Real Estate

12 Months Ended

Dec. 31, 2020

Acquisition And Disposition Of Properties And Discontinued Operations [Abstract]

Real Estate

2. Real Estate

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

	December 31, 2020			December 31, 2019
Land	$	776,275		$	756,297
Buildings and improvements		2,848,781			2,740,479
Tenant improvements		191,046			173,686
Construction in progress		5,751			13,617
Right-of-use assets - finance leases (Note 11)		25,086			102,055
Total		3,846,939			3,786,134
Less: Accumulated depreciation and amortization		(586,800	)		(490,227	)
Operating real estate, net		3,260,139			3,295,907
Real estate under development		247,349			253,402
Net investments in real estate	$	3,507,488		$	3,549,309

Acquisitions and Conversions

During the years ended December 31, 2020 and 2019, 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
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 4)	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
2019 Acquisitions
Core
Soho Acquisitions - 41, 45, 47, 51 and 53 Greene Street - New York, NY	100%	Mar 15, 2019 Mar 27, 2019 May 29, 2019 Jul 30, 2019 Nov 8, 2019	$	87,006
849, 907 and 912 W. Armitage - Chicago, IL	100%	Sep 11, 2019 Dec 11, 2019		10,738
8436-8452 Melrose Place - Los Angeles, CA	100%	Oct 25, 2019		48,691
Subtotal Core				146,435
Fund V
Palm Coast Landing - Palm Coast, FL	100%	May 6, 2019		36,644
Lincoln Commons - Lincoln, RI	100%	Jun 21, 2019		54,299
Landstown Commons - Virginia Beach, VA	100%	Aug 2, 2019		86,961
Subtotal Fund V				177,904
Total 2019 Acquisitions			$	324,339

For the years ended December 31, 2020 and 2019, the Company capitalized acquisition costs of $1.3 million and $2.6 million, respectively. No debt was assumed in any of the 2020 Acquisitions and Conversions or 2019 Acquisitions. Conversions represent notes receivable that were converted to an interest in the underlying collateral in a non-cash transaction.

Purchase Price Allocations

The purchase prices for the 2020 Acquisitions and Conversions and 2019 Acquisitions were allocated to the acquired assets and assumed liabilities based on their estimated 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, 2020 and 2019 (in thousands):

	Year Ended December 31, 2020			Year Ended December 31, 2019
Net Assets Acquired
Land	$	25,440		$	78,263
Buildings and improvements		123,459			221,185
Accounts receivable, prepaids and other assets		5,770			—
Acquisition-related intangible assets (Note 6)		23,061			34,972
Right-of-use asset - Operating lease (Note 11)		234			—
Acquisition-related intangible liabilities (Note 6)		(4,569	)		(10,081	)
Lease liability - Operating lease (Note 11)		(234	)		—
Accounts payable and other liabilities		(1,009	)		—
Net assets acquired	$	172,152		$	324,339
Consideration
Cash	$	21,208		$	319,673
Conversion of note receivable		38,674			—
Conversion of accrued interest		1,995			—
Liabilities assumed		116			4,666
Existing interest in previously unconsolidated investment		109,571			—
Acquisition of noncontrolling interests		588			—
Total consideration	$	172,152		$	324,339

Dispositions

During the years ended December 31, 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 (Loss) on Sale
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 (Note 4)	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

The aggregate rental revenue, expenses and pre-tax income reported within continuing operations for the aforementioned consolidated properties that were sold during the years ended December 31, 2020, 2019 and 2018 were as follows (in thousands):

	Year Ended December 31,
	2020			2019			2018
Revenues	$	724		$	9,786		$	14,010
Expenses		(1,018	)		(8,561	)		(11,946	)
Gain on disposition of properties		683			30,324			5,140
Net income attributable to noncontrolling interests		(127	)		(10,770	)		(5,131	)
Net income attributable to Acadia	$	262		$	20,779		$	2,073

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, 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
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		—		70		13,171		1		23,139
Fund IV (b)		2		145,596		—		1,368		61,286		2		85,678
Total		3	$	253,402	$	66,812	$	8,062	$	80,927		3	$	247,349

(a) Transfers in include $33.8 million of non-cash Fund II additions obtained through the conversion of a note receivable (Note 3).

(b) Transfers out include impairment charges totaling $16.5 million on two Fund IV development properties (Note 8).

	January 1, 2019				Year Ended December 31, 2019						December 31, 2019
	Number of Properties		Carrying Value		Transfers In		Capitalized Costs		Transfers Out		Number of Properties		Carrying Value
Core		1	$	7,759	$	57,342	$	5,581	$	9,819		—	$	60,863
Fund II		—		7,462		—		3,241		—		—		10,703
Fund III		1		21,242		12,313		2,685		—		1		36,240
Fund IV		1		83,834		47,689		14,073		—		2		145,596
Total		3	$	120,297	$	117,344	$	25,580	$	9,819		3	$	253,402

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. Fund II amounts relate to the City Point Phase III project and a portion of Phase II.

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

• placed a portion of one Fund III property, Cortlandt Crossing, into service

• converted, in a non-cash transaction, a note receivable in exchange for construction improvements in the amount of $33.8 million (Note 3)

• recognized impairment charges totaling $16.5 million on two Fund IV properties (Note 8) including 717 N. Michigan Avenue and 110 University Place

• placed a portion of one Fund IV property, 146 Geary Street, into service, which was subsequently impaired (Note 8)

• placed a portion of Fund II’s City Point Phase II into development

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

During the year ended December 31, 2019, the Company placed 1238 Wisconsin, an unconsolidated Core Portfolio property (Note 4) and the following consolidated projects into development:

• a portion of City Center (Core)

• a portion of Cortlandt Crossing (Fund III)

• a portion of 110 University Place (Fund IV, Note 11); and

• its 146 Geary Street property (Fund IV)

During the year ended December 31, 2019, the Company placed one Core Portfolio development project, 56 E. Walton, into service.

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.