Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Summary of Trust's Loans Receivable

The Trust’s loans receivable at December 31, 2014 and 2013 are as follows (in thousands):

Description	Loan Position	Stated Interest Rate at December 31, 2014		Carrying Amount (1)				Contractual Maturity Date
				December 31, 2014		December 31, 2013
Churchill (2)	Whole Loan	LIBOR + 3.75%		$	—	$	683		6/01/15
Rockwell	Mezzanine	12.0%			—		—		5/01/16
Popiu Shopping Village	B-Note	6.62%			2,804		2,058		1/06/17
Edens Center and Norridge Commons (3)	Mezzanine	LIBOR + 12%	(4)		18,690		—		3/09/17
Mentor Building	Whole Loan	10.0%			2,511		2,512		9/10/17
1515 Market	Whole Loan	—			—		—		(5), (7)
Hotel Wales	Whole Loan	—			—		20,101		(6)
Legacy Orchard	Corporate Loan	—			—		9,750		(6)
San Marbeya	Whole Loan	—			—		28,546		(6)
500-512 7th Ave	B-Note	—			—		10,250		(6)
Wellington Tower	Mezzanine	—			—		2,991		(6)
Pinnacle II	B-Note	—			—		4,648		(6)
Queensridge	Whole Loan	—			—		2,942		(7)
The Shops at Wailea	B-Note	—			—		6,292		(7)
Playa Vista / Water’s Edge	Mezzanine	—			—		10,327		(7)
				$	24,005	$	101,100

(1) The carrying amount at December 31, 2014 represents the estimated amount expected to be collected on disposition of the loan plus contractual interest receivable at December 31, 2014. The carrying amount at December 31, 2013 represents the loan balance under the going concern basis of accounting.

(2) The Trust determined that this loan receivable is a variable interest in a VIE primarily based on the fact that the underlying entity does 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.

(3) Carrying amount includes the par amount of $15,500 plus the estimated amount to be collected on the participation interest of $3,000. A principal payment of $15,275 was received on February 5, 2015 resulting in an outstanding principle balance of $225.

(4) LIBOR floor of 0.5%.

(5) 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.

(6) These loans were sold to independent third parties. See Note 7 – Acquisition and Disposition Activities for details on the sales.

(7) The loan was satisfied during the year ended December 31, 2014.

Activity Related to Loans Receivable

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

	Year Ended December 31, 2014			Year Ended December 31, 2013
Balance at beginning of year	$	101,100		$	211,250
Purchase and advances		35,992			22,314
Interest received, net		(283	)		(514	)
Repayments / sale proceeds / forgiveness		(120,194	)		(75,407	)
Elimination of 1515 Market Street in consolidation		—			(60,279	)
Loan discount accretion		2,086			4,121
Discount accretion received in cash		(5,865	)		(37	)
Provision for loss on loans receivable		—			(348	)
Liquidation adjustment		6,071			—
Change in liquidation value		5,098			—
Balance at end of year	$	24,005		$	101,100

Interest, Dividend and Discount Accretion Income

The following table summarizes the Trust’s interest, dividend and discount accretion income for the seven months ended July 31, 2014 and the years ended December 31, 2013 and 2012 (in thousands):

	Seven Months Ended July 31, 2014		Year Ended December 31, 2013		Year Ended December 31, 2012
Interest on loan assets	$	5,770	$	14,334	$	11,736
Exit fee/prepayment penalty		1,787		—		—
Accretion of loan discount		2,086		4,121		8,333
Interest and dividends on REIT securities		—		—		1,054
Total interest, dividends and discount accretion	$	9,643	$	18,455	$	21,123

Loans Receivable by Internal Credit Rating

The table below summarizes the Trust’s loans receivable by internal credit rating at December 31, 2014 and 2013 (in thousands, except for number of loans):

	December 31, 2014				December 31, 2013
Internal Credit Quality	Number of Loans		Liqudiation Value of Loans Receivable		Number of Loans		Carrying Value of Loans Receivable
Greater than zero		3	$	24,005		11	$	90,773
Equal to zero		1		—		1		10,327
Less than zero		1		—		1		—
		5	$	24,005		13	$	101,100