Equity Investments

6 Months Ended

Jun. 30, 2012

Equity Investments [Abstract]

Equity Investments

7. Equity Investments

The Trust’s carrying amounts in its equity investments consist of the following at June 30, 2012 and December 31, 2011 (in thousands):

Venture Partner	Equity Investment	Nominal % Ownership at June 30, 2012	June 30, 2012		December 31, 2011
Marc Realty (2)	Michigan 30 LLC	—		—		10,049
Marc Realty (1)	Brooks Building LLC	50.0%		7,930		7,679
Marc Realty (1)	High Point Plaza LLC	50.0%		2,330		2,441
Marc Realty (2)	Salt Creek LLC	—		—		—
Marc Realty (1)	1701 Woodfield LLC	50.0%		1,979		2,047
Marc Realty (2)	River Road LLC	—		—		1,000
Marc Realty (3)	3701 Algonquin Road LLC	—		—		250
Marc Realty (1)	Enterprise Center LLC	50.0%		2,579		2,679
Marc Realty (2)	900 Ridgebrook LLC	—		—		1,000
Marc Realty (1)	Michigan 180 Property LLC	70.0%		6,950		—
Sealy (1)	Northwest Atlanta Partners LP	60.0%		8,373		8,537
Sealy (1)	Newmarket GP LLC	68.0%		1,344		2,811
Sealy (1)	Airpark Nashville GP	50.0%		—		—
Inland	Concord Debt Holdings LLC	33.33%		—		—
Inland	CDH CDO LLC	33.33%		—		—
Inland	Concord Hebt Holdings LLC (5)	33.33%		4,529		—
Inland	CDH CDO LLC (5)	33.33%		2,978		—
ROIC	WRT-ROIC Riverside LLC	50.0%		7,883		7,883
ROIC	WRT-ROIC Lakeside Eagle LLC	50.0%		1		7
Atrium Holding	RE CDO Management LLC	50.0%		1,794		1,296
VHH LLC (1)	Vintage Housing LLC	75.0%		30,144		29,887
Broadway Partners (4)	FII Co-Invest LLC	—		—		1,800
New Valley/Starwood (1)	Socal Office Portfolio Loan LLC	50.2%(6)		33,888		72,626
Elad Canada Ltd (1)	WRT-Elad One South State Equity LP	50.0%		2,087		—
Elad Canada Ltd	WRT-Elad One South State Lender LP	50.0%		22,629		10,150
Mack-Cali	WRT-Stamford LLC	20.0%		8,236		—
Atrium/Northstar (1)	10 Metrotech Loan LLC	33.3%		56		—
Freed	Mentor Retail LLC	49.9%		511		—
			$	146,221	$	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 sold to Marc Realty on May 31, 2012.

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

(4) Interest was redeemed on April 10, 2012.

(5) Represents the interest acquired from Lexington Realty Trust on May 1, 2012.

(6) Represents the Trust’s ownership in the underlying entity.

The following table reflects the activity of the Trust’s equity investments for the period ended June 30, 2012 (in thousands):

Investment	Balance at December 31, 2011		Contributions		Equity Income (loss)			Distributions			Sales			Balance at June 30, 2012
Marc Realty	$	27,145	$	8,150	$	(344	)	$	(533	)	$	(12,650	)	$	21,768
Sealy		11,348		—		(1,631	)		—			—			9,717
Concord Debt Holdings LLC		—		—		351			(351	)		—			—
CDH CDO LLC		—		—		534			(534	)		—			—
Concord Debt Holdings LLC (1)		—		4,501		28			—			—			4,529
CDH CDO LLC (1)		—		2,500		478			—			—			2,978
WRT-ROIC Riverside LLC		7,883		—		468			(468	)		—			7,883
WRT-ROIC Lakeside Eagle LLC		7		10		(16	)		—			—			1
SoCal Office Portfolio Loan LLC		72,626		—		(638	)		(38,100	)		—			33,888
RE CDO Management LLC		1,296		550		28			(80	)		—			1,794
Vintage Housing LLC		29,887		2,029		934			(2,706	)		—			30,144
FII Co-invest LLC		1,800		—		—			—			(1,800	)		—
WRT-Elad One South Street Equity LP		—		2,837		(750	)		—			—			2,087
WRT-Elad One South Street Lender LP		10,150		11,214		1,265			—			—			22,629
WRT-Stamford LLC		—		8,036		316			(116	)		—			8,236
10 Metrotech Loan LLC		—		75		(19	)		—			—			56
Mentor Retail LLC		—		505		6			—			—			511
Total	$	162,142	$	40,407	$	1,010		$	(42,888	)	$	(14,450	)	$	146,221

(1) Represents the interest acquired from Lexington Realty Trust on May 1, 2012.

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.

Concord

On May 1, 2012, the Trust acquired from Lexington Realty Trust its 33.33% interest in Concord Debt Holdings LLC and CDH CDO LLC for an aggregate price of $7,000,000. This acquisition will be accounted for using the equity method of accounting and will be separate from the on-going investment in Concord. This acquisition does not represent a funding of prior losses. The Trust will recognize its pro-rata share of income or loss in the new investment.