Real Estate (Tables)

9 Months Ended

Sep. 30, 2022

Acquisition And Disposition Of Properties And Discontinued Operations [Abstract]

Schedule of Consolidated Real Estate

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

	September 30,			December 31,
	2022			2021
Land	$	829,313		$	739,641
Buildings and improvements		2,998,230			2,892,051
Tenant improvements		213,316			199,925
Construction in progress		13,117			11,131
Right-of-use assets - finance leases (Note 11)		25,086			25,086
Total		4,079,062			3,867,834
Less: Accumulated depreciation and amortization		(704,609	)		(648,461	)
Operating real estate, net		3,374,453			3,219,373
Real estate under development		186,360			203,773
Net investments in real estate	$	3,560,813		$	3,423,146

Schedule of Business Acquisitions, by Acquisition

During the nine months ended September 30, 2022 and the year ended December 31, 2021, the Company acquired (through purchase, investment or foreclosure) the following consolidated retail properties and other real estate investments (dollars in thousands):

Property and Location	Percent Acquired	Date of Acquisition	Purchase Price
2022 Acquisitions and Foreclosure
Core
121 Spring Street - New York, NY	100%	Jan 12, 2022	$	39,637
Williamsburg Collection - Brooklyn, NY (a)	(a)	Feb 18, 2022		97,750
8833 Beverly Boulevard - West Hollywood, CA	100%	Mar 2, 2022		24,117
Henderson Avenue Portfolio - Dallas, TX (b)	100%	Apr 18, 2022		85,192
Subtotal Core				246,696
Fund III
640 Broadway - New York, NY (Foreclosure) (c)	100%	Jan 26, 2022		59,207
Subtotal Fund III				59,207
Total 2022 Acquisitions and Foreclosure			$	305,903
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

a)The Company invested $2.8 million in its 49.99% equity interest and, through a separate lending subsidiary, provided a $64.1 million first mortgage loan and a $30.9 million mezzanine loan to subsidiaries of the venture (such equity and loans have been eliminated in consolidation). Pursuant to the entity’s operating agreement, the venture partner has a one-time right to put its 50.01% interest in the entity (the "Williamsburg NCI", which is further described in Note 10) to the Company for fair value at a future date. Given the preferred rate of return of the Company embedded in its equity interests and the accruing debt senior to the equity, the Company did not attribute

any initial redemption value to the Williamsburg NCI and recognized a bargain purchase gain of $1.2 million, which is included in Realized and unrealized holding (losses) gains on investments and other in the consolidated statements of operations.

b)The Henderson Avenue Portfolio comprises 14 operating retail assets, one residential building and two development and redevelopment sites. One of the development sites was sold in October 2022 (Note 15).

The entity was previously accounted for as an equity method investment until an affiliate of Fund III acquired the venture partner's interest in a foreclosure action. Fund III now indirectly owns 100% of the entity and consolidates it (Note 4).

Schedule of Purchase Price Allocations

The following table summarizes the allocation of the purchase price of properties acquired during the periods presented (in thousands):

	Nine Months Ended September 30,			Year Ended December 31,
	2022			2021
Net Assets Acquired
Land	$	119,898		$	37,290
Buildings and improvements		168,862			134,065
Acquisition-related intangible assets (Note 6)		29,016			39,953
Accounts receivable, prepaids and other assets		4,077			—
Accounts payable and other liabilities		(661	)		—
Acquisition-related intangible liabilities (Note 6)		(14,126	)		(16,342	)
Net assets acquired	$	307,066		$	194,966
Consideration
Cash	$	242,633		$	161,846
Carrying value of note receivable exchanged in foreclosure (Note 3)		5,416			—
Existing interest in previously unconsolidated investment (Note 4)		17,822			—
Debt assumed		35,970			31,801
Liabilities assumed		4,062			1,319
Total consideration		305,903			194,966
Gain on bargain purchase		1,163			—
	$	307,066		$	194,966

Schedule of Property Dispositions

During the nine months ended September 30, 2022 and the year ended December 31, 2021, 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
2022 Dispositions
NE Grocer Portfolio (Selected Assets) - Pennsylvania	Fund IV	Jan 26, 2022     Mar 4, 2022	$	45,350	$	13,784
New Towne (Parcel) - Canton, MI	Fund V	Feb 1, 2022		2,231		1,776
Cortlandt Crossing - Westchester County, NY	Fund III	Feb 9, 2022		65,533		13,255
Lincoln Place - Fairview Heights, IL	Fund IV	May 25, 2022		40,670		12,216
Wake Forest Crossing - Wake Forest, NC	Fund IV	Aug 24, 2022		38,919		8,885
Total 2022 Dispositions			$	192,703	$	49,916
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) - ME	Fund IV	Jun 18, 2021		39,925		5,064
Total 2021 Dispositions (a)			$	66,325	$	9,787

a)Does not include the gain on lease termination of $0.7 million related to the Fund IV lease at 110 University Place (Note 11).

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

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 (Note 11) during the three and nine months ended September 30, 2022 and 2021 were as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Revenues	$	929		$	4,335		$	5,429		$	15,997
Expenses		(620	)		(3,815	)		(4,112	)		(14,658	)
Gain on disposition of properties		8,885			—			49,916			10,521
Net income attributable to noncontrolling interests		(7,069	)		(401	)		(39,251	)		(5,583	)
Net income attributable to Acadia	$	2,125		$	119		$	11,982		$	6,277

Schedule Of Development In Process Activities

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

	January 1, 2022				Nine Months Ended September 30, 2022						September 30, 2022
	Number of Properties		Carrying Value		Transfers In		Capitalized Costs		Transfers Out		Number of Properties		Carrying Value
Core		—	$	42,517	$	9,610	$	1,854	$	—		2	$	53,981
Fund II		—		35,125		—		1,487		—		—		36,612
Fund III		1		24,296		—		1,077		—		1		25,373
Fund IV (a)		1		101,835		—		82		31,523		1		70,394
Total		2	$	203,773	$	9,610	$	4,500	$	31,523		4	$	186,360

a)Transfers out include $12.9 million related to a portion of one Fund IV property that was transferred out of development and an impairment charge totaling $18.7 million on one Fund IV development property (Note 8).

	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 in development.