are primarily related to litigation at Worldwide Plaza and professional fees related to the exploration of strategic transactions. |
(5) | Represents our estimate of non-core audit fees. |
(6) | Represents deferred financing costs that were written off as a result of paying off mortgages in advance of their scheduled maturity dates. |
(7) | During the second quarter of 2015, we excluded equity-based compensation from our calculation of Core FFO for the first time. During the third quarter of 2015, we reverted to our previous practice of excluding the impact of non-cash compensation expense from the reconciliation to Core FFO to the reconciliation to AFFO for all periods presented. |
Three Months Ended | Year Ended | |||||||||||||||||||
(In thousands) | March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | December 31, 2015 | |||||||||||||||
Net loss (in accordance with GAAP)(1) | $ | (8,777 | ) | $ | (9,239 | ) | $ | (13,509 | ) | $ | (8,744 | ) | $ | (40,269 | ) | |||||
Acquisition and transaction-related | 125 | 96 | 2,850 | 700 | 3,771 | |||||||||||||||
Depreciation and amortization(1) | 21,680 | 22,154 | 20,484 | 18,398 | 82,716 | |||||||||||||||
Interest expense(2) | 6,249 | 6,347 | 7,495 | 9,271 | 29,362 | |||||||||||||||
Gain on sale of real estate investment, net | — | — | — | (7,523 | ) | (7,523 | ) | |||||||||||||
Loss on derivatives | 4 | — | 540 | 34 | 578 | |||||||||||||||
Adjustments related to unconsolidated joint venture(3) | 11,264 | 11,324 | 11,418 | 11,453 | 45,459 | |||||||||||||||
Adjusted EBITDA | 30,545 | 30,682 | 29,278 | 23,589 | 114,094 | |||||||||||||||
General and administrative | 3,950 | 5,203 | 6,519 | 11,673 | 27,345 | |||||||||||||||
Asset management fee incurred from the Advisor | 3,144 | 3,101 | 3,121 | 3,099 | 12,465 | |||||||||||||||
Income from preferred equity investment, investment securities and interest | (930 | ) | (8 | ) | (141 | ) | (24 | ) | (1,103 | ) | ||||||||||
Preferred return on unconsolidated joint venture | (3,851 | ) | (3,894 | ) | (3,936 | ) | (4,055 | ) | (15,736 | ) | ||||||||||
Proportionate share of other adjustments related to unconsolidated joint venture | 1,883 | 1,905 | 1,924 | 1,983 | 7,695 | |||||||||||||||
NOI | 34,741 | 36,989 | 36,765 | 36,265 | 144,760 | |||||||||||||||
Amortization of above/below market lease assets and liabilities(1) | (3,071 | ) | (1,842 | ) | (1,843 | ) | (1,610 | ) | (8,366 | ) | ||||||||||
Straight-line rent | (5,341 | ) | (2,848 | ) | (2,525 | ) | (2,412 | ) | (13,126 | ) | ||||||||||
Straight-line ground rent | 987 | 787 | 719 | 686 | 3,179 | |||||||||||||||
Proportionate share of adjustments related to unconsolidated joint venture | (714 | ) | (773 | ) | (988 | ) | (884 | ) | (3,359 | ) | ||||||||||
Cash NOI | 26,602 | 32,313 | 32,128 | 32,045 | 123,088 | |||||||||||||||
Free rent | 4,498 | 1,880 | 1,808 | 1,336 | 9,522 | |||||||||||||||
Adjusted Cash NOI | $ | 31,100 | $ | 34,193 | $ | 33,936 | $ | 33,381 | $ | 132,610 |
(1) | During the fourth quarter of 2015, we reclassified the write-off of a terminated below-market lease from depreciation and amortization expense to revenue, which impacted the first quarter of 2015. Depreciation and amortization for the quarter ended March 31, 2015 and amortization of above/below market lease assets and liabilities have been revised to reflect this reclassification. |
(2) | During the fourth quarter of 2015, we identified certain immaterial errors impacting interest expense in our previously issued quarterly financial statements. Interest expense and net loss were understated by $0.3 million for each of the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015. Quarterly amounts in the table above have been revised to reflect the corrected amounts. |
(3) | Proportionate share of adjustments related to unconsolidated joint venture and amortization of difference in basis. |
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||
March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | December 31, 2015 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Percentage of Distributions | Percentage of Distributions | Percentage of Distributions | Percentage of Distributions | Percentage of Distributions | ||||||||||||||||||||||||||||||
Distributions: | |||||||||||||||||||||||||||||||||||
Dividends paid in cash | $ | 18,654 | $ | 18,651 | $ | 18,711 | $ | 18,691 | $ | 74,707 | |||||||||||||||||||||||||
Other(1) | 593 | 768 | 621 | 621 | 2,603 | ||||||||||||||||||||||||||||||
Total dividends | $ | 19,247 | $ | 19,419 | $ | 19,332 | $ | 19,312 | $ | 77,310 | |||||||||||||||||||||||||
Source of dividend coverage: | |||||||||||||||||||||||||||||||||||
Cash flows provided by operations | $ | 14,446 | 75.1 | % | $ | 1,886 | 9.7 | % | $ | 16,912 | 87.5 | % | $ | 4,481 | 23.2 | % | $ | 37,725 | 48.8 | % | |||||||||||||||
Proceeds from return of preferred equity investment | 4,801 | 24.9 | % | 17,533 | 90.3 | % | 2,420 | 12.5 | % | 10,346 | 53.6 | % | 35,100 | 45.4 | % | ||||||||||||||||||||
Distributions in respect of our interest in Worldwide Plaza | — | — | % | — | — | % | — | — | % | 4,485 | 23.2 | % | 4,485 | 5.8 | % | ||||||||||||||||||||
Total sources of dividends | $ | 19,247 | 100.0 | % | $ | 19,419 | 100.0 | % | $ | 19,332 | 100.0 | % | $ | 19,312 | 100.0 | % | $ | 77,310 | 100.0 | % | |||||||||||||||
Cash flows provided by operations (GAAP basis) | $ | 14,446 | $ | 1,886 | $ | 16,912 | $ | 4,481 | $ | 37,725 | |||||||||||||||||||||||||
Net loss attributable to stockholders (in accordance with GAAP)(2) | $ | (8,516 | ) | $ | (8,982 | ) | $ | (13,075 | ) | $ | (8,508 | ) | $ | (39,081 | ) |
(1) | Includes distributions on OP units and participating LTIP units but excludes distributions paid to our non-controlling partner in 163 Washington Avenue as a result of the sale of the property in October 2015. |
(2) | During the fourth quarter of 2015, we identified certain immaterial errors impacting interest expense in our previously issued quarterly financial statements. Interest expense and net loss were understated by $0.3 million for each of the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015. Quarterly amounts in the table above have been revised to reflect the corrected amounts. |
Years Ended December 31, | ||||||||||||||||||||
(In thousands) | Total | 2016 | 2017 — 2018 | 2019 — 2020 | Thereafter | |||||||||||||||
Principal payments due: | ||||||||||||||||||||
Mortgage notes payable | $ | 388,436 | $ | 12,068 | $ | 59,236 | $ | 312,910 | $ | 4,222 | ||||||||||
Credit Facility | 485,000 | 180,000 | 305,000 | — | — | |||||||||||||||
$ | 873,436 | $ | 192,068 | $ | 364,236 | $ | 312,910 | $ | 4,222 | |||||||||||
Interest payments due: | ||||||||||||||||||||
Mortgage notes payable | $ | 53,969 | $ | 16,250 | $ | 26,464 | $ | 11,154 | $ | 101 | ||||||||||
Credit Facility | 22,814 | 10,186 | 12,628 | — | — | |||||||||||||||
$ | 76,783 | $ | 26,436 | $ | 39,092 | $ | 11,154 | $ | 101 |
Years Ended December 31, | ||||||||||||||||||||
(In thousands) | Total | 2016 | 2017 — 2018 | 2019 — 2020 | Thereafter | |||||||||||||||
Capital lease obligations | $ | 3,834 | $ | 86 | $ | 172 | $ | 172 | $ | 3,404 | ||||||||||
Operating lease obligations | 271,925 | 4,958 | 9,994 | 10,692 | 246,281 | |||||||||||||||
Total lease obligations | $ | 275,759 | $ | 5,044 | $ | 10,166 | $ | 10,864 | $ | 249,685 |
1) | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the issuer; |
2) | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the issuer; and |
3) | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer's assets that could have a material effect on the financial statements. |
Name | Age | Principal Occupation and Positions Held | ||
Michael A. Happel | 53 | Chief Executive Officer and President | ||
Nicholas Radesca | 50 | Interim Chief Financial Officer, Treasurer and Secretary | ||
Patrick O'Malley | 44 | Chief Investment Officer | ||
Randolph C. Read | 63 | Non-Executive Chairman of the Board of Directors | ||
Robert H. Burns | 86 | Independent Director, Compensation Committee Chair | ||
William M. Kahane | 67 | Director | ||
Keith Locker | 54 | Independent Director | ||
James Nelson | 66 | Independent Director, Conflicts Committee Chair | ||
P. Sue Perrotty | 62 | Independent Director, Audit Committee Chair and Nominating and Corporate Governance Committee Chair |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($)(1) | All Other Compensation ($)(2) | Total ($) | ||||||||||||||||
Michael A. Happel, | 2015 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
President and Chief Executive Officer | 2014 | — | — | — | — | — | ||||||||||||||||
2013 | — | — | — | — | — | |||||||||||||||||
Nicholas Radesca, | 2015 | $ | — | $ | — | $ | 446,836 | $ | 5,631 | $ | 452,467 | |||||||||||
Interim Chief Financial Officer, Treasurer and Secretary(3) | 2014 | — | — | — | — | — | ||||||||||||||||
2013 | — | — | — | — | — | |||||||||||||||||
Gregory W. Sullivan, | 2015 | $ | — | $ | — | $ | 556,715 | $ | 6,180 | $ | 562,895 | |||||||||||
Former Chief Financial Officer, Treasurer and Secretary(3) | 2014 | — | — | — | — | — | ||||||||||||||||
2013 | — | — | — | — | — | |||||||||||||||||
Patrick O'Malley, | 2015 | $ | — | $ | — | $ | 500,015 | $ | 16,651 | $ | 516,666 | |||||||||||
Chief Investment Officer(4) | 2014 | — | — | — | — | — | ||||||||||||||||
2013 | — | — | — | — | — |
(1) | Amounts in this column represent the aggregate grant date fair value of awards of restricted shares calculated in accordance with FASB ASC Topic 718 for purposes of this table only. In Note 16 to our consolidated financial statements included in this Annual Report on From 10-K, these grants have been accounted for under for under FASB ASC Topic 505. |
(2) | The amount reported as “All Other Compensation” represents the value of distributions on unvested restricted shares. |
(3) | On June 3, 2015, Mr. Sullivan resigned as our chief financial officer, forfeiting his unvested interests in his restricted shares, and was replaced by Mr. Radesca, who continues to serve as our interim chief financial officer. Mr. Radesca has been an employee of our Advisor commencing prior to January 1, 2015. |
(4) | On June 22, 2015, Mr. O'Malley was appointed as our chief investment officer. Mr. O'Malley has been an employee of our Advisor commencing prior to January 1, 2015. |
Grant Date | Date of Compensation Committee Action | All Other Stock Awards: Number of Shares of Stock or Units (#)(1) | Grant Date Fair Value of Stock and Option Awards ($)(2) | ||||||||
Nicholas Radesca(3) | 11/3/2015 | 11/3/2015 | 30,000 | $ | 346,800 | ||||||
Nicholas Radesca(3) | 3/31/2015 | 2/13/2015 | 9,656 | 100,036 | |||||||
Gregory W. Sullivan(3) | 3/31/2015 | 2/13/2015 | 53,737 | 556,715 | |||||||
Patrick O'Malley(4) | 3/31/2015 | 2/13/2015 | 48,264 | 500,015 |
(1) | Amounts in this column represent restricted share awards. |
(2) | Amounts in this column represent the aggregate grant date fair value of awards of restricted shares calculated in accordance with FASB ASC Topic 718 for purposes of this table only. In Note 16 to our consolidated financial statements included in this Annual Report on From 10-K, these grants have been accounted for under for under FASB ASC Topic 505. |
(3) | On June 3, 2015, Mr. Sullivan resigned as our chief financial officer, forfeiting his unvested interests in his restricted shares, and was replaced by Mr. Radesca, who continues to serve as our interim chief financial officer. Mr. Radesca has been an employee of our Advisor commencing prior to January 1, 2015. |
(4) | On June 22, 2015, Mr. O'Malley was appointed as our chief investment officer. Mr. O'Malley has been an employee of our Advisor commencing prior to January 1, 2015. |
Names | Number of Restricted Shares That Have Not Vested (#) | Market Value of Restricted Shares That Have Not Vested ($)(1) | |||||
Nicholas Radesca | 39,656 | (2) | $ | 456,044 | |||
Patrick O'Malley | 48,264 | (3) | 555,036 |
(1) | Based on $11.50 per share, the closing price of our common stock on the last business day of the fiscal year ended December 31, 2015. |
(2) | Represents 9,656 restricted shares granted pursuant to the RSP which vest pro rata over a four-year period beginning on March 31, 2016 and 30,000 restricted shares granted pursuant to the RSP, which vest pro rata over a three-year period beginning on November 3, 2016. |
(3) | Represents restricted shares granted pursuant to the RSP, which vest pro rata over a four-year period beginning on March 31, 2016. |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights | Number of Securities Remaining Available For Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a) | ||||||||
(a) | (b) | (c) | |||||||||
Equity Compensation Plans approved by security holders | — | $ | — | 16,976,060 | (1) | ||||||
Equity Compensation Plans not approved by security holders | — | — | — | ||||||||
Total | — | $ | — | 16,976,060 |
(1) | The total number of shares of restricted stock available for future issuance under the RSP is calculated based on 10% of our outstanding shares of capital stock on a fully diluted basis as of December 31, 2015. |
Name | Fees Earned or Paid in Cash(8) | Stock Awards(9) | Option Awards | Non-Equity Incentive Plan Compensation | Changes in Pension Value and Nonqualified Deferred Compensation Earnings | All Other Compensation(10) | Total Compensation | |||||||||||||||||||||
William M. Kahane(1) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Randolph C. Read(2) | 179,125 | 87,921 | — | — | — | 2,111 | 269,157 | |||||||||||||||||||||
P. Sue Perrotty(3) | 141,000 | 65,002 | — | — | — | 3,431 | 209,433 | |||||||||||||||||||||
Robert H. Burns(4) | 122,750 | 79,994 | — | — | — | 37,474 | 240,218 | |||||||||||||||||||||
Marc Rowan(5) | — | — | — | — | — | — | — | |||||||||||||||||||||
Keith Locker(6) | 68,357 | 49,996 | — | — | — | 330 | 118,683 | |||||||||||||||||||||
James Nelson(7) | 40,857 | 49,996 | — | — | — | 330 | 91,183 |
(1) | Mr. Kahane received no additional compensation for serving as a director. |
(2) | Mr. Read was paid $149,917 in cash for the year ended December 31, 2015 for fees earned in the fourth quarter 2014 through third quarter 2015. |
(3) | Ms. Perrotty was paid $129,000 in cash for the year ended December 31, 2015 for fees earned in the fourth quarter 2014 through third quarter 2015. |
(4) | Mr. Burns was paid $99,750 in cash, including amounts withheld for income taxes, for the year ended December 31, 2015 for fees earned in the fourth quarter 2014 through third quarter 2015. |
(5) | Mr. Rowan received no additional compensation for serving as a director. Mr. Rowan resigned from our board of directors on November 12, 2015. |
(6) | Mr. Locker was not paid any cash during the year ended December 31, 2015. Fees earned by Mr. Locker during the fourth quarter 2015 will be paid in the first quarter of 2016. |
(7) | Mr. Nelson was not paid any cash during the year ended December 31, 2015. Fees earned by Mr. Nelson during the fourth quarter 2015 will be paid in the first quarter of 2016. |
(8) | Represents fees earned by our directors for the year ended December 31, 2015. Fees earned by our directors for their services are paid quarterly in arrears. |
(9) | Our non-independent directors do not receive compensation for serving on the board of directors. If a director also is our employee or an employee of the Advisor or any of its affiliates, we do not pay compensation for services rendered as a director. |
(10) | The amount reported as “All Other Compensation” represents the value of distributions on unvested restricted shares during the year ended December 31, 2015. |
• | $2,500 for each day of an external seminar, conference, panel, forum or other industry-related event that does not exceed four hours, or |
• | $5,000 for each day of an external seminar, conference, panel, forum or other industry-related event that exceeds four hours |
• | each person known by us to be the beneficial owner of more than 5% of its outstanding shares of common stock based solely upon the amounts and percentages contained in the public filings of such persons; |
• | each of our directors and named executive officers; and |
• | all of our directors and executive officers as a group. |
Beneficial Owner(1) | Number of Shares Beneficially Owned | Percent of Class | ||||
The Vanguard Group(2) | 23,313,305 | 14.3 | % | |||
FMR LLC(3) | 13,297,023 | 8.2 | % | |||
BlackRock, Inc.(4) | 12,067,818 | 7.4 | % | |||
Vanguard Specialized Funds - Vanguard REIT Index Fund(5) | 11,721,172 | 7.2 | % | |||
Prudential Financial, Inc.(6) | 8,396,033 | 5.2 | % | |||
William M. Kahane(7)(17) | 530,575 | * | ||||
Michael A. Happel(8)(17) | 942,759 | * | ||||
Nicholas Radesca(9) | 53,157 | * | ||||
Patrick O'Malley(10) | 48,264 | * | ||||
Robert H. Burns(11) | 86,000 | * | ||||
P. Sue Perrotty(12) | 11,143 | * | ||||
Randolph C. Read(13) | 8,451 | * | ||||
Keith Locker(14) | 4,310 | * | ||||
James Nelson(15) | 4,310 | * | ||||
Gregory Sullivan(16) | 92,751 | * | ||||
All directors and executive officers as a group (nine persons)(17) | 1,688,969 | 1.0 | % |
(1) | Unless otherwise indicated, the business address of each individual or entity listed in the table is 405 Park Avenue, New York, New York 10022. |
(2) | The business address for The Vanguard Group, Inc. is 100 Vanguard Blvd., Malvern, Pennsylvania 19355. The Vanguard Group has sole voting power over 454,215 shares, shared voting power over 135,200 shares, shared dispositive power over 343,588 shares and sole dispositive power over 22,969,717 shares. The information contained herein respecting The Vanguard Group, Inc. is based solely on Amendment No. 2 to the Schedule 13G filed by The Vanguard Group with the SEC on February 10, 2016. |
(3) | The business address for FMR LLC is 245 Summer Street, Boston, Massachusetts 02210. FMR LLC has sole voting power over 8,227,320 shares and sole dispositive power over 13,297,023 shares. The information contained herein respecting FMR LLC is based solely on the Schedule 13G filed by FMR LLC with the SEC on February 12, 2016. |
(4) | The business address for BlackRock, Inc. is 55 East 52nd Street, New York, New York 10022. BlackRock, Inc. has sole voting power over 11,670,427 shares and sole dispositive power over 12,067,818 shares. The information contained herein respecting BlackRock, Inc. is based solely on Amendment No. 1 to the Schedule 13G filed by BlackRock, Inc. with the SEC on January 27, 2016. |
(5) | The business address for Vanguard Specialized Funds — Vanguard REIT Index Fund is 100 Vanguard Blvd., Malvern, Pennsylvania 19355. The Vanguard Group has sole voting power over all of the shares that it beneficially owns. The information contained herein respecting Vanguard Specialized Funds — Vanguard REIT Index Fund is based solely on Amendment No. 1 to the Schedule 13G filed by Vanguard Specialized Funds — Vanguard REIT Index Fund with the SEC on February 9, 2016. |
(6) | The business address for Prudential Financial, Inc. is 751 Broad Street, Newark, New Jersey 07102. Prudential Financial, Inc. has sole voting power over 1,285,196 shares, shared voting power over 7,110,837 shares, sole dispositive power over 1,285,196 shares and shared dispositive power over 7,110,837 shares. The information contained herein respecting Prudential Financial, Inc. is based solely on the Schedule 13G filed by Prudential Financial, Inc. on February 3, 2016. |
(7) | Includes 40,000 restricted shares granted to each of our directors on April 15, 2014 (for directors in place as of that date in connection with the Listing), which vest annually over a five-year period in equal installments beginning with the anniversary of the date of grant. Also includes 438,181 OP units, all of which are currently convertible into shares of our common stock or the cash value of a corresponding number of shares, at the election of the OP, in accordance with the limited partnership agreement of the OP. Subsequent to December 31, 2015, Mr. Kahane converted 350,544 OP units into share of common stock, which were issued on February 1, 2016. |
(8) | Includes 826,347 OP units, all of which are currently convertible into shares of our common stock or the cash value of a corresponding number of shares, at the election of the OP, in accordance with the limited partnership agreement of the OP. |
(9) | Includes 9,656 restricted shares granted to Mr. Radesca on March 31, 2015 which vest over a four-year period following the grant date and 30,000 restricted shares granted to Mr. Radesca on November 3, 2015 which vest over a three-year period following the grant date. Also includes 13,501 OP units, all of which were submitted for redemption during January 2016 and will be converted into shares of our common stock on or around May 1, 2016, in accordance with the limited partnership agreement of the OP. |
(10) | Includes 48,264 restricted shares granted to Mr. O'Malley on March 31, 2015 which vest over a four-year period following the grant date. |
(11) | Includes 40,000 restricted shares granted to each of our directors on April 15, 2014 (for directors in place as of that date in connection with the Listing), which vest annually over a five year period in equal installments beginning with the anniversary of the date of grant. Also includes 4,673 restricted shares granted to Mr. Burns on May 29, 2014 and 7,774 restricted shares granted on July 13, 2015 which vest over a three-year period following the grant date. |
(12) | Includes 4,826 restricted shares granted to Ms. Perrotty on September 12, 2014 and 6,317 restricted shares granted on July 13, 2015 which vest over a three-year period following the grant date. |
(13) | Includes 2,134 restricted shares granted to Mr. Read on January 21, 2015 and 6,317 restricted shares granted on July 13, 2015 which vest over a three-year period following the grant date. |
(14) | Includes 4,310 restricted shares granted to Mr. Locker on November 8, 2015 which vest over a three-year period following the grant date. |
(15) | Includes 4,310 restricted shares granted to Mr. Nelson on November 8, 2015 which vest over a three-year period following the grant date. |
(16) | Mr. Sullivan resigned from his role as our chief financial officer effective as of June 3, 2015. The information contained herein respecting Mr. Sullivan is based solely on the Form 4 filed by Mr. Sullivan on May 6, 2015. |
(17) | Does not include LTIP units. On April 15, 2014 the Advisor was issued 8,880,579 LTIP units under the OPP. On April 15, 2015, 367,059 LTIP units were earned by the Advisor under the terms of the OPP. On June 30, 2015, the Advisor transferred, in accordance with the applicable requirements of the OPP, the 367,059 earned LTIP units pro rata to the ultimate members of the Sponsor, including 39,691 earned LTIP units to Mr. Kahane and 73,412 earned LTIP units to Mr. Happel and the remaining 253,956 earned LTIP units to the other members of the Sponsor. Subject to the Advisor's continued service through the vesting date, LTIP units will vest 1/3 on each of April 15, 2017, April 15, 2018 and April 15, 2019. At the time the Advisor's average capital account balance with respect to an LTIP unit is economically equivalent to the average capital account balance of an OP unit, the LTIP unit has been earned and it has been vested for 30 days, the Advisor, in its sole discretion, will be entitled to convert such LTIP unit into an OP unit in accordance with the provisions of the limited partnership agreement of the OP. Any earned and vested LTIP units may be converted into OP units, which may in turn be converted into shares of common stock, in accordance with the terms and conditions of the limited partnership agreement of the OP. See "Item 13. Certain Relationships and Related Transactions, and Director Independence — 2014 Advisor Multi Year Outperformance Agreement." |
Performance Period | Annual Period | Interim Period | ||||||
Absolute Component: 4% of any excess Total Return if total stockholder return attained above an absolute hurdle measured from the beginning of such period: | 21% | 7% | 14% | |||||
Relative Component: 4% of any excess Total Return attained above the Total Return for the performance period of the Peer Group*, subject to a ratable sliding scale factor as follows based on achievement of cumulative Total Return measured from the beginning of such period: | ||||||||
• | 100% will be earned if total stockholder return achieved is at least: | 18% | 6% | 12% | ||||
• | 50% will be earned if total stockholder return achieved is: | 0% | 0% | 0% | ||||
• | 0% will be earned if total stockholder return achieved is less than: | 0% | 0% | 0% | ||||
• | a percentage from 50% to 100% calculated by linear interpolation will be earned if the cumulative Total Return achieved is between: | 0% - 18% | 0% - 6% | 0% - 12% |
• | If we or the OP proposes to enter into any transaction in which the Advisor or any of its affiliates has a direct or indirect interest, then such transaction must be approved by a majority of the board of directors (including a majority of the independent directors) not otherwise interested in such transaction as fair and reasonable to us and on terms and conditions not less favorable to us than those available from unaffiliated third parties. |
• | Neither we nor the OP may make loans to the Advisor or any affiliate thereof except for loans to wholly owned subsidiaries of us. Neither the Advisor nor any of its affiliates must make loans to us or the OP, or to joint ventures involving us or the OP, unless approved by a majority of the directors (including a majority of the independent directors) not otherwise interested in such transaction as fair, competitive, and commercially reasonable, and no less favorable to us or OP, as applicable, than comparable loans between unaffiliated parties. |
• | We and the OP may enter into joint ventures involving us or the OP with the Advisor or its affiliates, provided that (a) a majority of directors (including a majority of independent directors) not otherwise interested in the transaction approves the transaction as being fair and reasonable to us or the OP, as applicable, and (b) the investment by us or the OP, as applicable, is on substantially the same terms as those received by other joint venturers. |
• | If the board of directors elects to internalize any management services provided by the Advisor, neither we nor the OP shall pay any compensation or other remuneration to the Advisor or its affiliates in connection with such internalization of management services. |
Exhibit No. | Description | |
3.1 (6) | Amended and Restated Charter of American Realty Capital New York Recovery REIT, Inc. dated June 13, 2014 | |
3.2 (4) | Amended and Restated Bylaws of American Realty Capital New York Recovery REIT, Inc. dated April 15, 2014 | |
4.1 (4) | Fourth Amended and Restated Agreement of Limited Partnership of New York Recovery Operating Partnership, L.P. dated as of April 15, 2014 | |
4.2 (9) | First Amendment to Fourth Amended and Restated Agreement of Limited Partnership of New York Recovery Operating Partnership L.P., dated as of April 15, 2015. | |
10.1 (10) | Seventh Amended and Restated Advisory Agreement by and among New York REIT, Inc., New York Recovery Operating Partnership, L.P. and New York Recovery Advisors, LLC dated as of June 26, 2015 | |
10.2 (2) | Amended and Restated Management Agreement, among American Realty Capital New York Recovery REIT, Inc., New York Recovery Operating Partnership, L.P. and New York Recovery Properties, LLC, dated as of September 2, 2010 | |
10.3 (1) | Employee and Director Incentive Restricted Share Plan adopted as of September 22, 2010 | |
10.4 (4) | First Amendment to Employee and Director Incentive Restricted Share Plan of American Realty Capital New York Recovery REIT, Inc. dated as of March 31, 2014 | |
10.5 (5) | Second Amendment to Employee and Director Incentive Restricted Share Plan of American Realty Capital New York Recovery REIT, Inc. dated as of April 29, 2014 | |
10.6 (1) | 2010 Stock Option Plan Adopted as of September 22, 2010 | |
10.7 (13) | Second Amended and Restated 2014 Advisor Multi-Year Outperformance Agreement by and among New York REIT, Inc., New York Recovery Operating Partnership, L.P. and New York Recovery Advisors, LLC made as of August 5, 2015 | |
10.8 (4) | Contribution and Exchange Agreement dated as of April 15, 2014 | |
10.9 (4) | Listing Note Agreement dated as of April 15, 2014 | |
10.10 (4) | Second Amended and Restated Credit Agreement, dated April 14, 2014 by and among New York Recovery Operating Partnership, L.P., as borrower, New York REIT, Inc. as the REIT and guarantor, the lenders party thereto and Capital One, National Association, as administrative agent | |
10.11 (13) | First Amendment to Second Amended and Restated Credit Agreement by and among New York REIT, Inc., New York Recovery Operating Partnership, L.P. and Capital One, National Association, dated as of August 27, 2015 | |
10.12 (14) | Contribution and Admission Agreement, dated as of October 8, 2013, between WWP Sponsor, LLC and ARC NYWWPJV001, LLC | |
10.13 (3) | Second Amended and Restated Limited Liability Company Agreement of WWP Holdings, LLC, dated October 31, 2013, by and among NYWWPJV001, LLC and WWP Sponsor, LLC | |
10.14 (7) | Agreement of Purchase and Sale, dated as of July 29, 2014, by and between 245 West 17th Street Property Investors II, LLC, 249 West 17th Street Property Investors II, LLC and New York Recovery Operating Partnership, L.P. | |
10.15 (7) | First Amendment to Agreement of Purchase and Sale, dated as of August 22, 2014, by and between 245 West 17th Street Property Investors II, LLC, 249 West 17th Street Property Investors II, LLC and New York Recovery Operating Partnership, L.P. |
Exhibit No. | Description | |
10.16 (9) | Indemnification Agreement between New York REIT, Inc. and each of Nicholas S. Schorsch, Michael A. Happel, Gregory W. Sullivan, Edward M. Weil, Jr., William M. Kahane, Randolph C. Read, Robert H. Burns, P. Sue Perrotty, Scott J. Bowman, William G. Stanley, New York Recovery Advisors, LLC, AR Capital, LLC and RCS Capital Corp, dated as of December 31, 2014 | |
10.17 (11) | Indemnification Agreement, between New York REIT, Inc. and each of Nicholas Radesca and Patrick O'Malley, dated as of June 22, 2015 | |
10.18 (12) | Loan Agreement, dated as of September 30, 2015, between ARC NY1440BWY1, LLC, as Borrower, and H/2 Financial Funding I LLC, as Lender | |
10.19 (12) | Mezzanine Loan Agreement, dated as of September 30, 2015, between ARC NY1440BWY1 MEZZ, LLC, as Borrower, and Paramount Group Fund VIII 1440 Broadway Mezz LP, as Lender | |
10.20 (12) | Amended, Restated and Consolidated Mortgage, Assignment of Rents and Leases, Collateral Assignment of Property Agreements, Security Agreement and Fixture Filing, made as of September 30, 2015 | |
10.21 (12) | Pledge and Security Agreement, made as of September 30, 2015, by ARC NY1440BWY1 MEZZ, LLC in favor of Paramount Group Fund VIII 1440 Broadway Mezz LP | |
10.22 (12) | Guaranty (Unfunded Obligations), dated as of September 30, 2015, by New York REIT, Inc. and New York Recovery Operating Partnership, L.P. for the benefit of the Mortgage Lender | |
10.23 (12) | Guaranty (Unfunded Obligations), dated as of September 30, 2015, by New York REIT, Inc. and New York Recovery Operating Partnership, L.P. for the benefit of the Mezzanine Lender | |
10.24 (12) | Environmental Indemnity Agreement, dated as of September 30, 2015, by New York REIT, Inc., New York Recovery Operating Partnership, L.P., and ARC NY1440BWY1, LLC for the benefit of the Mortgage Lender | |
10.25 (12) | Environmental Indemnity Agreement, dated as of September 30, 2015, by New York REIT, Inc., New York Recovery Operating Partnership, L.P., and ARC NY1440BWY1 MEZZ, LLC for the benefit of the Mezzanine Lender. | |
10.26 (12) | Guaranty, dated as of September 30, 2015, by New York REIT, Inc. and New York Recovery Operating Partnership, L.P. for the benefit of the Mortgage Lender | |
10.27 (12) | Guaranty, dated as of September 30, 2015, by New York REIT, Inc. and New York Recovery Operating Partnership, L.P. for the benefit of the Mezzanine Lender | |
10.28 (13) | Indemnification Agreement, dated September 30, 2015, between New York REIT, Inc. and Marc Rowan | |
10.29 * | Form of Restricted Stock Award Agreement | |
10.30 * | Indemnification Agreement, dated November 8, 2015, between New York REIT, Inc. and Keith Locker | |
10.31 * | Indemnification Agreement, dated November 8, 2015, between New York REIT, Inc. and James Nelson | |
14.1 * | Second Amended and Restated Code of Business Conduct and Ethics | |
16.1 (8) | Letter from Grant Thornton LLP to the Securities and Exchange Commission dated January 28, 2015 | |
21.1 * | Subsidiaries of New York REIT, Inc. | |
23.1 * | Consent of KPMG LLP | |
23.2 * | Consent of Grant Thornton LLP | |
31.1 * | Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 * | Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32 * | Written statements of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101 * | XBRL (eXtensible Business Reporting Language). The following materials from New York REIT, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2015, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations and Comprehensive Loss, (iii) the Consolidated Statement of Changes in Equity, (iv) the Consolidated Statements of Cash Flows and (v) the Notes to the Consolidated Financial Statements. As provided in Rule 406T of Regulation S-T, this information in furnished and not filed for purpose of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 |
* | Filed herewith |
(1) | Filed as an exhibit to the Post-Effective Amendment No. 1 to New York REIT, Inc.'s Registration Statement on Form S-11 (Registration No. 333-163069) filed with the SEC on March 2, 2011. |
(2) | Filed as an exhibit to the Pre-Effective Amendment No. 1 to Post-Effective Amendment No. 3 to New York REIT Inc.'s Registration Statement on Form S-11 (Registration No. 333-163069) filed with the SEC on July 26, 2011. |
(3) | Filed as an exhibit to New York REIT, Inc.'s Current Report on Form 8-K/A filed with the SEC on November 27, 2013. |
(4) | Filed as an exhibit to New York REIT, Inc.'s Current Report on Form 8-K filed with the SEC on April 15, 2014. |
(5) | Filed as an exhibit to New York REIT, Inc.'s Amendment No. 1 to Schedule TO filed with the SEC on May 5, 2014. |
(6) | Filed as an exhibit to New York REIT, Inc.'s Registration Statement on Form S-8 (Registration No. 333-197362) filed with the SEC on July 11, 2014. |
(7) | Filed as an exhibit to New York REIT, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on November 4, 2014. |
(8) | Filed as an exhibit to New York REIT, Inc.'s Current Report on Form 8-K filed with the SEC on January 28, 2015. |
(9) | Filed as an exhibit to New York REIT, Inc.'s Annual Report on Form 10-K filed with the SEC on May 11, 2015. |
(10) | Filed as an exhibit to New York REIT, Inc.’s Current Report on Form 8-K filed with the SEC on June 26, 2015. |
(11) | Filed as an exhibit to New York REIT, Inc.’s Quarterly Report on Form 10-Q filed with the SEC on August 7, 2015. |
(12) | Filed as an exhibit to New York REIT, Inc.’s Current Report on Form 8-K filed with the SEC on October 5, 2015. |
(13) | Filed as an exhibit to New York REIT, Inc.’s Quarterly Report on Form 10-Q filed with the SEC on November 9, 2015. |
(14) | Filed as an exhibit to New York REIT, Inc.'s Quarterly Report on Form 10-Q filed with the SEC on November 13, 2013. |
NEW YORK REIT, INC. | ||
By: | /s/ MICHAEL A. HAPPEL | |
MICHAEL A. HAPPEL | ||
CHIEF EXECUTIVE OFFICER AND PRESIDENT |
Name | Capacity | Date | ||
/s/ Michael A. Happel | Chief Executive Officer and President (and Principal Executive Officer) | February 26, 2016 | ||
Michael A. Happel | ||||
/s/ Nicholas Radesca | Interim Chief Financial Officer, Treasurer and Secretary (Principal Financial Officer and Principal Accounting Officer) | February 26, 2016 | ||
Nicholas Radesca | ||||
/s/ Randolph C. Read | Non-Executive Chairman of the Board of Directors | February 26, 2016 | ||
Randolph C. Read | ||||
/s/ Robert H. Burns | Independent Director, Compensation Committee Chair | February 26, 2016 | ||
Robert H. Burns | ||||
/s/ William M. Kahane | Director | February 26, 2016 | ||
William M. Kahane | ||||
/s/ Keith Locker | Independent Director | February 26, 2016 | ||
Keith Locker | ||||
/s/ James L. Nelson | Independent Director, Conflicts Committee Chair | February 26, 2016 | ||
James L. Nelson | ||||
/s/ P. Sue Perrotty | Independent Director, Audit Committee Chair, Nominating and Corporate Governance Committee Chair | February 26, 2016 | ||
P. Sue Perrotty |
Page | |
Financial Statement Schedule: | |
December 31, | ||||||||
2015 | 2014 | |||||||
ASSETS | ||||||||
Real estate investments, at cost: | ||||||||
Land | $ | 477,171 | $ | 494,065 | ||||
Buildings, fixtures and improvements | 1,208,138 | 1,235,918 | ||||||
Acquired intangible assets | 137,594 | 158,383 | ||||||
Total real estate investments, at cost | 1,822,903 | 1,888,366 | ||||||
Less accumulated depreciation and amortization | (172,668 | ) | (124,178 | ) | ||||
Total real estate investments, net | 1,650,235 | 1,764,188 | ||||||
Cash and cash equivalents | 98,604 | 22,512 | ||||||
Restricted cash | 2,019 | 6,347 | ||||||
Investment securities, at fair value | — | 4,659 | ||||||
Investment in unconsolidated joint venture | 215,370 | 225,501 | ||||||
Assets held for sale | 29,268 | — | ||||||
Preferred equity investment | — | 35,100 | ||||||
Derivatives, at fair value | 431 | 205 | ||||||
Tenant and other receivables | 3,537 | 4,833 | ||||||
Unbilled rent receivables | 42,905 | 30,866 | ||||||
Prepaid expenses and other assets (including amounts prepaid to related parties of $7 as of December 31, 2015) | 10,074 | 13,195 | ||||||
Deferred costs, net | 19,312 | 13,429 | ||||||
Total assets | $ | 2,071,755 | $ | 2,120,835 | ||||
LIABILITIES AND EQUITY | ||||||||
Mortgage notes payable | $ | 388,436 | $ | 172,242 | ||||
Credit facility | 485,000 | 635,000 | ||||||
Market lease intangibles, net | 73,083 | 84,220 | ||||||
Liabilities related to assets held for sale | 321 | — | ||||||
Derivatives, at fair value | 1,266 | 1,276 | ||||||
Accounts payable, accrued expenses and other liabilities (including amounts due to related parties of $99 and $575 as of December 31, 2015 and 2014, respectively) | 27,736 | 27,850 | ||||||
Deferred rent | 3,617 | 4,550 | ||||||
Dividends payable | 27 | 20 | ||||||
Total liabilities | 979,486 | 925,158 | ||||||
Preferred stock, $0.01 par value; 40,866,376 shares authorized, none issued and outstanding | — | — | ||||||
Convertible preferred stock, $0.01 par value; 9,133,624 shares authorized, none issued and outstanding | — | — | ||||||
Common stock, $0.01 par value; 300,000,000 shares authorized, 162,529,811 and 162,181,939 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | 1,626 | 1,622 | ||||||
Additional paid-in capital | 1,403,624 | 1,401,619 | ||||||
Accumulated other comprehensive loss | (1,237 | ) | (816 | ) | ||||
Accumulated deficit | (369,273 | ) | (255,478 | ) | ||||
Total stockholders' equity | 1,034,740 | 1,146,947 | ||||||
Non-controlling interests | 57,529 | 48,730 | ||||||
Total equity | 1,092,269 | 1,195,677 | ||||||
Total liabilities and equity | $ | 2,071,755 | $ | 2,120,835 |
Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Revenues: | ||||||||||||
Rental income | $ | 129,118 | $ | 117,221 | $ | 49,532 | ||||||
Hotel revenue | 26,125 | 22,742 | 2,254 | |||||||||
Operating expense reimbursements and other revenue | 19,278 | 15,604 | 4,101 | |||||||||
Total revenues | 174,521 | 155,567 | 55,887 | |||||||||
Operating expenses: | ||||||||||||
Property operating | 43,752 | 37,209 | 12,546 | |||||||||
Hotel operating | 25,366 | 23,736 | 2,372 | |||||||||
Operating fees incurred from the Advisor | 12,465 | 8,397 | — | |||||||||
Acquisition and transaction related | 3,771 | 16,083 | 17,417 | |||||||||
Vesting of asset management fees | — | 11,500 | — | |||||||||
Value of Listing Note | — | 33,479 | — | |||||||||
General and administrative | 27,345 | 12,337 | 1,019 | |||||||||
Depreciation and amortization | 82,716 | 84,799 | 31,751 | |||||||||
Total operating expenses | 195,415 | 227,540 | 65,105 | |||||||||
Operating loss | (20,894 | ) | (71,973 | ) | (9,218 | ) | ||||||
Other income (expenses): | ||||||||||||
Interest expense | (29,362 | ) | (23,720 | ) | (10,673 | ) | ||||||
Income (loss) from unconsolidated joint venture | 1,939 | (1,499 | ) | (95 | ) | |||||||
Income from preferred equity investment, investment securities and interest | 1,103 | 2,906 | 670 | |||||||||
Gain on sale of real estate investment, net | 7,523 | — | — | |||||||||
Gain (loss) on derivative instruments | (578 | ) | 1 | 5 | ||||||||
Total other expenses | (19,375 | ) | (22,312 | ) | (10,093 | ) | ||||||
Net loss | (40,269 | ) | (94,285 | ) | (19,311 | ) | ||||||
Net loss attributable to non-controlling interests | 1,188 | 1,257 | 32 | |||||||||
Net loss attributable to stockholders | (39,081 | ) | (93,028 | ) | (19,279 | ) | ||||||
Other comprehensive income (loss): | ||||||||||||
Unrealized gain (loss) on derivatives | (177 | ) | (687 | ) | 1,320 | |||||||
Unrealized gain (loss) on investment securities | (244 | ) | 484 | (240 | ) | |||||||
Total other comprehensive income (loss) | (421 | ) | (203 | ) | 1,080 | |||||||
Comprehensive loss attributable to stockholders | $ | (39,502 | ) | $ | (93,231 | ) | $ | (18,199 | ) | |||
Basic and diluted weighted average common shares outstanding | 162,165,580 | 166,959,316 | 73,074,872 | |||||||||
Basic and diluted net loss per share attributable to stockholders | $ | (0.24 | ) | $ | (0.56 | ) | $ | (0.26 | ) | |||
Dividends declared per common share | $ | 0.46 | $ | 0.49 | $ | 0.61 |
Common Stock | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||
Number of Shares | Par Value | Additional Paid-In Capital | Accumulated Deficit | Stockholders' Equity | Non- controlling Interests | Total Equity | |||||||||||||||||||||||||
Balance December 31, 2012 | 19,930,772 | 199 | 164,972 | (1,693 | ) | (22,338 | ) | 141,140 | 1,291 | 142,431 | |||||||||||||||||||||
Issuances of common stock | 152,371,933 | 1,524 | 1,501,003 | — | — | 1,502,527 | — | 1,502,527 | |||||||||||||||||||||||
Common stock offering costs, commissions and dealer manager fees | — | — | (149,210 | ) | — | — | (149,210 | ) | — | (149,210 | ) | ||||||||||||||||||||
Common stock issued though distribution reinvestment plan | 1,984,370 | 20 | 18,832 | — | — | 18,852 | — | 18,852 | |||||||||||||||||||||||
Common stock repurchases | (195,395 | ) | (2 | ) | (1,884 | ) | — | — | (1,886 | ) | — | (1,886 | ) | ||||||||||||||||||
Equity-based compensation | 28,728 | — | 232 | — | — | 232 | — | 232 | |||||||||||||||||||||||
Increase in interest in Bleecker Street | — | — | (247 | ) | — | — | (247 | ) | (753 | ) | (1,000 | ) | |||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | (65 | ) | (65 | ) | |||||||||||||||||||||
Dividends declared | — | — | — | — | (44,391 | ) | (44,391 | ) | — | (44,391 | ) | ||||||||||||||||||||
Net loss | — | — | — | — | (19,279 | ) | (19,279 | ) | (32 | ) | (19,311 | ) | |||||||||||||||||||
Other comprehensive income | — | — | — | 1,080 | — | 1,080 | — | 1,080 | |||||||||||||||||||||||
Balance December 31, 2013 | 174,120,408 | 1,741 | 1,533,698 | (613 | ) | (86,008 | ) | 1,448,818 | 441 | 1,449,259 | |||||||||||||||||||||
Issuances of common stock | 18,908 | — | 184 | — | — | 184 | — | 184 | |||||||||||||||||||||||
Common stock offering costs, commissions and dealer manager fees | — | — | (95 | ) | — | — | (95 | ) | — | (95 | ) | ||||||||||||||||||||
Common stock issued though distribution reinvestment plan | 2,002,008 | 20 | 18,999 | — | — | 19,019 | — | 19,019 | |||||||||||||||||||||||
Common stock repurchases, inclusive of fees and expenses | (14,175,115 | ) | (141 | ) | (153,622 | ) | — | — | (153,763 | ) | — | (153,763 | ) | ||||||||||||||||||
Contributions from non-controlling interest holders of affiliates | — | — | — | — | — | — | 750 | 750 | |||||||||||||||||||||||
Issuance of OP units to affiliates | — | — | — | — | — | — | 44,979 | 44,979 | |||||||||||||||||||||||
Redemption of OP units by affiliates | — | — | — | — | — | — | (698 | ) | (698 | ) | |||||||||||||||||||||
Equity-based compensation | 215,730 | 2 | 2,455 | — | — | 2,457 | 5,295 | 7,752 | |||||||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | (780 | ) | (780 | ) | |||||||||||||||||||||
Dividends declared | — | — | — | — | (76,442 | ) | (76,442 | ) | — | (76,442 | ) | ||||||||||||||||||||
Net loss | — | — | — | — | (93,028 | ) | (93,028 | ) | (1,257 | ) | (94,285 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | — | (203 | ) | — | (203 | ) | — | (203 | ) | ||||||||||||||||||||
Balance, December 31, 2014 | 162,181,939 | 1,622 | 1,401,619 | (816 | ) | (255,478 | ) | 1,146,947 | 48,730 | 1,195,677 | |||||||||||||||||||||
OP units converted to common stock | 92,751 | 1 | 973 | — | — | 974 | (974 | ) | — | ||||||||||||||||||||||
Equity-based compensation | 255,121 | 3 | 1,032 | — | — | 1,035 | 14,145 | 15,180 | |||||||||||||||||||||||
Distributions to non-controlling interest holders | — | — | — | — | — | — | (3,184 | ) | (3,184 | ) | |||||||||||||||||||||
Dividends declared | — | — | — | — | (74,714 | ) | (74,714 | ) | — | (74,714 | ) | ||||||||||||||||||||
Net loss | — | — | — | — | (39,081 | ) | (39,081 | ) | (1,188 | ) | (40,269 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | — | (421 | ) | — | (421 | ) | — | (421 | ) | ||||||||||||||||||||
Balance, December 31, 2015 | 162,529,811 | $ | 1,626 | $ | 1,403,624 | $ | (1,237 | ) | $ | (369,273 | ) | $ | 1,034,740 | $ | 57,529 | $ | 1,092,269 |
Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | $ | (40,269 | ) | $ | (94,285 | ) | $ | (19,311 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 82,716 | 84,799 | 31,751 | |||||||||
Amortization of deferred financing costs | 7,036 | 8,184 | 2,369 | |||||||||
Accretion of below- and amortization of above-market lease liabilities and assets, net | (8,366 | ) | (9,738 | ) | (2,681 | ) | ||||||
Vesting of asset management fees and final value of listing note | — | 44,979 | — | |||||||||
Loss (gain) on derivative instruments | 75 | (1 | ) | (5 | ) | |||||||
Gain on sale of real estate investment, net | (7,523 | ) | — | — | ||||||||
Gain on sale of investments | (109 | ) | — | — | ||||||||
Bad debt expense | 870 | 220 | 481 | |||||||||
Equity-based compensation | 15,245 | 7,752 | 232 | |||||||||
Loss (income) from unconsolidated joint venture | (1,939 | ) | 1,499 | 95 | ||||||||
Changes in assets and liabilities: | ||||||||||||
Tenant and other receivables | 952 | (2,823 | ) | (1,215 | ) | |||||||
Unbilled rent receivables | (13,683 | ) | (19,590 | ) | (8,968 | ) | ||||||
Prepaid expenses, other assets and deferred costs | 349 | (6,632 | ) | (8,566 | ) | |||||||
Accrued unbilled ground rent | 3,179 | 4,348 | 476 | |||||||||
Accounts payable and accrued expenses | (102 | ) | (8,730 | ) | 7,314 | |||||||
Due from affiliated entities | — | — | 325 | |||||||||
Deferred rent | (706 | ) | (3,447 | ) | 7,131 | |||||||
Net cash provided by operating activities | 37,725 | 6,535 | 9,428 | |||||||||
Cash flows from investing activities: | ||||||||||||
Proceeds from sale of preferred equity investment and other real estate investments | 70,854 | — | — | |||||||||
Investment in real estate and other assets | — | (316,206 | ) | (1,298,228 | ) | |||||||
Acquisition funds released from (held in) escrow | 4,748 | (4,748 | ) | — | ||||||||
Capital expenditures | (30,289 | ) | (11,801 | ) | (12,089 | ) | ||||||
Purchase of investment securities | (78 | ) | (3,127 | ) | (1,288 | ) | ||||||
Proceeds from sale of investment securities | 4,602 | — | — | |||||||||
Distributions from unconsolidated joint venture | 12,070 | 8,047 | 2,097 | |||||||||
Net cash provided by (used in) investing activities | 61,907 | (327,835 | ) | (1,309,508 | ) | |||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from mortgage notes payable | 305,000 | — | — | |||||||||
Payments on mortgage notes payable | (88,806 | ) | (474 | ) | (72,853 | ) | ||||||
Proceeds from credit facility | — | 330,000 | 305,000 | |||||||||
Payments on credit facility | (150,000 | ) | — | (19,995 | ) | |||||||
Proceeds from issuance of common stock | — | 11,311 | 1,492,523 | |||||||||
Proceeds from issuance of operating partnership units | — | 750 | — | |||||||||
Payments for purchase of derivative instruments | (488 | ) | — | — | ||||||||
Repurchases of common stock, inclusive of fees and expenses | — | (154,269 | ) | (1,763 | ) | |||||||
Payments of offering costs and fees related to stock issuances | — | (1,506 | ) | (148,223 | ) | |||||||
Payments of financing costs | (10,771 | ) | (7,293 | ) | (7,562 | ) | ||||||
Dividends paid | (74,707 | ) | (66,129 | ) | (17,799 | ) | ||||||
Distributions to non-controlling interest holders | (3,184 | ) | (780 | ) | (65 | ) | ||||||
Redemptions of OP units and restricted shares | (65 | ) | (698 | ) | (1,000 | ) | ||||||
Restricted cash | (519 | ) | (477 | ) | (160 | ) | ||||||
Net cash provided by (used in) financing activities | (23,540 | ) | 110,435 | 1,528,103 | ||||||||
Net increase (decrease) in cash and cash equivalents | 76,092 | (210,865 | ) | 228,023 | ||||||||
Cash and cash equivalents, beginning of period | 22,512 | 233,377 | 5,354 | |||||||||
Cash and cash equivalents, end of period | $ | 98,604 | $ | 22,512 | $ | 233,377 |
Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Supplemental Disclosures: | ||||||||||||
Cash paid for interest | $ | 21,660 | $ | 15,467 | $ | 7,946 | ||||||
Non-Cash Investing and Financing Activities: | ||||||||||||
Accrued capital expenditures | 498 | 3,555 | — | |||||||||
Reclassification of real estate and other assets to held for sale | 29,268 | — | — | |||||||||
Reclassification of liabilities related to real estate and other assets to held for sale | 321 | — | — | |||||||||
Mortgage notes payable used to acquire investments in real estate | — | — | 60,000 | |||||||||
Liabilities assumed in acquisition of real estate | — | — | 12,206 | |||||||||
Dividends payable | 27 | 20 | — | |||||||||
Debt assumed in real estate acquisitions | — | — | 1,411 | |||||||||
Conversion of preferred stock to common stock | — | — | 506 | |||||||||
Conversion of OP units to common stock | 974 | — | — | |||||||||
Common stock issued through distribution reinvestment plan | — | 19,019 | 18,852 |
December 31, 2015 | ||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Intangible assets: | ||||||||||||
In-place leases | $ | 113,392 | $ | 31,120 | $ | 82,272 | ||||||
Other intangible | 3,804 | 429 | 3,375 | |||||||||
Above-market leases | 20,398 | 3,713 | 16,685 | |||||||||
Total acquired intangible assets | $ | 137,594 | $ | 35,262 | $ | 102,332 | ||||||
Intangible lease liabilities: | ||||||||||||
Below-market leases | $ | 77,177 | $ | 21,110 | $ | 56,067 | ||||||
Above-market ground lease liability | 17,968 | 952 | 17,016 | |||||||||
Total market lease intangibles | $ | 95,145 | $ | 22,062 | $ | 73,083 |
December 31, 2014 | ||||||||||||
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
Intangible assets: | ||||||||||||
In-place leases | $ | 131,518 | $ | 27,450 | $ | 104,068 | ||||||
Other intangible | 3,804 | 107 | 3,697 | |||||||||
Above-market leases | 23,061 | 3,605 | 19,456 | |||||||||
Total acquired intangible assets | $ | 158,383 | $ | 31,162 | $ | 127,221 | ||||||
Intangible lease liabilities: | ||||||||||||
Below-market leases | $ | 81,708 | $ | 14,953 | $ | 66,755 | ||||||
Above-market ground lease liability | 17,968 | 503 | 17,465 | |||||||||
Total market lease intangibles | $ | 99,676 | $ | 15,456 | $ | 84,220 |
(Dollar amounts in thousands) | Weighted- Average Remaining Amortization Period | 2016 | 2017 | 2018 | 2019 | 2020 | ||||||||||||||||
In-place leases | 8.9 | $ | 10,665 | $ | 9,612 | $ | 8,655 | $ | 8,271 | $ | 8,033 | |||||||||||
Other intangible | 10.5 | 321 | 321 | 321 | 321 | 321 | ||||||||||||||||
Total to be included in depreciation and amortization expense | $ | 10,986 | $ | 9,933 | $ | 8,976 | $ | 8,592 | $ | 8,354 | ||||||||||||
Above-market lease assets | 12.4 | $ | (1,428 | ) | $ | (1,420 | ) | $ | (1,420 | ) | $ | (1,420 | ) | $ | (1,407 | ) | ||||||
Below-market lease liabilities | 9.1 | 7,446 | 6,660 | 5,875 | 5,490 | 5,250 | ||||||||||||||||
Total to be included in rental income | $ | 6,018 | $ | 5,240 | $ | 4,455 | $ | 4,070 | $ | 3,843 | ||||||||||||
Above-market ground lease liability to be deducted from property operating expenses | 35.6 | $ | (449 | ) | $ | (449 | ) | $ | (449 | ) | $ | (449 | ) | $ | (449 | ) |
Year Ended December 31, | ||||||||
(Dollar amounts in thousands) | 2014 | 2013 | ||||||
Real estate investments, at cost: | ||||||||
Land | $ | 68,251 | $ | 333,166 | ||||
Buildings, fixtures and improvements | 233,607 | 749,127 | ||||||
Total tangible assets | 301,858 | 1,082,293 | ||||||
Acquired intangibles: | ||||||||
In-place leases | 25,169 | 81,376 | ||||||
Other intangible | 3,804 | — | ||||||
Above-market lease assets | 3,707 | 10,389 | ||||||
Below-market lease liabilities | (23,705 | ) | (70,589 | ) | ||||
Total acquired intangibles | 8,975 | 21,176 | ||||||
Total assets acquired, net | 310,833 | 1,103,469 | ||||||
Investment in unconsolidated joint venture | 273 | 236,965 | ||||||
Preferred equity investment | 5,100 | 30,000 | ||||||
Mortgage notes payable used to acquire investments in real estate | — | (60,000 | ) | |||||
Other liabilities assumed | — | (12,206 | ) | |||||
Cash paid for acquired real estate investments and other assets | $ | 316,206 | $ | 1,298,228 | ||||
Number of properties and other investments purchased | 1 | 7 |
(In thousands) | Future Minimum Base Rental Cash Payments | |||
2016 | $ | 104,174 | ||
2017 | 106,823 | |||
2018 | 104,931 | |||
2019 | 96,911 | |||
2020 | 97,330 | |||
Thereafter | 562,352 | |||
$ | 1,072,521 |
December 31, | ||||||||
Property Portfolio | Tenant | 2015 | 2014 | 2013 | ||||
Worldwide Plaza | Cravath, Swaine & Moore, LLP | 16% | 16% | 18% | ||||
Worldwide Plaza | Nomura Holdings America, Inc. | 11% | 11% | 12% |
(In thousands) | December 31, 2015 | |||
Real estate held for sale, at cost: | ||||
Land | $ | 10,636 | ||
Buildings, fixtures and improvements | 18,783 | |||
Acquired intangible lease assets | 3,237 | |||
Total real estate held for sale, at cost | 32,656 | |||
Less accumulated depreciation and amortization | (4,813 | ) | ||
Real estate assets held for sale, net | 27,843 | |||
Other assets related to real estate assets held for sale | 1,425 | |||
Assets held for sale | $ | 29,268 |
December 31, | ||||||||
(In thousands) | 2015 | 2014 | ||||||
Real estate assets, at cost | $ | 714,642 | $ | 704,143 | ||||
Less accumulated depreciation and amortization | (117,092 | ) | (97,181 | ) | ||||
Total real estate assets, net | 597,550 | 606,962 | ||||||
Cash and cash equivalents | 9,036 | 3,784 | ||||||
Other assets | 259,894 | 252,000 | ||||||
Total assets | $ | 866,480 | $ | 862,746 | ||||
Debt | $ | 875,000 | $ | 875,000 | ||||
Other liabilities | 15,515 | 12,442 | ||||||
Total liabilities | 890,515 | 887,442 | ||||||
Deficit | (24,035 | ) | (24,696 | ) | ||||
Total liabilities and deficit | $ | 866,480 | $ | 862,746 | ||||
Company's basis | $ | 215,370 | $ | 225,501 |
Year Ended | Period from October 31, 2013 (date of acquisition) to | |||||||||||
(In thousands) | December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
Rental income | $ | 123,362 | $ | 113,498 | 18,736 | |||||||
Other revenue | 4,940 | 4,932 | 837 | |||||||||
Total revenue | 128,302 | 118,430 | 19,573 | |||||||||
Operating expenses: | ||||||||||||
Operating expense | 47,816 | 45,911 | 7,288 | |||||||||
Depreciation and amortization | 27,677 | 26,835 | 4,025 | |||||||||
Total operating expenses | 75,493 | 72,746 | 11,313 | |||||||||
Operating income | 52,809 | 45,684 | 8,260 | |||||||||
Interest expense | (40,077 | ) | (40,077 | ) | (6,808 | ) | ||||||
Net income | 12,732 | 5,607 | 1,452 | |||||||||
Company's preferred return | (15,736 | ) | (15,617 | ) | (2,653 | ) | ||||||
Net loss to members | $ | (3,004 | ) | $ | (10,010 | ) | $ | (1,201 | ) |
Year Ended | Period from October 31, 2013 (date of acquisition) to | |||||||||||
(In thousands) | December 31, 2015 | December 31, 2014 | December 31, 2013 | |||||||||
Company's preferred return | $ | 15,736 | $ | 15,617 | $ | 2,653 | ||||||
Company's share of net loss from Worldwide Plaza | (1,470 | ) | (4,895 | ) | (587 | ) | ||||||
Amortization of basis difference | (12,327 | ) | (12,221 | ) | (2,161 | ) | ||||||
Company's income (loss) from Worldwide Plaza | $ | 1,939 | $ | (1,499 | ) | $ | (95 | ) |
(In thousands) | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
December 31, 2014 | ||||||||||||||||
Redeemable preferred stock | $ | 1,288 | $ | 21 | $ | (12 | ) | $ | 1,297 | |||||||
Equity securities | 3,127 | 235 | — | 3,362 | ||||||||||||
Total | $ | 4,415 | $ | 256 | $ | (12 | ) | $ | 4,659 |
Outstanding Loan Amount | |||||||||||||||||
Portfolio | Encumbered Properties | December 31, 2015 | December 31, 2014 | Effective Interest Rate | Interest Rate | Maturity | |||||||||||
(In thousands) | (In thousands) | ||||||||||||||||
Design Center | 1 | $ | 19,798 | $ | 20,198 | 4.4 | % | Fixed | Dec. 2021 | ||||||||
Foot Locker | 1 | 3,250 | 3,250 | 4.6 | % | Fixed | Jun. 2016 | ||||||||||
Duane Reade(2) | 1 | 8,400 | 8,400 | 3.6 | % | Fixed | Nov. 2016 | ||||||||||
1100 Kings Highway | 1 | 20,200 | 20,200 | 3.4 | % | Fixed | (1) | Aug. 2017 | |||||||||
1623 Kings Highway(2) | 1 | 7,288 | 7,288 | 3.3 | % | Fixed | (1) | Nov. 2017 | |||||||||
256 West 38th Street | 1 | 24,500 | 24,500 | 3.1 | % | Fixed | (1) | Dec. 2017 | |||||||||
1440 Broadway(2) | 1 | 305,000 | — | 3.9 | % | Variable | (3) | Oct. 2019 | |||||||||
Bleecker Street | — | 21,300 | |||||||||||||||
Regal Parking Garage | — | 3,000 | |||||||||||||||
Washington Street Portfolio | — | 4,741 | |||||||||||||||
One Jackson Square | — | 13,000 | |||||||||||||||
350 West 42nd Street | — | 11,365 | |||||||||||||||
229 West 36th Street | — | 35,000 | |||||||||||||||
7 | $ | 388,436 | $ | 172,242 | 3.8 | % | (4) |
(1) | Fixed through an interest rate swap agreement. |
(2) | Total commitments of $325.0 million; additional $20.0 million available, subject to lender approval, to fund certain tenant allowances, capital expenditures and leasing costs. |
(3) | LIBOR portion is capped through an interest rate cap agreement. |
(4) | Calculated on a weighted average basis for all mortgages outstanding as of December 31, 2015. |
(5) | Subsequent to December 31, 2015, as a result of the closing of the sales of the properties, the Company repaid its mortgages securing Duane Reade and 1623 Kings Highway. See Note 21 — Subsequent Events. |
(In thousands) | Future Minimum Principal Payments | |||
2016 | $ | 12,068 | ||
2017 | 55,533 | |||
2018 | 3,703 | |||
2019 | 308,869 | |||
2020 | 4,041 | |||
Thereafter | 4,222 | |||
Total | $ | 388,436 |
(In thousands) | Quoted Prices in Active Markets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | Total | ||||||||||||
December 31, 2015 | ||||||||||||||||
Derivatives, net | $ | — | $ | (835 | ) | $ | — | $ | (835 | ) | ||||||
December 31, 2014 | ||||||||||||||||
Derivatives, net | $ | — | $ | (1,071 | ) | $ | — | $ | (1,071 | ) | ||||||
Investment securities | $ | 4,659 | $ | — | $ | — | $ | 4,659 |
Carrying Amount at | Fair Value at | Carrying Amount at | Fair Value at | |||||||||||||||
(In thousands) | Level | December 31, 2015 | December 31, 2015 | December 31, 2014 | December 31, 2014 | |||||||||||||
Mortgage notes payable | 3 | $ | 388,436 | $ | 401,503 | $ | 172,242 | $ | 174,468 | |||||||||
Credit Facility | 3 | $ | 485,000 | $ | 487,579 | $ | 635,000 | $ | 651,579 | |||||||||
Preferred equity investment | 3 | $ | — | $ | — | $ | 35,100 | $ | 34,800 |
December 31, 2015 | December 31, 2014 | |||||||||||
Interest Rate Derivative | Number of Instruments | Notional Amount | Number of Instruments | Notional Amount | ||||||||
(In thousands) | (In thousands) | |||||||||||
Interest rate swaps | 4 | $ | 131,988 | 6 | $ | 179,988 |
December 31, 2015 | ||||||
Interest Rate Derivative | Number of Instruments | Notional Amount | ||||
(In thousands) | ||||||
Interest rate caps | 2 | $ | 305,000 |
December 31, | ||||||||||
(In thousands) | Balance Sheet Location | 2015 | 2014 | |||||||
Derivatives designated as hedging instruments: | ||||||||||
Interest rate swaps | Derivative assets, at fair value | $ | 15 | $ | 205 | |||||
Interest rate swaps | Derivative liabilities, at fair value | $ | (1,266 | ) | $ | (1,276 | ) | |||
Derivatives not designated as hedging instruments: | ||||||||||
Interest rate caps | Derivative assets, at fair value | $ | 416 | $ | — |
Year Ended December 31, | ||||||||||||
(In thousands) | 2015 | 2014 | 2013 | |||||||||
Amount of loss recognized in accumulated other comprehensive income (loss) from interest rate derivatives (effective portion) | $ | (2,344 | ) | $ | (2,847 | ) | $ | (16 | ) | |||
Amount of loss reclassified from accumulated other comprehensive income (loss) into income as interest expense (effective portion) | $ | (2,167 | ) | $ | (2,160 | ) | $ | (1,336 | ) | |||
Amount of gain (loss) recognized in gain (loss) on derivative instruments (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing) | $ | (4 | ) | $ | 1 | $ | 5 |
Gross Amounts Not Offset on the Balance Sheet | ||||||||||||||||||||||||
Derivatives (In thousands) | Gross Amounts of Recognized Assets | Gross Amounts of Recognized Liabilities | Net Amounts of Assets (Liabilities) presented on the Balance Sheet | Financial Instruments | Cash Collateral Posted | Net Amount | ||||||||||||||||||
December 31, 2015 | $ | 431 | $ | (1,266 | ) | $ | (835 | ) | $ | — | $ | — | $ | (835 | ) | |||||||||
December 31, 2014 | $ | 205 | $ | (1,276 | ) | $ | (1,071 | ) | $ | — | $ | — | $ | (1,071 | ) |
Number of Requests | Number of Shares Repurchased | Average Price per Share | |||||||
Repurchases prior to December 31, 2012 | 11 | 84,199 | 9.56 | ||||||
Year ended December 31, 2013 | 24 | 195,395 | 9.65 | ||||||
Repurchases in 2014 through termination of the SRP | 1 | 5,000 | 10.00 | ||||||
Cumulative repurchase requests through termination of SRP | 36 | 284,594 | $ | 9.63 |
Future Minimum Base Rent Payments | ||||||||
(In thousands) | Operating Leases | Capital Leases | ||||||
2016 | $ | 4,958 | $ | 86 | ||||
2017 | 4,905 | 86 | ||||||
2018 | 5,089 | 86 | ||||||
2019 | 5,346 | 86 | ||||||
2020 | 5,346 | 86 | ||||||
Thereafter | 246,281 | 3,404 | ||||||
Total minimum lease payments | $ | 271,925 | $ | 3,834 | ||||
Less: amounts representing interest | (1,721 | ) | ||||||
Total present value of minimum lease payments | $ | 2,113 |
December 31, | ||||||||
(In thousands) | 2015 | 2014 | ||||||
Buildings, fixtures and improvements | $ | 11,783 | $ | 11,783 | ||||
Less accumulated depreciation and amortization | (1,705 | ) | (1,137 | ) | ||||
Total real estate investments, net | $ | 10,078 | $ | 10,646 |
Year Ended December 31, | ||||||||||||
(In thousands) | 2015 | 2014 | 2013 | |||||||||
Hotel revenues | $ | 134 | $ | 545 | $ | 68 |
Year Ended December 31, | Payable (Receivable) as of | |||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | December 31, | December 31, | ||||||||||||||||||||||||||||
(In thousands) | Incurred | Forgiven | Incurred | Forgiven | Incurred | Forgiven | 2015 | 2014 | ||||||||||||||||||||||||
Acquisition fees and related cost reimbursements | $ | — | $ | — | $ | 3,350 | $ | — | $ | 15,836 | $ | — | $ | — | $ | — | ||||||||||||||||
Financing coordination fees | — | — | 2,363 | — | 6,584 | — | — | — | ||||||||||||||||||||||||
Ongoing fees: | ||||||||||||||||||||||||||||||||
Asset management fees (1) | 12,465 | — | 8,397 | — | — | — | (7 | ) | 15 | |||||||||||||||||||||||
Transfer agent and other professional fees | 1,713 | — | 1,971 | — | — | — | 99 | 560 | ||||||||||||||||||||||||
Property management and leasing fees | — | 2,603 | — | 1,731 | — | 840 | — | — | ||||||||||||||||||||||||
Strategic advisory fees | — | — | — | — | 920 | — | — | — | ||||||||||||||||||||||||
Distributions on Class B units | — | — | 107 | — | 139 | — | — | — | ||||||||||||||||||||||||
Total related party operational fees and reimbursements | $ | 14,178 | $ | 2,603 | $ | 16,188 | $ | 1,731 | $ | 23,479 | $ | 840 | $ | 92 | $ | 575 |
(1) | Prior to the Listing, the Company caused the OP to issue to the Advisor restricted performance based Class B units for asset management services, which vested as of the Listing. |
Year Ended December 31, | ||||||||||||
(In thousands) | 2015 | 2014 | 2013 | |||||||||
Property operating expenses absorbed | $ | — | $ | 623 | $ | — | ||||||
General and administrative expenses absorbed | — | 1,418 | 1,450 | |||||||||
Total expenses absorbed | $ | — | $ | 2,041 | $ | 1,450 |
Number of Restricted Shares | Weighted-Average Issue Price | |||||
Unvested, December 31, 2012 | 19,800 | $ | 9.55 | |||
Granted | 9,000 | 9.00 | ||||
Vested | (4,800 | ) | 9.63 | |||
Unvested, December 31, 2013 | 24,000 | 9.33 | ||||
Granted | 218,845 | 10.74 | ||||
Vested | (150,231 | ) | 10.52 | |||
Forfeited | (3,115 | ) | 10.70 | |||
Unvested, December 31, 2014 | 89,499 | 10.73 | ||||
Granted | 340,527 | 10.54 | ||||
Vested | (33,651 | ) | 10.56 | |||
Forfeited | (79,805 | ) | 10.36 | |||
Unvested, December 31, 2015 | 316,570 | $ | 10.59 |
Performance Period | Annual Period | Interim Period | ||||||
Absolute Component: 4% of any excess Total Return if total stockholder return attained above an absolute hurdle measured from the beginning of such period: | 21% | 7% | 14% | |||||
Relative Component: 4% of any excess Total Return attained above the Total Return for the performance period of the Peer Group*, subject to a ratable sliding scale factor as follows based on achievement of cumulative Total Return measured from the beginning of such period: | ||||||||
• | 100% will be earned if total stockholder return achieved is at least: | 18% | 6% | 12% | ||||
• | 50% will be earned if total stockholder return achieved is: | 0% | 0% | 0% | ||||
• | 0% will be earned if total stockholder return achieved is less than: | 0% | 0% | 0% | ||||
• | a percentage from 50% to 100% calculated by linear interpolation will be earned if the cumulative Total Return achieved is between: | 0% - 18% | 0% - 6% | 0% - 12% |
(In thousands) | Quoted Prices in Active Markets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | Total | ||||||||||||
December 31, 2015 | ||||||||||||||||
OPP | $ | — | $ | — | $ | 43,500 | $ | 43,500 | ||||||||
December 31, 2014 | ||||||||||||||||
OPP | $ | — | $ | — | $ | 29,100 | $ | 29,100 |
(In thousands) | OPP | |||
Beginning balance as of December 31, 2014 | $ | 29,100 | ||
Fair value at issuance | — | |||
Fair value adjustment | 14,400 | |||
Ending balance as of December 31, 2015 | $ | 43,500 |
Financial Instrument | Fair Value | Principal Valuation Technique | Unobservable Inputs | Input Value | |||||||
(In thousands) | |||||||||||
December 31, 2015 | |||||||||||
OPP | $ | 43,500 | Monte Carlo Simulation | Expected volatility | 27.0 | % | |||||
December 31, 2014 | |||||||||||
OPP | $ | 29,100 | Monte Carlo Simulation | Expected volatility | 27.0 | % |
Unrealized gains | Change in | Total accumulated | ||||||||||
on available-for-sale | unrealized gain | other comprehensive | ||||||||||
(in thousands) | securities | (loss) on derivatives | income (loss) | |||||||||
Balance, December 31, 2012 | $ | — | $ | (1,693 | ) | $ | (1,693 | ) | ||||
Other comprehensive loss, before reclassifications | (240 | ) | (16 | ) | (256 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 1,336 | 1,336 | |||||||||
Net current-period other comprehensive income (loss) | (240 | ) | 1,320 | 1,080 | ||||||||
Balance, December 31, 2013 | (240 | ) | (373 | ) | (613 | ) | ||||||
Other comprehensive income (loss), before reclassifications | 484 | (2,847 | ) | (2,363 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 2,160 | 2,160 | |||||||||
Net current-period other comprehensive income (loss) | 484 | (687 | ) | (203 | ) | |||||||
Balance, December 31, 2014 | 244 | (1,060 | ) | (816 | ) | |||||||
Other comprehensive loss, before reclassifications | (137 | ) | (2,344 | ) | (2,481 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (107 | ) | 2,167 | 2,060 | ||||||||
Net current-period other comprehensive loss | (244 | ) | (177 | ) | (421 | ) | ||||||
Balance, December 31, 2015 | $ | — | $ | (1,237 | ) | $ | (1,237 | ) |
Year Ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Net loss attributable to stockholders | $ | (39,081 | ) | $ | (93,028 | ) | $ | (19,279 | ) | |||
Basic and Diluted weighted average shares outstanding | 162,165,580 | 166,959,316 | 73,074,872 | |||||||||
Basic and diluted net loss per share attributable to stockholders | $ | (0.24 | ) | $ | (0.56 | ) | $ | (0.26 | ) |
Year Ended December 31, | |||||||||
2015 | 2014 | 2013 | |||||||
Unvested restricted stock | 316,570 | 89,499 | 24,000 | ||||||
OP units | 4,178,090 | 4,270,841 | 200 | ||||||
Class B units | — | — | 454,739 | ||||||
LTIP units | 8,880,579 | 8,880,579 | — | ||||||
Total anti-dilutive common share equivalents | 13,375,239 | 13,240,919 | 478,939 |
Quarters Ended | ||||||||||||||||
(In thousands, except share and per share data) | March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | ||||||||||||
Total revenues(1) | $ | 41,849 | $ | 43,677 | $ | 44,608 | $ | 44,387 | ||||||||
Basic and diluted net loss attributable to stockholders(2) | $ | (8,516 | ) | $ | (8,982 | ) | $ | (13,075 | ) | $ | (8,508 | ) | ||||
Basic and diluted weighted average shares outstanding | 162,092,424 | 162,156,470 | 162,203,065 | 162,208,672 | ||||||||||||
Basic and diluted net loss per share attributable to stockholders(2) | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.08 | ) | $ | (0.05 | ) |
(1) | During the fourth quarter of 2015, the Company reclassified the write-off of a terminated below-market lease from depreciation and amortization expense to revenue. Revenue for the quarter ended March 31, 2015 has been revised to reflect this reclassification. |
(2) | During the fourth quarter of 2015, the Company identified certain immaterial errors impacting interest expense in its previously issued quarterly financial statements. Interest expense and net loss were understated by $0.3 million for each of the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015. Quarterly amounts in the table above have been revised to reflect the corrected amounts. |
Quarters Ended | ||||||||||||||||
(In thousands, except share and per share data) | March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | ||||||||||||
Total revenues | $ | 33,592 | $ | 35,949 | $ | 40,514 | $ | 45,512 | ||||||||
Basic net income (loss) attributable to stockholders | $ | (8,156 | ) | $ | (67,237 | ) | $ | 9,695 | $ | (27,330 | ) | |||||
Adjustments to net income (loss) attributable to stockholders for common share equivalents | — | — | (1,305 | ) | — | |||||||||||
Diluted net income (loss) attributable to stockholders | $ | (8,156 | ) | $ | (67,237 | ) | $ | 8,390 | $ | (27,330 | ) | |||||
Basic weighted average shares outstanding | 175,068,005 | 168,972,601 | 161,975,420 | 162,019,399 | ||||||||||||
Basic net income (loss) per share attributable to stockholders | $ | (0.05 | ) | $ | (0.40 | ) | $ | 0.06 | $ | (0.17 | ) | |||||
Diluted weighted average shares outstanding | 175,068,005 | 168,972,601 | 162,181,209 | 162,019,399 | ||||||||||||
Diluted net income (loss) per share attributable to stockholders | $ | (0.05 | ) | $ | (0.40 | ) | $ | 0.05 | $ | (0.17 | ) |
Quarters Ended | ||||||||||||||||
(In thousands, except share and per share data) | March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | ||||||||||||
Total revenues | $ | 8,327 | $ | 10,905 | $ | 15,728 | $ | 20,927 | ||||||||
Basic net income (loss) attributable to stockholders | $ | (2,794 | ) | $ | 2,019 | $ | (5,373 | ) | $ | (13,131 | ) | |||||
Adjustments to net income (loss) attributable to stockholders for common share equivalents | — | (223 | ) | — | — | |||||||||||
Diluted net income (loss) attributable to stockholders | $ | (2,794 | ) | $ | 1,796 | $ | (5,373 | ) | $ | (13,131 | ) | |||||
Basic weighted average shares outstanding | 23,217,358 | 41,982,278 | 83,841,078 | 141,836,952 | ||||||||||||
Basic net income (loss) per share attributable to stockholders | $ | (0.12 | ) | $ | 0.05 | $ | (0.06 | ) | $ | (0.09 | ) | |||||
Diluted weighted average shares outstanding | 23,217,358 | 42,001,432 | 83,841,078 | 141,836,952 | ||||||||||||
Diluted net income (loss) per share attributable to stockholders | $ | (0.12 | ) | $ | 0.04 | $ | (0.06 | ) | $ | (0.09 | ) |
Encumbrances | Initial Costs | Subsequent to Acquisition | Gross Amount | |||||||||||||||||||||||||||||
Acquisition | at | Building and | Building and | at | Accumulated | |||||||||||||||||||||||||||
Portfolio | State | Date | December 31, 2015 | Land | Improvements | Land | Improvements | December 31, 2015(3) (4) | Depreciation(5)(6) | |||||||||||||||||||||||
Design Center | NY | 6/22/2010 | $ | 19,798 | $ | 11,243 | $ | 18,884 | $ | — | $ | 3,062 | $ | 33,189 | $ | 5,239 | ||||||||||||||||
367-387 Bleecker Street | NY | 12/1/2010 | — | (1) | — | 31,167 | — | — | 31,167 | 6,762 | ||||||||||||||||||||||
Foot Locker (2) | NY | 4/18/2011 | 3,250 | 2,753 | 2,753 | — | 48 | 5,554 | 272 | |||||||||||||||||||||||
33 West 56th Street (garage) | NY | 6/1/2011 | — | (1) | — | 4,637 | — | — | 4,637 | 960 | ||||||||||||||||||||||
Duane Reade (2) | NY | 10/5/2011 | 8,400 | 4,443 | 8,252 | — | (850 | ) | 11,845 | 1,011 | ||||||||||||||||||||||
416 Washington Street | NY | 11/3/2011 | — | (1) | — | 8,979 | — | 1,011 | 9,990 | 2,190 | ||||||||||||||||||||||
One Jackson Square | NY | 11/18/2011 | — | (1) | — | 21,466 | — | 66 | 21,532 | 4,437 | ||||||||||||||||||||||
350 West 42nd Street | NY | 3/16/2012 | — | (1) | — | 19,869 | — | 83 | 19,952 | 3,618 | ||||||||||||||||||||||
1100 Kings Highway | NY | 5/4/2012 | 20,200 | 17,112 | 17,947 | — | 85 | 35,144 | 3,062 | |||||||||||||||||||||||
1623 Kings Highway (2) | NY | 10/9/2012 | 7,288 | 3,440 | 8,538 | — | 42 | 12,020 | 726 | |||||||||||||||||||||||
256 West 38th Street | NY | 12/26/2012 | 24,500 | 20,000 | 26,483 | — | 2,579 | 49,062 | 5,891 | |||||||||||||||||||||||
229 West 36th Street | NY | 12/27/2012 | — | (1) | 27,400 | 22,308 | — | 836 | 50,544 | 3,831 | ||||||||||||||||||||||
350 Bleecker Street | NY | 12/31/2012 | — | (1) | — | 11,783 | — | — | 11,783 | 1,705 | ||||||||||||||||||||||
218 West 18th Street | NY | 3/27/2013 | — | (1) | 17,500 | 90,869 | — | 3,221 | 111,590 | 13,647 | ||||||||||||||||||||||
50 Varick Street | NY | 7/5/2013 | — | (1) | — | 77,992 | — | 23,553 | 101,545 | 11,573 | ||||||||||||||||||||||
333 West 34th Street | NY | 8/9/2013 | — | (1) | 98,600 | 120,908 | — | 148 | 219,656 | 20,870 | ||||||||||||||||||||||
Viceroy Hotel | NY | 11/18/2013 | — | (1) | — | 169,945 | — | 2,615 | 172,560 | 12,583 | ||||||||||||||||||||||
1440 Broadway | NY | 12/23/2013 | 305,000 | 217,066 | 289,410 | — | (5,844 | ) | 500,632 | 33,013 | ||||||||||||||||||||||
245-249 West 17th Street | NY | 8/22/2014 | — | (1) | 68,251 | 233,607 | — | 10,460 | 312,318 | 8,022 | ||||||||||||||||||||||
Total | $ | 388,436 | $ | 487,808 | $ | 1,185,797 | $ | — | $ | 41,115 | $ | 1,714,720 | $ | 139,412 |
(1) | These properties collateralize the Credit Facility, which had $485.0 million outstanding as of December 31, 2015. |
(2) | Held for sale as of December 31, 2015. |
(3) | Acquired intangible lease assets allocated to individual properties in the amount of $140.8 million are not reflected in the table above. |
(4) | The tax basis of aggregate land, buildings and improvements as of December 31, 2015 is $1.7 billion (unaudited). |
(5) | The accumulated depreciation column excludes $36.2 million of amortization associated with acquired intangible lease assets. |
(6) | Each of the properties has a depreciable life of: 40 years for buildings, 15 years for land improvements and five to seven years for fixtures. |
December 31, | ||||||||||||
(In thousands) | 2015 | 2014 | 2013 | |||||||||
Real estate investments, at cost (including assets held for sale): | ||||||||||||
Balance at beginning of year | $ | 1,729,983 | $ | 1,414,959 | $ | 322,205 | ||||||
Additions-Acquisitions | — | 301,858 | 1,082,292 | |||||||||
Capital expenditures | 27,231 | 15,356 | 12,089 | |||||||||
Disposals | (42,494 | ) | (2,190 | ) | (1,627 | ) | ||||||
Balance at end of the year | $ | 1,714,720 | $ | 1,729,983 | $ | 1,414,959 | ||||||
Accumulated depreciation (including assets held for sale): | ||||||||||||
Balance at beginning of year | $ | 93,012 | $ | 31,715 | $ | 9,476 | ||||||
Depreciation expense | 61,527 | 63,349 | 23,405 | |||||||||
Disposals | (15,127 | ) | (2,052 | ) | (1,166 | ) | ||||||
Balance at end of the year | $ | 139,412 | $ | 93,012 | $ | 31,715 |
Title: |
By: | /s/ Michael A. Happel |
Name: | Michael A. Happel |
Title: | Chief Executive Officer and President |
By: | /s/ Keith Locker |
By: | /s/ Michael A. Happel |
Name: | Michael A. Happel |
Title: | Chief Executive Officer and President |
By: | /s/ James Nelson |
• | honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
• | full, fair, accurate, timely, and understandable disclosure in the periodic reports required to be filed by the Company; |
• | compliance with applicable governmental rules and regulations; and |
• | accountability for adherence to this Code. |
• | Make sure you have all the facts. To reach the right solutions, we must be as fully informed as possible. |
• | Ask yourself: What specifically am I being asked to do? Does it seem unethical or improper? This will enable you to focus on the specific question you are faced with, and the alternatives you have. Use your judgment and common sense; if something seems unethical or improper, it probably is. |
• | Clarify your responsibility and role. In most situations, there is shared responsibility. Are your colleagues informed? It may help to get others involved and discuss the problem. |
• | Discuss the problem with your supervisor. This is the basic guidance for all situations. In many cases, your supervisor will be more knowledgeable about the question, and will appreciate being brought into the decision-making process. Remember that it is your supervisor’s responsibility to help solve problems. |
• | Seek help from Company resources. In the rare case where it may not be appropriate to discuss an issue with your supervisor, or where you do not feel comfortable approaching your supervisor with your question, discuss it: |
◦ | First, by reporting to our general counsel at 1 (844) 254-3064. All submissions will be reviewed by the Company’s general counsel and chairman of the audit committee. |
◦ | Second, with any applicable chief risk officer. |
◦ | Third, if your conversation with such chief risk officer is not satisfactory, with the chairman of the audit committee. |
• | Seek help from the Company resources online. The Company has established a secure website using ethicspoint.com, which is available at www.nyrt.com. The website is be hosted by a third-party vendor on secure servers. You may make a report by following the link on that website; that report will be monitored by the Company’s general counsel and brought to the attention of the chairman of the audit committee. |
• | Always ask first, act later. If you are unsure of what to do in any situation, seek guidance before you act. |
Name | Jurisdiction |
50VARNY001, LLC | Delaware |
ARC NY120W5701 TRS, LLC | Delaware |
ARC NY120W5701, LLC | Delaware |
ARC NY1440BWY1 Mezz, LLC | Delaware |
ARC NY1440BWYI, LLC | Delaware |
ARC NY1623K001, LLC | Delaware |
ARC NY21618001, LLC | Delaware |
ARC NY22936001, LLC | Delaware |
ARC NY24549W17, LLC | Delaware |
ARC NY25638001 MEZZ, LLC | Delaware |
ARC NY25638001, LLC | Delaware |
ARC NY333W3401, LLC | Delaware |
ARC NY350BL001, LLC | Delaware |
ARC NY86STR001, LLC | Delaware |
ARC NYBLKST001, LLC | Delaware |
ARC NYBLKST002, LLC | Delaware |
ARC NYBLKST005, LLC | Delaware |
ARC NYCBBLV001, LLC | Delaware |
ARC NYCTGRG001, LLC | Delaware |
ARC NYE61ST001, LLC | Delaware |
ARC NYGRNAV001, LLC | Delaware |
ARC NYKNGHW001, LLC | Delaware |
ARC NYKNGHW002, LLC | Delaware |
ARC NYKNGHW003, LLC | Delaware |
ARC NYW42ST001, LLC | Delaware |
ARC NYWSHST001, LLC | Delaware |
ARC NYWWPJV001, LLC | Delaware |
EOP-NYCCA, L.L.C. | Delaware |
New York Communications Center Associates, L.P. | Delaware |
New York Recovery Operating Partnership, L.P. | Delaware |
NY-Worldwide Plaza, L.L.C. | Delaware |
WWP Amenities Holdings, LLC | Delaware |
WWP Amenities MPH Lender, LLC | Delaware |
WWP Amenities MPH Partner, LLC | Delaware |
WWP Holdings, LLC | Delaware |
WWP Mezz, LLC | Delaware |
WWP Office, LLC | Delaware |
1. | I have reviewed this Annual Report on Form 10-K of New York REIT, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated this 26th day of February, 2016 | /s/ Michael A. Happel |
Michael A. Happel | |
Chief Executive Officer and President | |
(Principal Executive Officer) |
1. | I have reviewed this Annual Report on Form 10-K of New York REIT, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated this 26th day of February, 2016 | /s/ Nicholas Radesca |
Nicholas Radesca | |
Interim Chief Financial Officer, Treasurer and Secretary | |
(Principal Financial Officer and Principal Accounting Officer) |
/s/ Michael A. Happel | |
Michael A. Happel | |
Chief Executive Officer and President | |
(Principal Executive Officer) | |
/s/ Nicholas Radesca | |
Nicholas Radesca | |
Interim Chief Financial Officer, Treasurer and Secretary | |
(Principal Financial Officer and Principal Accounting Officer) |
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Document and Entity Information - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Feb. 12, 2016 |
Jun. 30, 2015 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | New York REIT, Inc. | ||
Entity Central Index Key | 0001474464 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 165,045,217 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.6 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Due to affiliates | $ 99 | $ 575 |
Due from affiliate | $ 7 | $ 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 162,529,811 | 162,181,939 |
Common stock, shares outstanding | 162,529,811 | 162,181,939 |
Preferred stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 40,866,376 | 40,866,376 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Convertible Preferred Stock | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 9,133,624 | 9,133,624 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Organization |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1 — Organization New York REIT, Inc. (the "Company") is a REIT oriented towards owning income-producing commercial real estate in New York City, primarily office and retail properties located in Manhattan. The Company may also acquire multifamily, industrial, hotel and other types of real properties as well as originate or acquire first mortgage loans, mezzanine loans, or preferred equity interests related to New York City real estate. The Company purchased its first property and commenced active operations in June 2010. As of December 31, 2015, the Company owned 22 properties. The Company, incorporated on October 6, 2009, is a Maryland corporation that qualified as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with its taxable year ended December 31, 2010. On April 15, 2014, the Company listed its common stock on the New York Stock Exchange ("NYSE") under the symbol "NYRT" (the "Listing"). Substantially all of the Company's business is conducted through New York Recovery Operating Partnership, L.P. (the "OP"), a Delaware limited partnership. The Company has no direct employees. The Company has retained New York Recovery Advisors, LLC (the "Advisor") to manage its affairs on a day-to-day basis. New York Recovery Properties, LLC (the "Property Manager") serves as the Company's property manager, unless services are performed by a third party for specific properties. The Advisor and Property Manager are under common control with AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global"), the parent of the Company's sponsor, American Realty Capital III, LLC (the "Sponsor"), as a result of which, they are related parties and have received or will continue to receive compensation, fees and expense reimbursements for services related to the investment and management of the Company's assets. Realty Capital Securities, LLC (the "Former Dealer Manager") served as the dealer manager of the initial public offering, which was ongoing from September 2010 to December 2013 (the "IPO"), and, together with its affiliates, continued to provide the Company with various services through December 31, 2015. RCS Capital Corporation, the parent company of the Former Dealer Manager and certain of its affiliates that provided services to the Company, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of the Sponsor. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Basis of Accounting The accompanying consolidated financial statements of the Company are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation, specifically the amortization of the basis difference related to our unconsolidated joint venture of $2.2 million for the year ended December 31, 2013, which has been reflected as a component of income (loss) from unconsolidated joint venture instead of depreciation and amortization in the accompanying consolidated statements of operations and comprehensive loss. See Note 4 — Investment in Unconsolidated Joint Venture. Principles of Consolidation The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests, either through voting or similar rights or by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). The portions of the consolidated joint venture arrangements not owned by the Company are presented as noncontrolling interests. All inter-company accounts and transactions have been eliminated in consolidation. The Company evaluates its relationships and investments to determine if it has variable interests in a VIE. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a VIE. A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance or (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE’s operations. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company continually evaluates the need to consolidate its joint ventures. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners or members as well as whether the entity is a VIE for which the Company is the primary beneficiary. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, derivative financial instruments and hedging activities, equity-based compensation expenses related to the 2014 Advisor Multi-Year Outperformance Agreement (as amended and restated effective August 5, 2015, the "OPP") and fair value measurements, as applicable. Investments in Real Estate The Company evaluates the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statement of operations and comprehensive loss. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets. In business combinations, the Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities and non-controlling interests based on their respective estimated fair values. Tangible assets may include land, land improvements, buildings, fixtures and tenant improvements. Intangible assets or liabilities may include the value of in-place leases, above- and below-market leases and other identifiable intangible assets or liabilities based on lease or property specific characteristics. The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases and ground leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the Company's estimate of the comparable fair market lease rate, measured over the remaining term of the lease, including any below market fixed rate renewal options for below-market leases. The fair value of other intangible assets, such as real estate tax abatements, are recorded based on the present value of the expected benefit and amortized over the expected useful life. Fair values of assumed mortgages, if applicable, are recorded as debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above- or below-market interest rates. Non-controlling interests in property owning entities are recorded based on its fair value at the date of acquisition, as determined by the terms of the applicable agreement. The Company utilizes a number of sources in making its estimates of fair values for purposes of allocating purchase price, including real estate valuations prepared by independent valuation firms. The Company also considers information and other factors including: market conditions, the industry in which the tenant operates, characteristics of the real estate such as location, size, demographics, value and comparative rental rates, tenant credit profile and the importance of the location of the real estate to the operations of the tenant’s business. Disposals of real estate investments that represent a strategic shift in operations that will have a major effect on the Company's operations and financial results are presented as discontinued operations in the consolidated statements of operations and comprehensive loss for all periods presented; otherwise, the Company continues to report the results of these properties' operations within continuing operations. Properties that are intended to be sold will be designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Properties are no longer depreciated when they are classified as held for sale. The Company has three properties classified as held for sale as of December 31, 2015. The Company did not have any properties held for sale as of December 31, 2014. See Note 3 — Real Estate Investments. Acquired intangible assets and lease liabilities consist of the following as of December 31, 2015 and 2014.
Depreciation and Amortization Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five to seven years for fixtures and improvements and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests. Acquired above-market leases are amortized as a reduction of rental income over the remaining terms of the respective leases. Acquired below-market leases are amortized as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods. Acquired above-market ground leases are amortized as a reduction of property operating expense over the remaining term of the respective leases. Acquired below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option period. The value of in-place leases, exclusive of the value of above- and below-market in-place leases, is amortized to depreciation and amortization expense over the remaining terms of the respective leases. Assumed mortgage premiums or discounts, if applicable, are amortized as a reduction or increase to interest expense over the remaining term of the respective mortgages. The following table provides the weighted-average remaining amortization and accretion periods as of December 31, 2015, for intangible assets and liabilities and the projected amortization expense and adjustments to revenues for the next five years:
For the years ended December 31, 2015, 2014 and 2013, amortization of in-place leases and other intangible of $19.8 million, $21.1 million and $8.1 million, respectively, is included in depreciation and amortization on the consolidated statements of operations and comprehensive loss. For the years ended December 31, 2015, 2014 and 2013, net amortization of above- and below-market lease intangibles of $7.9 million, $9.3 million and $2.6 million, respectively, is included in rental income on the consolidated statements of operations and comprehensive loss. For the years ended December 31, 2015, 2014 and 2013, amortization of above-market ground lease liability of $0.4 million, $0.4 million, and $0.1 million, respectively, is included in property operating expense on the consolidated statements of operations and comprehensive loss. Impairment of Long Lived Assets When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If such estimated cash flows are less than the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is based on the adjustment to estimated fair value less estimated cost to dispose of the asset. Generally, the Company determines estimated fair value for properties held for sale based on the agreed-upon selling price of an asset. These assessments may result in the immediate recognition of an impairment loss, resulting in a reduction of net income (loss). The Company recognized impairment charges of $0.9 million during the year ended December 31, 2015. The Company was not required to recognize any impairment charges for the years ended December 31, 2014 and 2013. Impairment of Equity Method Investments The Company monitors the value of its equity method investments for indicators of impairment. An impairment charge is recognized when the Company determines that a decline in the fair value of the investment below its carrying value is other-than-temporary. The assessment of impairment is subjective and involves the application of significant assumptions and judgments about the Company's intent and ability to recover its investment given the nature and operations of the underlying investment. The Company was not required to recognize any impairment charges related to equity method investments during the years ended December 31, 2015, 2014 or 2013. Cash and Cash Equivalents Cash and cash equivalents includes cash in bank accounts as well as investments in highly-liquid money market funds with original maturities of three months or less. As of December 31, 2015 and 2014, $0.2 million and $0.3 million, respectively, was held in money market funds with the Company's financial institutions. The Company deposits cash with high-quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company (the "FDIC") up to an insurance limit. At December 31, 2015 and 2014 the Company had deposits of $98.6 million and $22.5 million, respectively, of which $96.3 million and $18.9 million, respectively, were in excess of the amount insured by the FDIC. Although the Company bears risk to amounts in excess of those insured by the FDIC, it does not anticipate any losses as a result. Restricted Cash Restricted cash primarily consists of maintenance, real estate tax, structural, and debt service reserves. Investment Securities The Company classifies its investments in debt or equity securities into one of three classes: held-to-maturity, available-for-sale or trading, as applicable. Investments in debt securities that the Company has the positive intent and ability to hold until maturity are classified as held-to-maturity and are reported at amortized cost. Debt and equity securities that are bought and held principally for the purposes of selling them in the near future are classified as trading securities. Debt and equity securities not classified as trading securities or as held-to-maturity securities are classified as available-for-sale securities and are reported at fair value, with unrealized holding gains and losses reported as a component of equity within accumulated other comprehensive income or loss. Gains or losses on securities sold are based on the specific identification method. The Company evaluates its investments in securities for impairment or other-than-temporary impairment on a quarterly basis. The Company reviews each investment individually and assesses factors that may include (i) if the carrying amount of an investment exceeds its fair value, (ii) if there has been any change in the market as a whole or in the investee’s market, (iii) if there are any plans to sell the investment in question or if the Company believes it may be forced to sell its investment, and (iv) if there have been any other factors that would indicate the possibility of the existence of an other-than-temporary impairment. The fair value of the Company’s investments in available-for-sale securities generally rise and fall based on current market conditions. If, after reviewing relevant factors surrounding an impaired security, the Company determines that it will not recover its full investment in an impaired security, the Company recognizes an other-than-temporary impairment charge in the consolidated statements of operations and comprehensive loss in the period in which the other-than-temporary impairment is discovered, regardless of whether or not the Company plans to sell or believes it will be forced to sell the security in question. The Company was not required to recognize any other-than-temporary impairment charges for the years ended December 31, 2015, 2014 or 2013. Investment in Unconsolidated Joint Venture The Company accounts for its investment in unconsolidated joint venture under the equity method of accounting because the Company exercises significant influence over, but does not control, the entity and is not considered to be the primary beneficiary. This investment was recorded initially at cost and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Any difference between the carrying amount of this investment and the underlying equity in net assets is depreciated and amortized over the estimated useful lives of the assets and liabilities with a corresponding adjustment to the equity income (loss) from unconsolidated joint venture on the accompanying consolidated statements of operations and comprehensive loss. Equity income (loss) from unconsolidated joint venture is allocated based on the Company's ownership or economic interest in the joint venture. A loss in the value of a joint venture investment that is determined to be other than temporary is recognized in the period in which the loss occurs. See Note 4 — Investment in Unconsolidated Joint Venture. Deferred Costs, Net Deferred costs, net consists of deferred financing costs and leasing costs. Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close. Deferred leasing costs, consisting primarily of lease commissions and professional fees incurred, are deferred and amortized to depreciation and amortization expense over the term of the lease. Derivative Instruments The Company uses derivative financial instruments to hedge the interest rate risk associated with a portion of its borrowings. The principal objective of such agreements is to minimize the risks and costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions. The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that is attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or if the Company does not elect to apply hedge accounting. If the Company designates a qualifying derivative as a hedge, changes in the value of the derivative are reflected in accumulated other comprehensive income (loss) on the accompanying consolidated balance sheets. If a derivative does not qualify as a hedge, or if the Company does not elect to apply hedge accounting, changes in the value of the derivative are reflected in other income (loss) on the accompanying consolidated statements of operations and comprehensive loss. Revenue Recognition The Company's revenues, which are derived primarily from rental income, include rents that each tenant pays in accordance with the terms of each lease reported on a straight-line basis over the initial term of the lease. Because many of the Company's leases provide for rental increases at specified intervals, GAAP requires that the Company record a receivable, and include in revenues on a straight-line basis, unbilled rent receivables that it will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. The Company defers the revenue related to lease payments received from tenants in advance of their due dates. When the Company acquires a property, the acquisition date is considered to be the commencement date for purposes of this calculation. Rental revenue recognition commences when the tenant takes possession of or controls the physical use of the leased space. For the tenant to take possession, the leased space must be substantially ready for its intended use. To determine whether the leased space is substantially ready for its intended use, the Company evaluates whether the Company owns or if the tenant owns the tenant improvements. When the Company is the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is on the date on which such improvements are substantially complete. When the tenant is the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space. When the Company concludes that it is the owner of tenant improvements, the Company capitalizes the cost to construct the tenant improvements, including costs paid for or reimbursed by the tenants. When the Company concludes that the tenant is the owner of tenant improvements for accounting purposes, the Company records its contribution towards those improvements as a lease incentive, which is included in deferred leasing costs, net on the consolidated balance sheets and amortized as a reduction to rental income on a straight-line basis over the term of the lease. The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, the Company will record an increase in its allowance for uncollectible accounts or record a direct write-off of the receivable in its consolidated statements of operations and comprehensive loss. The Company owns certain properties with leases that include provisions for the tenant to pay contingent rental income based on a percent of the tenant's sales upon the achievement of certain sales thresholds or other targets which may be monthly, quarterly or annual targets. As the lessor to the aforementioned leases, the Company defers the recognition of contingent rental income until the specified target that triggered the contingent rental income is achieved, or until such sales upon which percentage rent is based are known. If contingent rental income is recognized pursuant to these provisions, contingent rental income is included in rental income on the consolidated statements of operations and comprehensive loss. The Company recognized contingent rental revenue of $0.6 million during the year ended December 31, 2015. The Company did not recognize any revenue or deferred revenue related to contingent rental income during the years ended December 31, 2014 or 2013. Cost recoveries from tenants are included in operating expense reimbursement in the period the related costs are incurred, as applicable. The Company's hotel revenues are recognized as earned and are derived from room rentals and other sources such as charges to guests for telephone service, movie and vending commissions, meeting and banquet room revenue and laundry services. Share-Based Compensation The Company has a stock-based incentive award plan for its directors, which is accounted for under the guidance for employee share based payments. The cost of services received in exchange for a stock award is measured at the grant date fair value of the award and the expense for such awards is included in general and administrative expenses and is recognized over the service period or when the requirements for exercise of the award have been met. During the year ended December 31, 2015, the Company granted restricted shares to employees of the Advisor, which are accounted for under the guidance for non-employee share-based payments. The fair value of the awards granted to employees of the Advisor are remeasured quarterly, with the resulting amortization adjustments reflected in general and administrative expense in the consolidated statements of operations and comprehensive loss. 2014 Advisor Multi-Year Outperformance Agreement On April 15, 2014 (the "Effective Date"), in connection with the Listing, the Company entered into the OPP with the OP and the Advisor, which is accounted for under the guidance for non-employee share-based payments. The Company records equity based compensation expense associated with the awards over the requisite service period of five years. Equity-based compensation expense is adjusted each reporting period for changes in the estimated market-related performance. See Note 16 — Share-Based Compensation. Income Taxes The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with its taxable year ended December 31, 2010. If the Company continues to qualify for taxation as a REIT, it generally will not be subject to federal corporate income tax to the extent it distributes annually all of its REIT taxable income to its stockholders, determined without regard for the deduction for dividends paid and excluding net capital gains. REITs are subject to a number of organizational and operational requirements, including a requirement that the Company distribute annually at least 90% of the Company’s REIT taxable income to the Company’s stockholders. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates (including any applicable alternative minimum tax) beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. The Company distributed to its stockholders 100% of its REIT taxable income for each of the years ended December 31, 2015, 2014 and 2013. Accordingly, no provision for federal or state income taxes related to such REIT taxable income was recorded on the Company’s financial statements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. During the year ended December 31, 2013, the Company purchased a hotel, which is owned by a subsidiary of the OP and leased to a taxable REIT subsidiary ("TRS"), that is owned by the OP. A TRS is subject to federal, state and local income taxes. The TRS is a tax paying component for purposes of classifying deferred tax assets and liabilities. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event the Company determines that it would not be able to realize the deferred income tax assets in the future in excess of the net recorded amount, the Company establishes a valuation allowance which offsets the previously recognized income tax benefit. Deferred income taxes result from temporary differences between the carrying amounts of assets and liabilities of the TRS for financial reporting purposes and the amounts used for income tax purposes. The TRS had deferred tax assets and a corresponding valuation allowance of $3.1 million and $1.7 million as of December 31, 2015 and 2014, respectively. The TRS had federal and state net operating loss carry forwards as of December 31, 2015 of $6.7 million, which will expire through 2036. The Company estimated income tax relating to its TRS using a combined federal and state rate of approximately 43% for the year ended December 31, 2015. The Company has concluded that it is more likely than not that the net operating loss carry forwards will not be utilized during the carry forward period and as such the Company has established a valuation allowance against these deferred tax assets. The Company had immaterial current and deferred federal and state income tax expense for the years ended December 31, 2015, 2014 and 2013. As of December 31, 2015, the Company had no material uncertain income tax positions. The tax years subsequent to and including the year ended December 31, 2012 remain open to examination by the major taxing jurisdictions to which the Company is subject. Per Share Data The Company calculates basic income (loss) per share of common stock by dividing net income (loss) for the period by the weighted-average shares of its common stock outstanding for the respective period. Diluted income per share takes into account the effect of dilutive instruments such as unvested restricted stock, Long-term Incentive Plan ("LTIP") units and OP units (assuming such units are not antidilutive), based on the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. See Note 18 — Net Loss Per Share. Reportable Segments The Company has determined that it has one reportable segment, with activities related to investing in real estate. The Company's investments in real estate generate rental revenue and other income through the leasing and management of properties. Management evaluates the operating performance of the Company's investments in real estate at the individual property level. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of the new guidance. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The guidance is not expected to have a significant impact on the Company's financial position, results of operations or cash flows. In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendment requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not previously been issued. The revised guidance is not expected to have a significant impact on the Company's financial position, results of operations or cash flows. In September 2015, the FASB issued an update that eliminates the requirement to adjust provisional amounts from a business combination and the related impact on earnings by restating prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of measurement period adjustments on current and prior periods, including the prior period impact on depreciation, amortization and other income statement items and their related tax effects, shall be recognized in the period the adjustment amount is determined. The cumulative adjustment would be reflected within the respective financial statement line items affected. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company elected to adopt the new guidance as of September 30, 2015. The adoption of this guidance had no impact on the Company's consolidated financial position, results of operations or cash flows. In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance significantly revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of the new guidance. |
Real Estate Investments |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Investments | Note 3 — Real Estate Investments The following table presents the allocation of the assets acquired and liabilities assumed during the years ended December 31, 2014 and 2013. There were no real estate assets acquired or liabilities assumed during the year ended December 31, 2015.
The following table presents future minimum base cash rental payments due to the Company, excluding future minimum base cash rental payments related to unconsolidated joint ventures, subsequent to December 31, 2015. These amounts exclude contingent rental payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items.
The following table lists the tenants whose annualized cash rent represented greater than 10% of total annualized cash rent as of December 31, 2015, 2014 and 2013, including annualized cash rent related to the Company's unconsolidated joint venture:
The termination, delinquency or non-renewal of any of the above tenants may have a material adverse effect on the Company's operations. Real Estate Held For Sale and Real Estate Sales Real Estate Held for Sale In November 2015, the Company entered into agreements to sell its Duane Reade property in Queens, NY ("Duane Reade") and its property located at 1623 Kings Highway in Brooklyn, New York ("1623 Kings Highway"). In December 2015, the Company entered into an agreement to sell its Foot Locker property in Brooklyn, New York ("Foot Locker"). Concurrently with entering into the agreements, the Company stopped recognizing depreciation and amortization expense and the real estate and other assets and liabilities associated with the properties were reclassified as held for sale on the Company's consolidated balance sheets as of December 31, 2015. The expected disposal of the properties referenced above does not represent a strategic shift that has a major effect on the Company’s operations and financial results. Accordingly, the operating results of these properties remain classified within continuing operations for all periods presented. The Company recognized an impairment charge of $0.9 million related to Duane Reade as the carrying amount of Duane Reade's real estate and related assets, net of related liabilities, on the date of reclassification as held for sale was greater than the Company's estimate of its fair value less estimated costs to sell, which is reflected within gain on sale of real estate investments, net on the consolidated statements of operations and comprehensive loss for the year ended December 31, 2015. The Company closed on the sales of Duane Reade and 1623 Kings Highway subsequent to December 31, 2015. See Note 21 — Subsequent Events. The following table details the major classes of assets associated with Duane Reade, 1623 Kings Highway and Foot Locker that have been reclassified as held for sale as of December 31, 2015:
As of December 31, 2015, the Company had $0.3 million of liabilities related to real estate assets held for sale. Real Estate Sales On October 21, 2015, the Company sold its property located at 163 Washington Avenue in Brooklyn, New York and recognized a net gain on the sale of the property of $8.4 million for the year ended December 31, 2015, which is reflected within gain on sale of real estate investments, net on the consolidated statements of operations and comprehensive loss. The Company did not sell any properties during the years ended December 31, 2014 or 2013. The disposal of the property referenced above did not represent a strategic shift that has a major effect on the Company’s operations and financial results. Accordingly, the operating results of 163 Washington Avenue remain classified within continuing operations for all periods presented until the date of disposal. |
Investment in Unconsolidated Joint Venture |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Joint Venture | Note 4 — Investment in Unconsolidated Joint Venture On October 30, 2013, the Company purchased a 48.9% equity interest in WWP Holdings, LLC ("Worldwide Plaza") for a contract purchase price of $220.1 million, based on the property value for Worldwide Plaza of $1.3 billion less $875.0 million of debt on the property. As of December 31, 2015, the Company's pro rata portion of debt secured by Worldwide Plaza was $427.9 million. The debt on the property has a weighted average interest rate of 4.6% and matures in March 2023. The Company accounts for the investment in Worldwide Plaza using the equity method of accounting because the Company exercises significant influence over, but does not control, the entity. Pursuant to the terms of the membership agreement governing the Company’s purchase of the 48.9% equity interest in Worldwide Plaza, the Company retains an option to purchase the balance of the equity interest in Worldwide Plaza beginning 38 months following the closing of the acquisition, or December 2016, at an agreed-upon property value of $1.4 billion, subject to certain adjustments, including, but not limited to, adjustments for certain loans that are outstanding at the time of exercise, adjustments for the percentage equity interest being acquired and any of the Company's preferred return in arrears. If the Company does not exercise its purchase option, the Company will be subject to a fee in the amount of $25.0 million. At acquisition, the Company's investment in Worldwide Plaza exceeded the Company's share of the book value of the net assets of Worldwide Plaza by $260.6 million. This basis difference resulted from the excess of the Company's purchase price for its equity interest in Worldwide Plaza over the book value of Worldwide Plaza's net assets. Substantially all of this basis difference was allocated to the fair values of Worldwide Plaza's assets and liabilities. The Company amortizes the basis difference over the anticipated useful lives of the underlying tangible and intangible assets acquired and liabilities assumed. The basis difference related to the land will be recognized upon disposition of the Company's investment. As of December 31, 2015 and 2014, the carrying value of the Company's investment in Worldwide Plaza was $215.4 million and $225.5 million, respectively. The Company is party to litigation related to Worldwide Plaza. See Note 13 — Commitments and Contingencies. The amounts reflected in the following tables (except for the Company’s share of equity and income) are based on the financial information of Worldwide Plaza. The Company does not record losses of the joint venture in excess of its investment balance because the Company is not liable for the obligations of the joint venture or is otherwise committed to provide financial support to the joint venture. The condensed balance sheets as of December 31, 2015 and 2014 for Worldwide Plaza are as follows:
The condensed statements of operations for the years ended December 31, 2015 and 2014, and the period from October 31, 2013 (date of acquisition) to December 31, 2013 for Worldwide Plaza are as follows:
Net income (loss) related to Worldwide Plaza includes the Company's pro rata share of Worldwide Plaza net income (loss) to members as well as the Company's preferred return less amortization of the basis difference. The following table presents the components of the income (loss) related to the Company's investment in Worldwide Plaza for the periods presented, which is included in income (loss) from unconsolidated joint venture on the consolidated statements of operations and comprehensive loss.
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Preferred Equity Investment |
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Equity [Abstract] | |
Preferred Equity Investment | Note 5 — Preferred Equity Investment On March 27, 2015, the Company's preferred equity investment in a class A office building located at 123 William Street (the "Property") in the Financial District of downtown Manhattan was repaid as a result of the sale of the Property. The preferred equity investment carried a 6.0% current pay rate and a 2.0% accrual rate. Pursuant to the sale of the Property, the Company received $1.1 million in current and accrued income earned and $35.1 million for the return of all principal invested. The preferred equity investment had a fixed return based on contributed capital, no participation in profits or losses of the real estate activities, and property foreclosure rights in the event of default. As such, the Company recorded returns earned in income from preferred equity investment, investment securities and interest on the consolidated statements of operations and comprehensive loss. |
Investment Securities |
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Investment Securities | Note 6 — Investment Securities The Company's investment securities consisted of redeemable preferred stock and equity securities, with an aggregate fair value of $4.7 million as of December 31, 2014. The Company sold its investment securities during the year ended December 31, 2015 for a gain of $0.1 million, which is included in income from preferred equity investment, investment securities and interest on the accompanying consolidated statements of operations and comprehensive loss. The equity securities consisted of a real estate income fund managed by an affiliate of the Sponsor. See Note 14 — Related Party Transactions and Arrangements. The Company's preferred stock investment was redeemable at the issuer's option after five years from issuance. The following table details the unrealized gains and losses on investment securities as of December 31, 2014:
No other-than-temporary impairment charges were required to be recognized during the years ended December 31, 2015 and 2014. |
Credit Facility |
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Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facility | Note 7 — Credit Facility On April 14, 2014, the Company amended and restated its credit facility with Capital One, National Association (the "Credit Facility"). The Credit Facility allows for total borrowings of up to $705.0 million with a $305.0 million term loan and a $400.0 million revolving loan. The term loan component of the Credit Facility matures in August 2018 and the revolving loan component matures in August 2016. The Company has two options to extend the maturity date of the revolving loan component of the Credit Facility through August 2018. The Credit Facility contains an "accordion feature" to allow the Company, under certain circumstances and with the consent of its lenders, to increase the aggregate loan borrowings to up to $1.0 billion of total borrowings. On August 27, 2015, the Company entered into an amendment pursuant to which certain changes were made under the Credit Facility primarily to increase the borrowing base capacity including, among other changes, (i) the ability to add a hotel asset as a borrowing base asset and (ii) reducing the debt service coverage ratio test from 1.4 to 1.3 for draw downs on the Credit Facility. The Company incurred $6.3 million of fees related to the amendment of which $4.0 million have been capitalized and included in deferred costs on the consolidated balance sheets and $2.4 million are included in acquisition and transaction related expense on the consolidated statements of operations and comprehensive loss. The Company has the option, based upon its corporate leverage, to have the Credit Facility priced at either: (a) LIBOR, plus an applicable margin that ranges from 1.50% to 2.25%; or (b) the Base Rate plus an applicable margin that ranges from 0.50% to 1.25%. Base Rate is defined in the Credit Facility as the greater of (i) the fluctuating annual rate of interest announced from time to time by the lender as its “prime rate,” (ii) 0.50% above the federal funds effective rate and (iii) 1.00% above the applicable one-month LIBOR. The Company has historically paid interest calculated based on LIBOR, plus an applicable margin. The Company repaid $150.0 million in advances on the revolving portion of its Credit Facility during the year ended December 31, 2015. The outstanding balance of the term and revolving portions of the Credit Facility was $305.0 million and $180.0 million, respectively, as of December 31, 2015 and $305.0 million and $330.0 million, respectively as of December 31, 2014. The Credit Facility had a combined weighted average interest rate of 2.39% and 2.08% as of December 31, 2015 and 2014, respectively, a portion of which is fixed with an interest rate swap. The Credit Facility includes an unused commitment fee per annum of (a) 0.15% if the unused balance of the facility is equal to or less than 50% of the available facility and (b) 0.25% if the unused balance of the facility exceeds 50% of the available facility. The actual availability of borrowings under the Credit Facility for any period is based on requirements outlined in the Credit Facility with respect to the pool of eligible unencumbered assets that comprise our borrowing base properties. The unused borrowing capacity, based on the debt service coverage ratio of the borrowing base properties as of December 31, 2015, was $63.0 million. The Credit Facility provides for monthly interest payments for each Base Rate loan and periodic payments for each LIBOR loan, based upon the applicable LIBOR loan period, with all principal outstanding being due on the maturity date. The Credit Facility may be prepaid at any time, in whole or in part, without premium or penalty. In the event of a default, the lenders have the right to terminate their obligations under the Credit Facility and to accelerate the payment on any unpaid principal amount of all outstanding loans. The Credit Facility requires the Company to meet certain financial covenants, including the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) as well as the maintenance of a minimum net worth. As of December 31, 2015, the Company was in compliance with the debt covenants under the Credit Facility. |
Mortgage Notes Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Notes Payable | Note 8 — Mortgage Notes Payable The Company's mortgage notes payable as of December 31, 2015 and 2014 consist of the following:
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During the year ended December 31, 2015, the Company repaid four mortgage notes payable and settled through legal defeasance two mortgage notes payable before the scheduled maturity dates. As a result, the Company incurred $1.8 million in expenses related to these transactions, which relates to prepayment penalties and the write-off of previously recorded deferred financing costs, of which $0.6 million is included in acquisition and transaction related expenses and $1.2 million is included in interest expense on the consolidated statements of operations and comprehensive loss. The Company's remaining properties, with the exception of 367-369 Bleecker Street and 387 Bleecker Street (which excludes 382-384 Bleecker Street), that are not subject to mortgage notes payable collateralize the borrowing base of the Credit Facility and are subject to mortgages under the Credit Facility for that purpose. On September 30, 2015, in connection with the mortgage notes payable secured by its property located at 1440 Broadway, the Company executed guarantees in favor of the lenders with respect to the costs of certain unfunded obligations of the Company related to tenant allowances, capital expenditures and leasing costs, which guarantees are capped at $5.3 million in the aggregate. The guarantees expire in October 2019, the maturity date of the 1440 Broadway mortgage. As of December 31, 2015, the Company has not been required to perform under the guarantees and has not recognized any assets or liabilities related to the guarantees. Real estate investments of $685.5 million, at cost, at December 31, 2015 have been pledged as collateral to their respective mortgages and are not available to satisfy the Company's corporate debts and obligations unless first satisfying the mortgage notes payable on the properties. The following table summarizes the scheduled aggregate principal repayments subsequent to December 31, 2015:
Some of the Company's mortgage note agreements require compliance with certain property-level financial covenants including debt service coverage ratios. As of December 31, 2015, the Company was in compliance with the financial covenants under its mortgage note agreements. |
Subordinated Listing Distribution |
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Dec. 31, 2015 | |
Subordinated Listing Distribution [Abstract] | |
Subordinated Listing Distribution Derivative | Note 9 — Subordinated Listing Distribution Upon occurrence of the Listing, New York Recovery Special Limited Partnership, LLC (the "SLP") became entitled to begin receiving distributions of net sale proceeds pursuant to its special limited partner interest in the OP (the "SLP Interest") in an aggregate amount that was evidenced by the issuance of a note by the OP (the "Listing Note"). The Listing Note was equal to 15.0% of the amount, if any, by which (a) the average market value of the Company’s outstanding common stock for the period 180 days to 210 days after the Listing, plus dividends paid by the Company prior to the Listing, exceeded (b) the sum of the total amount of capital raised from stockholders during the Company’s IPO and the amount of cash flow necessary to generate a 6.0% annual cumulative, non-compounded return to such stockholders. Concurrently with the Listing, the Company, as general partner of the OP, caused the OP to enter into the Listing Note agreement dated April 15, 2014 by and between the OP and the SLP, and caused the OP to issue the Listing Note. The Listing Note was evidence of the SLP's right to receive distributions of net sales proceeds from the sale of the Company's real estate and real estate-related assets up to an aggregate amount equal to the principal balance of the Listing Note. Pursuant to the terms of the partnership agreement of the OP, the SLP had the right, but not the obligation, to convert all or a portion of the SLP interest into limited partnership units of the OP ("OP units"), which are convertible into shares of the Company's common stock or the cash value of a corresponding number of shares, at the election of the OP, in accordance with the limited partnership agreement of the OP. The principal amount of the Listing Note was determined based, in part, on the actual market value of the Company’s outstanding common stock for the period 180 days to 210 days after the Listing. Until the final principal amount of the Listing Note was determined in November 2014, the Listing Note was considered to be a derivative which was marked to fair value at each reporting date, with changes in the fair value recorded in the consolidated statements of operations and comprehensive loss. The principal amount of the Listing Note was determined to be $33.5 million and was recorded as an expense in the consolidated statements of operations and comprehensive loss during the year ended December 31, 2014. On November 21, 2014, at the request of the SLP, the Listing Note was converted into 3,062,512 OP units and the value of the Listing Note was reclassified from derivative liabilities to non-controlling interest on the consolidated balance sheets. |
Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Note 10 — Fair Value of Financial Instruments The Company determines fair value of its financial instruments based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the instrument. This alternative approach also reflects the contractual terms of the instruments, as applicable, including the period to maturity, and may use observable market-based inputs, including interest rate curves and implied volatilities, and unobservable inputs, such as expected volatility. The guidance defines three levels of inputs that may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 — Unobservable inputs that reflect the entity's own assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Although the Company has determined that the majority of the inputs used to value its derivatives, such as interest rate swaps and caps, fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of December 31, 2015 and 2014, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of the Company's derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. See Note 11 — Interest Rate Derivatives and Hedging Activities. The valuation of derivatives is determined using a discounted cash flow analysis on the expected cash flows. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and implied volatilities. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company's potential nonperformance risk and the performance risk of the counterparties. The Company had investments in redeemable preferred stock and an equity security as of December 31, 2014 that were traded in active markets and therefore, due to the availability of quoted market prices in active markets, the Company classified these investments as Level 1 in the fair value hierarchy. The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which those instruments fall:
A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets. There were no transfers between levels of the fair value hierarchy during the years ended December 31, 2015 or 2014. Financial instruments not carried at fair value The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate the value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, prepaid expenses and other assets, accounts payable and dividends payable approximates their carrying value on the consolidated balance sheets due to their short-term nature. The fair values of the Company's financial instruments that are not reported at fair value on the consolidated balance sheets are reported below.
The fair value of mortgage notes payable, the fixed-rate portions of term loans on the Credit Facility and the preferred equity investment are estimated using a discounted cash flow analysis based on similar types of arrangements. The Company's preferred equity investment was repaid in March 2015. See Note 5 — Preferred Equity Investment. Advances under the Credit Facility with variable interest rates and advances under the revolving portion of the Credit Facility are considered to be reported at fair value. |
Interest Rate Derivatives and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Derivatives and Hedging Activities | Note 11 — Interest Rate Derivatives and Hedging Activities Risk Management Objective of Using Derivatives The Company uses derivative financial instruments, including interest rate swaps, caps, collars, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective of such arrangements is to minimize the risks and costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions. The Company does not utilize derivatives for speculative or purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements will not perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties that the Company believes to have high credit ratings and with major financial institutions with which the Company and the Advisor and its affiliates may also have other financial relationships. Cash Flow Hedges of Interest Rate Risk The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts if interest rates rise above the cap strike rate on the contract. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company uses such derivatives to hedge the variable cash flows associated with variable-rate debt. During the year ended December 31, 2015, the Company terminated two of its interest rate swaps as the related hedged debts were repaid, which made it probable that the forecasted transactions would not occur and, as a result, accelerated the reclassification of amounts in accumulated other comprehensive loss to earnings. The accelerated amounts resulted in a loss of $0.2 million for the year ended December 31, 2015, which is included in the gain (loss) on derivative instruments on the consolidated statements of operations and comprehensive loss. Amounts reported in accumulated other comprehensive loss related to derivatives are reclassified to interest expense as interest payments are made on the Company's variable-rate debt. During the next 12 months, the Company estimates that an additional $1.0 million will be reclassified from accumulated other comprehensive loss as an increase to interest expense. As of December 31, 2015 and 2014, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk.
Derivatives Not Designated as Hedges Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements and other identified risks, but do not meet the strict hedge accounting requirements under GAAP. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings, which resulted in an expense of $0.4 million during the year ended December 31, 2015 and included in gain (loss) on derivative instruments on the consolidated statements of operations and comprehensive loss. As of December 31, 2015, the Company had the following outstanding interest rate derivatives that were not designated as hedges in qualified hedging relationships. The Company did not have any outstanding interest rate derivatives that were not designated as hedges as of December 31, 2014.
Balance Sheet Classification The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2015 and 2014:
Derivatives in Cash Flow Hedging Relationships The table below details the location in the financial statements of the income or loss recognized on interest rate derivatives designated as cash flow hedges for the years ended December 31, 2015, 2014 and 2013:
Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of December 31, 2015 and 2014. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the accompanying consolidated balance sheets.
Credit-risk-related Contingent Features The Company has agreements with its derivative counterparties that contain a provision whereby if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. As of December 31, 2015, the fair value of derivatives in a net liability position including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $1.4 million. As of December 31, 2015, the Company has not posted any collateral related to its agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at the aggregate termination value of $1.4 million at December 31, 2015. |
Common Stock |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Note 12 — Common Stock As of December 31, 2015 and 2014, the Company had 162.5 million and 162.2 million shares of common stock outstanding, respectively, including shares of unvested restricted common stock ("restricted shares") and shares issued under the distribution reinvestment plan (the "DRIP"), but not including OP units or Long-term Incentive Plan units ("LTIP units") which may in the future be converted into shares of common stock. From December 2010 to April 2014, the Company declared and paid dividends at a dividend rate equal to $0.605 per annum per share of common stock. The dividends were paid by the fifth day following each month end to stockholders of record at the close of business each day during the prior month at a per share rate of 0.0016575342 per day. In April 2014, the Company's board of directors authorized, and the Company declared, a monthly dividend at an annualized rate equal to $0.46 per share per annum. Beginning in April 2014, dividends are paid to stockholders of record on the close of business on the 8th day of each month, payable on the 15th day of such month. The Company's board of directors may reduce the amount of dividends paid or suspend dividend payments at any time and therefore dividend payments are not assured. On March 31, 2014, the board of directors approved the termination of the Company's Share Repurchase Program ("SRP"). The Company processed all of the requests received under the SRP through the first quarter of 2014. The following table reflects the cumulative number of shares repurchased as of and through the termination of the SRP:
Note 17 — Accumulated Other Comprehensive Income (Loss) The following table illustrates the changes in accumulated other comprehensive income (loss) as of and for the periods indicated:
For a reconciliation of the income statement line item affected due to amounts reclassified out of accumulated other comprehensive loss for the years ended December 31, 2015, 2014 and 2013, see Note 11 — Interest Rate Derivatives and Hedging Activities. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Note 13 — Commitments and Contingencies Future Minimum Lease Payments The Company has entered into operating and capital lease agreements primarily related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash payments due from the Company over the next five years and thereafter under these arrangements, including the present value of the net minimum payments due under capital leases. These amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes, among other items.
Total rental expense related to operating leases was $7.7 million, $7.7 million and $0.9 million, respectively, for the years ended December 31, 2015, 2014 and 2013. During the years ended December 31, 2015, 2014 and 2013, interest expense related to capital leases was approximately $0.1 million. The following table discloses assets recorded under capital leases and the accumulated amortization thereon as of December 31, 2015 and 2014:
Litigation and Regulatory Matters In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no legal or regulatory proceedings pending or known to be contemplated against the Company from which the Company expects to incur a material loss. RXR Realty (“RXR”) initiated a suit against the Company alleging that it suffered “lost profits” in connection with the Company’s purchase of its 48.9% interest in Worldwide Plaza in October 2013. On August 12, 2014, the Supreme Court of the State of New York dismissed all of RXR’s claims against the seller of Worldwide Plaza and dismissed RXR’s disgorgement claims against the Company, permitting only a limited, immaterial claim against the Company for RXR’s cost of producing due diligence-related material to proceed. RXR appealed the ruling and, on October 13, 2015, the appellate court upheld the previous decisions; however, the appellate court held that the trial court's exclusion of lost profit damages was premature and would have to be considered through a motion for summary judgment. The Company has moved for summary judgment. Oral argument of the motion is scheduled for March 24, 2016. The Company has not recognized a liability with respect to RXR's claim because the Company does not believe that it is probable that it will incur a related material loss. Environmental Matters In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company maintains environmental insurance for its properties that provides coverage for potential environmental liabilities, subject to the policy's coverage conditions and limitations. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the consolidated results of operations. |
Related Party Transactions and Arrangements |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions and Arrangements | Note 14 — Related Party Transactions and Arrangements Individual members of the Advisor and the SLP and employees or former employees of the Advisor hold interests in the OP. See Note 19 — Non-Controlling Interests. As of December 31, 2014, the Company had investments in a real estate income fund managed by an affiliate of the Sponsor (see Note 6 — Investment Securities). There was no obligation to purchase any additional shares and the shares could have been sold at any time. The Company sold its investments in the real estate income fund during the year ended December 31, 2015. The Company recognized income on this investment of $0.1 million during the year ended December 31, 2015, which includes the gain recognized on the sale of the investments and dividend income. During the year ended December 31, 2014, the Company recognized income of $0.1 million on its equity security. The following table details revenues from related parties at the Viceroy Hotel. The Company did not have any receivables from related parties as of December 31, 2015 or 2014.
Fees Paid in Connection with the IPO The Former Dealer Manager and the Sponsor were paid fees and compensation in connection with the sale of the Company's common stock in the IPO. The Former Dealer Manager received a selling commission of up to 7.0% of gross offering proceeds before reallowance of commissions earned by participating broker-dealers and a dealer manager fee of 3.0% of gross offering proceeds. In addition, the Former Dealer Manager was permitted to re-allow a portion of its dealer manager fee to such participating broker-dealers, based on such factors as the volume of shares sold by respective participating broker-dealers and marketing support provided as compared to other participating broker-dealers. During the years ended December 31, 2014 and 2013, the Company incurred approximately $8,000 and $135.0 million, respectively, in commissions and fees to the Former Dealer Manager. The Advisor and its affiliates received compensation and reimbursement for services provided in connection with the IPO. Effective March 1, 2013, the Company began utilizing transfer agent services provided by an affiliate of the Former Dealer Manager. All offering costs related to the IPO incurred by the Company, or its affiliated entities, on behalf of the Company were charged to additional paid-in capital on the accompanying consolidated balance sheets. Subsequent to the IPO, transfer agent fees are recorded in general and administrative expenses on the consolidated statements of operations and comprehensive loss. During the year ended December 31, 2013, the Company incurred $11.6 million in fees and expense reimbursements from the Advisor and Former Dealer Manager. The Company did not incur any fees or expense reimbursements related to the IPO during the year ended December 31, 2015 and did not have any amounts payable to the Advisor or Former Dealer Manager related to fees paid in connection with the IPO as of December 31, 2015 or 2014. Fees Paid in Connection With the Operations of the Company Prior to October 12, 2014 (the "Termination Date"), the Advisor was paid an acquisition fee of 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for a loan or other investment and, if the Advisor provided services in connection with the origination or refinancing of any debt that the Company obtained and used to acquire assets, or that was assumed, directly or indirectly, in connection with the acquisition of assets, the Company paid the Advisor a financing coordination fee equal to 0.75% of the amount available or outstanding under such financing or such assumed debt. Additionally, the Company reimbursed the Advisor for expenses incurred by the Advisor for services provided by third parties and acquisition expenses incurred by the Advisor directly from third parties. The total of all acquisition fees, acquisition expenses and any financing coordination fees with respect to the Company's portfolio of investments or reinvestments did not exceed 4.5% of the contract purchase price of the Company's portfolio as measured as of the Company's last property acquisition. On April 15, 2014, in conjunction with the Listing, the Company amended and restated its advisory agreement with the OP and the Advisor, which, among other things, terminated the acquisition fee and financing coordination fee on the Termination Date, which was 180 days after the Listing. The Company amended and restated its advisory agreement again on June 26, 2015 (as amended from time to time, the "Advisory Agreement"), which, among other things, removed the 2%/25% Limitation (defined below). If the Company acquires additional properties, the Company will reimburse the Advisor for expenses incurred by the Advisor or its affiliates for services provided by third parties and acquisition expenses incurred by the Advisor or its affiliates on their own behalf or directly from third parties, but will not pay acquisition fees or financing coordination fees. Until the Listing, the Company paid the Advisor an asset management subordinated participation by causing the OP to issue (subject to periodic approval by the board of directors) to the Advisor a number of performance-based restricted, forfeitable partnership units of the OP designated as "Class B units" equal to a maximum 0.75% per annum of the cost of the Company's assets. As of April 15, 2014, in aggregate, the board of directors had approved the issuance of 1,188,667 Class B units to the Advisor in connection with this arrangement. The Advisor received distributions on unvested Class B units equal to the per share dividends paid on the Company's common stock. The value of issued Class B units was determined and expensed when the vesting condition was met, which occurred as of the Listing, resulting in $11.5 million of expense which was included in vesting of asset management fees expense in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2014 and in non-controlling interest on the consolidated balance sheets as of December 31, 2014. On April 15, 2014, the Class B units were converted to OP units on a one-to-one basis. With effect from Listing, the asset management subordinated participation was no longer applicable. Instead, an asset management fee became payable to the Advisor equal to 0.50% per annum of the cost of assets up to $3.0 billion and 0.40% per annum of the cost of assets above $3.0 billion. The asset management fee is payable in the form of cash, OP units, and shares of restricted common stock of the Company, or a combination thereof, at the Advisor’s election. During the year ended December 31, 2015, and the period from the Listing to December 31, 2014, the asset management fee was paid in cash. Unless the Company contracts with a third party, the Company pays the Property Manager a property management fee equal to: (i) for non-hotel properties, 4.0% of gross revenues from properties managed, plus market-based leasing commissions; and (ii) for hotel properties, a market-based fee equal to a percentage of gross revenues. The Company also reimburses the Property Manager for property-level expenses. The Property Manager may subcontract the performance of its property management and leasing services duties to third parties and pay all or a portion of its property management fee to the third parties with whom it contracts for these services. If the Company contracts directly with third parties for such services, the Company will pay them customary market fees and pay the Property Manager an oversight fee equal to 1.0% of the gross revenues of the applicable property. The Company reimburses the Advisor for costs and expenses paid or incurred by the Advisor and its affiliates in connection with providing services to the Company (including reasonable salaries and wages, benefits and overhead of all employees directly involved with the performance of such services), although the Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives a separate fee. Prior to June 2015, reimbursement of costs and expenses was subject to the limitation that the Company would not reimburse the Advisor for any amount by which the Company's total operating expenses (as defined in the advisory agreement during the applicable time) for the four preceding fiscal quarters exceeded the greater of (a) 2.0% of average invested assets and (b) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non cash reserves and excluding any gain from the sale of assets for that period (the "2%/25% Limitation"). The 2%/25% Limitation was removed from the Advisory Agreement in connection with the amendment and restatement in June 2015. Total reimbursement of costs and expenses for the year ended December 31, 2015 was $0.8 million. No reimbursement was incurred for the years ended December 31, 2014 and 2013. Throughout the year ended December 31, 2015, the Former Dealer Manager and its affiliates provided us with various services, including legal, marketing and transfer agent services, among others. As of December 31, 2015, an affiliate of the Former Dealer Manager continued to provide transfer agency services to the Company. Following the completion of the IPO, these fees are included in general and administrative expenses on the consolidated statements of operations and comprehensive loss during the period the service was provided. The amounts incurred from the Former Dealer Manager and its affiliates for services performed on behalf of the Company were $0.7 million for the year ended December 31, 2015. The following table details amounts incurred, forgiven and contractually due in connection with the operations related services described above as of and for the periods presented:
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In order to improve operating cash flows and the ability to pay dividends from operating cash flows, the Advisor agreed to waive certain fees including property management fees during the years ended December 31, 2015, 2014 and 2013. Because the Advisor waived certain fees, cash flow from operations that would have been paid to the Advisor was available to pay dividends to stockholders. The fees that were waived were not deferrals and accordingly, will not be paid to the Advisor in any subsequent periods. Additionally, to improve the Company's working capital, the Advisor may elect to absorb, and not seek reimbursement for, a portion of the Company's expenses incurred in connection with the operations of the Company. The following table details property operating and general and administrative expenses absorbed by the Advisor during the periods presented. These costs are presented net in the consolidated statements of operations and comprehensive loss.
The Company had no receivables from the Advisor related to absorbed general and administrative expenses as of December 31, 2015 or 2014. Fees Paid in Connection with the Liquidation or Listing of the Company's Real Estate Assets In December 2013, the Company entered into a transaction management agreement with RCS Advisory Services, LLC, an entity under common control with the Former Dealer Manager, to provide strategic alternatives transaction management services through the occurrence of a liquidity event and a la carte services thereafter. The Company paid $3.0 million pursuant to this agreement. The Company incurred $1.5 million of expenses pursuant to this agreement during the years ended December 31, 2014 and 2013, including amounts for services provided in preparation for the Listing, which are included in acquisition and transaction related costs in the consolidated statement of operations and comprehensive loss. The Company did not incur any expenses pursuant to this agreement for the year ended December 31, 2015. The Company does not owe the Former Dealer Manager or its affiliates any more fees pursuant to this agreement. In December 2013, the Company entered into an information agent and advisory services agreement with the Former Dealer Manager and American National Stock Transfer, LLC, an entity under common control with the Former Dealer Manager, to provide in connection with a liquidity event, advisory services, educational services to external and internal wholesalers, communication support as well as proxy, tender offer or redemption and solicitation services. The Company paid $1.9 million pursuant to this agreement. For the year ended December 31, 2014, the Company incurred $1.3 million of expenses pursuant to this agreement, which included amounts for services provided in preparation for the Company's tender offer in April 2014 (the "Tender Offer"), and are included in additional paid-in capital on the accompanying consolidated balance sheets. The Company incurred $0.6 million in fees pursuant to this arrangement during the year ended December 31, 2013 which were included in acquisition and transaction related costs in the consolidated statement of operations and comprehensive loss. The Company did not incur any expenses pursuant to this agreement during the year ended December 31, 2015. The Company does not owe the Former Dealer Manager or its affiliates any more fees pursuant to this agreement. In December 2013, the Company entered into an agreement with RCS Capital, the investment banking and capital markets division of the Former Dealer Manager, for strategic and financial advice and assistance in connection with (i) a possible sale transaction involving the Company (ii) the possible listing of the Company’s securities on a national securities exchange, and (iii) a possible acquisition transaction involving the Company. The Former Dealer Manager was entitled to a transaction fee equal to 0.25% of the transaction value in connection with the possible sale transaction, listing or acquisition. In April 2014, in connection with the Listing, the Company incurred and paid $6.9 million in connection with this agreement which was included in acquisition and transaction related costs in the consolidated statement of operations and comprehensive loss. The Company does not owe the Former Dealer Manager or its affiliates any more fees pursuant to this agreement. During the year ended December 31, 2014, the Company incurred $0.6 million of expenses to affiliated entities of the Advisor for general legal, marketing and sales services provided in connection with the Listing. These expenses are included in acquisition and transaction related costs in the consolidated statement of operations and comprehensive loss. During the year ended December 31, 2014, the Company also incurred approximately $9,000 of expenses to affiliated entities of the Advisor for general legal services provided in connection with the Tender Offer. These expenses are included in additional paid-in capital on the accompanying consolidated balance sheets. The Company did not incur any expenses pursuant to this agreement for the year ended December 31, 2015. As of December 31, 2015 and 2014, there were no amounts payable to affiliated entities of the Advisor in accounts payable and accrued expenses on the accompanying consolidated balance sheets relating to the Listing or Tender Offer. For substantial assistance in connection with the sale of properties, the Company will pay the Advisor a property disposition fee not to exceed the lesser of 2.0% of the contract sale price of the property and 50% of the competitive real estate commission paid if a third party broker is also involved; provided, however that in no event may the property disposition fee paid to the Advisor when added to real estate commissions paid to unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a competitive real estate commission. For purposes of the foregoing, "competitive real estate commission" means a real estate brokerage commission for the purchase or sale of a property which is reasonable, customary and competitive in light of the size, type and location of the property. The Company incurred and paid $0.2 million in property disposition fees during the year ended December 31, 2015. No such fees were incurred or paid for the years ended December 31, 2014 or 2013. In connection with the Listing, the OP issued the Listing Note. See Note 9 — Subordinated Listing Distribution. In connection with the Listing and the Advisory Agreement, the Company terminated the subordinated termination fee that would be due to the Advisor in the event of termination of the Advisory Agreement. In October 2014, the Company entered into separate transaction management agreements with Barclays Capital Inc. and the Former Dealer Manager as financial advisors to assist the board of directors of the Company in evaluating strategic options to enhance long-term stockholder value, including a business combination involving the Company or a sale of the Company. In May 2015, the Company terminated its agreements with Barclays Capital Inc. and the Former Dealer Manager prior to paying any fees thereunder. The Company is no longer obligated to pay any transaction fees under either agreement. |
Economic Dependency |
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Economic Dependency [Abstract] | |
Economic Dependency | Note 15 — Economic Dependency Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, as well as other administrative responsibilities for the Company including accounting services, transaction management and investor relations. As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services. |
Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Note 16 — Share-Based Compensation Stock Option Plan The Company has a stock option plan (the "Plan") which authorizes the grant of nonqualified stock options to the Company's independent directors, officers, advisors, consultants and other personnel, subject to the absolute discretion of the board of directors and the applicable limitations of the Plan. The exercise price for all stock options granted under the Plan will be equal to the fair market value of a share on the date of grant. Upon a change in control, unvested options will become fully vested and any performance conditions imposed with respect to the options will be deemed to be fully achieved. A total of 0.5 million shares have been authorized and reserved for issuance under the Plan. As of December 31, 2015 and 2014, no stock options were issued under the Plan. Restricted Share Plan The Company's employee and director incentive restricted share plan ("RSP") provides the Company with the ability to grant awards of restricted shares to the Company's directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to entities that provide services to the Company. Prior to the Listing, the RSP provided for the automatic grant of 3,000 restricted shares of common stock to each of the independent directors, without any further action by the Company's board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholder's meeting. Restricted shares issued to independent directors vest over a five-year period in increments of 20% per annum. Subsequent to the Listing, the Company amended the RSP to, among other things, remove the fixed amount of restricted shares that are automatically granted to the independent directors. Under the amended RSP, the annual amount granted to the independent directors is determined by the board of directors. Generally, such awards provide for accelerated vesting of (i) all unvested restricted shares upon a change in control or a termination without cause and (ii) the portion of the unvested restricted shares scheduled to vest in the year of voluntary termination or the failure to be re-elected to the board. Prior to March 31, 2014, the total number of shares of common stock granted under the RSP could not exceed 5.0% of the Company's outstanding shares on a fully diluted basis at any time, and in any event could not exceed 7.5 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events). On March 31, 2014, the Company adopted an amendment to the Company’s RSP to increase the number of shares of the Company's capital stock, par value $0.01 per share, available for awards thereunder to 10% of the Company’s outstanding shares of capital stock on a fully diluted basis at any time. The amendment also eliminated the RSP limit of 7.5 million shares of capital stock. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash dividends prior to the time that the restrictions on the restricted shares have lapsed. Any dividends payable in shares of common stock are subject to the same restrictions as the underlying restricted shares. The following table displays restricted share award activity during the years ended December 31, 2015, 2014 and 2013:
In the first quarter of 2015, the board of directors approved, and the Company awarded, 279,365 restricted shares to employees of the Advisor. The awards vest over a four year period in increments of 25% per annum. During the year ended December 31, 2015, 79,805 restricted shares were forfeited. In the fourth quarter 2015, the Company awarded an additional 30,000 restricted shares to its interim chief financial officer. This award vests over a three year period, subject to automatic vesting in its entirety upon his resignation or replacement as interim chief financial officer. Compensation expense related to restricted shares was $1.1 million, $2.5 million, and $0.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, the Company had approximately $1.9 million of unrecognized compensation cost related to unvested restricted share awards granted under the Company’s RSP, which is expected to vest over a period of 3.2 years. 2014 Advisor Multi-Year Outperformance Agreement On the Effective Date in connection with the Listing, the Company entered into the OPP with the OP and the Advisor. The Company amended and restated the OPP effective August 5, 2015 to amend certain definitions related to performance measurement to equitably adjust for share issuances and share repurchases for the OPP's remaining valuation dates. Under the OPP, the Advisor was issued 8,880,579 LTIP units in the OP with a maximum award value on the issuance date equal to 5.0% of the Company’s market capitalization (the “OPP Cap”). The LTIP units are structured as profits interests in the OP. The Advisor is eligible to earn a number of LTIP units with a value equal to a portion of the OPP Cap upon the first, second and third anniversaries of the Effective Date based on the Company’s achievement of certain levels of total return to its stockholders (“Total Return”), including both share price appreciation and common stock dividends, as measured against a peer group of companies, as set forth below, for the three-year performance period commencing on the Effective Date (the “Three-year Period”); each 12-month period during the Three-Year Period (the “One-Year Periods”); and the initial 24-month period of the Three-Year Period (the “Two-Year Period”), as follows:
______________________ *The “Peer Group” is comprised of the companies in the SNL US REIT Office Index. The potential outperformance award is calculated at the end of each One-Year Period, the Two-Year Period and the Three-Year Period. The award earned for the Three-Year Period is based on the formula in the table above less any awards earned for the Two-Year Period and One-Year Periods, but not less than zero; the award earned for the Two-Year Period is based on the formula in the table above less any award earned for the first and second One-Year Period, but not less than zero. Any LTIP units that are unearned at the end of the Performance Period will be forfeited. On April 15, 2015, 367,059 LTIP units were earned by the Advisor under the terms of the OPP. Moreover, the OPP provides for early calculation of earned LTIP units and for the accelerated vesting of any earned LTIP units in the event the Advisor is terminated or in the event of a change in control of the Company, which could motivate the Advisor to recommend a transaction that would result in a change in control under the OPP when such a transaction would not otherwise be in the best interests of the Company's stockholders. Subject to the Advisor’s continued service through each vesting date, one third of any earned LTIP units will vest on each of the third, fourth and fifth anniversaries of the Effective Date. Until such time as an LTIP unit is earned in accordance with the provisions of the OPP, the holder of such LTIP unit is entitled to distributions on such LTIP unit equal to 10% of the distributions made per OP unit. The Company paid $0.7 million and $0.3 million, respectively, in distributions related to LTIP units during the years ended December 31, 2015 and 2014, respectively, which is included in non-controlling interest in the consolidated balance sheets. After an LTIP unit is earned, the holder of such LTIP unit is entitled to a catch-up distribution and then the same distribution as the holder of an OP unit. At the time the Advisor’s average capital account balance with respect to an LTIP unit is economically equivalent to the average capital account balance of an OP unit, the LTIP unit has been earned and it has been vested for 30 days, the Advisor, in its sole discretion, will be entitled to convert such LTIP unit into an OP unit in accordance with the provisions of the limited partnership agreement of the OP. Compensation expense related to the OPP was $14.1 million and $5.3 million, respectively, for the years ended December 31, 2015 and 2014. The valuation of the OPP is determined using a Monte Carlo simulation. This analysis reflects the contractual terms of the OPP, including the performance periods and total return hurdles, as well as observable market-based inputs, including interest rate curves, and unobservable inputs, such as expected volatility. As a result, the Company has determined that its OPP valuation in its entirety is classified in Level 3 of the fair value hierarchy. See Note 10 — Fair Value of Financial Instruments. The following table presents information about the Company's OPP, which is measured at fair value on a recurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which the instrument falls:
Level 3 valuations The following is a reconciliation of the beginning and ending balance for the changes in instruments with Level 3 inputs in the fair value hierarchy for the year ended December 31, 2015:
The following table provides quantitative information about significant Level 3 input used:
Expected volatility is a measure of the variability in possible returns for an instrument, parameter or market index given how much the particular instrument, parameter or index changes in value over time. Generally, the higher the expected volatility of the underlying instrument, the wider the range of potential future returns. An increase in expected volatility, in isolation, would generally result in an increase in the fair value measurement of an instrument. For the relationship described above, the inverse relationship would also generally apply. |
Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Note 12 — Common Stock As of December 31, 2015 and 2014, the Company had 162.5 million and 162.2 million shares of common stock outstanding, respectively, including shares of unvested restricted common stock ("restricted shares") and shares issued under the distribution reinvestment plan (the "DRIP"), but not including OP units or Long-term Incentive Plan units ("LTIP units") which may in the future be converted into shares of common stock. From December 2010 to April 2014, the Company declared and paid dividends at a dividend rate equal to $0.605 per annum per share of common stock. The dividends were paid by the fifth day following each month end to stockholders of record at the close of business each day during the prior month at a per share rate of 0.0016575342 per day. In April 2014, the Company's board of directors authorized, and the Company declared, a monthly dividend at an annualized rate equal to $0.46 per share per annum. Beginning in April 2014, dividends are paid to stockholders of record on the close of business on the 8th day of each month, payable on the 15th day of such month. The Company's board of directors may reduce the amount of dividends paid or suspend dividend payments at any time and therefore dividend payments are not assured. On March 31, 2014, the board of directors approved the termination of the Company's Share Repurchase Program ("SRP"). The Company processed all of the requests received under the SRP through the first quarter of 2014. The following table reflects the cumulative number of shares repurchased as of and through the termination of the SRP:
Note 17 — Accumulated Other Comprehensive Income (Loss) The following table illustrates the changes in accumulated other comprehensive income (loss) as of and for the periods indicated:
For a reconciliation of the income statement line item affected due to amounts reclassified out of accumulated other comprehensive loss for the years ended December 31, 2015, 2014 and 2013, see Note 11 — Interest Rate Derivatives and Hedging Activities. |
Net Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | Note 18 — Net Loss Per Share The following is a summary of the basic and diluted net loss per share computations for the periods presented:
Diluted net loss per share assumes the conversion of all common share equivalents into an equivalent number of common shares, unless the effect is antidilutive. The Company considers unvested restricted shares, OP units and LTIP units to be common share equivalents. The Company had the following common share equivalents for the periods presented, which were excluded from the calculation of diluted loss per share attributable to stockholders as the effect would have been antidilutive:
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Non-Controlling Interests |
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Noncontrolling Interest [Abstract] | |
Non-Controlling Interests | Note 19 — Non-Controlling Interests The Company is the sole general partner of the OP and holds the majority of the OP units. As of December 31, 2015 and 2014, the Advisor or members, employees or former employees of the Advisor held 4,178,090 and 4,270,841 OP units, respectively, and 8,880,579 unvested LTIP units. There were $2.6 million and $0.8 million, respectively, of distributions paid to OP unit and LTIP unit holders during the years ended December 31, 2015 and 2014. There were no OP units or LTIP units outstanding during the year ended December 31, 2013, as such, no distributions were paid. A holder of OP units has the right to distributions and has the right to convert OP units for the cash value of a corresponding number of shares of the Company's common stock or a corresponding number of shares of the Company's common stock, at the election of the OP, in accordance with the limited partnership agreement of the OP. The remaining rights of the holders of OP units are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets. On May 13, 2015, 92,751 OP units were redeemed for shares of the Company's common stock and reclassified from non-controlling interest to stockholders' equity. The Company was the controlling member of the limited liability company that owned 163 Washington Avenue, acquired in September 2012. The Company had the sole voting rights under the operating agreement of this limited liability company. The non-controlling members' aggregate initial investment balance of $0.5 million would have been reduced by the dividends paid to each non-controlling member. No dividends were paid during the years ended December 31, 2014 or 2013. On October 21, 2015, the Company sold the 163 Washington Avenue property and distributed to the non-controlling members $0.6 million, representing their invested capital plus a return on investment. |
Quarterly Results (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Results (Unaudited) | Note 20 — Quarterly Results (Unaudited) Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2015, 2014 and 2013:
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Subsequent Events |
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Subsequent Events [Abstract] | |
Subsequent Events | Note 21 — Subsequent Events The Company has evaluated subsequent events through the filing of this Annual Report on Form 10-K, and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements, except for the following events: On February 1, 2016, the Company issued 2,515,406 shares of its common stock upon redemption of 2,515,406 OP units held by certain individuals who are members of the Advisor and Sponsor. On February 2, 2016, the Company closed on the sale of its Duane Reade property for a contract sale price of $12.6 million, exclusive of closing costs. At closing, the Company repaid a mortgage note payable securing the property of $8.4 million. On February 17, 2016, the Company closed on the sale of its property located at 1623 Kings Highway for a contract sale price of $17.0 million, exclusive of closing costs. At closing, the Company repaid a mortgage note payable securing the property of $7.3 million. |
Schedule III Real Estate and Accumulated Depreciation |
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SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate and Accumulated Depreciation Schedule III |
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A summary of activity for real estate and accumulated depreciation for the years ended December 31, 2015, 2014 and 2013:
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Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accompanying consolidated financial statements of the Company are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation, specifically the amortization of the basis difference related to our unconsolidated joint venture of $2.2 million for the year ended December 31, 2013, which has been reflected as a component of income (loss) from unconsolidated joint venture instead of depreciation and amortization in the accompanying consolidated statements of operations and comprehensive loss. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests, either through voting or similar rights or by means other than voting rights if the Company is the primary beneficiary of a variable interest entity ("VIE"). The portions of the consolidated joint venture arrangements not owned by the Company are presented as noncontrolling interests. All inter-company accounts and transactions have been eliminated in consolidation. The Company evaluates its relationships and investments to determine if it has variable interests in a VIE. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a VIE. A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance or (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE’s operations. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company continually evaluates the need to consolidate its joint ventures. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners or members as well as whether the entity is a VIE for which the Company is the primary beneficiary. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, purchase price allocations to record investments in real estate, derivative financial instruments and hedging activities, equity-based compensation expenses related to the 2014 Advisor Multi-Year Outperformance Agreement (as amended and restated effective August 5, 2015, the "OPP") and fair value measurements, as applicable. |
Investments in Real Estate | Investments in Real Estate The Company evaluates the inputs, processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition. If an acquisition qualifies as a business combination, the related transaction costs are recorded as an expense in the consolidated statement of operations and comprehensive loss. If an acquisition qualifies as an asset acquisition, the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets. In business combinations, the Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities and non-controlling interests based on their respective estimated fair values. Tangible assets may include land, land improvements, buildings, fixtures and tenant improvements. Intangible assets or liabilities may include the value of in-place leases, above- and below-market leases and other identifiable intangible assets or liabilities based on lease or property specific characteristics. The fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to the tangible assets based on the fair value of the tangible assets. The fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. The fair value of above- or below-market leases and ground leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and the Company's estimate of the comparable fair market lease rate, measured over the remaining term of the lease, including any below market fixed rate renewal options for below-market leases. The fair value of other intangible assets, such as real estate tax abatements, are recorded based on the present value of the expected benefit and amortized over the expected useful life. Fair values of assumed mortgages, if applicable, are recorded as debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above- or below-market interest rates. Non-controlling interests in property owning entities are recorded based on its fair value at the date of acquisition, as determined by the terms of the applicable agreement. The Company utilizes a number of sources in making its estimates of fair values for purposes of allocating purchase price, including real estate valuations prepared by independent valuation firms. The Company also considers information and other factors including: market conditions, the industry in which the tenant operates, characteristics of the real estate such as location, size, demographics, value and comparative rental rates, tenant credit profile and the importance of the location of the real estate to the operations of the tenant’s business. Disposals of real estate investments that represent a strategic shift in operations that will have a major effect on the Company's operations and financial results are presented as discontinued operations in the consolidated statements of operations and comprehensive loss for all periods presented; otherwise, the Company continues to report the results of these properties' operations within continuing operations. Properties that are intended to be sold will be designated as "held for sale" on the consolidated balance sheets at the lesser of carrying amount or fair value less estimated selling costs when they meet specific criteria to be presented as held for sale. Properties are no longer depreciated when they are classified as held for sale. The Company has three properties classified as held for sale as of December 31, 2015. The Company did not have any properties held for sale as of December 31, 2014. See Note 3 — Real Estate Investments. |
Depreciation and Amortization | Depreciation and Amortization Depreciation is computed using the straight-line method over the estimated useful lives of up to 40 years for buildings, 15 years for land improvements, five to seven years for fixtures and improvements and the shorter of the useful life or the remaining lease term for tenant improvements and leasehold interests. Acquired above-market leases are amortized as a reduction of rental income over the remaining terms of the respective leases. Acquired below-market leases are amortized as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods. Acquired above-market ground leases are amortized as a reduction of property operating expense over the remaining term of the respective leases. Acquired below-market ground lease values are amortized as an increase to property operating expense over the remaining terms of the respective leases and expected below-market renewal option period. The value of in-place leases, exclusive of the value of above- and below-market in-place leases, is amortized to depreciation and amortization expense over the remaining terms of the respective leases. Assumed mortgage premiums or discounts, if applicable, are amortized as a reduction or increase to interest expense over the remaining term of the respective mortgages. |
Impairment of Long Lived Assets | Impairment of Long Lived Assets When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If such estimated cash flows are less than the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is based on the adjustment to estimated fair value less estimated cost to dispose of the asset. Generally, the Company determines estimated fair value for properties held for sale based on the agreed-upon selling price of an asset. These assessments may result in the immediate recognition of an impairment loss, resulting in a reduction of net income (loss). |
Impairment of Equity Method Investments | Impairment of Equity Method Investments The Company monitors the value of its equity method investments for indicators of impairment. An impairment charge is recognized when the Company determines that a decline in the fair value of the investment below its carrying value is other-than-temporary. The assessment of impairment is subjective and involves the application of significant assumptions and judgments about the Company's intent and ability to recover its investment given the nature and operations of the underlying investment. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents includes cash in bank accounts as well as investments in highly-liquid money market funds with original maturities of three months or less. As of December 31, 2015 and 2014, $0.2 million and $0.3 million, respectively, was held in money market funds with the Company's financial institutions. The Company deposits cash with high-quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company (the "FDIC") up to an insurance limit. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of maintenance, real estate tax, structural, and debt service reserves. |
Investments Securities | Investment Securities The Company classifies its investments in debt or equity securities into one of three classes: held-to-maturity, available-for-sale or trading, as applicable. Investments in debt securities that the Company has the positive intent and ability to hold until maturity are classified as held-to-maturity and are reported at amortized cost. Debt and equity securities that are bought and held principally for the purposes of selling them in the near future are classified as trading securities. Debt and equity securities not classified as trading securities or as held-to-maturity securities are classified as available-for-sale securities and are reported at fair value, with unrealized holding gains and losses reported as a component of equity within accumulated other comprehensive income or loss. Gains or losses on securities sold are based on the specific identification method. The Company evaluates its investments in securities for impairment or other-than-temporary impairment on a quarterly basis. The Company reviews each investment individually and assesses factors that may include (i) if the carrying amount of an investment exceeds its fair value, (ii) if there has been any change in the market as a whole or in the investee’s market, (iii) if there are any plans to sell the investment in question or if the Company believes it may be forced to sell its investment, and (iv) if there have been any other factors that would indicate the possibility of the existence of an other-than-temporary impairment. The fair value of the Company’s investments in available-for-sale securities generally rise and fall based on current market conditions. If, after reviewing relevant factors surrounding an impaired security, the Company determines that it will not recover its full investment in an impaired security, the Company recognizes an other-than-temporary impairment charge in the consolidated statements of operations and comprehensive loss in the period in which the other-than-temporary impairment is discovered, regardless of whether or not the Company plans to sell or believes it will be forced to sell the security in question. |
Investment in Unconsolidated Joint Venture | Investment in Unconsolidated Joint Venture The Company accounts for its investment in unconsolidated joint venture under the equity method of accounting because the Company exercises significant influence over, but does not control, the entity and is not considered to be the primary beneficiary. This investment was recorded initially at cost and subsequently adjusted for equity in net income (loss) and cash contributions and distributions. Any difference between the carrying amount of this investment and the underlying equity in net assets is depreciated and amortized over the estimated useful lives of the assets and liabilities with a corresponding adjustment to the equity income (loss) from unconsolidated joint venture on the accompanying consolidated statements of operations and comprehensive loss. Equity income (loss) from unconsolidated joint venture is allocated based on the Company's ownership or economic interest in the joint venture. A loss in the value of a joint venture investment that is determined to be other than temporary is recognized in the period in which the loss occurs. See Note 4 — Investment in Unconsolidated Joint Venture. |
Deferred Costs, Net | Deferred Costs, Net Deferred costs, net consists of deferred financing costs and leasing costs. Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close. Deferred leasing costs, consisting primarily of lease commissions and professional fees incurred, are deferred and amortized to depreciation and amortization expense over the term of the lease. |
Derivative Instruments | Derivative Instruments The Company uses derivative financial instruments to hedge the interest rate risk associated with a portion of its borrowings. The principal objective of such agreements is to minimize the risks and costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions. The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that is attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or if the Company does not elect to apply hedge accounting. If the Company designates a qualifying derivative as a hedge, changes in the value of the derivative are reflected in accumulated other comprehensive income (loss) on the accompanying consolidated balance sheets. If a derivative does not qualify as a hedge, or if the Company does not elect to apply hedge accounting, changes in the value of the derivative are reflected in other income (loss) on the accompanying consolidated statements of operations and comprehensive loss. |
Revenue Recognition | Revenue Recognition The Company's revenues, which are derived primarily from rental income, include rents that each tenant pays in accordance with the terms of each lease reported on a straight-line basis over the initial term of the lease. Because many of the Company's leases provide for rental increases at specified intervals, GAAP requires that the Company record a receivable, and include in revenues on a straight-line basis, unbilled rent receivables that it will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. The Company defers the revenue related to lease payments received from tenants in advance of their due dates. When the Company acquires a property, the acquisition date is considered to be the commencement date for purposes of this calculation. Rental revenue recognition commences when the tenant takes possession of or controls the physical use of the leased space. For the tenant to take possession, the leased space must be substantially ready for its intended use. To determine whether the leased space is substantially ready for its intended use, the Company evaluates whether the Company owns or if the tenant owns the tenant improvements. When the Company is the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of the finished space, which is on the date on which such improvements are substantially complete. When the tenant is the owner of tenant improvements, rental revenue recognition begins when the tenant takes possession of or controls the space. When the Company concludes that it is the owner of tenant improvements, the Company capitalizes the cost to construct the tenant improvements, including costs paid for or reimbursed by the tenants. When the Company concludes that the tenant is the owner of tenant improvements for accounting purposes, the Company records its contribution towards those improvements as a lease incentive, which is included in deferred leasing costs, net on the consolidated balance sheets and amortized as a reduction to rental income on a straight-line basis over the term of the lease. The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, the Company will record an increase in its allowance for uncollectible accounts or record a direct write-off of the receivable in its consolidated statements of operations and comprehensive loss. The Company owns certain properties with leases that include provisions for the tenant to pay contingent rental income based on a percent of the tenant's sales upon the achievement of certain sales thresholds or other targets which may be monthly, quarterly or annual targets. As the lessor to the aforementioned leases, the Company defers the recognition of contingent rental income until the specified target that triggered the contingent rental income is achieved, or until such sales upon which percentage rent is based are known. If contingent rental income is recognized pursuant to these provisions, contingent rental income is included in rental income on the consolidated statements of operations and comprehensive loss. The Company recognized contingent rental revenue of $0.6 million during the year ended December 31, 2015. The Company did not recognize any revenue or deferred revenue related to contingent rental income during the years ended December 31, 2014 or 2013. Cost recoveries from tenants are included in operating expense reimbursement in the period the related costs are incurred, as applicable. The Company's hotel revenues are recognized as earned and are derived from room rentals and other sources such as charges to guests for telephone service, movie and vending commissions, meeting and banquet room revenue and laundry services. |
Share-Based Compensation | Share-Based Compensation The Company has a stock-based incentive award plan for its directors, which is accounted for under the guidance for employee share based payments. The cost of services received in exchange for a stock award is measured at the grant date fair value of the award and the expense for such awards is included in general and administrative expenses and is recognized over the service period or when the requirements for exercise of the award have been met. During the year ended December 31, 2015, the Company granted restricted shares to employees of the Advisor, which are accounted for under the guidance for non-employee share-based payments. The fair value of the awards granted to employees of the Advisor are remeasured quarterly, with the resulting amortization adjustments reflected in general and administrative expense in the consolidated statements of operations and comprehensive loss. 2014 Advisor Multi-Year Outperformance Agreement On April 15, 2014 (the "Effective Date"), in connection with the Listing, the Company entered into the OPP with the OP and the Advisor, which is accounted for under the guidance for non-employee share-based payments. The Company records equity based compensation expense associated with the awards over the requisite service period of five years. Equity-based compensation expense is adjusted each reporting period for changes in the estimated market-related performance. See Note 16 — Share-Based Compensation. |
Income Taxes | Income Taxes The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with its taxable year ended December 31, 2010. If the Company continues to qualify for taxation as a REIT, it generally will not be subject to federal corporate income tax to the extent it distributes annually all of its REIT taxable income to its stockholders, determined without regard for the deduction for dividends paid and excluding net capital gains. REITs are subject to a number of organizational and operational requirements, including a requirement that the Company distribute annually at least 90% of the Company’s REIT taxable income to the Company’s stockholders. If the Company fails to continue to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal and state income taxes at regular corporate rates (including any applicable alternative minimum tax) beginning with the year in which it fails to qualify and may be precluded from being able to elect to be treated as a REIT for the Company’s four subsequent taxable years. The Company distributed to its stockholders 100% of its REIT taxable income for each of the years ended December 31, 2015, 2014 and 2013. Accordingly, no provision for federal or state income taxes related to such REIT taxable income was recorded on the Company’s financial statements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. During the year ended December 31, 2013, the Company purchased a hotel, which is owned by a subsidiary of the OP and leased to a taxable REIT subsidiary ("TRS"), that is owned by the OP. A TRS is subject to federal, state and local income taxes. The TRS is a tax paying component for purposes of classifying deferred tax assets and liabilities. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event the Company determines that it would not be able to realize the deferred income tax assets in the future in excess of the net recorded amount, the Company establishes a valuation allowance which offsets the previously recognized income tax benefit. Deferred income taxes result from temporary differences between the carrying amounts of assets and liabilities of the TRS for financial reporting purposes and the amounts used for income tax purposes. The TRS had deferred tax assets and a corresponding valuation allowance of $3.1 million and $1.7 million as of December 31, 2015 and 2014, respectively. The TRS had federal and state net operating loss carry forwards as of December 31, 2015 of $6.7 million, which will expire through 2036. The Company estimated income tax relating to its TRS using a combined federal and state rate of approximately 43% for the year ended December 31, 2015. The Company has concluded that it is more likely than not that the net operating loss carry forwards will not be utilized during the carry forward period and as such the Company has established a valuation allowance against these deferred tax assets. |
Per Share Data | Per Share Data The Company calculates basic income (loss) per share of common stock by dividing net income (loss) for the period by the weighted-average shares of its common stock outstanding for the respective period. Diluted income per share takes into account the effect of dilutive instruments such as unvested restricted stock, Long-term Incentive Plan ("LTIP") units and OP units (assuming such units are not antidilutive), based on the average share price for the period in determining the number of incremental shares that are to be added to the weighted-average number of shares outstanding. See Note 18 — Net Loss Per Share. |
Reportable Segments | Reportable Segments The Company has determined that it has one reportable segment, with activities related to investing in real estate. The Company's investments in real estate generate rental revenue and other income through the leasing and management of properties. Management evaluates the operating performance of the Company's investments in real estate at the individual property level. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of the new guidance. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The guidance is not expected to have a significant impact on the Company's financial position, results of operations or cash flows. In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendment requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not previously been issued. The revised guidance is not expected to have a significant impact on the Company's financial position, results of operations or cash flows. In September 2015, the FASB issued an update that eliminates the requirement to adjust provisional amounts from a business combination and the related impact on earnings by restating prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of measurement period adjustments on current and prior periods, including the prior period impact on depreciation, amortization and other income statement items and their related tax effects, shall be recognized in the period the adjustment amount is determined. The cumulative adjustment would be reflected within the respective financial statement line items affected. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company elected to adopt the new guidance as of September 30, 2015. The adoption of this guidance had no impact on the Company's consolidated financial position, results of operations or cash flows. In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance significantly revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of the new guidance. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Acquired intangible assets and lease liabilities consist of the following as of December 31, 2015 and 2014.
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table provides the weighted-average remaining amortization and accretion periods as of December 31, 2015, for intangible assets and liabilities and the projected amortization expense and adjustments to revenues for the next five years:
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Real Estate Investments (Tables) |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Assumed | The following table presents the allocation of the assets acquired and liabilities assumed during the years ended December 31, 2014 and 2013. There were no real estate assets acquired or liabilities assumed during the year ended December 31, 2015.
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Schedule of Future Minimum Rental Payments for Operating Leases | The following table presents future minimum base cash rental payments due to the Company, excluding future minimum base cash rental payments related to unconsolidated joint ventures, subsequent to December 31, 2015. These amounts exclude contingent rental payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items.
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Schedule of Annualized Rental Income by Major Tenants | The following table lists the tenants whose annualized cash rent represented greater than 10% of total annualized cash rent as of December 31, 2015, 2014 and 2013, including annualized cash rent related to the Company's unconsolidated joint venture:
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Schedule of Properties Held-for-sale | The following table details the major classes of assets associated with Duane Reade, 1623 Kings Highway and Foot Locker that have been reclassified as held for sale as of December 31, 2015:
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Investment in Unconsolidated Joint Venture (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet | The condensed balance sheets as of December 31, 2015 and 2014 for Worldwide Plaza are as follows:
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Condensed Income Statement | The condensed statements of operations for the years ended December 31, 2015 and 2014, and the period from October 31, 2013 (date of acquisition) to December 31, 2013 for Worldwide Plaza are as follows:
Net income (loss) related to Worldwide Plaza includes the Company's pro rata share of Worldwide Plaza net income (loss) to members as well as the Company's preferred return less amortization of the basis difference. The following table presents the components of the income (loss) related to the Company's investment in Worldwide Plaza for the periods presented, which is included in income (loss) from unconsolidated joint venture on the consolidated statements of operations and comprehensive loss.
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | The following table details the unrealized gains and losses on investment securities as of December 31, 2014:
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Mortgage Notes Payable (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Mortgage Notes Payable | The Company's mortgage notes payable as of December 31, 2015 and 2014 consist of the following:
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Schedule Of Aggregate Principal Payments On Mortgages | The following table summarizes the scheduled aggregate principal repayments subsequent to December 31, 2015:
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Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Liabilities Measured on Recurring Basis | The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which those instruments fall:
The following table presents information about the Company's OPP, which is measured at fair value on a recurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which the instrument falls:
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Fair Value, by Balance Sheet Grouping | The fair values of the Company's financial instruments that are not reported at fair value on the consolidated balance sheets are reported below.
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Interest Rate Derivatives and Hedging Activities (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | As of December 31, 2015 and 2014, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk.
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2015 and 2014:
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The table below details the location in the financial statements of the income or loss recognized on interest rate derivatives designated as cash flow hedges for the years ended December 31, 2015, 2014 and 2013:
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Offsetting Liabilities | The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of December 31, 2015 and 2014. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the accompanying consolidated balance sheets.
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Common Stock (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Treasury Stock by Class | The following table reflects the cumulative number of shares repurchased as of and through the termination of the SRP:
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Commitments and Contingencies (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases |
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Schedule of Capital Leased Assets | The following table discloses assets recorded under capital leases and the accumulated amortization thereon as of December 31, 2015 and 2014:
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Related Party Transactions and Arrangements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following table details revenues from related parties at the Viceroy Hotel. The Company did not have any receivables from related parties as of December 31, 2015 or 2014.
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Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services | The following table details amounts incurred, forgiven and contractually due in connection with the operations related services described above as of and for the periods presented:
___________________________________________
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Schedule of General and Administrative Expenses Absorbed by The Advisor | The following table details property operating and general and administrative expenses absorbed by the Advisor during the periods presented. These costs are presented net in the consolidated statements of operations and comprehensive loss.
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Share-Based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table displays restricted share award activity during the years ended December 31, 2015, 2014 and 2013:
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Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Performance Schedule | The Advisor is eligible to earn a number of LTIP units with a value equal to a portion of the OPP Cap upon the first, second and third anniversaries of the Effective Date based on the Company’s achievement of certain levels of total return to its stockholders (“Total Return”), including both share price appreciation and common stock dividends, as measured against a peer group of companies, as set forth below, for the three-year performance period commencing on the Effective Date (the “Three-year Period”); each 12-month period during the Three-Year Period (the “One-Year Periods”); and the initial 24-month period of the Three-Year Period (the “Two-Year Period”), as follows:
______________________ *The “Peer Group” is comprised of the companies in the SNL US REIT Office Index. |
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Schedule of Fair Value, Liabilities Measured on Recurring Basis | The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which those instruments fall:
The following table presents information about the Company's OPP, which is measured at fair value on a recurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which the instrument falls:
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a reconciliation of the beginning and ending balance for the changes in instruments with Level 3 inputs in the fair value hierarchy for the year ended December 31, 2015:
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Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The following table provides quantitative information about significant Level 3 input used:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table illustrates the changes in accumulated other comprehensive income (loss) as of and for the periods indicated:
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Net Loss Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following is a summary of the basic and diluted net loss per share computations for the periods presented:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The Company had the following common share equivalents for the periods presented, which were excluded from the calculation of diluted loss per share attributable to stockholders as the effect would have been antidilutive:
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Quarterly Results (Unaudited) (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2015, 2014 and 2013:
____________________________
|
Organization (Details) |
Dec. 31, 2015
property
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of real estate properties | 22 |
Real Estate Investments (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Real Estate Properties [Line Items] | |||
Impairment charge | $ 0 | $ 0 | |
Liabilities related to assets held for sale | $ 321 | 0 | |
Gain on sale of real estate investment, net | 7,523 | $ 0 | $ 0 |
Held-for-sale Property | Duane Reade | |||
Real Estate Properties [Line Items] | |||
Impairment charge | 900 | ||
Held-for-sale Property | 163 Washington Avenue | |||
Real Estate Properties [Line Items] | |||
Gain on sale of real estate investment, net | $ 8,400 |
Real Estate Investments (Schedule of Future Minimum Rental Payments for Operating Lease) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Real Estate [Abstract] | |
2016 | $ 104,174 |
2017 | 106,823 |
2018 | 104,931 |
2019 | 96,911 |
2020 | 97,330 |
Thereafter | 562,352 |
Total | $ 1,072,521 |
Real Estate Investments (Schedule of Annualized Rental Income by Major Tenant) (Details) - Worldwide Plaza |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Cravath, Swaine & Moore, LLP | |||
Revenue, Major Customer [Line Items] | |||
Major tenant rental income, as a percentage of total annualized rental income | 16.00% | 16.00% | 18.00% |
Nomura Holdings America, Inc. | |||
Revenue, Major Customer [Line Items] | |||
Major tenant rental income, as a percentage of total annualized rental income | 11.00% | 11.00% | 12.00% |
Real Estate Investments (Properties Classified as Held-for-sale) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale | $ 29,268 | $ 0 |
Held-for-sale Property | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Land | 10,636 | |
Buildings, fixtures and improvements | 18,783 | |
Acquired intangible lease assets | 3,237 | |
Total real estate held for sale, at cost | 32,656 | |
Less accumulated depreciation and amortization | (4,813) | |
Assets held for sale | 27,843 | |
Other assets related to real estate assets held for sale | 1,425 | |
Assets held for sale | $ 29,268 |
Investment in Unconsolidated Joint Venture (Narrative) (Details) - USD ($) $ in Thousands |
Oct. 30, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint venture | $ 215,370 | $ 225,501 | |
Worldwide Plaza | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 48.90% | ||
Aggregate cost | $ 220,100 | ||
Agreed upon value | 1,300,000 | ||
Notes payable | $ 875,000 | 875,000 | $ 875,000 |
Interest rate | 4.60% | ||
Purchase option term | 38 months | ||
Purchase obligation | $ 1,400,000 | ||
Fee for non-exercise of purchase option | 25,000 | ||
Difference between carrying amount and underlying equity | $ 260,600 | ||
Parent Company | Worldwide Plaza | |||
Schedule of Equity Method Investments [Line Items] | |||
Notes payable | $ 427,900 |
Investment in Unconsolidated Joint Venture (Condensed Income Statement) (Details) - USD ($) $ in Thousands |
2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2013 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2013 |
Jun. 30, 2013 |
Mar. 31, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Rental income | $ 129,118 | $ 117,221 | $ 49,532 | |||||||||||||
Other revenue | 19,278 | 15,604 | 4,101 | |||||||||||||
Total revenues | $ 44,387 | $ 44,608 | $ 43,677 | $ 41,849 | $ 45,512 | $ 40,514 | $ 35,949 | $ 33,592 | $ 20,927 | $ 15,728 | $ 10,905 | $ 8,327 | 174,521 | 155,567 | 55,887 | |
Property operating | 43,752 | 37,209 | 12,546 | |||||||||||||
Depreciation and amortization | 82,716 | 84,799 | 31,751 | |||||||||||||
Total operating expenses | 195,415 | 227,540 | 65,105 | |||||||||||||
Operating income | (20,894) | (71,973) | (9,218) | |||||||||||||
Interest expense | (29,362) | (23,720) | (10,673) | |||||||||||||
Net loss | (40,269) | (94,285) | (19,311) | |||||||||||||
Net loss attributable to stockholders | $ (27,330) | $ 9,695 | $ (67,237) | $ (8,156) | $ (13,131) | $ (5,373) | $ 2,019 | $ (2,794) | (39,081) | (93,028) | (19,279) | |||||
Company's share of net loss from Worldwide Plaza | 1,939 | (1,499) | (95) | |||||||||||||
Company's income (loss) from Worldwide Plaza | $ (95) | 1,939 | (1,499) | (95) | ||||||||||||
Worldwide Plaza | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||
Rental income | 18,736 | 123,362 | 113,498 | |||||||||||||
Other revenue | 837 | 4,940 | 4,932 | |||||||||||||
Total revenues | 19,573 | 128,302 | 118,430 | |||||||||||||
Property operating | 7,288 | 47,816 | 45,911 | |||||||||||||
Depreciation and amortization | 4,025 | 27,677 | 26,835 | |||||||||||||
Total operating expenses | 11,313 | 75,493 | 72,746 | |||||||||||||
Operating income | 8,260 | 52,809 | 45,684 | |||||||||||||
Interest expense | (6,808) | (40,077) | (40,077) | |||||||||||||
Net loss | 1,452 | 12,732 | 5,607 | |||||||||||||
Company's preferred return | (2,653) | (15,736) | (15,617) | |||||||||||||
Net loss attributable to stockholders | (1,201) | (3,004) | (10,010) | |||||||||||||
Company's preferred return | 2,653 | 15,736 | 15,617 | |||||||||||||
Company's share of net loss from Worldwide Plaza | (587) | (1,470) | (4,895) | |||||||||||||
Amortization of basis difference | $ (2,161) | $ (12,327) | $ (12,221) | $ (2,200) |
Preferred Equity Investment (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Equity [Abstract] | ||
Current pay rate | 6.00% | |
Current accrual rate | 2.00% | |
Interest Income from preferred equity investment | $ 1,100 | |
Preferred equity investment | $ 0 | $ 35,100 |
Investment Securities (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 0 | $ 4,659 |
Gain on sale of investment | $ 100 | |
Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 1,297 | |
Period from issuance when investments become redeemable | 5 years |
Investment Securities (Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $ 4,415 | |
Gross Unrealized Gains | 256 | |
Gross Unrealized Losses | (12) | |
Fair Value | $ 0 | 4,659 |
Redeemable Preferred Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 1,288 | |
Gross Unrealized Gains | 21 | |
Gross Unrealized Losses | (12) | |
Fair Value | 1,297 | |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 3,127 | |
Gross Unrealized Gains | 235 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 3,362 |
Mortgage Notes Payable (Narrative) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
mortgage
| |
Debt Instrument [Line Items] | |
Maximum guarantee cap | $ 5.3 |
Mortgages | |
Debt Instrument [Line Items] | |
Real estate investments at cost related to mortgages | $ 685.5 |
1440 Broadway | Mortgages | |
Debt Instrument [Line Items] | |
Number of mortgages repaid | mortgage | 4 |
Number of mortgages settled | mortgage | 2 |
Expenses related to satisfaction of mortgages | $ 1.8 |
1440 Broadway | Mortgages | Interest Expense | |
Debt Instrument [Line Items] | |
Expenses related to satisfaction of mortgages | 0.6 |
1440 Broadway | Mortgages | Acquisition fees and related cost reimbursements | |
Debt Instrument [Line Items] | |
Expenses related to satisfaction of mortgages | $ 1.2 |
Mortgage Notes Payable (Schedule Of Aggregate Future Principal Payments On Mortgage Notes Payable) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Debt Disclosure [Abstract] | ||
2016 | $ 12,068 | |
2017 | 55,533 | |
2018 | 3,703 | |
2019 | 308,869 | |
2020 | 4,041 | |
Thereafter | 4,222 | |
Total | $ 388,436 | $ 172,242 |
Subordinated Listing Distribution (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Nov. 21, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Listing Distribution Derivative [Line Items] | ||||
Value of Listing Note | $ 0 | $ 33,479 | $ 0 | |
Excess of Adjusted Market Value of Real Estate Assets Plus Distributions Over Aggregate Contributed Investor Capital | New York Recovery Advisors, LLC | Advisor | ||||
Listing Distribution Derivative [Line Items] | ||||
Subordinated incentive listing distribution | 15.00% | |||
Annual Targeted Investor Return | Pre-tax Non-compounded Return on Capital Contribution | New York Recovery Advisors, LLC | Advisor | ||||
Listing Distribution Derivative [Line Items] | ||||
Cumulative capital investment return | 6.00% | |||
Minimum | ||||
Listing Distribution Derivative [Line Items] | ||||
Average market value of stock for listing period | 180 days | |||
Maximum | ||||
Listing Distribution Derivative [Line Items] | ||||
Average market value of stock for listing period | 210 days | |||
Class B units | New York Recovery Advisors, LLC | ||||
Listing Distribution Derivative [Line Items] | ||||
Limited partner ownership unit capital (in shares) | 3,062,512 |
Fair Value of Financial Instruments (Schedule of Fair Value, Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, at fair value | $ 0 | $ 4,659 |
Interest rate swaps, net | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | (835) | (1,071) |
Interest rate swaps, net | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | 0 | 0 |
Interest rate swaps, net | Fair Value, Measurements, Recurring | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | (835) | (1,071) |
Interest rate swaps, net | Fair Value, Measurements, Recurring | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, net | $ 0 | 0 |
Investment securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, at fair value | 4,659 | |
Investment securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, at fair value | 4,659 | |
Investment securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, at fair value | 0 | |
Investment securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities, at fair value | $ 0 |
Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) - Level 3 - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Mortgage notes payable | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | $ 388,436 | $ 172,242 |
Mortgage notes payable | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 401,503 | 174,468 |
Credit Facility | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 485,000 | 635,000 |
Credit Facility | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 487,579 | 651,579 |
Preferred equity investment | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 0 | 35,100 |
Preferred equity investment | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | $ 0 | $ 34,800 |
Interest Rate Derivatives and Hedging Activities (Narrative) (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015
USD ($)
derivative
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
|
Derivative [Line Items] | |||
Loss on derivative instruments | $ 578 | $ (1) | $ (5) |
Interest rate swaps, net | |||
Derivative [Line Items] | |||
Number of instruments terminated | derivative | 2 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Derivatives at Fair Value | Interest rate swaps | |||
Derivative [Line Items] | |||
Fair value of derivatives | $ 1,400 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps, net | |||
Derivative [Line Items] | |||
Amount required to settle its obligations under the agreement at its aggregate termination value incase of breach | $ 1,400 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps, net | Interest Expense | |||
Derivative [Line Items] | |||
Interests reclassified to AOCI | 12 months | ||
Interests reclassified to AOCI in future period | $ 1,000 | ||
Not Designated as Hedging Instrument | Interest Rate Cap | |||
Derivative [Line Items] | |||
Gain (loss) on hedging activity | (400) | ||
Accelerated Reclassification [Member] | Designated as Hedging Instrument | Interest rate swaps, net | |||
Derivative [Line Items] | |||
Loss on derivative instruments | $ 200 |
Interest Rate Derivatives and Hedging Activities (Schedule Of Interest Rate Derivative) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
derivative
|
Dec. 31, 2014
USD ($)
derivative
|
---|---|---|
Interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Number of Instruments | derivative | 4 | 6 |
Notional Amount | $ | $ 131,988 | $ 179,988 |
Interest Rate Cap | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of Instruments | derivative | 2 | |
Notional Amount | $ | $ 305,000 |
Interest Rate Derivatives and Hedging Activities (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Interest Rate Cap | Not Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, at fair value | $ 416 | $ 0 |
Cash Flow Hedging | Interest rate swaps | Designated as Hedging Instrument | Derivatives at Fair Value | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, at fair value | (1,266) | (1,276) |
Cash Flow Hedging | Interest rate swaps | Designated as Hedging Instrument | Derivative Financial Instruments, Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, at fair value | $ 15 | $ 205 |
Interest Rate Derivatives and Hedging Activities (Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance) (Details) - Cash Flow Hedging - Interest rate swaps, net - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of loss recognized in accumulated other comprehensive income (loss) from interest rate derivatives (effective portion) | $ (2,344) | $ (2,847) | $ (16) |
Amount of gain (loss) recognized in gain (loss) on derivative instruments (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing) | (4) | 1 | 5 |
Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of loss reclassified from accumulated other comprehensive income (loss) into income as interest expense (effective portion) | $ (2,167) | $ (2,160) | $ (1,336) |
Interest Rate Derivatives and Hedging Activities (Schedule of Offsetting Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Assets | $ 431 | $ 205 |
Gross Amounts of Recognized Liabilities | (1,266) | (1,276) |
Net Amounts of Assets (Liabilities) presented on the Balance Sheet | (835) | (1,071) |
Financial Instruments | 0 | 0 |
Cash Collateral Posted | 0 | 0 |
Net Amount | $ (835) | $ (1,071) |
Common Stock (Narrative) (Details) - $ / shares |
12 Months Ended | 21 Months Ended | 40 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
Apr. 14, 2014 |
|
Class of Stock [Line Items] | |||||
Common stock, shares outstanding (in shares) | 162,529,811 | 162,181,939 | 162,529,811 | ||
Dividends declared per common share (in usd per share) | $ 0.46 | $ 0.490 | $ 0.605 | $ 0.46 | $ 0.605 |
Dividends declared per day (in usd per share) | $ 0.0016575342 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock, shares outstanding (in shares) | 162,529,811 | 162,181,939 | 162,529,811 |
Common Stock (Repurchases) (Details) |
12 Months Ended | 39 Months Ended | 63 Months Ended | |
---|---|---|---|---|
Dec. 31, 2014
request
$ / shares
shares
|
Dec. 31, 2013
request
$ / shares
shares
|
Dec. 31, 2012
request
$ / shares
shares
|
Dec. 31, 2014
request
$ / shares
shares
|
|
Equity [Abstract] | ||||
Number of Requests | request | 1 | 24 | 11 | 36 |
Common stock repurchases (in shares) | shares | 5,000 | 195,395 | 84,199 | 284,594 |
Average price per share (in usd per share) | $ / shares | $ 10.00 | $ 9.65 | $ 9.56 | $ 9.63 |
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Oct. 30, 2013 |
|
Loss Contingencies [Line Items] | ||||
Rent expense | $ 7.7 | $ 7.7 | $ 0.9 | |
Interest expense | $ 0.1 | $ 0.1 | $ 0.1 | |
Worldwide Plaza | ||||
Loss Contingencies [Line Items] | ||||
Ownership percentage | 48.90% |
Commitments and Contingencies (Schedule of Future Minimum Rental Payments) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Operating Leases | |
2016, Operating Leases | $ 4,958 |
2017, Operating Leases | 4,905 |
2018, Operating Leases | 5,089 |
2019, Operating Leases | 5,346 |
2020, Operating Leases | 5,346 |
Thereafter, Operating Leases | 246,281 |
Total, Operating Leases | 271,925 |
Capital Leases | |
2016, Capital Leases | 86 |
2017, Capital Leases | 86 |
2018, Capital Leases | 86 |
2019, Capital Leases | 86 |
2020, Capital Leases | 86 |
Thereafter, Capital Leases | 3,404 |
Total, Capital Leases | 3,834 |
Interest, Capital Leases | (1,721) |
Total present value of minimum lease payments | $ 2,113 |
Commitments and Contingencies (Capital Lease Assets) (Details) - Buildings, fixtures and improvements - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Capital Leased Assets [Line Items] | ||
Buildings, fixtures and improvements | $ 11,783 | $ 11,783 |
Less accumulated depreciation and amortization | (1,705) | (1,137) |
Total real estate investments, net | $ 10,078 | $ 10,646 |
Related Party Transactions and Arrangements (Investment Income) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Real Estate Investment Fund | Sponsor | ||
Related Party Transaction [Line Items] | ||
Investment income | $ 0.1 | $ 0.1 |
Related Party Transactions and Arrangements (Revenues from Related Party) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Viceroy Hotel | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | $ 134 | $ 545 | $ 68 |
Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO) (Details) - Realty Capital Securities, LLC - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2015 |
|
Sales Commissions and Former Dealer Manager Fees | Former Dealer Manager | |||
Related Party Transaction [Line Items] | |||
Fees paid to related parties | $ 8 | $ 135,000 | |
Fees and expense reimbursements from the Advisor and Dealer Manager | Advisor and Former Dealer Manager | |||
Related Party Transaction [Line Items] | |||
Fees paid to related parties | $ 11,600 | ||
Gross Proceeds, Initial Public Offering | Former Dealer Manager | |||
Related Party Transaction [Line Items] | |||
Total fees from Former Dealer Manager | 3.00% | ||
Maximum | Gross Proceeds, Initial Public Offering | Former Dealer Manager | |||
Related Party Transaction [Line Items] | |||
Total commissions from Former Dealer Manager | 7.00% |
Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company) (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Apr. 15, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Related Party Transaction [Line Items] | ||||
Due from affiliate | $ 0 | $ 0 | ||
Former Dealer Manager and Affiliates | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related parties | 700,000 | |||
Advisor | Reimbursement of costs and expenses | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related parties | 800,000 | $ 0 | $ 0 | |
New York Recovery Advisors, LLC | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Cost of assets maximum | $ 3,000,000,000 | |||
Asset management fees earned above | 0.40% | |||
New York Recovery Advisors, LLC | Contract Purchase Price | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Acquisition fees earned by related party | 1.00% | |||
Expected Acquisition fees earned by related party | 0.50% | |||
New York Recovery Advisors, LLC | Average Invested Assets | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Asset management fees as a percentage of benchmark | 0.75% | |||
New York Recovery Advisors, LLC | Gross Revenue, Multi-tenant Properties | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Property management fees as a percentage of benchmark | 4.00% | |||
New York Recovery Advisors, LLC and Realty Capital Securities, LLC | Contract Purchase Price | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Unearned units, in lieu of asset management fees (in shares) | 1,188,667 | |||
Equity-based compensation | $ 11,500,000 | |||
Minimum | ||||
Related Party Transaction [Line Items] | ||||
Average market value of stock for listing period | 180 days | |||
Maximum | ||||
Related Party Transaction [Line Items] | ||||
Average market value of stock for listing period | 210 days | |||
Maximum | New York Recovery Advisors, LLC | Contract Purchase Price | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Acquisition fees and acquisition related expenses earned by related party | 4.50% | |||
Maximum | New York Recovery Advisors, LLC | Gross Revenue, Managed Properties | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Oversight fees as a percentage of benchmark | 1.00% | |||
Greater Of | Maximum | New York Recovery Advisors, LLC | Average Invested Assets | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses as a percentage of benchmark | 2.00% | |||
Greater Of | Maximum | New York Recovery Advisors, LLC | Net Income, Excluding Additions to Non-cash Reserves and Gains on Sales of Assets | Advisor | ||||
Related Party Transaction [Line Items] | ||||
Operating expenses as a percentage of benchmark | 25.00% |
Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company, Incurred, Forgiven and Payable) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||
Related Party Transaction [Line Items] | ||||||
Payable (Receivable) | $ 92 | $ 575 | ||||
Acquisition fees and related cost reimbursements | ||||||
Related Party Transaction [Line Items] | ||||||
Payable (Receivable) | 0 | 0 | ||||
Financing coordination fees | ||||||
Related Party Transaction [Line Items] | ||||||
Payable (Receivable) | 0 | 0 | ||||
Asset Management Fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Payable (Receivable) | [1] | (7) | 15 | |||
Transfer agent and other professional fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Payable (Receivable) | 99 | 560 | ||||
Property management and leasing fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Payable (Receivable) | 0 | 0 | ||||
Strategic advisory fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Payable (Receivable) | 0 | 0 | ||||
Distributions on Class B units | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Payable (Receivable) | 0 | 0 | ||||
Incurred | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 14,178 | 16,188 | $ 23,479 | |||
Incurred | Acquisition fees and related cost reimbursements | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 0 | 3,350 | 15,836 | |||
Incurred | Financing coordination fees | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 0 | 2,363 | 6,584 | |||
Incurred | Asset Management Fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | [1] | 12,465 | 8,397 | 0 | ||
Incurred | Transfer agent and other professional fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 1,713 | 1,971 | 0 | |||
Incurred | Property management and leasing fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 0 | 0 | 0 | |||
Incurred | Strategic advisory fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 0 | 0 | 920 | |||
Incurred | Distributions on Class B units | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 0 | 107 | 139 | |||
Forgiven | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 2,603 | 1,731 | 840 | |||
Forgiven | Acquisition fees and related cost reimbursements | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 0 | 0 | 0 | |||
Forgiven | Financing coordination fees | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 0 | 0 | 0 | |||
Forgiven | Asset Management Fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | [1] | 0 | 0 | 0 | ||
Forgiven | Transfer agent and other professional fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 0 | 0 | 0 | |||
Forgiven | Property management and leasing fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 2,603 | 1,731 | 840 | |||
Forgiven | Strategic advisory fees | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 0 | 0 | 0 | |||
Forgiven | Distributions on Class B units | Ongoing fees: | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | $ 0 | $ 0 | $ 0 | |||
|
Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company, Operating and General Administrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 0 | $ 2,041 | $ 1,450 |
Property operating expenses absorbed | New York Recovery Advisors, LLC | Advisor | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | 0 | 623 | 0 |
Absorbed general and administrative expenses | New York Recovery Advisors, LLC | Advisor | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amount | $ 0 | $ 1,418 | $ 1,450 |
Related Party Transactions and Arrangements (Fees Paid in Connection with the Liquidation or Listing of the Company's Real Estate Assets) (Details) - USD ($) |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Apr. 30, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Oct. 31, 2014 |
|
RCS Advisory Services, LLC | |||||
Related Party Transaction [Line Items] | |||||
Transaction management fee | $ 3,000,000 | ||||
Realty Capital Securities, LLC and American National Stock Transfer, LLC | Dealer Manager and Transfer Agent | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to related parties | 0 | $ 1,300,000 | |||
Information agent and advisory service fee | 1,900,000 | ||||
Transaction Management | RCS Advisory Services, LLC | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to related parties | 0 | 1,500,000 | $ 1,500,000 | ||
Information Agent and Advisory Service Fee | Realty Capital Securities, LLC and American National Stock Transfer, LLC | Dealer Manager and Transfer Agent | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to related parties | 600,000 | ||||
Fees and expense reimbursements from the Advisor and Dealer Manager | RCS Advisory Services, LLC | Former Dealer Manager | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to related parties | $ 6,900,000 | ||||
Contract Sales Price | New York Recovery Advisors, LLC | Advisor | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to related parties | $ 0 | 600,000 | |||
Contract Sales Price | Maximum | New York Recovery Advisors, LLC | Advisor | |||||
Related Party Transaction [Line Items] | |||||
Real estate commission earned by related party | 2.00% | ||||
Contract Sales Price | Maximum | Brokerage Commission Fees | New York Recovery Advisors, LLC | Advisor | |||||
Related Party Transaction [Line Items] | |||||
Real estate commission earned by related party | 50.00% | ||||
Contract Sales Price | Maximum | Real Estate Commissioner | New York Recovery Advisors, LLC | Advisor | |||||
Related Party Transaction [Line Items] | |||||
Real estate commission earned by related party | 6.00% | ||||
General Legal Services | New York Recovery Advisors, LLC | Advisor | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to related parties | 9,000 | ||||
Transaction Fee Upon Consummation of the Sale | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Transaction fee earned | 0.25% | ||||
New York Recovery Advisors, LLC | Property Disposition Fees | Advisor | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to related parties | $ 200,000 | $ 0 | $ 0 |
Share-Based Compensation (Narrative) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Apr. 15, 2015 |
Apr. 15, 2014 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Dividends paid | $ 74,707,000 | $ 66,129,000 | $ 17,799,000 | |||||
New Multi-Year Outperformance Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Equity-based compensation | $ 14,100,000 | $ 5,300,000 | ||||||
Stock Options | Stock Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 500,000.0 | 500,000.0 | ||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum authorized amount as a percentage of shares authorized | 5.00% | |||||||
Common stock, par value (in usd per share) | $ 0.01 | |||||||
Maximum percent of awards as a percent of total outstanding | 10.00% | |||||||
Restricted Stock | Restricted Share Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 7,500,000.0 | |||||||
Shares automatically granted (in shares) | 3,000 | 3,000 | ||||||
Vesting percentage | 20.00% | 20.00% | ||||||
Granted (in shares) | 340,527 | 218,845 | 9,000 | |||||
Vesting period | 4 years | |||||||
Share-based payment award, award vesting rights | 25.00% | |||||||
Forfeited (in shares) | 79,805 | 3,115 | ||||||
Equity-based compensation | $ 1,100,000 | $ 2,500,000 | $ 100,000 | |||||
Compensation cost not yet recognized | $ 1,900,000 | $ 1,900,000 | ||||||
Shares expected to vest, period for recognition | 3 years 2 months 12 days | |||||||
Vested (in shares) | 33,651 | 150,231 | 4,800 | |||||
Performance Shares | New Multi-Year Outperformance Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based payment award, award vesting rights | 33.33% | |||||||
Opp units issued (in shares) | $ 8,880,579 | |||||||
Company's market capitalization percentage | 5.00% | |||||||
Vested (in shares) | 367,059 | |||||||
Distribution entitlement percentage | 10.00% | |||||||
Dividends paid | $ 700,000 | $ 300,000 | ||||||
Advisor | Restricted Stock | Restricted Share Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 279,365 | |||||||
Interim CFO | Restricted Stock | Restricted Share Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 30,000 | |||||||
Vesting period | 3 years |
Share-Based Compensation (Restricted Stock Activity) (Details) - Restricted Share Plan - Restricted Stock - $ / shares |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning Balance (in shares) | 89,499 | 24,000 | 19,800 | |
Granted (in shares) | 340,527 | 218,845 | 9,000 | |
Vested (in shares) | (33,651) | (150,231) | (4,800) | |
Forfeited (in shares) | (79,805) | (3,115) | ||
Ending Balance (in shares) | 316,570 | 89,499 | 24,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Beginning Balance (in usd per share) | $ 10.59 | $ 10.73 | $ 9.33 | $ 9.55 |
Granted (in usd per share) | 10.54 | 10.74 | 9.00 | |
Vested (in usd per share) | 10.56 | 10.52 | 9.63 | |
Forfeited (in usd per share) | 10.36 | 10.70 | ||
Ending Balance (in usd per share) | $ 10.59 | $ 10.73 | $ 9.33 |
Share-Based Compensation (Multi-Year Outperformance Plan Agreement) (Details) - New Multi-Year Outperformance Plan - Performance Shares |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based payment award, award vesting rights | 33.33% |
Performance Period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Absolute Component: 4% of any excess Total Return if total stockholder return attained above an absolute hurdle measured from the beginning of such period: | 21.00% |
100% will be earned if total stockholder return achieved is at least: | 18.00% |
50% will be earned if total stockholder return achieved is: | 0.00% |
0% will be earned if total stockholder return achieved is less than: | 0.00% |
Annual Period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Absolute Component: 4% of any excess Total Return if total stockholder return attained above an absolute hurdle measured from the beginning of such period: | 7.00% |
100% will be earned if total stockholder return achieved is at least: | 6.00% |
50% will be earned if total stockholder return achieved is: | 0.00% |
0% will be earned if total stockholder return achieved is less than: | 0.00% |
Interim Period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Absolute Component: 4% of any excess Total Return if total stockholder return attained above an absolute hurdle measured from the beginning of such period: | 14.00% |
100% will be earned if total stockholder return achieved is at least: | 12.00% |
50% will be earned if total stockholder return achieved is: | 0.00% |
0% will be earned if total stockholder return achieved is less than: | 0.00% |
Relative Component | Excess Return, Above Peer Group | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized, percentage of benchmark | 4.00% |
Relative Component | Cumulative Return, Above Threshold | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares awarded as a percentage of maximum | 100.00% |
Relative Component | Cumulative Return, Above Threshold | Minimum | Performance Period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Return percentage threshold | 0.00% |
Relative Component | Cumulative Return, Above Threshold | Minimum | Annual Period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Return percentage threshold | 0.00% |
Relative Component | Cumulative Return, Above Threshold | Minimum | Interim Period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Return percentage threshold | 0.00% |
Relative Component | Cumulative Return, Above Threshold | Maximum | Performance Period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Return percentage threshold | 18.00% |
Relative Component | Cumulative Return, Above Threshold | Maximum | Annual Period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Return percentage threshold | 6.00% |
Relative Component | Cumulative Return, Above Threshold | Maximum | Interim Period | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Return percentage threshold | 12.00% |
Relative Component | Cumulative Return, Equal to Threshold | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares awarded as a percentage of maximum | 50.00% |
Relative Component | Cumulative Return, Below Threshold | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares awarded as a percentage of maximum | 0.00% |
Absolute Component | Excess Return, Above Threshold | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized, percentage of benchmark | 4.00% |
Share-Based Compensation (Fair Value Inputs) (Details) - Multi-year Outperformance Plan - Fair Value, Measurements, Recurring - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OPP | $ 43,500 | $ 29,100 |
Quoted Prices in Active Markets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OPP | 0 | 0 |
Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OPP | 0 | 0 |
Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OPP | $ 43,500 | $ 29,100 |
Share-Based Compensation (Level 3 Reconciliations) (Details) - Multi-year Outperformance Plan - Share Based Compensation Liability $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance | $ 29,100 |
Fair value at issuance | 0 |
Fair value adjustment | 14,400 |
Ending Balance | $ 43,500 |
Share-Based Compensation (Valuation Techniques) (Details) - Monte Carlo Simulation - Fair Value, Measurements, Recurring - Share Based Compensation Liability - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
OPP | $ 43,500 | $ 29,100 |
Expected volatility | 27.00% | 27.00% |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | $ (816) | $ (613) | $ (1,693) |
Other comprehensive income (loss), before reclassifications | (2,481) | (2,363) | (256) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,060 | 2,160 | 1,336 |
Net current-period other comprehensive income (loss) | (421) | (203) | 1,080 |
Ending Balance | (1,237) | (816) | (613) |
Unrealized gains on available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 244 | (240) | 0 |
Other comprehensive income (loss), before reclassifications | (137) | 484 | (240) |
Amounts reclassified from accumulated other comprehensive income (loss) | (107) | 0 | 0 |
Net current-period other comprehensive income (loss) | (244) | 484 | (240) |
Ending Balance | 0 | 244 | (240) |
Designated derivatives fair value adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (1,060) | (373) | (1,693) |
Other comprehensive income (loss), before reclassifications | (2,344) | (2,847) | (16) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,167 | 2,160 | 1,336 |
Net current-period other comprehensive income (loss) | (177) | (687) | 1,320 |
Ending Balance | $ (1,237) | $ (1,060) | $ (373) |
Net Loss Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2013 |
Jun. 30, 2013 |
Mar. 31, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Earnings Per Share [Abstract] | |||||||||||||||
Net loss attributable to stockholders | $ (27,330) | $ 9,695 | $ (67,237) | $ (8,156) | $ (13,131) | $ (5,373) | $ 2,019 | $ (2,794) | $ (39,081) | $ (93,028) | $ (19,279) | ||||
Basic and diluted weighted average common shares outstanding (in shares) | 162,208,672 | 162,203,065 | 162,156,470 | 162,092,424 | 162,165,580 | 166,959,316 | 73,074,872 | ||||||||
Basic and diluted net loss per share attributable to stockholders (in usd per share) | $ (0.05) | $ (0.08) | $ (0.06) | $ (0.05) | $ (0.24) | $ (0.56) | $ (0.26) |
Net Loss Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive common share equivalents (in shares) | 13,375,239 | 13,240,919 | 478,939 |
Unvested restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive common share equivalents (in shares) | 316,570 | 89,499 | 24,000 |
OP units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive common share equivalents (in shares) | 4,178,090 | 4,270,841 | 200 |
Class B units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive common share equivalents (in shares) | 0 | 0 | 454,739 |
LTIP units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total anti-dilutive common share equivalents (in shares) | 8,880,579 | 8,880,579 | 0 |
Non-Controlling Interests (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Oct. 21, 2015 |
May. 13, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2012 |
|
Noncontrolling Interest [Line Items] | ||||||
Distributions to non-controlling interest holders | $ 3,184 | $ 780 | $ 65 | |||
163 Washington Ave Condominiums | ||||||
Noncontrolling Interest [Line Items] | ||||||
Distributions to non-controlling interest holders | $ 600 | |||||
Noncontrolling members' aggregate investment | $ 500 | |||||
Advisor | ||||||
Noncontrolling Interest [Line Items] | ||||||
Distributions to non-controlling interest holders | $ 2,600 | $ 800 | ||||
Common Stock | ||||||
Noncontrolling Interest [Line Items] | ||||||
Units redeemed (in shares) | 92,751 | |||||
OP units | Advisor | ||||||
Noncontrolling Interest [Line Items] | ||||||
Number of units held by Advisor (in shares) | 4,178,090 | 4,270,841 | ||||
LTIP units | Advisor | ||||||
Noncontrolling Interest [Line Items] | ||||||
Number of units held by Advisor (in shares) | 8,880,579 |
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
Sep. 30, 2013 |
Jun. 30, 2013 |
Mar. 31, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Total revenues | $ 44,387 | $ 44,608 | $ 43,677 | $ 41,849 | $ 45,512 | $ 40,514 | $ 35,949 | $ 33,592 | $ 20,927 | $ 15,728 | $ 10,905 | $ 8,327 | $ 174,521 | $ 155,567 | $ 55,887 |
Basic and diluted net loss attributable to stockholders | $ (8,508,000) | $ (13,075,000) | $ (8,982,000) | $ (8,516,000) | |||||||||||
Basic and diluted weighted average common shares outstanding (in shares) | 162,208,672 | 162,203,065 | 162,156,470 | 162,092,424 | 162,165,580 | 166,959,316 | 73,074,872 | ||||||||
Basic and diluted net loss per share attributable to stockholders (in usd per share) | $ (0.05) | $ (0.08) | $ (0.06) | $ (0.05) | $ (0.24) | $ (0.56) | $ (0.26) | ||||||||
Basic net income (loss) attributable to stockholders | (27,330) | 9,695 | (67,237) | (8,156) | (13,131) | (5,373) | 2,019 | (2,794) | $ (39,081) | $ (93,028) | $ (19,279) | ||||
Adjustments to net income (loss) attributable to stockholders for common share equivalents | 0 | (1,305) | 0 | 0 | 0 | 0 | (223) | 0 | |||||||
Net loss attributable to stockholders | $ (27,330) | $ 8,390 | $ (67,237) | $ (8,156) | $ (13,131) | $ (5,373) | $ 1,796 | $ (2,794) | |||||||
Basic weighted average shares outstanding (in shares) | 162,019,399 | 161,975,420 | 168,972,601 | 175,068,005 | 141,836,952 | 83,841,078 | 41,982,278 | 23,217,358 | |||||||
Basic net income (loss) per share attributable to stockholders (in usd per share) | $ (0.17) | $ 0.06 | $ (0.40) | $ (0.05) | $ (0.09) | $ (0.06) | $ 0.05 | $ (0.12) | |||||||
Diluted weighted average shares outstanding (in shares) | 162,019,399 | 162,181,209 | 168,972,601 | 175,068,005 | 141,836,952 | 83,841,078 | 42,001,432 | 23,217,358 | |||||||
Diluted net loss per share attributable to stockholders (in usd per share) | $ (0.17) | $ 0.05 | $ (0.40) | $ (0.05) | $ (0.09) | $ (0.06) | $ 0.04 | $ (0.12) |
Quarterly Results (Unaudited) (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Understatement of net loss | $ (40,269) | $ (94,285) | $ (19,311) | |||
Immaterial errors impacting interest expense | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Understatement of interest expense | $ (300) | $ (300) | $ 300 | |||
Understatement of net loss | $ 300 | $ 300 | $ 300 |
Subsequent Events (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Feb. 17, 2016 |
Feb. 04, 2016 |
Feb. 01, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Subsequent Event [Line Items] | ||||||
Repayment of mortgage notes payable | $ 88,806 | $ 474 | $ 72,853 | |||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
OP units converted to common stock (in shares) | 2,515,406 | |||||
Shares issued (in shares) | 2,515,406 | |||||
Duane Reade | Held-for-sale Property | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Contract price | $ 12,600 | |||||
Repayment of mortgage notes payable | $ 8,400 | |||||
1623 Kings Highway | Held-for-sale Property | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Contract price | $ 17,000 | |||||
Repayment of mortgage notes payable | $ 7,300 |
Schedule III Real Estate and Accumulated Depreciation (Summary of Real Estate and Accumulated Depreciation) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | $ 388,436 | |||||||||||||||
Initial Costs, Land | 487,808 | |||||||||||||||
Initial Costs, Building and Improvements | 1,185,797 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 41,115 | |||||||||||||||
Gross Amount | [1],[2] | 1,714,720 | ||||||||||||||
Accumulated Depreciation | 139,412 | [3],[4] | $ 93,012 | $ 31,715 | $ 9,476 | |||||||||||
Credit facility | 485,000 | $ 635,000 | ||||||||||||||
Acquired intangible assets | 140,800 | |||||||||||||||
Cost for income tax purposes | 1,700,000 | |||||||||||||||
Accumulated amortization | $ 36,200 | |||||||||||||||
Building | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Fixtures useful life | 40 years | |||||||||||||||
Land Improvements | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Fixtures useful life | 15 years | |||||||||||||||
Furniture and Fixtures | Minimum | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Fixtures useful life | 5 years | |||||||||||||||
Furniture and Fixtures | Maximum | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Fixtures useful life | 7 years | |||||||||||||||
Design Center | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | $ 19,798 | |||||||||||||||
Initial Costs, Land | 11,243 | |||||||||||||||
Initial Costs, Building and Improvements | 18,884 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 3,062 | |||||||||||||||
Gross Amount | [1],[2] | 33,189 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 5,239 | ||||||||||||||
Bleecker Street | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 0 | |||||||||||||||
Initial Costs, Building and Improvements | 31,167 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 0 | |||||||||||||||
Gross Amount | [1],[2] | 31,167 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 6,762 | ||||||||||||||
Foot Locker | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [2] | 3,250 | ||||||||||||||
Initial Costs, Land | [2] | 2,753 | ||||||||||||||
Initial Costs, Building and Improvements | [2] | 2,753 | ||||||||||||||
Subsequent to Acquisition, Land | [2] | 0 | ||||||||||||||
Subsequent to Acquisition, Building and Improvements | [2] | 48 | ||||||||||||||
Gross Amount | [1],[2] | 5,554 | ||||||||||||||
Accumulated Depreciation | [2],[3],[4] | 272 | ||||||||||||||
Regal Parking Garage | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 0 | |||||||||||||||
Initial Costs, Building and Improvements | 4,637 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 0 | |||||||||||||||
Gross Amount | [1],[2] | 4,637 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 960 | ||||||||||||||
Duane Reade | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [2] | 8,400 | ||||||||||||||
Initial Costs, Land | [2] | 4,443 | ||||||||||||||
Initial Costs, Building and Improvements | [2] | 8,252 | ||||||||||||||
Subsequent to Acquisition, Land | [2] | 0 | ||||||||||||||
Subsequent to Acquisition, Building and Improvements | [2] | (850) | ||||||||||||||
Gross Amount | [1],[2] | 11,845 | ||||||||||||||
Accumulated Depreciation | [2],[3],[4] | 1,011 | ||||||||||||||
Washington Street Portfolio | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 0 | |||||||||||||||
Initial Costs, Building and Improvements | 8,979 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 1,011 | |||||||||||||||
Gross Amount | [1],[2] | 9,990 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 2,190 | ||||||||||||||
One Jackson Square | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 0 | |||||||||||||||
Initial Costs, Building and Improvements | 21,466 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 66 | |||||||||||||||
Gross Amount | [1],[2] | 21,532 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 4,437 | ||||||||||||||
350 West 42nd Street | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 0 | |||||||||||||||
Initial Costs, Building and Improvements | 19,869 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 83 | |||||||||||||||
Gross Amount | [1],[2] | 19,952 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 3,618 | ||||||||||||||
1100 Kings Highway | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | 20,200 | |||||||||||||||
Initial Costs, Land | 17,112 | |||||||||||||||
Initial Costs, Building and Improvements | 17,947 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 85 | |||||||||||||||
Gross Amount | [1],[2] | 35,144 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 3,062 | ||||||||||||||
1623 Kings Highway | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [2] | 7,288 | ||||||||||||||
Initial Costs, Land | [2] | 3,440 | ||||||||||||||
Initial Costs, Building and Improvements | [2] | 8,538 | ||||||||||||||
Subsequent to Acquisition, Land | [2] | 0 | ||||||||||||||
Subsequent to Acquisition, Building and Improvements | [2] | 42 | ||||||||||||||
Gross Amount | [1],[2] | 12,020 | ||||||||||||||
Accumulated Depreciation | [2],[3],[4] | 726 | ||||||||||||||
256 West 38th Street | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | 24,500 | |||||||||||||||
Initial Costs, Land | 20,000 | |||||||||||||||
Initial Costs, Building and Improvements | 26,483 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 2,579 | |||||||||||||||
Gross Amount | [1],[2] | 49,062 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 5,891 | ||||||||||||||
229 West 36th Street | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 27,400 | |||||||||||||||
Initial Costs, Building and Improvements | 22,308 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 836 | |||||||||||||||
Gross Amount | [1],[2] | 50,544 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 3,831 | ||||||||||||||
350 Bleecker Street | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 0 | |||||||||||||||
Initial Costs, Building and Improvements | 11,783 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 0 | |||||||||||||||
Gross Amount | [1],[2] | 11,783 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 1,705 | ||||||||||||||
218 West 18th Street | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 17,500 | |||||||||||||||
Initial Costs, Building and Improvements | 90,869 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 3,221 | |||||||||||||||
Gross Amount | [1],[2] | 111,590 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 13,647 | ||||||||||||||
50 Varick Street | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 0 | |||||||||||||||
Initial Costs, Building and Improvements | 77,992 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 23,553 | |||||||||||||||
Gross Amount | [1],[2] | 101,545 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 11,573 | ||||||||||||||
333 West 34th Street | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 98,600 | |||||||||||||||
Initial Costs, Building and Improvements | 120,908 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 148 | |||||||||||||||
Gross Amount | [1],[2] | 219,656 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 20,870 | ||||||||||||||
Viceroy Hotel | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 0 | |||||||||||||||
Initial Costs, Building and Improvements | 169,945 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 2,615 | |||||||||||||||
Gross Amount | [1],[2] | 172,560 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 12,583 | ||||||||||||||
1440 Broadway | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | 305,000 | |||||||||||||||
Initial Costs, Land | 217,066 | |||||||||||||||
Initial Costs, Building and Improvements | 289,410 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | (5,844) | |||||||||||||||
Gross Amount | [1],[2] | 500,632 | ||||||||||||||
Accumulated Depreciation | [3],[4] | 33,013 | ||||||||||||||
245-249 West 17th Street | ||||||||||||||||
Real Estate and Accumulated Depreciation [Line Items] | ||||||||||||||||
Encumbrances | [5] | 0 | ||||||||||||||
Initial Costs, Land | 68,251 | |||||||||||||||
Initial Costs, Building and Improvements | 233,607 | |||||||||||||||
Subsequent to Acquisition, Land | 0 | |||||||||||||||
Subsequent to Acquisition, Building and Improvements | 10,460 | |||||||||||||||
Gross Amount | [1],[2] | 312,318 | ||||||||||||||
Accumulated Depreciation | [3],[4] | $ 8,022 | ||||||||||||||
|
(Changes in Accumulated Depreciation) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||
Real estate investments, at cost (including assets held for sale): | ||||||||
Balance at beginning of year | $ 1,729,983 | $ 1,414,959 | $ 322,205 | |||||
Additions-Acquisitions | 0 | 301,858 | 1,082,292 | |||||
Capital expenditures | 27,231 | 15,356 | 12,089 | |||||
Disposals | (42,494) | (2,190) | (1,627) | |||||
Balance at end of the year | 1,714,720 | 1,729,983 | 1,414,959 | |||||
Accumulated depreciation (including assets held for sale): | ||||||||
Balance at beginning of year | 93,012 | 31,715 | 9,476 | |||||
Depreciation expense | 61,527 | 63,349 | 23,405 | |||||
Disposals | (15,127) | (2,052) | (1,166) | |||||
Balance at end of the year | $ 139,412 | [1],[2] | $ 93,012 | $ 31,715 | ||||
|
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