Investment in Joint Ventures (Equity Method)

9 Months Ended

Sep. 30, 2017

Equity Method Investments and Joint Ventures [Abstract]

Investment in Joint Ventures (Equity Method)

(11) Investments in Joint Ventures (Equity Method).

Brooksville. In 2006, the Company entered into a Joint Venture Agreement with Vulcan Materials Company to jointly own and develop approximately 4,300 acres of land near Brooksville, Florida. Under the terms of the joint venture, FRP contributed its fee interest in approximately 3,443 acres formerly leased to Vulcan under a long-term mining lease which had a net book value of $2,548,000. Vulcan is entitled to mine a portion of the property until 2032 and pay royalties to the Company. FRP also contributed $3,018,000 for one-half of the acquisition costs of a 288-acre contiguous parcel. Vulcan contributed 553 acres that it owned as well as its leasehold interest in the 3,443 acres that it leased from FRP and $3,018,000 for one-half of the acquisition costs of the 288-acre contiguous parcel. The joint venture is jointly controlled by Vulcan and FRP. Distributions will be made on a 50-50 basis except for royalties and depletion specifically allocated to the Company. Other income for the nine months ended September 30, 2017 includes a loss of $31,000 representing the Company’s portion of the loss of this joint venture.

BC FRP Realty (Windlass Run). During the quarter ending March 2016, we entered into an agreement with a Baltimore development company (St. John Properties, Inc.) to jointly develop the remaining lands of our Windlass Run Business Park. The 50/50 partnership initially calls for FRP to combine its 25 acres (valued at $7,500,000) with St. John Properties’ adjacent 10 acres fronting on a major state highway (valued at $3,239,536) which resulted in an initial cash distribution of $2,130,232 to FRP in May, 2016. Thereafter, the venture will jointly develop the combined properties into a multi-building business park to consist of approximately 329,000 square feet of single story office space.

Investments in Joint Ventures (in thousands):

							The
							Company's
				Total Assets	Net Loss		Share of Net
			Total	of the	of the		Loss of the
	Ownership		Investment	Partnership	Partnership		Partnership
As of September 30, 2017
RiverFront Holdings I, LLC (1)	—		—	—	$   (2,019	)	$   (1,558	)
Brooksville Quarry, LLC	50.00	%	$   7,487	$ 14,445	(62	)	(31	)
BC FRP Realty, LLC	50.00	%	5,858	12,298	—		—
Total			$ 13,345	$ 26,743	$  (2,081	)	$  (1,589	)
As of December 31, 2016
RiverFront Holdings I, LLC	77.14	%	$10,151	$90,420	$   (1,446	)	$   (1,115	)
Brooksville Quarry, LLC	50.00	%	7,522	14,341	(8	)	(4	)
BC FRP Realty, LLC	50.00	%	5,228	10,784	—		—
Total			$  22,901	$ 115,545	$  (1,454	)	$  (1,119	)

(1) The Company consolidated this joint venture effective July 1, 2017 (see Footnote 12).

Balance Sheet at December 31, 2016 (in thousands):

	As of December 31, 2016
	Riverfront		Brooksville		BC FRP
	Holdings I, LLC		Quarry, LLC		Realty, LLC		Total
Cash	$	1,023	$	18	$	21	$	1,062
Cash held in escrow		88		—		—		88
Investments in real estate, net		89,309		14,323		10,763		114,395
Total Assets	$	90,420	$	14,341	$	10,784	$	115,545
Other Liabilities	$	6,348	$	1	$	47	$	6,396
Long-term Debt		69,042		—		—		69,042
Capital – FRP		10,151		7,522		5,228		22,901
Capital - Third Parties		4,879		6,818		5,509		17,206
Total Liabilities and Capital	$	90,420	$	14,341	$	10,784	$	115,545

Income statements for the RiverFront Holdings I, LLC, prior to consolidation July 1, 2017 (in thousands):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2017		2016			2017			2016
Revenues:
Rental Revenue	$	—		—		$	3,053			127
Revenue – Reimbursements		—		127			33			—
Total Revenues		—		127			3,086			127
Cost of operations:
Depreciation and amortization		—		228			1,958			325
Operating expenses		—		405			1,096			621
Property taxes		—		41			459			41
Total cost of operations		—		674			3,513			987
Total operating profit		—		(547	)		(427	)		(860	)
Interest expense		—		(280	)		(1,592	)		(280	)
Net loss of the Partnership	$	—		(827	)	$	(2,019	)		(1,140	)

The amount of consolidated accumulated deficit for these joint ventures was $(2,633,000) and $(1,667,000) as of September 30, 2017 and December 31, 2016 respectively.