NOTES RECEIVABLE AND PREFERRED EQUITY INVESTMENTS, NET (Tables)

9 Months Ended

Sep. 30, 2014

Mortgage Loans on Real Estate [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

As of September 30, 2014, the Company’s notes receivable and preferred equity investments, net, aggregated $94.4 million, and were collateralized either by underlying properties, the borrowers' ownership interests in the entities that own properties and/or by the borrowers' personal guarantee subject, as applicable, to senior liens, as follows:

(dollars in thousands)
Description	Effective interest rate (1)	First Priority liens	Net Carrying Amounts of Notes Receivable as of September 30, 2014		Net Carrying Amounts of Notes Receivable as of December 31, 2013		Maturity date
First Mortgage Loan	6.0%	—	$	—	$	6,400	Demand
Mezzanine Loan (2)	10.0%	83,686	7,895		9,089		Demand
First Mortgage Loan	5.5%	—	4,000		42,000		4/1/2016
Zero Coupon Loan (3)	24.0%	166,200	4,847		4,431		1/3/2016
Mezzanine Loan	15.0%	—	30,879		30,879		11/9/2020
Mezzanine Loan	15.0%	—	—		3,834		Upon Capital Event
Preferred Equity	8.1%	20,855	13,000		13,000		9/1/2017
Construction Loan	7.7%	—	12,000		12,000		1/1/2015
Mezzanine Loan	12.7%	18,900	8,000		—		10/3/2015
Preferred Equity	13.5%	—	4,000		—		5/9/2016
Other	LIBOR + 2.5%	—	4,000		3,000		12/30/2020
Other	18.0%	—	3,157		—		7/1/2017
Individually less than 3% (4)	2.7% to 11.6%	—	2,631		2,023		12/31/20 to 5/1/2024
Total			$	94,409	$	126,656

Notes:

(1) Includes origination and exit fees

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

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

(4) Consists of three loans as of September 30, 2014

Allowance for Notes Receivable

The following table reconciles the allowance for notes receivable from December 31, 2013 to September 30, 2014:

(dollars in thousands)	Allowance for Notes Receivable
Balance at December 31, 2013	$	3,681
Additional reserves	88
Recoveries	(3,681		)
Charge-offs and reclassifications	—
Balance at September 30, 2014	$	88