Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):

	September 30, 2021						December 31, 2020
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Money market funds	$	—	$	—	$	—	$	—	$	—	$	—
Derivative financial instruments		—		2		—		—		1		—
Investment in Albertsons (Note 4)		128,186		—		—		72,391		—		—
Liabilities
Derivative financial instruments		—		54,827		—		—		90,139		—

Schedule of Items Measured at Fair Value on Nonrecurring Basis

During 2020 and 2021, the Company was impacted by the COVID-19 Pandemic (Note 11), which caused the Company to reduce its holding periods and forecasted operating income at certain properties. As a result, several impairments were recorded. Impairment charges for the periods presented are as follows (in thousands):

					Impairment Charge
Property and Location	Owner	Triggering Event	Level 3 Inputs	Effective Date	Total		Acadia's Share
2021 Impairment Charges
210 Bowery, Manhattan, NY	Fund IV	Reduced projected operating income	Projections of: holding period, net operating income, cap rate, incremental costs	Sept 30, 2021	$	3,016	$	697
27 E. 61st Street Manhattan, NY	Fund IV	Reduced projected operating income	Projections of: holding period, net operating income, cap rate, incremental costs	Sept 30, 2021		6,909		1,597
Total 2021 Impairment Charges					$	9,925	$	2,294
2020 Impairment Charges
Cortlandt Crossing, Mohegan Lake, NY	Fund III	Reduced holding period, reduced projected operating income	Projections of: holding period, net operating income, cap rate, incremental costs	Mar 31, 2020	$	27,402	$	6,726
654 Broadway, New York, NY	Fund III	Reduced holding period	Projections of: holding period, net operating income, cap rate, incremental costs	Mar 31, 2020		6,398		1,570
146 Geary Street, San Francisco, CA	Fund IV	Reduced holding period, reduced projected operating income	Projections of: holding period, net operating	Mar 31, 2020		6,718		1,553

			income, cap rate, incremental costs
801 Madison Avenue, New York, NY	Fund IV	Reduced holding period, reduced projected operating income	Projections of: holding period, net operating income, cap rate, incremental costs	Mar 31, 2020		11,031		2,551
717 N. Michigan Avenue, Chicago, IL	Fund IV	Reduced holding period, reduced projected operating income	Projections of: holding period, net operating income, cap rate, incremental costs	Dec 31, 2020		17,392		4,021
110 University, New York, NY	Fund IV	Reduced holding period, reduced projected operating income	Projections of: holding period, net operating income, cap rate, incremental costs	Dec 31, 2020		16,238		3,754
Fifth Wall Investment	Core	Decline in fair value	Projections of: reported fair value of net assets	Dec 31, 2020		419		419
Total 2020 Impairment Charges					$	85,598	$	20,594

Schedule of Derivative Financial Instruments

The Company had the following interest rate swaps and caps for the periods presented (dollars in thousands):

					Strike Rate								Fair Value
Derivative Instrument	Aggregate Notional Amount		Effective Date	Maturity Date	Low				High			Balance Sheet Location	September 30, 2021			December 31, 2020
Core
Interest Rate Swaps	$	539,636	Dec 2012-Jul 2020	Mar 2022-Jul 2030		1.71	%	—		3.77	%	Other Liabilities	$	(46,731	)	$	(74,990	)
	$	539,636											$	(46,731	)	$	(74,990	)
Fund II
Interest Rate Swap	$	18,588	Oct 2014	Nov 2021		1.49	%	—		1.49	%	Other Liabilities	$	(23	)	$	(219	)
Interest Rate Cap		45,000	Mar 2019	Mar 2022		3.50	%	—		3.50	%	Other Assets		—			—
	$	63,588											$	(23	)	$	(219	)
Fund III
Interest Rate Caps	$	35,970	Jan 2021	Jul 2022		3.00	%	—		3.00	%	Other Assets	$	—		$	—
Fund IV
Interest Rate Swaps	$	42,385	Mar 2017-Dec 2019	Apr 2022-Dec 2022		1.48	%	—		2.61	%	Other Liabilities	$	(528	)	$	(1,713	)
Interest Rate Caps		71,338	Dec 2020 - Jul 2021	Dec 2022-Jul 2023		3.00	%	—		3.50	%	Other Assets		2			1
	$	113,723											$	(526	)	$	(1,712	)
Fund V
Interest Rate Swaps	$	298,014	Jun 2018-Feb 2021	Feb 2022-Oct 2024		0.23	%	—		2.88	%	Other Liabilities	$	(7,545	)	$	(13,217	)
	$	298,014											$	(7,545	)	$	(13,217	)
Total asset derivatives													$	2		$	1
Total liability derivatives													$	(54,827	)	$	(90,139	)

Schedule of Other Financial Instruments Carrying Values and Fair values

The Company’s other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands, inclusive of amounts attributable to noncontrolling interests where applicable):

			September 30, 2021				December 31, 2020
	Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Notes Receivable (a)		3	$	158,468	$	159,476	$	101,450	$	102,135
Mortgage and Other Notes Payable (a)		3		1,185,228		1,165,716		1,210,540		1,190,214
Investment in non-traded equity securities (b)		3		3,021		3,772		1,726		1,456
Unsecured notes payable and Unsecured line of credit (c)		2		610,981		616,056		559,514		544,532

(a)The Company determined the estimated fair value of these financial instruments using a discounted cash flow model with rates that take into account the credit of the borrower or tenant, where applicable, and interest rate risk. The Company also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the borrower, the time until maturity and the current market interest rate environment.

(b)Represents the Operating Partnership’s cost-method investment in Fifth Wall (Note 4).

(c)The Company determined the estimated fair value of the unsecured notes payable and unsecured line of credit using quoted market prices in an open market with limited trading volume where available. In cases where there was no trading volume, the Company determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants.