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Investments in and Advances to Unconsolidated Affiliates (Tables)
 3 Months Ended
Mar. 31, 2018
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, 2018
 
December 31, 2017
Fund
Property
March 31, 2018
 
 
Core:
 
 
 
 
 
 
 
840 N. Michigan (a)
88.43%
 
$
69,265

 
$
69,846

 
Renaissance Portfolio
20%
 
34,294

 
35,041

 
Gotham Plaza
49%
 
29,408

 
29,416

 
Town Center (a, b)
75.22%
 
100,918

 
78,801

 
Georgetown Portfolio
50%
 
3,540

 
3,479

 
 
 
 
237,425

 
216,583

 
 
 
 
 
 
 
Mervyns I & II:
KLA/Mervyn's, LLC (c)
10.5%
 
—

 
—

 
 
 
 
 
 
 
Fund III:
 
 
 
 
 
 
 
Fund III Other Portfolio
90%
 
161

 
167

 
Self Storage Management (d)
95%
 
206

 
206

 
 
 
 
367

 
373

Fund IV:
 
 
 
 
 
 
 
Broughton Street Portfolio (e)
50%
 
41,331

 
48,335

 
Fund IV Other Portfolio
90%
 
16,101

 
20,199

 
650 Bald Hill Road
90%
 
13,506

 
13,609

 
 
 
 
70,938

 
82,143

 
 
 
 
 
 
 
Various Funds:
Due from Related Parties (f)
 
 
2,254

 
2,415

 
Other (g)
 
 
556

 
556

 
Investments in and advances to unconsolidated affiliates
 
$
311,540

 
$
302,070

 
 
 
 
 
 
 
Core:
 
 
 
 
 
 
 
Crossroads (h)
49%
 
$
15,226

 
$
15,292

 
Distributions in excess of income from,
and investments in, unconsolidated affiliates
 
$
15,226

 
$
15,292

__________

(a)
Represents a tenancy-in-common interest.
(b)
During November 2017 and March 2018, as discussed below, the Company increased its ownership in Town Center
(c)
Distributions have exceeded the Company’s non-recourse investment, therefore the carrying value is zero.
(d)
Represents a variable interest entity.
(e)
The Company is entitled to a 15% return on its cumulative capital contribution which was $15.7 million and $15.4 million at March 31, 2018 and December 31, 2017, respectively. In addition, the Company is entitled to a 9% preferred return on a portion of its equity, which was $30.2 million and $36.8 million at March 31, 2018 and December 31, 2017, respectively.
(f)
Represents deferred fees.
(g)
Includes a cost-method investment in Albertson’s (Note 8) and other investments.
(h)
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,
 
 
2018
 
2017
Combined and Condensed Balance Sheets
 
 

 
 

Assets:
 
 

 
 

Rental property, net
 
$
509,634

 
$
518,900

Real estate under development
 
24,976

 
26,681

Investment in unconsolidated affiliates
 
6,853

 
6,853

Other assets
 
95,934

 
100,901

Total assets
 
$
637,397

 
$
653,335

Liabilities and partners’ equity:
 
 

 
 

Mortgage notes payable
 
$
405,955

 
$
405,652

Other liabilities
 
60,950

 
61,932

Partners’ equity
 
170,492

 
185,751

Total liabilities and partners’ equity
 
$
637,397

 
$
653,335

 
 
 
 
 
Company's share of accumulated equity
 
$
183,602

 
$
185,533

Basis differential
 
107,347

 
95,358

Deferred fees, net of portion related to the Company's interest
 
3,111

 
3,472

Amounts receivable by the Company
 
2,254

 
2,415

Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates
 
296,314

 
286,778

Company's share of distributions in excess of income from and investments in unconsolidated affiliates
 
15,226

 
15,292

Investments in and advances to unconsolidated affiliates
 
$
311,540

 
$
302,070
Schedule of Condensed Income Statement
 
 
Three Months Ended March 31,
 
 
2018
 
2017
Combined and Condensed Statements of Income
 
 
 
 
Total revenues
 
$
20,156

 
$
21,603

Operating and other expenses
 
(5,921
)
 
(5,866
)
Interest expense
 
(4,874
)
 
(4,538
)
Depreciation and amortization
 
(6,055
)
 
(6,449
)
Loss on debt extinguishment
 
—

 
(151
)
(Loss) gain on disposition of properties
 
(418
)
 
14,446

Net income attributable to unconsolidated affiliates
 
$
2,888

 
$
19,045

 
 
 
 
 
Company’s share of equity in
net income of unconsolidated affiliates
 
$
2,267

 
$
13,569

Basis differential amortization
 
(583
)
 
(866
)
Company’s equity in earnings of unconsolidated affiliates
 
$
1,684

 
$
12,703