NOTES RECEIVABLE, PREFERRED EQUITY, AND OTHER REAL ESTATE RELATED INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2013

Mortgage Loans on Real Estate [Abstract]

Schedule of Notes Receivable

Notes receivable were as follows at December 31, 2013:

ACADIA REALTY TRUST AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

5. Notes Receivable, Preferred Equity and Other Real Estate Related Investments, continued

Note Description	Effective interest rate (1)	First Priority Liens		Net Carrying Amount of Notes Receivable as of December 31, 2013		Net Carrying Amount of Notes Receivable as of December 31, 2012		Maturity Date	Extension Options
(dollars in thousands)
First Mortgage Loan	5.5%	$	—	$	42,000	$	25,000	1/31/2014	—
First Mortgage Loan	7.7%	—		12,000		—		1/1/2015	—
Zero Coupon Loan 2	24.0%	166,200		4,431		3,961		1/3/2016	—
Preferred Equity	8.1%	20,855		13,000		—		9/1/2017	—
Mezzanine Loan	15.0%	—		30,879		30,879		11/9/2020	—
First Mortgage Loan	8.0%	—		6,400		8,000		Demand	—
Mezzanine Loan 3	10.0%	89,566		9,089		9,089		Demand	—
First Mortgage Loan	5.3%	—		—		18,500		Demand	—
Mezzanine Loan 4	15.0%	16,668		3,834		3,834		Upon Capital Event	—
Construction Loan	20.5%	—		—		5,400		12/31/2012	—
First Mortgage Loan	12.0%	—		—		12,333		12/1/2013	—
First Mortgage Loan	6.0%	—		—		10,250		12/31/2013	—
Individually less than 3% 5	2.5% + LIBOR to 17.5%	37,623		5,023		2,032		12/31/2014 to Capital Event	—
Total				$	126,656	$	129,278

Notes:

(1) The effective interest rate includes origination and exit fees.

(2) The principal balance for this accrual only loan is increased by the interest accrued

(3) Comprised of three cross-collateralized loans from one borrower, which are non-performing

(4) Non-performing loan

(5) Consists of four loans, two of which are non-performing, with an aggregate face value of $5.7 million, of which $3.7 million has been reserved

Schedule of Notes Receivable and Preferred Equity Investments Reconciliation

The following table reconciles notes receivable investments from January 1, 2011 to December 31, 2013:

	For the years ended December 31,
(dollars in thousands)	2013			2012			2011
Beginning Balance	$	129,278		$	59,989		$	89,202
Additions during period:
New investments	45,000			108,629			34,758
Deductions during period:
Collections of principal	(29,583		)	(25,388		)	(56,517		)
Conversion to real estate through receipt of deed or through foreclosure	(18,500		)	(14,000		)	—
Reclass to investments in unconsolidated affiliates	—			—			(8,000		)
Non-cash accretion of notes receivable	461			453			786
Reserves	—			(405		)	(240		)
Ending Balance	$	126,656		$	129,278		$	59,989

Schedule of Allowance for Credit Losses on Notes Receivable

The following table reconciles the activity in the allowance for notes receivable from December 31, 2011 to December 31, 2013:

	Allowance for
(dollars in thousands)	Notes Receivable
Balance at December 31, 2011	$	3,276
Additional reserves	405
Recoveries	—
Charge-offs and reclassifications	—
Balance at December 31, 2012	$	3,681
Additional reserves	—
Recoveries	—
Charge-offs and reclassifications	—
Balance at December 31, 2013	$	3,681