XML 72 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Notes Receivable
 3 Months Ended
Mar. 31, 2013
Receivables [Abstract]  
NOTES RECEIVABLE
NOTES RECEIVABLE
 
 
March 31,
 
December 31,
 
 
2013
 
2012
Note receivable, variable interest rate of 5.00% over LIBOR, interest only,
     due December 2016, secured by a shopping center and 107 residential
     units in the United Kingdom
 
$
—

 
$
122,770,000

Note receivable, fixed interest rate of 2.16%, due February 2017, secured by an
     office building in San Diego, CA
 
5,741,000

 
—

Note receivable, fixed interest rate of 10.75%, interest only, due April 2013,
     secured by a hotel in San Diego, California(1) 
 
4,275,000

 
4,275,000

Note receivable, fixed interest rate of 10.50%, interest only, due December 2013,
     secured by two office/research and development buildings in San Jose, CA  
 
3,759,000

 
3,759,000

Note receivable, fixed interest rate of 11.50%, interest only, due November 2013,
     secured by 25 acres of land and an adjacent 204-slip marina in Portland, OR     
 
3,000,000

 
3,000,000

Note receivable, fixed interest rate of 4%, interest only, due June 2017
 
1,193,000

 
1,193,000

Note receivable, fixed interest rate of 8%, interest only, due May 2013,
     secured by personal guarantees of borrowers
 
900,000

 
900,000

Other
 
710,000

 
710,000

Notes receivable
 
19,578,000

 
136,607,000

Note receivable from a joint venture investment, fixed interest rate of 12%, principal
     and accrued interest due August 31, 2016.
 
2,544,000

 
—

Notes receivable — related parties
 
2,544,000

 
—

Notes receivable and notes receivable — related parties
 
$
22,122,000

 
$
136,607,000

——————————
(1) The Company is currently in negotiations with debtor on an extension on the note receivable. The value of the collateral underlying the note receivable exceeds the carrying value of the note receivable.
    
During the three months ended March 31, 2013, Kennedy Wilson sold a 50% interest in an entity that held a note receivable secured by the shopping center and 107 residential units in the United Kingdom to an institutional investor. As a result of the sale and loss of control, Kennedy Wilson de-consolidated the investment and is accounting for it as an equity method investment.

Also during the three months ended March 31, 2013, Kennedy Wilson acquired a $7.4 million loan with deteriorated credit quality for $5.7 million on an office property in San Diego, CA and made a $2.5 million loan to a joint venture investment that is a related party.