Loans Receivable, at Fair Value

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Loans Receivable, at Fair Value

7. LOANS RECEIVABLE, AT FAIR VALUE

We record CT Legacy Partners’ loans receivable investments at fair value, which are determined using internal financial model-based estimations. The CT Legacy Partners loans receivable portfolio included seven loans with an aggregate principal balance of $145.3 million, which were reported at their aggregate fair value of $40.7 million as of December 31, 2013. As of December 31, 2012, there were no loans receivable at fair value because we accounted for the CT Legacy Partners’ portfolio on a non-consolidated basis. Refer to Note 3 and Note 8 for additional discussion of CT Legacy Partners. Refer to Note 18 for additional disclosure regarding fair value and Note 21 for an allocation of our loans receivable between our operating segments.

Activity relating to our loans receivable, at fair value was ($ in thousands):

December 31, 2012	$	—
Consolidation of CT Legacy Partners		150,332
Capitalized interest		984
Loan satisfactions		(110,347	)
Partial loan repayments		(307	)
Gain on investments at fair value		6,816
Reclassification to other assets		(6,813	)
December 31, 2013	$	40,665

The following table details overall statistics for CT Legacy Partners’ loans receivable, which were held at fair value as of December 31, 2013 ($ in thousands):

	Loans Receivable, at Fair Value
	Floating Rate			Fixed Rate			Total
Number of loans		4			3			7
Net book value	$	16,990		$	23,675		$	40,665
Weighted-average cash coupon(1)		L+4.26	%		8.14	%		6.24	%
Weighted-average all-in yield(1)		L+4.26	%		8.14	%		6.24	%
Weighted-average maximum maturity (years)(2)		0.9			0.8			0.9

(1) All floating rate loans were indexed to LIBOR as of December 31, 2013, however, one of our loans receivable earns interest based on a minimum LIBOR floor of 2.00%. Rates exclude all non-performing loans.

(2) Maximum maturity date assumes all extension options are exercised.

The tables below detail the types of loans in CT Legacy Partners’ loan portfolio, as well as the property type and geographic distribution of the properties securing these loans ($ in thousands):

	December 31, 2013
Asset Type	Fair Value		Percentage
Senior mortgages	$	14,990		37	%
Subordinate loans(1)		25,675		63
	$	40,665		100	%
Property Type	Fair Value		Percentage
Office	$	25,675		63	%
Hotel		14,990		37
	$	40,665		100	%
Geographic Location	Fair Value		Percentage
Northeast	$	25,675		63	%
West		14,990		37
	$	40,665		100	%

(1) Comprised entirely of mezzanine loans as of December 31, 2013.

Nonaccrual loans

In accordance with our revenue recognition policies discussed in Note 2, we do not accrue interest on loans that are 90 days past due or, in the opinion of our Manager, are otherwise uncollectable. We do not have any material interest receivable accrued on nonperforming loans as of December 31, 2013. As of December 31, 2013, we had three loans on nonaccrual status with an aggregate principal balance of $98.3 million, each of which had a fair value of zero.