Fair Value of Financial Instruments (As Restated) (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents information about the Company’s assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2013 and 2012, aggregated by the level in the fair value hierarchy within which those instruments fall (amounts in thousands):


	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3			Total
December 31, 2013
Investments in real estate fund	$	—	$	1,484		$	—		$	1,484
CMBS		—		—			60,583			60,583
Interest rate swap assets		—		9,189			—			9,189
Interest rate swap liabilities		—		(1,719	)		—			(1,719	)
Series D Preferred Stock embedded derivative		—		—			(16,736	)		(16,736	)

Total	$	—	$	8,954		$	43,847		$	52,801

December 31, 2012
Investment securities	$	41,654	$	—		$	—		$	41,654
Interest rate swaps		—		(3,830	)		—			(3,830	)

Total	$	41,654	$	(3,830	)	$	—		$	37,824

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a reconciliation of the beginning and ending balance for the changes in instruments with Level 3 inputs in the fair value hierarchy for the year ended December 31, 2013 (amounts in thousands):


	CMBS			Series D Preferred Stock Embedded Derivative			Total
Beginning balance	$	—		$	—		$	—
Fair value at purchase/issuance		60,730			(18,692	)		42,038
Sales of CMBS		(278	)		—			(278	)
Fair value adjustment ⁽¹⁾		131			1,956			2,087

Ending balance	$	60,583		$	(16,736	)	$	43,847

(1)	The change in fair value in the CMBS and Series D Preferred Stock embedded derivative is recorded in unrealized gain (loss) on investment securities, net and loss on derivative instruments, net, respectively, on the consolidated statement of operations and comprehensive loss.

Fair Value, by Balance Sheet Grouping

The fair values of the Company’s financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (amounts in thousands):


	Level		Carrying Amount at December 31, 2013		Fair Value at December 31, 2013		Carrying Amount at December 31, 2012		Fair Value at December 31, 2012
Assets:
Loans held for investment		3	$	26,279	$	26,435	$	—	$	—


Liabilities:
Convertible debt		3	$	972,490	$	976,629	$	—	$	—
Mortgage notes payable		3		1,301,114		1,305,823		265,118		271,056
Senior secured revolving credit facility		3		—		—		124,604		124,604
Senior corporate credit facilities		3		1,819,800		1,819,800		—		—
Secured credit facility		3		150,000		150,000		—		—
Trust preferred notes		3		26,548		23,345		—		—
Secured term loan		3		58,979		59,049		—		—
Other debt		3		19,277		19,350		—		—

Total liabilities			$	4,348,208	$	4,353,996	$	389,722	$	395,660

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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