Debt, Preferred Equity and Other Investments (Tables)

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

As of December 31, 2015 and 2014, we held the following debt investments with an aggregate weighted average current yield of 10.23% at December 31, 2015 (in thousands):



Loan Type	December 31, 2015 Future Funding Obligations		December 31, 2015 Senior Financing		December 31, 2015 Carrying Value ⁽¹⁾		December 31, 2014 Carrying Value ⁽¹⁾		Initial Maturity Date
							(as adjusted)
Fixed Rate Investments:
Jr. Mortgage Participation/ Mezzanine Loan⁽²⁾⁽³⁾	$	—	$	—	$	23,510	$	45,611	May 2016
Jr. Mortgage Participation	—		133,000		49,000		49,000		June 2016
Mezzanine Loan	—		115,000		24,916		24,910		July 2016
Mezzanine Loan	—		165,000		72,102		71,656		November 2016
Jr. Mortgage Participation/Mezzanine Loan	—		1,109,000		104,661		98,934		March 2017
Mezzanine Loan⁽³⁾	—		—		66,183		65,770		March 2017
Mezzanine Loan⁽⁴⁾	—		502,100		41,115		24,608		June 2017



Loan Type	December 31, 2015 Future Funding Obligations		December 31, 2015 Senior Financing		December 31, 2015 Carrying Value ⁽¹⁾		December 31, 2014 Carrying Value ⁽¹⁾		Initial Maturity Date
							(as adjusted)
Mezzanine Loan	—		539,000		49,691		49,629		July 2018
Mortgage Loan⁽⁵⁾	—		—		26,262		26,209		February 2019
Mortgage Loan	—		—		513		637		August 2019
Mezzanine Loan	—		15,000		3,500		3,500		September 2021
Mezzanine Loan⁽⁶⁾	—		89,880		19,936		19,930		November 2023
Mezzanine Loan	—		95,000		30,000		30,000		January 2025
Mezzanine Loan⁽⁷⁾	—		—		—		14,068
Jr. Mortgage Participation⁽⁸⁾	—		—		—		11,934
Jr. Mortgage Participation /Mezzanine Loan⁽⁹⁾	—		—		—		70,688
Total fixed rate	$	—	$	2,762,980	$	511,389	$	607,084
Floating Rate Investments:
Mezzanine Loan⁽¹⁰⁾	—		775,000		74,700		73,402		March 2016
Mortgage/Mezzanine Loan	10,156		—		94,901		—		April 2016
Mezzanine Loan⁽¹¹⁾	—		160,000		22,625		22,573		June 2016
Mezzanine Loan	7,942		312,939		66,398		—		November 2016
Mezzanine Loan	—		360,000		99,530		99,023		November 2016
Mezzanine Loan⁽¹²⁾	11,414		131,939		49,751		42,750		December 2016
Mezzanine Loan	281		39,201		13,731		11,835		December 2016
Mortgage/Mezzanine Loan⁽¹³⁾	57,108		—		134,264		—		January 2017
Mezzanine Loan	1,293		118,949		28,551		20,651		January 2017
Mortgage/Mezzanine Loan	—		—		68,977		—		June 2017
Jr. Mortgage Participation/Mezzanine Loan	1,257		118,717		40,346		38,524		July 2017
Mortgage/Mezzanine Loan	—		—		22,877		22,803		July 2017
Mortgage/Mezzanine Loan	—		—		16,901		16,848		September 2017
Mortgage/Mezzanine Loan	4,500		—		19,282		—		October 2017
Mezzanine Loan	—		60,000		14,904		14,859		November 2017
Mezzanine Loan	—		85,000		29,505		—		December 2017
Mezzanine Loan	—		65,000		28,563		—		December 2017
Mortgage/Mezzanine Loan⁽¹⁴⁾	795		—		14,942		14,845		December 2017
Jr. Mortgage Participation	—		40,000		19,846		—		April 2018
Mezzanine Loan	—		175,000		34,725		—		April 2018
Jr. Mortgage Participation/Mezzanine Loan	—		55,000		20,510		20,533		July 2018
Mortgage/Mezzanine Loan⁽¹⁵⁾	1,500		—		31,210		—		August 2018
Mezzanine Loan	—		33,000		26,777		—		December 2018
Mezzanine Loan	6,383		156,383		52,774		—		December 2018
Mezzanine Loan	28,801		206,717		49,625		—		December 2018
Mortgage/Mezzanine Loan	—		—		18,395		18,083		February 2019
Mezzanine Loan	—		38,000		21,845		21,807		March 2019
Mezzanine Loan⁽¹⁶⁾	—		—		—		33,726
Mezzanine Loan⁽¹⁶⁾	—		—		—		37,322
Mortgage/Mezzanine Loan⁽¹⁷⁾	—		—		—		109,527



Loan Type	December 31, 2015 Future Funding Obligations		December 31, 2015 Senior Financing		December 31, 2015 Carrying Value ⁽¹⁾		December 31, 2014 Carrying Value ⁽¹⁾		Initial Maturity Date
							(as adjusted)
Mezzanine Loan⁽¹⁸⁾	—		—		—		49,614
Total floating rate	$	131,430	$	2,930,845	$	1,116,455	$	668,725
Total	$	131,430	$	5,693,825	$	1,627,844	$	1,275,809

____________________________________________________________________


(1)	Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.


(2)	The $22.9 million junior mortgage participation, which matures in February 2016, was sold in July 2015.


(3)	These loans are collateralized by defeasance securities.


(4)	Carrying value is net of $41.3 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(5)	In September 2014, we acquired a $26.4 million mortgage loan at a $0.2 million discount and a $5.7 million junior mortgage participation at a $5.7 million discount. The junior mortgage participation was a nonperforming loan at acquisition and is currently on non-accrual status.


(6)	Carrying value is net of $5.0 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(7)	This loan was repaid in February 2015.


(8)	This loan was repaid in March 2015.


(9)	These loans were repaid in December 2015.


(10)	In March 2016, the maturity date was extended to September 2016.


(11)	Carrying value is net of $7.4 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(12)	In February 2015, the maturity date was extended to December 2016.


(13)	Carrying value is net of $25.0 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(14)	Carrying value is net of $5.1 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(15)	In January 2016, the loans were modified and the mortgage was sold.


(16)	These loans were repaid in April 2015.


(17)	This loan was repaid in August 2015.


(18)	This loan was repaid in November 2015.

Schedule of preferred equity investments

As of December 31, 2015 and 2014, we held the following preferred equity investments, with an aggregate weighted average current yield of 7.86% at December 31, 2015 (in thousands):



Type	December 31, 2015 Future Funding Obligations		December 31, 2015 Senior Financing		December 31, 2015 Carrying Value ⁽¹⁾		December 31, 2014 Carrying Value ⁽¹⁾		Initial Mandatory Redemption
Preferred equity⁽²⁾	$	—	$	71,486	$	9,967	$	9,954	March 2018
Preferred equity	5,580		60,183		32,209		—		November 2018
Preferred equity⁽³⁾	—		—		—		123,041
	$	5,580	$	131,669	$	42,176	$	132,995

____________________________________________________________________


(1)	Carrying value is net of deferred origination fees.


(2)	In March 2015, the redemption date was extended to March 2018.


(3)	This investment was redeemed in July 2015.

The following table is a rollforward of our total loan loss reserves at December 31, 2015, 2014 and 2013 (in thousands):



	Year Ended December 31,
	2015		2014			2013
Balance at beginning of year	$	—	$	1,000		$	7,000
Expensed	—		—			—
Recoveries	—		—			—
Charge-offs and reclassifications	—		(1,000		)	(6,000		)
Balance at end of period	$	—	$	—		$	1,000

Schedule of investment in real estate joint venture

As of December 31, 2015, we have one investment in a real estate joint venture in which we do not control as a result of the level of our voting interest. The following table provides general information on our joint venture as of December 31, 2015:



Property	Partner	Ownership Interest	Economic Interest	Approximate Square Feet (unaudited)	Acquisition Date	Acquisition Price⁽¹⁾ (in thousands)
131-137 Spring Street⁽²⁾	Invesco Real Estate	20%	20%	68,342	August 2015	$	277,750

__________________________________________________________________


(1)	Acquisition price represents the actual or implied gross purchase price for the joint venture, which is not adjusted for subsequent acquisitions of additional interest.

(2)

In August 2015, we sold an 80% interest in 131-137 Spring Street and through the joint venture obtained a $141.0 million 5-year, floating rate mortgage financing, which bears interest at 155 basis points over the 30-day LIBOR. These properties, which were previously wholly-owned, were accounted for in commercial real estate properties on the consolidated balance sheet. See Note 4, "Property Dispositions."