FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2012

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of assets and liabilities that are measured at fair value on a recurring basis

	September 30, 2012								December 31, 2011
	Fair Value Measurements Using								Fair Value Measurements Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs  (Level 3)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)								(In thousands)
Liabilities
Warrants	$	290,488	$	—	$	—	$	290,488	$	127,764	$	—	$	—	$	127,764
Interest rate swaps	7,724		—		7,724		—		4,367		—		4,367		—

Schedule of reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3)

	2012		2011
	(In thousands)
Balance as of December 31,	$	127,764	$	227,348
Warrant liability (gain) loss	162,724		(100,762		)
Purchases	—		2,000
Balance as of September 30,	$	290,488	$	128,586

Schedule of significant unobservable input used in the fair value measurement of warrants designated as Level 3

	Fair Value		Valuation Technique	Unobservable Input	Range/ Average
	(In thousands)
Warrants	$	290,488	Option Pricing Valuation Model	Expected Volatility (a)	27%-28% (28%)

(a) Based on the asset volatility of comparable companies.

Summary of assets and liabilities that were measured at fair value on a non-recurring basis as a result of partner's the acquisition of interest in the Millennium Waterway Apartments

	Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Loss (Gain) Three and Nine Months Ended September 30, 2012
	(In thousands)
Investment in Real Estate Affiliates	$	22,405	$	22,405	(a)	$	—	$	—	$	—

(a)We measured our equity interest in Millennium Waterway Apartments based on our purchase of our partner’s 23.5% economic interest in Millennium Waterway Apartments. We used Level 1 inputs for the cash payment.

Schedule of estimated fair values of the Company's financial instruments that are not measured at fair value on a recurring basis

	September 30, 2012				December 31, 2011
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In thousands)
Assets:
Notes receivable, net	$	28,677	$	28,677	$	35,354	$	35,354
Tax indemnity receivable, including interest	326,150		(c)		331,771		(c)
Liabilities:
Fixed-rate debt	$	159,098	$	160,689	$	83,164	$	85,047
Variable-rate debt (a)	473,778		473,778		468,100		468,100
SID bonds (b)	50,928		50,928		55,213		55,213
Total mortgages, notes and loans payable	683,804		685,395		606,477		608,360

(a) As more fully described below, $172.0 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt.

(b) Due to the uncertain repayment terms of the Special Improvement District (“SID”) bonds, the carrying value approximates fair value.

(c) It is not practicable to estimate the fair value of the tax indemnity receivable, including interest, as the timing and ultimate amount received under contract is highly dependent on numerous future events that cannot be reliably predicted.