Investments in and Advances to Unconsolidated Joint Ventures

12 Months Ended

Dec. 31, 2016

Investments in and Advances to Unconsolidated Joint Ventures

Investments in and Advances to Unconsolidated Joint Ventures

NOTE 8.    Investments in and Advances to Unconsolidated Joint Ventures

The Company owns interests in the following entities that are accounted for under the equity method (dollars in thousands):

			Carrying Amount
			December 31,
Entity(1)	Segment	Ownership %	2016		2015
CCRC JV(2)	SHOP	49	$	439,449		$	465,179
MBK JV(3)	SHOP	50		38,909			34,131
HCP Ventures III, LLC	Medical office	30		1,533			9,241
HCP Ventures IV, LLC	Medical office	20		7,277			11,884
HCP Life Science(4)	Life science	50-63		67,879			68,582
Vintage Park	SHOP	85		7,486			8,729
MBK Development JV(3)	SHOP	50		2,463			2,224
Suburban Properties, LLC	Medical office	67		4,628			4,621
K&Y(5)	Other	80		1,342			—
Advances to unconsolidated joint ventures, net and other				525			653
			$	571,491		$	605,244

(1) These entities are not consolidated because the Company does not control, through voting rights or other means, the joint ventures.

(2) Includes two unconsolidated joint ventures in a RIDEA structure (CCRC PropCo and CCRC OpCo).

(3) Includes two unconsolidated joint ventures in a RIDEA structure (PropCo and OpCo).

(4) Includes three unconsolidated joint ventures between the Company and an institutional capital partner for which the Company is the managing member. HCP Life Science includes the following partnerships (and the Company’s ownership percentage): (i) Torrey Pines Science Center, LP (50%); (ii) Britannia Biotech Gateway, LP (55%); and (iii) LASDK, LP (63%).

(5) Includes three unconsolidated joint ventures.

MBK JV

On March 30, 2015, the Company and MBK Senior Living (“MBK”), a subsidiary of Mitsui & Co. Ltd, formed a new RIDEA joint venture (“MBK JV”) that owns three senior housing facilities with the Company and MBK each owning a 50% equity interest. MBK manages these communities on behalf of the joint venture. The Company contributed $27 million of cash and MBK contributed the three senior housing facilities with a fair value of $126 million, which were encumbered by $78 million of mortgage debt at closing.

HCP Ventures III, LLC and HCP Ventures IV, LLC

On December 30, 2015, HCP Ventures III, LLC (“HCP Ventures III”) and HCP Ventures IV, LLC (“HCP Ventures IV”) sold 61 MOBs, three hospitals and a re-development property for total proceeds of $634 million, recognizing gains on sales of real estate of $59 million, of which the Company’s share was $15 million. As part of these sales, the Company received aggregate distributions of $45 million, including repayment of its loan receivable. During the quarter ended December 31, 2016, HCP Ventures III sold the remaining three assets in its portfolio for $31 million, recognizing gains on sales of real estate of $4.9 million, of which the Company’s share was $1.3 million. As part of this sale, the Company received aggregate distributions of $8 million.