Equity Investments

9 Months Ended

Sep. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

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 September 30, 2015 and December 31, 2014:


Venture Partner	Equity Investment	Nominal % Ownership at September 30, 2015			Nominal % Ownership at December 31, 2014

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		66.6	%		66.6	%
Inland	CDH CDO LLC		49.6	%		49.6	%
Marc Realty	Atrium Mall LLC		50.0	%		50.0	%
New Valley/Witkoff	701 Seventh WRT Investor LLC		81.0	%		81.0	%
RS Summit Pointe (1)	RS Summit Pointe Apartments LLC		80.0	%		80.0	%
Freed (3)	Edens Plaza Associates LLC		<1	%		<1	%
Freed (1) (3)	Irving-Harlem Venture Limited		<1	%		<1	%
Gancar Trust (2)	Vintage Housing Holdings LLC		n/a			75.0	%

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

(2)	The Trust’s investment was sold during the nine months ended September 30, 2015.

(3)	The Trust’s investment was sold during the fourth quarter of 2015.

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. During the six months ended June 30, 2015 the Trust received distributions, inclusive of return of capital distributions, totaling $4,959,000 from the venture. On June 1, 2015 the Trust sold its interest in Vintage Housing Holdings LLC to an independent third party and received net proceeds of approximately $82,471,000. The liquidation value of this investment was $82,928,000 at December 31, 2014.

Concord Debt Holdings – During May 2015 the Trust received a distribution of $20,173,000 from its Concord Debt Holdings LLC venture. The distribution was in connection with the sale of the luxury hotel assets owned by the MSREF hotel venture in which Concord Debt Holdings LLC holds an interest.

701 Seventh Avenue – The Trust has invested an additional $5,258,000 in this venture in the first nine months of 2015. As of September 30, 2015 the Trust has total invested capital in the venture of $111,882,000. In October 2015 the Trust invested an additional $1,039,000 in this venture bringing its total invested capital in the venture to $112,921,000 at October 31, 2015.

CDH CDO LLC - On June 25, 2015 the venture closed on the sale of four bond assets and one loan asset for gross proceeds of $54,122,000. The proceeds of the sale were utilized to fully satisfy the debt of the venture. Additionally, in June 2015 a loan asset held by the venture was repaid at par, which was consistent with the Trust’s liquidation value at December 31, 2014. On July 1, 2015 the Trust received a $6,200,000 distribution from this venture.

Edens Center and Norridge Commons – On October 9, 2015, in connection with the repayment in full of the loan receivable collateralized by the Edens Center and Norridge Commons properties, the Trust sold its general partner interests in the two properties for an aggregate price of $493,000 pursuant to the terms of an existing option agreement. The sale price was consistent with the Trust’s liquidation value at September 30, 2015.