Commitments and Contingencies

9 Months Ended

Sep. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

14. Commitments and Contingencies

In addition to the initial purchase price of certain loans and operating properties, the Trust has future funding commitments attributable to its 450 W 14^th Street property, 701 Seventh Avenue investment and 1515 Market Street loan which total approximately $88,913,000 at September 30, 2013. The Trust has a ground lease related to its property located at 450 W 14^th Street, New York, New York which expires on June 1, 2053. As of September 30, 2013, in connection with the ground lease, the Trust has commitments of $337,000; $1,405,000; $1,463,000; $1,592,000; $1,656,000 and $109,419,000 for the years ended December 31, 2013, 2014, 2015, 2016, 2017 and thereafter, respectively.

The Trust is involved from time to time in litigation on various matters, including disputes with tenants and disputes arising out of agreements to purchase or sell properties. Given the nature of the Trust’s business activities, these lawsuits are considered routine to the conduct of its business. The result of any particular lawsuit cannot be predicted because of the very nature of litigation, the litigation process and its adversarial nature, and the jury system. The Trust does not expect that the liabilities, if any, that may ultimately result from such legal actions will have a material adverse effect on its financial condition or results of operations.

Churchill, Pennsylvania – In 2011 the Trust was conveyed title to the land underlying the Churchill, Pennsylvania property. Prior to the conveyance of the land, a Phase II environmental study was performed. The study found that there were certain contaminants at the property all of which were within permitted ranges. In addition, given the nature and use of the property currently and in the past, it is possible that there may be contamination that could require remediation. The Trust believes that based on applicable law and existing agreements any such remediation costs would be the responsibility of a prior owner or tenant.

In connection with the settlement agreement entered into on September 30, 2011 with CBS Corporation (“CBS”), the Trust was required to market the Churchill, Pennsylvania property for sale and to the extent the property was sold or the Trust received a responsible offer as defined in the settlement agreement from a credit worthy third party in an amount in excess of $6,500,000, net of closing costs, the Trust is required to pay to CBS the sum of 50% of such net proceeds in excess of $6,500,000. In this regard, the Trust received an offer on the portion of the property leased to Westinghouse Electric Company LLC which would have resulted in net proceeds in excess of $6,500,000. The Trust did not pursue the sale of the property and as of September 30, 2013 recorded a payable in the amount of $150,000 representing the 50% excess due to CBS. If certain conditions, which are not considered probable as of September 30, 2013, are met in the future, the Trust could be liable to pay an additional contingent fee of approximately $340,000.