Investments in and Advances to Unconsolidated Affiliates (Tables)

3 Months Ended

Mar. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Method Investments

The Company’s investments in and advances to unconsolidated affiliates consist of the following (dollars in thousands):

		Nominal Ownership Interest	March 31,		December 31,
Fund	Property	at March 31, 2017	2017		2016
Core:
	840 N. Michigan (a)	88.43%	$	73,355	$	74,131
	Renaissance Portfolio	20%	36,097		36,437
	Gotham Plaza	49%	29,396		29,421
	Brandywine Portfolio (a)	22.22%	20,449		20,755
	Georgetown Portfolio	50%	4,237		4,287
			163,534		165,031
Mervyns I & II:	KLA/Mervyn's, LLC (b)	10.5%	—		—
Fund III:
	Fund III Other Portfolio	90%	225		8,108
	Self Storage Management (c)	95%	241		241
			466		8,349
Fund IV:
	Broughton Street Portfolio (d)	50%	56,313		54,839
	Fund IV Other Portfolio	90%	17,927		21,817
	650 Bald Hill Road	90%	19,027		18,842
			93,267		95,498
	Due from Related Parties (e)		2,273		2,193
	Other		957		957
	Investments in and advances to unconsolidated affiliates		$	260,497	$	272,028
Core:
	Crossroads (f)	49%	$	15,221	$	13,691
	Distributions in excess of income from, and investments in, unconsolidated affiliates		$	15,221	$	13,691

__________

(a) Represents a tenancy-in-common interest.

(b) Distributions have exceeded the Company’s non-recourse investment, therefore the carrying value is zero.

(c) Represents a variable interest entity.

(d) The Company is entitled to a 15% return on its cumulative capital contribution and a 9% preferred return on the balance of the loan it converted to equity during 2016, which was $14.9 million and $46.4 million at March 31, 2017, respectively.

(e) Represents deferred fees.

(f) Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may be required to fund future obligations of the entity.

Schedule of Condensed Balance Sheet

The following combined and condensed Balance Sheets and Statements of Income, in each period, summarize the financial information of the Company’s investments in unconsolidated affiliates (in thousands):

	March 31,		December 31,
	2017		2016
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	549,632	$	576,505
Real estate under development	16,837		18,884
Investment in unconsolidated affiliates	6,853		6,853
Other assets	101,144		75,254
Total assets	$	674,466	$	677,496
Liabilities and partners’ equity:
Mortgage notes payable	$	389,198	$	407,344
Other liabilities	58,909		30,117
Partners’ equity	226,359		240,035
Total liabilities and partners’ equity	$	674,466	$	677,496
Company's share of accumulated equity	$	177,805	$	191,049
Basis differential	60,520		61,827
Deferred fees, net of portion related to the Company's interest	4,678		3,268
Amounts receivable by the Company	2,273		2,193
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates	$	245,276	$	258,337

Schedule of Condensed Income Statement

	Three Months Ended March 31,
	2017			2016
Combined and Condensed Statements of Income
Total revenues	$	21,603		$	13,372
Operating and other expenses	(5,866		)	(3,730		)
Interest expense	(4,538		)	(2,736		)
Depreciation and amortization	(6,449		)	(3,880		)
Loss on debt extinguishment	(151		)	—
Gain on disposition of properties	14,446			—
Net income attributable to unconsolidated affiliates	$	19,045		$	3,026
Company’s share of equity in net income of unconsolidated affiliates	$	13,569		$	2,052
Basis differential amortization	(866		)	(98		)
Company’s equity in earnings of unconsolidated affiliates	$	12,703		$	1,954