ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS

Acquisitions

2013 Core Portfolio Acquisitions

During March 2013, the Company acquired 664 North Michigan Avenue, an 18,141 square foot retail condominium in Chicago, Illinois for $86.6 million.

2013 Fund III Acquisitions

Fund III had previously acquired a $23.0 million maturing note receivable at a discounted price of $18.5 million during April 2012. The note receivable was collateralized by a 79,526 square foot shopping center located in Brooklyn, New York ("Nostrand Place"). The Company commenced foreclosure proceedings, but ultimately agreed to a settlement with the unaffiliated borrower. Pursuant to the settlement, in February 2013, Fund III and the borrower formed a joint venture whereby Fund III contributed its interest in the note for a 99% controlling interest in the joint venture, and the borrower contributed the deed to Nostrand Place in exchange for a 1% interest in the joint venture.

Purchase Price Allocation

The above 2013 Core Portfolio and Fund III acquisitions have been accounted for as business combinations. The purchase prices were allocated to the acquired assets and liabilities based on the estimated fair value of the acquired assets at the dates of acquisition. The preliminary measurements at fair value reflected below are subject to change. The Company expects to finalize the valuations and complete the purchase price allocations within one year from the dates of acquisition.

The following table summarizes the Company's preliminary allocations of the purchase prices of assets acquired and liabilities assumed during 2013:



(dollars in thousands)	Preliminary Purchase Price Allocations (1)
Land	$	22,182
Buildings and improvements	83,865
Total consideration	$	106,047

Note:

(1) Represents preliminary allocations for 2013 acquisitions where purchase price allocations have not been finalized.


4.	ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS (continued)

Acquisitions (continued)

During 2012, the Company acquired properties and recorded the preliminary allocations of the purchase prices to the assets acquired based on provisional measurements of fair value. During 2013, the Company finalized the allocations of the purchase prices and made certain measurement period adjustments.

The following table summarizes the preliminary allocations of the purchase prices of these properties as recorded as of December 31, 2012, and the finalized allocations of the purchase prices as adjusted as of March 31, 2013:



(dollars in thousands)	Finalized Purchase Price Allocations		Preliminary Purchase Price Allocations
Land	$	4,933	$	5,175
Buildings and improvements	14,587		15,525
Acquisition-related intangible assets (in Acquired lease intangibles, net)	1,180		—
Total consideration	$	20,700	$	20,700

Discontinued Operations

The Company reports properties held-for-sale and properties sold during the periods as discontinued operations. The results of operations of discontinued operations are reflected as a separate component within the accompanying Consolidated Statements of Income for all periods presented. As of March 31, 2013, two of the properties within the Opportunity Funds were under contract for sale.

The combined assets and liabilities as of March 31, 2013 and December 31, 2012, and the results of operations of the properties classified as discontinued operations for the three months ended March 31, 2013 and March 31, 2012, respectively, are summarized as follows:



BALANCE SHEET
ASSETS	March 31, 2013		December 31, 2012
(dollars in thousands)
Net real estate	$	19,468	$	19,400
Rents receivable, net	875		917
Deferred charges, net	360		612
Prepaid expenses and other assets	311		1,132
Total assets of discontinued operations	$	21,014	$	22,061
LIABILITIES
Mortgage notes payable	$	9,178	$	9,208
Accounts payable and accrued expenses	2,124		3,125
Other liabilities	609		765
Total liabilities of discontinued operations	$	11,911	$	13,098


4.	ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS (continued)

Discontinued Operations (continued)



	Three Months Ended
STATEMENTS OF OPERATIONS	March 31,
(dollars in thousands)	2013			2012
Total revenues	$	1,170		$	9,713
Total expenses	773			7,386
Income from discontinued operations	397			2,327
Income from discontinued operations attributable to noncontrolling interests	(348		)	(1,805		)
Income from discontinued operations attributable to Common Shareholders	$	49		$	522