The following table summarizes our investment in an unconsolidated joint venture (dollar amounts in thousands):

(1)

We have concluded that the JV is a variable interest entity (“VIE”) in accordance with GAAP. However, because we do not control the entity, nor do we have any role in the day-to-day management, we are not the primary beneficiary of the JV. Therefore, we account for the JV investment using the equity method.

(2)	Effective second quarter of 2019, this JV was placed on cash basis due to delinquency of our preferred return.

Subsequent to September 30, 2019, the JV in which we hold our preferred equity investment signed a letter of intent for the sale of the four properties comprising the JV. Concurrently, the JV is pursuing a refinancing alternative to take advantage of lower interest rates in today’s market. Based upon the information available to us regarding available alternatives and courses of action as of September 30, 2019, we performed a recoverability test on the carrying amount of our preferred equity investment and concluded the preferred equity investment was not impaired.

The following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures (in thousands):


	Type
	of			Capital			Income			Cash Interest
Year	Properties			Contribution			Recognized			Received
2019	ALF/MC/ILF		$	394		$	614		$	1,166
	ALF/ILF/MC	⁽¹⁾		—	⁽¹⁾		955	⁽¹⁾		979	⁽¹⁾
	ALF/MC	⁽²⁾		—	⁽²⁾		404	⁽²⁾		432	⁽²⁾
Total			$	394		$	1,973		$	2,577

2018	ALF/MC/ILF		$	580		$	1,490		$	1,436
	ALF/ILF/MC	⁽¹⁾		—	⁽¹⁾		383	⁽¹⁾		291	⁽¹⁾
	ALF/MC	⁽²⁾		—	⁽²⁾		230	⁽²⁾		—	⁽²⁾
Total			$	580		$	2,103		$	1,727

(1)

We had a $2,900 mezzanine loan commitment for a 99-unit seniors housing community in Florida with a total preferred return of 15%. The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. Since interest payments were deferred and no interest was recorded for the first twelve months of the loan, we used the effective interest method in accordance with GAAP to recognize interest income and recorded the difference between the effective interest income and cash interest income to the loan principal balance. During the third quarter of 2019, the mezzanine loan was paid off.

(2)

We had a $3,400 mezzanine loan commitment for the development of a 127-unit seniors housing community in Florida with a total preferred return of 15%. The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. During the first quarter of 2019, the mezzanine loan was paid off.