Equity Investments

3 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Equity Investments

8. Equity Investments

Under liquidation accounting, equity investments are carried at net realizable value. The Trust’s nominal ownership percentages in its equity investments consist of the following at March 31, 2015 and December 31, 2014:

Venture Partner	Equity Investment	Nominal % Ownership at March 31, 2015			Nominal % Ownership at December 31, 2014
Gancar Trust	Vintage Housing Holdings LLC		75.0	%		75.0	%
Elad Canada Ltd	WRT One South State Lender LP		50.0	%		50.0	%
Elad Canada Ltd	WRT-Elad One South State Equity LP		50.0	%		50.0	%
Atrium Holding	RE CDO Management LLC		50.0	%		50.0	%
Freed	Mentor Retail LLC		49.9	%		49.9	%
Inland	Concord Debt Holdings LLC		33.3	%		33.3	%
Inland	CDH CDO LLC		24.8	%		24.8	%
Inland (1)	Concord Debt Holdings LLC		33.3	%		33.3	%
Inland (1)	CDH CDO LLC		24.8	%		24.8	%
Marc Realty	Atrium Mall LLC		50.0	%		50.0	%
New Valley/Witkoff	701 Seventh WRT Investor LLC		81.0	%		81.0	%
RS Summit Pointe (2)	RS Summit Pointe Apartments LLC		80.0	%		80.0	%
Freed	Edens Plaza Associates LLC		<1	%		<1	%
Freed (2)	Irving-Harlem Venture Limited		<1	%		<1	%

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

(2) Investment was previously consolidated under going concern accounting. See Note 3 “Liquidation Basis of Accounting” for further discussion.

At March 31, 2015 there is a basis differential for each investment between the Trust’s carrying value of its investments and the basis reflected at the joint venture’s level. The basis differential primarily relates to the difference between the net realizable value of the investment and the book basis of the Trust’s equity in the joint venture. The basis differential is considered in the Trust’s calculation of the net realizable value.

Vintage Housing Holdings – On January 2, 2015 the Trust contributed an additional $5,645,000 to the venture to acquire the limited partner interests in two of the underlying properties. On January 23, 2015 the Trust entered into an agreement to sell its interest in the Vintage Housing Holdings LLC venture for approximately $85,585,000. The buyer’s $7,500,000 deposit under the purchase agreement became non-refundable, subject to customary conditions including obtaining certain third party consents, on February 13, 2015. If consummated, the sale is expected to close in the second quarter of 2015.

701 Seventh Avenue – The Trust invested an additional $1,529,000 in this venture in the first quarter of 2015 bringing its total invested capital in the venture to $108,152,000 at March 31, 2015. In April 2015 the Trust invested an additional $673,000 in this venture. The Trust has committed to invest up to $125,000,000 in the aggregate to this venture.