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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
 3 Months Ended
Mar. 31, 2013
Related Party Transactions [Abstract]  
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
In the ordinary course of its business operations, the Company has sponsored and manages investment entities.  Additionally, it has ongoing relationships with several related entities.  The following table details these receivables and payables (in thousands):
(Restated)
March 31,
2013
 
December 31,
2012
Receivables from managed entities and related parties, net:
 
 
 
Real estate investment entities
$
20,432

 
$
18,060

Commercial finance investment entities (1) 
7,531

 
10,644

Financial fund management investment entities
1,845

 
1,736

Other
121

 
178

Receivables from managed entities and related parties
$
29,929

 
$
30,618

 
 
 
 
Payables due to managed entities and related parties, net:
 

 
 

Real estate investment entities (2) 
$
2,829

 
$
3,300

Other
211

 
236

Payables to managed entities and related parties
$
3,040

 
$
3,536

 
(1)
Includes $32.4 million and $29.6 million of reserves, respectively, for credit losses related to management fees owed from three commercial finance investment entities that, based on changes in the estimated cash distributions, are not expected to be collectible.
(2)
Includes $2.9 million and $2.5 million, respectively, in funds provided by the real estate investment entities, which are held by the Company to self insure the properties held by those entities.
The Company receives fees, dividends and reimbursed expenses from several related or managed entities.  In addition, the Company reimburses related entities for certain operating expenses.  The following table details those activities (in thousands):
 
Three Months Ended
 
March 31,
(Restated)
2013
 
2012
Fees from unconsolidated investment entities:
 
 
 
Real estate (1) 
$
4,194

 
$
4,689

Financial fund management 
748

 
853

Commercial finance (2) 
—

 
—

CVC Credit Partners – reimbursement of costs and expenses
377

 
—

RRE Opportunity REIT:
 
 
 
Reimbursement of costs and expenses
204

 
530

Dividends paid
33

 
—

LEAF:
 
 
 
Payment for sub-servicing the commercial finance investment
    partnerships
(199
)
 
(184
)
Payment for rent and related expenses
(303
)
 
(706
)
Reimbursement of costs and expenses
57

 
82

1845 Walnut Associates Ltd:
 
 
 
Payment for rent and related expenses
(157
)
 
(208
)
Property management fees
42

 
—

Brandywine Construction & Management, Inc. – payment for
    property management fees for the hotel property
(43
)
 
(39
)
Atlas Energy, L.P. – reimbursement of costs and expenses
141

 
149

Ledgewood P.C. – payment for legal services 
(61
)
 
(114
)
Graphic Images, LLC – payment for printing services
(24
)
 
(94
)
The Bancorp, Inc. – reimbursement of costs and expenses
28

 
29

9 Henmar, LLC – payment of broker/consulting fees 
(3
)
 
(4
)
 
(1)
Includes discounts recorded by the Company of $133,000 and $52,000 recorded in the three months ended March 31, 2013 and 2012, respectively, in connection with management fees from its real estate investment entities that are expected to be received in future periods.
(2)
During the three months ended March 31, 2013 and 2012, the Company waived $618,000 and $1.2 million, respectively, of fund management fees from its commercial finance investment entities.
Relationship with 1845 Walnut Associates, Ltd. The Company owns a 7% investment in a real estate partnership that owns a building at 1845 Walnut Street, Philadelphia in which the Company also leases office space. In October 2012, the Company signed a new ten-year lease which was amended in May 2013 and commenced in August 2013 for 34,476 square feet of office space. The Company was provided a tenant allowance of $1.5 million for renovation of the office and the lease provides for a five-year extension. In March 2013, the Company assumed the property management of the building.
Advances to Affiliated Real Estate Limited Partnership. During fiscal 2012, the Company agreed to advance up to $3.0 million to an affiliated real estate limited partnership under a revolving note, bearing interest at the prime rate.  Amounts drawn, which are due upon demand, were $2.5 million and $2.6 million as of March 31, 2013 and December 31, 2012, respectively, and are included in Receivables from managed entities and related parties. The Company recorded $18,000 and $16,000 of interest income on this loan during the three months ended March 31, 2013 and 2012, respectively.