Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company’s assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013, aggregated by the level in the fair value hierarchy within which those instruments fall (in thousands):

	Level 1		Level 2			Level 3			Balance as of September 30, 2014
Assets:
CMBS		—		—			59,077			59,077
Interest rate swap assets		—		8,775			—			8,775
Total assets	$	—	$	8,775		$	59,077		$	67,852
Liabilities:
Interest rate swap liabilities	$	—	$	(5,986	)	$	—		$	(5,986	)
Total liabilities	$	—	$	(5,986	)	$	—		$	(5,986	)
	Level 1		Level 2			Level 3			Balance as of December 31, 2013
Assets:
Investments in real estate fund	$	—	$	1,484		$	—		$	1,484
CMBS		—		—			60,583			60,583
Interest rate swap assets		—		9,189			—			9,189
Total assets	$	—	$	10,673		$	60,583		$	71,256
Liabilities:
Interest rate swap liabilities	$	—	$	(1,719	)	$	—		$	(1,719	)
Series D Preferred Stock embedded derivative		—		—			(16,736	)		(16,736	)
Total liabilities	$	—	$	(1,719	)	$	(16,736	)	$	(18,455	)

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

The following is a reconciliation of the changes in instruments with Level 3 inputs in the fair value hierarchy for the nine months ended September 30, 2014 (in thousands):

	CMBS			Series D Preferred Stock Embedded Derivative			Contingent Consideration Arrangements			Total
Beginning balance as of December 31, 2013	$	60,583		$	(16,736	)	$	—		$	43,847
Total gains and losses:
Unrealized gain included in other comprehensive income, net		9,456			—			—			9,456
Changes in fair value included in net income, net		—			(13,574	)		(990	)		(14,564	)
Purchases, issuances, settlements and amortization:
Fair value at purchase/issuance		151,197			—			(3,606	)		147,591
Sale of CMBS acquired in the Cole Merger		(151,248	)								(151,248	)
Reclassification of previous unrealized gains on investment securities into net loss-CMBS		(7,417	)		—			—			(7,417	)
Return of principal received		(3,678	)		—			—			(3,678	)
Amortization included in net income, net		184			—			—			184
Reclassification of contingent consideration to held for sale		—			—			4,596			4,596
Redemption of Series D		—			30,310			—			30,310
Ending balance	$	59,077		$	—		$	—		$	59,077

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 (dollar amounts in thousands):

	Level		Carrying Amount at September 30, 2014		Fair Value at September 30, 2014		Carrying Amount at December 31, 2013		Fair Value at December 31, 2013
Assets:
Loans held for investment		3	$	96,981	$	97,607	$	26,279	$	26,435
Liabilities:
Mortgage notes payable, net		3	$	4,327,454	$	4,407,627	$	1,301,114	$	1,305,823
Corporate bonds, net		3		2,546,294		2,553,566		—		—
Convertible debt, net		3		976,251		998,441		972,490		976,629
Credit facilities		3		4,259,000		4,259,000		1,819,800		1,819,800
Secured term loan		3		48,587		50,572		58,979		59,049
Trust preferred notes		3		—		—		26,548		23,345
Unsecured Credit Facility		3		—		—		150,000		150,000
Other debt		3		—		—		19,277		19,350
Total liabilities			$	12,157,586	$	12,269,206	$	4,348,208	$	4,353,996