VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company has variable interests in, and is the primary beneficiary of, variable interest entities (“VIEs”) through its investments in (i) the Sunset & Gardner Joint Venture (formerly known as Gelson’s Joint Venture) and (ii) the 3032 Wilshire Joint Venture. The Company has consolidated the accounts of these variable interest entities.

Through June 30, 2020, post the initial capital contributions, the Company made additional capital contributions totaling approximately $6.8 million and $7.0 million to the Sunset & Gardner Joint Venture and Wilshire Joint Venture, respectively.

The following reflects the aggregate assets and liabilities of the Sunset & Gardner Joint Venture and the Wilshire Joint Venture, which were consolidated by the Company, as of June 30, 2020 and December 31, 2019 (amounts in thousands):



	June 30,		December 31,
	2020		2019
ASSETS
Properties under development and development costs:
Land	$	25,851	$	25,851
Buildings	546		554
Development costs	25,277		20,813
Properties under development and development costs	51,674		47,218
Cash, cash equivalents and restricted cash	330		2,154
Prepaid expenses and other assets, net	45		7
Lease intangibles, net	73		4
TOTAL ASSETS ⁽¹⁾	$	52,122	$	49,383

LIABILITIES
Notes payable, net ⁽²⁾	$	19,788	$	16,713
Accounts payable and accrued expenses	1,276		1,702
Amounts due to affiliates	61		111
Other liabilities	25		5
TOTAL LIABILITIES	$	21,150	$	18,531


(1)	The assets of the Sunset & Gardner Joint Venture and Wilshire Joint Venture can be used only to settle obligations of the respective consolidated joint ventures.

(2)

As of June 30, 2020 and December 31, 2019, includes reclassification of approximately $0.3 million and $0.5 million, respectively, of deferred financing costs, net, as a contra-liability. The creditors of the consolidated joint ventures do not have recourse to the general credit of the Company. The notes payable of the Wilshire Joint Venture is partially guaranteed by the Company, refer to Note 7, “Notes Payable, Net”. The notes payable of the Sunset & Gardner Joint Venture is not guaranteed by the Company.