Loans Receivable

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Loans Receivable

7. Loans Receivable

The Trust’s loans receivable at June 30, 2016 and December 31, 2015 are as follows (in thousands):

					Carrying Amount (1)
Description	Loan Position		Stated Interest Rate June 30, 2016		June 30, 2016		December 31, 2015		Contractual Maturity  Date
Serure Highline (2)		Mezzanine		12.0%	$	643	$	—		07/05/16
Churchill		Whole Loan		LIBOR + 3.75%		—		—		08/01/16
Poipu Shopping Village		B-Note		6.62%		2,750		2,769		01/06/17
Mentor Building (3)		Whole Loan		10.0%		2,511		2,511		09/10/17
Jacksonville (4)		Whole Loan		LIBOR + 5%		8,400		—		07/01/19
Rockwell (5)		Mezzanine		N/A		—		—		N/A
					$	14,304	$	5,280

(1) The carrying amount represents the estimated amount expected to be collected on disposition of the loan plus contractual interest receivable.

(2) The loan receivable has been repaid in full during July 2016.

(3) The property collateralizing the loan receivable is under contract for sale. If consummated, the sale is expected to close in the third quarter of 2016. See Note 8 – “Equity Investments” for further details on the sale.

(4) The loan has an interest rate floor of 6% and an interest rate ceiling of 8%.

(5) The senior lien holder foreclosed on the property on June 2, 2016.

The carrying amount of loans receivable includes accrued interest of $35,000 at June 30, 2016 and $28,000 at December 31, 2015.

The weighted average coupon as calculated on the par value of the Trust’s loans receivable was 6.79% and 7.97% at June 30, 2016 and December 31, 2015, respectively, and the weighted average yield to maturity as calculated on the carrying value of the Trust’s loans receivable was 9.00% and 13.54% at June 30, 2016 and December 31, 2015, respectively.

Loan Receivable Activity

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

	Six Months Ended June 30, 2016			Six Months Ended June 30, 2015
Balance at beginning of period	$	5,280		$	24,005
Advances (1)		9,035			—
Interest (received) accrued, net		7			(191	)
Repayments		(18	)		(15,419	)
Balance at end of period	$	14,304		$	8,395

(1) Advances are comprised of $8,400 of seller financing on the sale of the Jacksonville, Florida property and a $635 short term loan to our partner in 446 Highline LLC in connection with the refinancing of the property.

Secured Financing Receivable

In August 2013 the Trust closed on an agreement to acquire its venture partner’s (“Elad”) 50% interest in the mezzanine lender with respect to the One South State Street, Chicago, Illinois property (“Lender LP”) for $30,000,000. In connection with the transaction, the Trust entered into an option agreement with Elad granting Elad the right, but not obligation, to repurchase the interest in the venture. The option agreement provided Elad, as the transferor, the option to unilaterally cause the return of the asset at the earlier of two years from and after August 21, 2013 or an event of default on Lender LP’s mezzanine debt. As such, Elad was able to retain control of its interest in Lender LP for financial reporting purposes as the exercise of the option was unconditional other than for the passage of time. As a result, for financial reporting purposes, the transfer of the financial asset was accounted for as a secured financing rather than an acquisition.

On April 27, 2016 the Trust sold its interest in the secured financing receivable. See Note 8 – “Equity Investments” for further details on the sale.