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Loans Receivable (Tables)
 12 Months Ended
Dec. 31, 2013
Receivables [Abstract]  
Summary of Trust's Loans Receivable

The Trust’s loans receivable at December 31, 2013 and 2012 are as follows (in thousands):

 

     Loan Position    Stated
Interest Rate		     Carrying Amount      Contractual
Maturity
Date		  

Description

         December 31,
2013		      December 31,
2012		     

Hotel Wales (5)

    Whole Loan      LIBOR + 4.0 % (2)    $ 20,101       $ 20,101         10/05/14   

The Shops at Wailea

    B-Note      6.15 %      6,292         5,376         10/06/14   

Legacy Orchard (1) (5)

    Corporate Loan      15.0 %      9,750         9,750         10/31/14   

Queensridge (6)

    Whole Loan      LIBOR + 11.5 % (3)      2,942         39,170         11/15/14   

San Marbeya (5)

    Whole Loan      5.88 %      28,546         27,149         01/01/15   

Churchill (1)

    Whole Loan      LIBOR + 3.75 %      683         683         06/01/15   

1515 Market

    Whole Loan            (4)      —           58,650              (4) 

Playa Vista / Water’s Edge

    Mezzanine      LIBOR + 14.25 % (3)      10,327         —           01/23/15   

Rockwell (7)

    Mezzanine      12.0 %      —           323         05/01/16   

500-512 7th Ave (5)

    B-Note      7.19 %      10,250         10,009         07/11/16   

Pinnacle II

    B-Note      6.31 %      4,648         4,652         09/06/16   

Popiu Shopping Village

    B-Note      6.62 %      2,058         1,948         01/06/17   

Wellington Tower (5)

    Mezzanine      6.79 %      2,991         2,687         07/11/17   

Mentor Building

    Whole Loan      10.0 %      2,512         2,512         09/10/17   

Renaissance Walk (8)

    Mezzanine      —          —           3,000         —     

Fenway Shea (1) (8)

    Whole Loan      —          —           2,273         —     

127 West 25th Street (8)

    Mezzanine      —          —           8,687         —     

180 N. Michigan (8)

    Mezzanine      —          —           5,237         —     

The Disney Building (9)

    B-Note      —          —           9,043         —     
       

 

 

     

 

 

     
        $ 101,100       $ 211,250      
       

 

 

     

 

 

     

 

(1) The Trust determined that certain loans receivable are variable interests in VIEs primarily based on the fact that the underlying entities do not have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support. The Trust does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance and is not required to consolidate the underlying entity.
(2) LIBOR floor of 3%.
(3) LIBOR floor of 0.5%.
(4) This loan was in maturity default at the time of acquisition. The loan was modified on February 1, 2013. The Trust consolidates the operations of the borrower entity and the loan receivable is eliminated in consolidation.
(5) These loans were sold to an independent third party in February 2014. See Note 26 - Subsequent Events for details on the sale.
(6) This loan was paid off at par in January 2014. See Note 26 - Subsequent Events for details on the payoff.
(7) Loan defaulted in December 2013. Carrying amount at December 31, 2013 reflects a $348 loan loss reserve.
(8) The loans were satisfied during the year ended December 31, 2013.
(9) Loan was sold during 2013.
Activity Related to Loans Receivable

Activity related to loans receivable is as follows (in thousands):

 

     Year Ended
December 31,
2013		     Year Ended
December 31,
2012		  

Balance at beginning of year

    $ 211,250      $ 114,333   

Purchase and advances

      22,314        175,550   

Interest (received) accrued, net

      (514 )      516   

Repayments / sale proceeds

      (75,407 )      (68,824 ) 

Elimination of 1515 Market Street in consolidation

      (60,279 )      —     

Loan accretion

      4,121        8,333   

Discount accretion received in cash

      (37 )      (15,720 ) 

Provision for loss on loans receivable

      (348 )      —     

Conversion of 180 North Michigan loan to equity investments

      —          (2,938 ) 
  

 

 

    

 

 

  

Balance at end of year

    $ 101,100      $ 211,250   
  

 

 

    

 

 

  
Interest, Dividend and Discount Accretion Income

The following table summarizes the Trust’s interest and dividend income for the years ended December 31, 2013, 2012 and 2011 (in thousands):

 

     2013      2012      2011  

Interest and dividends detail:

         

Interest on loan assets

    $ 14,334       $ 11,736       $ 11,073   

Accretion of loan discount

      4,121         8,333         13,401   

Interest and dividends on REIT securities

      —           1,054         984   
  

 

 

     

 

 

     

 

 

  

Total interest and dividends

    $ 18,455       $ 21,123       $ 25,458   
  

 

 

     

 

 

     

 

 

  
Loans Receivable by Internal Credit Rating

The table below summarizes the Trust’s loans receivable by internal credit rating at December 31, 2013 (in thousands, except for number of loans).

 

Internal Credit Quality

    # of
Loans		      Carrying
Value of
Loans
Receivable		      # of
Loans		      Whole
Loans		      # of
Loans		      B-Notes      # of
Loans		      Mezzanine
Loans		  

Greater than zero

      11       $ 90,773         6       $ 64,534         4       $ 23,248         1       $ 2,991   

Equal to zero

      1         10,327         —           —           —           —           1         10,327   

Less than zero

      1         —           —           —           —           —           1         —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Subtotal

      13       $ 101,100         6       $ 64,534         4       $ 23,248         3       $ 13,318   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

Internal Credit Quality

    # of
Loans		      Carrying
Value of
Loans
Receivable		      # of
Loans		      Whole
Loans		      # of
Loans		      B-Notes      # of
Loans		      Mezzanine
Loans		  

Greater than zero

      18       $ 211,250         8       $ 160,288         5       $ 31,028         5       $ 19,934   

Equal to zero

      —           —           —           —           —           —           —           —     

Less than zero

      —           —           —           —           —           —           —           —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Subtotal

      18       $ 211,250         8       $ 160,288         5       $ 31,028         5       $ 19,934