3 . Acquisitions Independence Plaza In 2011, we acquired a 51 % interest in the subordinated debt of Independence Plaza, a three-building 1,328 unit residential complex in the Tribeca submarket of Manhattan which has 54,500 square feet of retail space and 550 parking spaces, for $ 45,000,000 and a warrant to purchase 25 % of the equity for $ 1,000,000 . On December 21, 2012, we acquired a 58.75 % interest in the property as follows: ( i ) buying one of the equity partners' 33.75 % interest for $ 160,000,000 , (ii) exercising our warrant for 25% of the equity and (iii) contributing the appreciated value of our interest in the subordinated debt as preferred equity. In connection therewith, we recognized income of $ 105,366,000 , comprised of $ 60,396,000 from the accelerated amortization of the discount on the subordinated debt immediately preceding the conversion to preferred equity, and a $ 44,970,000 purchase price fair value adjustment upon exercising the warrant. The current transaction values the property at $ 844,800,000 . T he property is currently encumbered by a $ 334,225,000 mortgage. We expect to refinance the $334,225,000 mortgage in 2013, substantially decreasing our cash investment. We manage the retail space at the property and Stellar Management, our partner, manages the residential space. We consolidate the accounts of this entity from the date of acquisition as it is a VIE, and we are deemed to be the primary beneficiary. We are currently in the process of analyzing the fair value of the acquired leases ; a ccordingly, our purchase price allocation is preliminary and subject to change. 666 Fifth Avenue - Retail On December 6 , 2012, we acquire d a retail condominium located at 666 Fifth Avenue at 53rd Street for $ 707,000,000 . The property has 126 feet of frontage on Fifth Avenue and contains 114,000 square feet, 39,000 square feet in fee and 75,000 square feet by long-term lease from the 666 Fifth Avenue office condominium, which is 49.5 % owned by us . We consolidate the accounts of the proper