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Fair Value Measurements (Tables) (Predecessor)
9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Ziegler Healthcare Real Estate Funds
Dec. 31, 2012
Ziegler Healthcare Real Estate Funds
Nonrecurring
Fair Value Measurements      
Schedule of assets and liabilities that were accounted for on a nonrecurring basis by level within the fair value hierarchy

The following table sets forth by level within the fair value hierarchy of our assets and liabilities that were accounted for on a nonrecurring basis as of December 31, 2012 (in thousands).

 

 

 

Nonrecurring Fair Value Measurements
At Report Date using:

 

 

 

Fair Value
as of
December 31,
2012

 

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Total Gains
(Losses) for the
Year Ended
December 31,
2012

 

Medical office buildings

 

$

3,589

 

$

—

 

$

—

 

$

3,589

 

$

(615

)

Land

 

1,210

 

—

 

—

 

1,210

 

(232

)

Property under development

 

675

 

—

 

—

 

675

 

(90

)

 

 

$

5,474

 

$

—

 

$

—

 

$

5,474

 

$

(937

)

 

 

 

 
   
  Nonrecurring Fair Value
Measurements
At Report Date using:
   
 
 
  Fair Value
as of
December 31,
2012
  Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)
  Significant
Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(Level 3)
  Total Gains
(Losses)
for the
Year Ended
December 31,
2012
 

Medical office buildings

  $ 3,588,594   $ —   $ —   $ 3,588,594   $ (614,540 )

Land

    1,210,406     —     —     1,210,406     (231,594 )

Property under development

    674,773     —     —     674,773     (90,455 )
                       

 

  $ 5,473,773   $ —   $ —   $ 5,473,773   $ (936,589 )
                       


 

 
   
  Nonrecurring Fair Value
Measurements
At Report Date using:
   
 
 
  Fair Value
as of
December 31,
2011
  Quoted
Prices
in Active
Markets for
Identical
Assets
(Level 1)
  Significant
Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(Level 3)
  Total Gains
(Losses)
for the
Year Ended
December 31,
2011
 

Medical office buildings

  $ 2,954,837   $ —   $ —   $ 2,954,837   $ (1,436,813 )
                       
Summary of quantitative inputs and assumptions used for items categorized in Level 3 for the fair value hierarchy

 

Asset Category

 

Fair value at
December 31, 2012

 

Valuation
Techniques

 

Unobservable
Inputs

 

Ranges

 

Investment in real estate properties

 

$

4,799

 

Discounted cash flow

 

Discount rate
Capitalization rate
Vacancy rate

 

10.7-13.5%
7.7-10.5%
9.41-17.8%

 

Property under development

 

$

675

 

Market comparable/ Discounted cash flow

 

Capitalization rate

 

9-10%

 

 

 

 

Asset Category
  Fair value at
December 31,
2012
  Valuation
Techniques
  Unobservable
Inputs
  Ranges  

Investment in real estate properties

  $ 4,799,000   Discounted cash   Discount rate     10.7 - 13.5 %

 

        flow   Capitalization rate     7.7 - 10.5 %

 

            Vacancy rate     9.41 - 17.8 %

Property under development

    674,773   Market comparable/Discounted cash flow   Capitalization rate     9 - 10 %
Schedule of fair value of other financial instruments

The following table presents the fair value of other financial instruments (in thousands). The swaps are measured at fair value on a recurring basis.

 

 

 

September 30,

 

December 31,

 

 

 

2013

 

2012

 

 

 

(unaudited)

 

 

 

 

 

 

 

Carrying
Amount

 

Fair
Value

 

Carrying
Amount

 

Fair
Value

 

Cash

 

$

4,233

 

$

4,233

 

$

2,614

 

$

2,614

 

Debt

 

$

46,675

 

$

47,192

 

$

84,489

 

$

86,982

 

Interest rate swaps—Liabilities

 

$

437

 

$

437

 

$

643

 

$

643

 

 

 

 
  As of December 31  
 
  2012   2011  
 
  Carrying
Amount
  Fair
Value
  Carrying
Amount
  Fair
Value
 

Notes payable(1)

  $ 84,489,017   $ 86,982,366   $ 98,674,263   $ 91,120,934  

Interest rate swaps—Liabilities

    642,940     642,940     764,994     764,994  

(1)
For disclosure purposes only.