Real Estate

12 Months Ended

Dec. 31, 2021

Acquisition And Disposition Of Properties And Discontinued Operations [Abstract]

3. Real Estate

The Company’s consolidated real estate is comprised of the following for the periods presented (in thousands):


	December 31,
	2021			2020
				(As Restated)
Land	$	739,641		$	752,721
Buildings and improvements		2,892,051			2,802,253
Tenant improvements		199,925			178,918
Construction in progress		11,131			5,147
Right-of-use assets - finance leases (Note 12)		25,086			25,086
Total		3,867,834			3,764,125
Less: Accumulated depreciation and amortization		(648,461	)		(573,364	)
Operating real estate, net		3,219,373			3,190,761
Real estate under development		203,773			247,201
Net investments in real estate	$	3,423,146		$	3,437,962

Acquisitions and Conversions

During the years ended December 31, 2021 and 2020, the Company acquired the following consolidated retail properties and other real estate investments (dollars in thousands):


Property and Location	Percent Acquired	Date of Acquisition	Purchase Price
2021 Acquisitions
Core
14th Street Portfolio - Washington, DC	100%	Dec 23, 2021	$	26,320
Subtotal Core				26,320

Fund V
Canton Marketplace - Canton, GA	100%	Aug 20, 2021	$	50,954
Monroe Marketplace - Selinsgrove, PA	100%	Sept 9, 2021		44,796
Monroe Marketplace (Parcel) - Selinsgrove, PA	100%	Nov 12, 2021		1,029
Midstate - East Brunswick, NJ	100%	Dec 14, 2021		71,867
Subtotal Fund V				168,646
Total 2021 Acquisitions			$	194,966

2020 Acquisitions and Conversions
Core
Soho Acquisitions - 37 Greene Street - New York, NY	100%	Jan 9, 2020	$	15,689
917 W. Armitage - Chicago, IL	100%	Feb 13, 2020		3,515
Town Center - Wilmington, DE (Conversion) (Note 5)	100%	Apr 1, 2020		138,939
Subtotal Core				158,143

Fund IV
230-240 W. Broughton Street - Savannah, GA	100%	May 26, 2020		13,219
102 E. Broughton Street - Savannah, GA	100%	May 26, 2020		790
Subtotal Fund IV				14,009
Total 2020 Acquisitions and Conversions			$	172,152

For the years ended December 31, 2021 and 2020, the Company capitalized acquisition costs of $3.6 million and $1.3 million, respectively. During the year ended December 31, 2021, the Company assumed a $31.8 million mortgage upon the acquisition of Canton Marketplace (Note 8). No debt was assumed in any of the 2020 Acquisitions and Conversions. Conversions represent notes receivable that were converted to an equity interest in the underlying collateral property in a non-cash transaction.

Purchase Price Allocations

The purchase prices for the 2021 Acquisitions and 2020 Acquisitions and Conversions were allocated to the acquired assets and assumed liabilities based on their estimated relative fair values at the dates of acquisition. The following table summarizes the allocation of the purchase price of properties acquired during the years ended December 31, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2021			2020
Net Assets Acquired
Land	$	37,290		$	25,440
Buildings and improvements		134,065			123,459
Accounts receivable, prepaids and other assets		—			5,770
Acquisition-related intangible assets (Note 7)		39,953			23,061
Right-of-use asset - Operating lease (Note 12)		—			234
Acquisition-related intangible liabilities (Note 7)		(16,342	)		(4,569	)
Lease liability - Operating lease (Note 12)		—			(234	)
Accounts payable and other liabilities		—			(1,009	)
Net assets acquired	$	194,966		$	172,152

Consideration
Cash	$	161,846		$	21,208
Conversion of note receivable		—			38,674
Conversion of accrued interest		—			1,995
Debt assumed		31,801			—
Liabilities assumed		1,319			116
Existing interest in previously unconsolidated investment		—			109,571
Acquisition of noncontrolling interests		—			588
Total consideration	$	194,966		$	172,152

Dispositions

During the years ended December 31, 2021, 2020 and 2019, the Company disposed of the following consolidated properties and other real estate investments (in thousands):


Property and Location	Owner	Date Sold	Sale Price		Gain on Sale
2021 Dispositions
60 Orange St - Bloomfield, NJ	Core	Jan 29, 2021	$	16,400	$	4,612
654 Broadway - New York, NY	Fund III	May 19, 2021		10,000		111
NE Grocer Portfolio (Selected Assets) - Maine	Fund IV	Jun 18, 2021		39,925		5,064
Total 2021 Dispositions (a)			$	66,325	$	9,787

2020 Dispositions
163 Highland Ave. (Easement) - Needham, MA	Core	Mar 19, 2020	$	238	$	88
Colonie Plaza - Albany, NY	Fund IV	Apr 13, 2020		15,250		485
Airport Mall (Parcel) - Bangor, ME	Fund IV	Sep 10, 2020		400		24
Cortlandt Crossing (Sewer Project and Retention Pond) - Cortlandt, NY	Fund III	Nov 30, 2020		6,325		—
Union Township (Parcel) - New Castle, PA	Core	Dec 11, 2020		200		86
Total 2020 Dispositions			$	22,413	$	683

2019 Dispositions
3104 M Street - Washington, DC	Fund III	Jan 24, 2019	$	10,500	$	2,014
210 Bowery - 3 Residential Condos - New York, NY	Fund IV	May 17, 2019 Sep 23, 2019 Nov 7, 2019		8,826		(242	)
JFK Plaza - Waterville, ME	Fund IV	Jul 24, 2019		7,800		2,075
3780-3858 Nostrand Avenue - New York, NY	Fund III	Aug 22, 2019		27,650		2,562
938 W North Avenue - Chicago, IL	Fund IV	Sep 27, 2019		32,000		7,144
Pacesetter Park - Pomona, NY	Core	Oct 28, 2019		22,550		16,771
Total 2019 Dispositions			$	109,326	$	30,324

Does not include the gain on lease termination of $0.7 million related to the Fund IV lease at 110 University Place (Note 12).

Properties Held for Sale or Sold

At December 31, 2021, the Company had two properties under contract for sale with assets totaling $64.0 million, which were probable of disposition. These properties were classified as "held for sale" on the Company's consolidated balance sheets at December 31, 2021. The Company sold both properties in January and February 2022 and repaid the related debt upon disposition (Note 18).

The aggregate rental revenue, expenses and pre-tax income reported within continuing operations for the aforementioned consolidated properties that were sold as well as the lease that was terminated during the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands):


	Year Ended December 31,
	2021			2020			2019
Revenues	$	3,270		$	8,847		$	17,282
Expenses		(3,784	)		(8,625	)		1,212
Gain on disposition of properties		10,521			683			30,324
Net income attributable to noncontrolling interests		(4,151	)		(323	)		(10,967	)
Net income attributable to Acadia	$	5,856		$	582		$	37,851

Real Estate Under Development and Construction in Progress

Real estate under development represents the Company’s consolidated properties that have not yet been placed into service while undergoing substantial development or construction.

Development activity for the Company’s consolidated properties comprised the following during the periods presented (dollars in thousands):


	January 1, 2021				Year Ended December 31, 2021						December 31, 2021
	Number of Properties		Carrying Value		Transfers In		Capitalized Costs		Transfers Out		Number of Properties		Carrying Value
Core		—	$	63,875	$	—	$	1,855	$	23,213		—	$	42,517
Fund II		—		74,657		—		3,921		43,453		—		35,125
Fund III		1		23,104		—		1,192		—		1		24,296
Fund IV (a)		2		85,565		29,758		2,026		15,514		1		101,835
Total		3	$	247,201	$	29,758	$	8,994	$	82,180		2	$	203,773

Transfers in include $29.8 million related to the remaining portion of one Fund IV property that was placed into development.


	January 1, 2020				Year Ended December 31, 2020						December 31, 2020
	Number of Properties		Carrying Value		Transfers In		Capitalized Costs		Transfers Out		Number of Properties		Carrying Value
			(As Restated)										(As Restated)
Core		—	$	60,863	$	—	$	3,012	$	—		—	$	63,875
Fund II (a)		—		10,703		66,812		3,612		6,470		—		74,657
Fund III		1		36,240		—		35		13,171		1		23,104
Fund IV (b)		2		145,590		—		1,261		61,286		2		85,565
Total		3	$	253,396	$	66,812	$	7,920	$	80,927		3	$	247,201

Transfers in include $33.8 million of non-cash Fund II additions obtained through the conversion of a note receivable (Note 4).

Transfers out include impairment charges totaling $16.5 million on two Fund IV development properties (Note 9).

The number of properties in the tables above refers to projects comprising the entire property under development; however, certain projects represent a portion of a property.

At December 31, 2021, consolidated development projects included: a portion of City Center for Core, portions of City Point Phase I and II at Fund II, Broad Hollow Commons at Fund III and 717 N. Michigan Avenue at Fund IV. In addition, at December 31, 2021, the Company had one Core unconsolidated development project, 1238 Wisconsin Avenue. During the year ended December 31, 2021, the Company:

•

placed portions of one Core project, City Center, into service in the first and second quarter of 2021

•

disposed of building improvements related to one Fund IV project, 110 University Place, in connection with a lease termination in the second quarter of 2021 (Note 12)

•

placed the remaining portion of one Fund IV property, 717 N. Michigan Avenue, into development in the fourth quarter of 2021

•

placed a portion of Fund II’s City Point Phase III into service in the fourth quarter of 2021

During the year ended December 31, 2020, the Company:

•

placed a portion of one Fund III property, Cortlandt Crossing, into service in the first quarter of 2020

•

converted, in a non-cash transaction, a note receivable in exchange for construction improvements at a Fund II property in the amount of $33.8 million in the fourth quarter of 2020 (Note 4)

•

recognized impairment charges totaling $16.5 million on two Fund IV properties (Note 9) including 717 N. Michigan Avenue and 110 University Place in the fourth quarter of 2020

•

placed a portion of one Fund IV property, 146 Geary Street, which was also impaired, into service in the first quarter of 2020 (Note 9)

•

placed a portion of Fund II’s City Point Phase II into development in the second quarter of 2020

•

suspended certain development projects due to aforementioned disruptions related to the COVID-19 Pandemic. Substantially all remaining development and redevelopment costs were discretionary and dependent upon the resumption of tenant interest.

Construction in progress pertains to construction activity at the Company’s operating properties that are in service and continue to operate during the construction period.