Investment in Partially Owned Entities

Unconsolidated Entities

The entities listed below are owned by the Company and other unaffiliated parties in joint ventures. Net income, distributions and capital transactions for these properties are allocated to the Company and its joint venture partners in accordance with the respective partnership agreements. Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for details of each unconsolidated entity.

These entities are not consolidated by the Company and the equity method of accounting is used to account for these investments. Under the equity method of accounting, the net equity investment of the Company and the Company’s share of net income or loss from the unconsolidated entity are reflected in the consolidated balance sheets and the consolidated statements of operations and comprehensive income.



			Carrying Value of Investment at
Entity	Description	Ownership %	March 31, 2016		December 31, 2015
IAGM Retail Fund I, LLC	Retail shopping centers	55%	$	129,206	$	131,362
Downtown Railyard Venture, LLC	Land development	(a)	46,464		45,081
15th & Walnut Owner, LLC (b)	Student housing	62%	—		4,195
Other unconsolidated entities	Various real estate investments	Various	2,167		1,873
			$	177,837	$	182,511


(a)	The Company's ownership percentage in Downtown Railyard Venture, LLC is based upon a waterfall calculation outlined in the joint venture operating agreement.

(b)

On February 4, 2013, the Company entered into a joint venture agreement with Gerding Edlen Investors, LLC ("GE") in order to develop, construct and manage a student housing community on the campus of the University of Oregon in Eugene, Oregon, which was completed later in 2013 and is now fully operational. The joint venture is known as 15th & Walnut Owner, LLC ("Eugene"). On February 25, 2016, GE purchased the Company's partnership interest in the joint venture. A gain on the sale of the joint venture of $1,434 was recorded for the three months ended March 31, 2016 and is reflected in the consolidated statements of operations and comprehensive income.

During the three months ended March 31, 2016 and 2015, the Company recorded no impairment on its unconsolidated entities.

Combined Financial Information

The following tables present the combined condensed financial information for the Company’s investment in unconsolidated entities.



	As of
	March 31, 2016			December 31, 2015
Assets:
Real estate assets, net of accumulated depreciation	$	639,714		$	663,249
Other assets	93,128			99,895
Total assets	$	732,842		$	763,144
Liabilities and equity:
Mortgage debt	313,358			325,822
Other liabilities	72,825			79,642
Equity	346,659			357,680
Total liabilities and equity	$	732,842		$	763,144
Company’s share of equity	$	191,716		$	196,506
Net excess of the net book value of underlying assets over the cost of investments (net of accumulated amortization of $1,500 and $1,085, respectively)	(13,879		)	(13,995		)
Carrying value of investments in unconsolidated entities	$	177,837		$	182,511



	Three Months Ended
	March 31,
	2016		2015

Revenues	$	17,593	$	19,644
Expenses:
Interest expense and loan cost amortization	5,918		4,147
Depreciation and amortization	6,428		5,634
Operating expenses, ground rent and general and administrative expenses	3,785		5,828
Total expenses	16,131		15,609
Net income	$	1,462	$	4,035

Company's share of net income (loss), net of excess basis depreciation of $130 and $130, respectively	$	1,000	$	1,973
Distributions from unconsolidated entities in equity in earnings in excess of the investments' carrying value	276		—
Equity in earnings of unconsolidated entities	$	1,276	$	1,973

Equity in earnings of unconsolidated entities on the consolidated statement of operations and comprehensive income of $1,276 for the three months ended March 31, 2016 include nonrecurring distributions that are in excess of the investments' carrying value by $276 for the three months ended March 31, 2016.

The unconsolidated entities had total third party debt of $313,358 at March 31, 2016 that matures as follows:



Year	Amount
2016	$	19,668
2017	—
2018	203,782
2019	16,245
2020	—
Thereafter	73,663
	$	313,358

Of the total outstanding debt related to assets held by the Company's unconsolidated joint ventures, approximately $23,000 is recourse to the Company and $1,000 is recourse to the IAGM joint venture. It is anticipated that the joint ventures will be able to repay or refinance all of their debt on a timely basis.