Notes Receivable From Real Estate Joint Ventures And Partnerships

6 Months Ended

Jun. 30, 2011

Notes Receivable From Real Estate Joint Ventures And Partnerships

Notes Receivable From Real Estate Joint Ventures And Partnerships

Note 11. Notes Receivable from Real Estate Joint Ventures and Partnerships

We have ownership interests in a number of real estate joint ventures and partnerships. Notes receivable from these entities bear interest ranging from approximately 2.8% to 10.0%. These notes are due at various dates through 2013 and are generally secured by real estate assets. We believe these notes are fully collectible, and no allowance has been recorded. Interest income recognized on these notes was $.9 million for both the three months ended June 30, 2011 and 2010, respectively, and $1.7 million and $2.4 million for the six months ended June 30, 2011 and 2010, respectively.

In April 2011, we acquired our partner's 50% unconsolidated joint venture interest in a Florida development property, which includes the extinguishment of $21.9 million of our notes receivable from real estate joint ventures and partnerships.

Subsequent to June 30, 2011, two notes receivable related to a joint venture development project in Aurora, Colorado matured and were temporarily extended to allow the equity holders to continue evaluating refinancing options. The first note totals $17.6 million including accrued interest at June 30, 2011, and is secured by our partner's interest in the joint venture that owns the development project. The second note of $43.0 million including accrued interest at June 30, 2011, is secured by the development property and future public financing funds. Prior to maturity, these notes receivable were current on interest payments, and nonscheduled principal payments had been received due to excess cash flows from the operating property. At this time, we can provide no assurances that the notes will be refinanced by us or repaid as a result of obtaining third party financing. Under these circumstances, we would have to consider all available alternatives including foreclosure on the notes' collateral.