Equity Investments

3 Months Ended

Mar. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

Equity Investments

7. 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, 2016 and December 31, 2015:

Venture Partner	Equity Investment	Nominal % Ownership at March 31, 2016			Nominal % Ownership at December 31, 2015
Elad Canada Ltd (1)	WRT One South State		50.0	%		50.0	%
	Lender LP
Elad Canada Ltd (1)	WRT-Elad One South State		50.0	%		50.0	%
	Equity LP
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 (2)	701 Seventh WRT Investor LLC		81.0	%		81.0	%
RS Summit Pointe (3)	RS Summit Pointe Apartments LLC		80.0	%		80.0	%
Serure/CB High Line (4)	446 Highline LLC		84.99	%		83.6	%

(1) The Trust sold its interest in this venture on April 27, 2016.

(2) The Trust’s investment in this venture provides the Trust with a 61.14% effective ownership interest in the underlying property.

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

(4) The investment was reclassified as an equity investment as of December 31, 2015 due to a change in exit strategy. The investment was included in investments in real estate in previous filings. The nominal ownership percentage is based on the waterfall provision of the partnership. See Note 3 “Liquidation Basis of Accounting” for further discussion.

701 Seventh Avenue – The Trust invested an additional $5,197,000 in this venture in the first quarter of 2016 bringing its total invested capital in the venture to $120,686,000 at March 31, 2016. To date in the second quarter of 2016 the Trust has invested an additional $1,345,000 in this venture. The Trust has committed to invest up to $125,000,000 in the aggregate to this venture.

Sullivan Center – The Trust had committed to fund 100% of retail tenant improvements and capital expenditure needs and 80% of office tenant improvements and capital expenditure needs at the Sullivan Center property in Chicago, Illinois that were not met by current operating cash flow at the property. The Trust funded $2,794,000 in the first quarter of 2016 for improvements. All amounts funded were considered additions to the mezzanine loan and accrued interest at the rate of 15% per annum.

On April 27, 2016 the Trust sold its interests in WRT One South State Lender LP and WRT-Elad One South State Equity LP to its venture partner for aggregate gross proceeds of $95,270,000. The sale of its interest in WRT One South State Lender LP includes the ownership interest in the mezzanine loan that was classified as a secured financing for financial reporting purposes.