Investment in Unconsolidated Entities

3 Months Ended

Mar. 31, 2020

Investment in Partially Owned Entities [Abstract]

Joint Venture Interests

IAGM Retail Fund I, LLC

As of March 31, 2020 and December 31, 2019, the Company owned a 55% interest in one unconsolidated entity, IAGM Retail Fund I, LLC ("IAGM"), a retail joint venture partnership between the Company and PGGM Private Real Estate Fund ("PGGM"). As of March 31, 2020 and December 31, 2019, the carrying value of the Company's investment in IAGM was $117,220 and $118,861, respectively.

During the three months ended March 31, 2020, IAGM prepaid a $14,872 mortgage payable on one retail property with cash on hand.

During the three months ended March 31, 2020, the Company purchased Antoine Town Center from IAGM for $22,254, a fair value determined by independent appraisal, which resulted in IAGM recognizing a gain on sale of $1,741. The Company deferred its share of IAGM's gain on sale of $958 and will amortize the gain over 30 years as an increase to equity in earnings of unconsolidated entities on the consolidated statement of operations and comprehensive loss.

During the three months ended March 31, 2020, IAGM entered into two interest rate swap agreements to achieve fixed interest rates on debt with a variable rate of 1-Month LIBOR plus 1.55%. Each of the interest rate swaps have an effective date of April 1, 2020 and a termination date of November 2, 2023. One interest rate swap has a notional amount of $45,000 and achieves a fixed interest rate of 1.979%. The other interest rate swap has a notional amount of $30,000 and achieves a fixed interest rate of 1.956%. The Company recognizes its share of gains or losses resulting from IAGM's interest rate swaps as an adjustment to the Company's investment in IAGM and an increase or decrease in comprehensive income. As of March 31, 2020, the interest rate swaps were deemed to be liabilities of $238 on a fair value basis, of which the Company's share was $131.

Combined Condensed Financial Information

As of March 31, 2020 and December 31, 2019, the Company's sole joint venture interest is in IAGM. Another joint venture was disposed of in 2019. The following table presents condensed balance sheet information for IAGM and separate condensed income statement information of IAGM and the other joint venture which was disposed in late 2019.



	As of
	March 31, 2020			December 31, 2019
Assets:
Real estate assets, net of accumulated depreciation	$	405,633		$	425,585
Other assets	64,041			66,437
Total assets	469,674			492,022
Liabilities and equity:
Mortgages payable, net	241,980			256,732
Other liabilities	14,385			20,765
Equity	213,309			214,525
Total liabilities and equity	469,674			492,022

Company's share of equity	118,175			118,861
Deferred gain, net of accumulated amortization of $3	(955		)	—
Carrying value of investments in unconsolidated entities	$	117,220		$	118,861



	Three months ended March 31,
IAGM	2020			2019
Total income	$	12,723		$	13,640
Depreciation and amortization	(4,342		)	(5,276		)
Property operating	(2,121		)	(1,987		)
Real estate taxes	(2,426		)	(2,606		)
Interest expense, net	(2,193		)	(2,894		)
General and administrative	(119		)	(119		)
Gain on sale of real estate	1,741			—
Loss on debt extinguishment	(8		)	—
Net income	3,255			758
Other joint venture interest
Net loss	—			(4,858		)
Net income (loss)	$	3,255		$	(4,100	)

Company's share of net income (loss)	$	1,744		$	(3,944	)
Outside basis adjustment for IAGM's sale of real estate	(955		)	—
Outside basis adjustment for other joint venture's sale of assets	—			4,403
Equity in earnings of unconsolidated entities	$	789		$	459

The following table summarizes the scheduled maturities of IAGM's mortgages payable as of March 31, 2020, for the remainder of 2020, each of the next four years and thereafter.



Scheduled maturities by year:	As of March 31, 2020
2020	$	—
2021	23,150
2022	—
2023	180,125
2024	—
Thereafter	40,680
Total	$	243,955

As of March 31, 2020 and December 31, 2019, none of IAGM's mortgages payable are recourse to the Company. It is anticipated that the joint venture will be able to repay, refinance or extend all of its debt on a timely basis.