Equity Investments

3 Months Ended

Mar. 31, 2012

Equity Investments [Abstract]

Equity Investments

7. Equity Investments

The Trust’s equity investments consist of the following at March 31, 2012 and December 31, 2011 (in thousands):

Venture Partner	Equity Investment	Nominal % Ownership at March 31, 2012			March 31, 2012		December 31, 2011
Marc Realty (1) (2)	Michigan 30 LLC		50.0	%		10,302		10,049
Marc Realty (1)	Brooks Building LLC		50.0	%		7,914		7,679
Marc Realty (1)	High Point Plaza LLC		50.0	%		2,381		2,441
Marc Realty (1) (2)	Salt Creek LLC		50.0	%		—		—
Marc Realty (1)	1701 Woodfield LLC		50.0	%		2,007		2,047
Marc Realty (1) (2)	River Road LLC		50.0	%		1,006		1,000
Marc Realty (1) (3)	3701 Algonquin Road LLC		50.0	%		—		250
Marc Realty (1)	Enterprise Center LLC		50.0	%		2,683		2,679
Marc Realty (1) (2)	900 Ridgebrook LLC		50.0	%		1,103		1,000
Marc Realty (1)	Michigan 180 Property LLC		70.0	%		6,831		—
Sealy (1)	Northwest Atlanta Partners LP		60.0	%		8,481		8,537
Sealy (1)	Newmarket GP LLC		68.0	%		2,089		2,811
Sealy (1)	Airpark Nashville GP		50.0	%		—		—
Inland/Lexington	Concord Debt Holdings LLC		33.3	%		—		—
Inland/Lexington	CDH CDO LLC		33.3	%		—		—
ROIC (1)	WRT-ROIC Riverside LLC		50.0	%		7,883		7,883
ROIC	WRT-ROIC Lakeside Eagle LLC		50.0	%		5		7
Atrium Holding	RE CDO Management LLC		50.0	%		1,812		1,296
VHH LLC (1)	Vintage Housing LLC		75.0	%		28,830		29,887
Broadway Partners (4)	FII Co-Invest LLC		27.9	%		1,800		1,800
New Valley (1)	Socal Office Portfolio Loan LLC		56.0	%		34,181		72,626
Elad Canada Ltd (1)	WRT-Elad One South State Equity L.P.		50.0	%		24,743		10,150
Mack-Cali	WRT-Stamford LLC		20.0	%		8,097		—
					$	152,148	$	162,142

(1) The Trust has determined that these equity investments are investments in VIEs. The Trust has determined that it is not the primary beneficiary of these VIEs since the Trust does not have the power to direct the activities that most significantly impact the VIEs economic performance.

(2) Interest to be transferred to Marc Realty during the second quarter of 2012.

(3) Interest transferred to Marc Realty on March 1, 2012.

(4) Interest was redeemed on April 10, 2012. See Note 16 – Subsequent Events.

The following table reflects the activity of the Trust’s equity investments for the period ended March 31, 2012 (in thousands):

Investment	Balance at December 31, 2011		Contributions		Equity Income (loss)			Distributions			Sales			Balance at March 31, 2012
Marc Realty	$	27,145	$	8,050	$	(347	)	$	(371	)	$	(250	)	$	34,227
Sealy		11,348		—		(778	)		—			—			10,570
Concord Debt Holdings		—		—		296			(296	)		—			—
CDH CDO		—		—		394			(394	)		—			—
WRT-ROIC Riverside		7,883		—		234			(234	)		—			7,883
WRT-ROIC Lakeside Eagle		7		10		(12	)		—			—			5
SoCal Office Portfolio Loan		72,626		—		(345	)		(38,100	)		—			34,181
RE CDO Management		1,296		550		11			(45	)		—			1,812
Vintage Housing		29,887		—		339			(1,396	)		—			28,830
FII Co-invest		1,800		—		—			—			—			1,800
WRT-Elad		10,150		14,050		543			—			—			24,743
WRT-Stamford		—		8,036		89			(28	)		—			8,097
Total	$	162,142	$	30,696	$	424		$	(40,864	)	$	(250	)	$	152,148

WRT-Elad

The Trust holds its mezzanine loan interest in Sullivan Center through WRT-Elad Lender LP and its profits participation interest through WRT-Elad Equity LP (“Equity LP”). The Trust has determined that One South State Street LLC is a variable interest entity for which Equity LP is the primary beneficiary. Equity LP has consolidated Sullivan Center as of February 3, 2012, the date it acquired the profits participation interest, and has completed provisional purchase accounting pursuant to the guidance for business combinations based on available information obtained from the managing member of Sullivan Center.

In relation to its investment in Sullivan Center, the Trust has elected a one-month lag period in which it recognizes its share of the equity earnings of One South State Street LLC in arrears. The lag period is allowed under the provisions of ASC 810-10 and is necessary in order for the Trust to consistently meet its regulatory filing deadlines.

Marc Realty

On January 1, 2012, the Trust restructured one of its investments (180 North Michigan) and reclassified its investment from loans receivable ($2,938,000) and preferred equity ($3,923,000) to equity investments ($6,861,000) which is included in contributions in the above table.

Impairments

The Trust has determined that the fair value of certain of its investments in the Marc Realty and Sealy ventures each marginally exceed their carrying values. While these ventures continue to aggressively market available space for lease and work with existing tenants for lease renewal, declines in occupancy could cause impairment of certain of these ventures that could be material.