NOTES RECEIVABLE, PREFERRED EQUITY, AND OTHER REAL ESTATE RELATED INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2014

Mortgage Loans on Real Estate [Abstract]

Schedule of Notes Receivable and Preferred Equity Investments Reconciliation

The following table reconciles notes receivable investments from January 1, 2012 to December 31, 2014:

	For the years ended December 31,
(dollars in thousands)	2014			2013			2012
Beginning Balance	$	126,656		$	129,278		$	59,989
Additions during period:
New investments	31,169			45,000			108,629
Deductions during period:
Collections of principal	(18,095		)	(29,583		)	(25,388		)
Conversion to real estate through receipt of deed or through foreclosure	(38,000		)	(18,500		)	(14,000		)
Non-cash accretion of notes receivable	556			461			453
Reserves	—			—			(405		)
Ending Balance	$	102,286		$	126,656		$	129,278

Schedule of Notes Receivable

Notes receivable were as follows at December 31, 2014:

ACADIA REALTY TRUST AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

5. Notes Receivable, Preferred Equity and Other Real Estate Related Investments, continued

Note Description	Effective interest rate (1)	First Priority Liens		Net Carrying Amount of Notes Receivable as of December 31, 2014		Net Carrying Amount of Notes Receivable as of December 31, 2013		Maturity Date	Extension Options
(dollars in thousands)
First Mortgage Loan	7.7%	$	—	$	12,000	$	12,000	1/1/2015	—
Mezzanine Loan	12.7%	18,900		8,000		—		10/3/2015
First Mortgage Loan	8.8%	—		7,500		—		10/31/2015	1 x 12 Months
Zero Coupon Loan (2)	24.0%	166,200		4,986		4,431		1/3/2016	—
First Mortgage Loan	5.5%	—		4,000		42,000		4/1/2016	1 x 6 Months
Preferred Equity	13.5%	—		4,000		—		5/9/2016
Other	18.0%	—		3,307		—		7/1/2017
Preferred Equity	8.1%	20,855		13,000		13,000		9/1/2017	—
Mezzanine Loan	15.0%	—		30,879		30,879		11/9/2020	—
First Mortgage Loan	6.0%	—		—		6,400		Demand	—
Other	LIBOR + 2.5%	—		4,000		3,000		12/30/2020
Mezzanine Loan (3)	10.0%	87,477		7,983		9,089		Demand	—
Mezzanine Loan	15.0%	16,668		—		3,834		Upon Capital Event	—
Individually less than 3% (4)	2.7% to 17.5%	—		2,631		2,023		12/31/2015 to 5/1/2024	—
Total				$	102,286	$	126,656

Notes:

(1) Includes origination and exit fees

(2) The principal balance for this accrual-only loan is increased by the interest accrued

(3) Comprised of three cross-collateralized loans from one borrower, which are non-performing

(4) Consists of three loans as of December 31, 2014

Schedule of Allowance for Credit Losses on Notes Receivable

The following table reconciles the activity in the allowance for notes receivable from December 31, 2012 to December 31, 2014:

	Allowance for
(dollars in thousands)	Notes Receivable
Balance at December 31, 2012	$	3,681
Additional reserves	—
Recoveries	—
Charge-offs and reclassifications	—
Balance at December 31, 2013	$	3,681
Additional reserves	—
Recoveries	(2,724		)
Charge-offs and reclassifications	(957		)
Balance at December 31, 2014	$	—