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Investments in and Advances to Unconsolidated Affiliates (Tables)
 3 Months Ended
Mar. 31, 2019
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,

 

Portfolio

 

Property

 

March 31, 2019

 

 

2019

 

 

2018

 

Core:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

840 N. Michigan (a)

 

88.43%

 

 

$

64,561

 

 

$

65,013

 

 

 

Renaissance Portfolio

 

20%

 

 

 

33,059

 

 

 

32,458

 

 

 

Gotham Plaza

 

49%

 

 

 

29,399

 

 

 

29,550

 

 

 

Town Center (a, b)

 

75.22%

 

 

 

99,106

 

 

 

99,758

 

 

 

Georgetown Portfolio

 

50%

 

 

 

4,761

 

 

 

4,653

 

 

 

 

 

 

 

 

 

 

230,886

 

 

 

231,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mervyns I & II:

 

KLA/Mervyn's, LLC (c)

 

10.5%

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund III:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund III Other Portfolio

 

90%

 

 

 

17

 

 

 

21

 

 

 

Self Storage Management (d)

 

95%

 

 

 

206

 

 

 

206

 

 

 

 

 

 

 

 

 

 

223

 

 

 

227

 

Fund IV:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broughton Street Portfolio (e)

 

50%

 

 

 

3,149

 

 

 

3,236

 

 

 

Fund IV Other Portfolio

 

90%

 

 

 

13,922

 

 

 

14,540

 

 

 

650 Bald Hill Road

 

90%

 

 

 

12,704

 

 

 

12,880

 

 

 

 

 

 

 

 

 

 

29,775

 

 

 

30,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund V:

 

Family Center at Riverdale

 

90%

 

 

 

48,610

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Various Funds:

 

Due (to) from Related Parties (f)

 

 

 

 

 

 

(701

)

 

 

(461

)

 

 

Other (g)

 

 

 

 

 

 

556

 

 

 

556

 

 

 

Investments in and advances to

unconsolidated affiliates

 

 

 

 

 

$

309,349

 

 

$

262,410

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crossroads (h)

 

49%

 

 

$

15,415

 

 

$

15,623

 

 

 

Distributions in excess of income from,

and investments in, unconsolidated affiliates

 

 

 

 

 

$

15,415

 

 

$

15,623

 

 

 

(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, discussed below, have exceeded the Company’s non-recourse investment, therefore the carrying value is zero.

 

(d)

Represents a variable interest entity for which the Company was determined not to be the primary beneficiary.

 

(e)

The Company is entitled to a 15% return on its cumulative capital contribution which was $3.0 million at both March 31, 2019 and December 31, 2018. In addition, the Company is entitled to a 9% preferred return on a portion of its equity, which was $2.8 million at both March 31, 2019 and December 31, 2018.

 

(f)

Represents deferred fees.

 

(g)

Includes a cost-method investment in Albertson’s (Note 8), Storage Post and other investments.

 

(h)

Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may be required to return distributions 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,

2019

 

 

December 31,

2018

 

Combined and Condensed Balance Sheets

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

Rental property, net

 

$

571,205

 

 

$

488,000

 

Investment in unconsolidated affiliates

 

 

6,853

 

 

 

6,853

 

Other assets

 

 

68,921

 

 

 

91,497

 

Total assets

 

$

646,979

 

 

$

586,350

 

Liabilities and partners’ equity:

 

 

 

 

 

 

 

 

Mortgage notes payable

 

$

444,642

 

 

$

408,967

 

Other liabilities

 

 

59,303

 

 

 

54,675

 

Partners’ equity

 

 

143,034

 

 

 

122,708

 

Total liabilities and partners’ equity

 

$

646,979

 

 

$

586,350

 

 

 

 

 

 

 

 

 

 

Company's share of accumulated equity

 

$

189,463

 

 

$

141,384

 

Basis differential

 

 

103,360

 

 

 

104,084

 

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

 

 

1,812

 

 

 

1,780

 

Amounts payable by the Company

 

 

(701

)

 

 

(461

)

Investments in and advances to unconsolidated affiliates, net of Company's

   share of distributions in excess of income from and investments in

   unconsolidated affiliates

 

 

293,934

 

 

 

246,787

 

Company's share of distributions in excess of income from and

   investments in unconsolidated affiliates

 

 

15,415

 

 

 

15,623

 

Investments in and advances to unconsolidated affiliates

 

$

309,349

 

 

$

262,410

 
Schedule of Condensed Income Statement

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Combined and Condensed Statements of Income

 

 

 

 

 

 

 

 

Total revenues

 

$

19,973

 

 

$

20,156

 

Operating and other expenses

 

 

(5,106

)

 

 

(5,921

)

Interest expense

 

 

(4,776

)

 

 

(4,874

)

Depreciation and amortization

 

 

(4,792

)

 

 

(6,055

)

Loss on disposition of properties

 

 

—

 

 

 

(418

)

Net income attributable to unconsolidated affiliates

 

$

5,299

 

 

$

2,888

 

 

 

 

 

 

 

 

 

 

Company’s share of equity in net income of unconsolidated affiliates

 

$

2,995

 

 

$

2,267

 

Basis differential amortization

 

 

(724

)

 

 

(583

)

Company’s equity in earnings of unconsolidated affiliates

 

$

2,271

 

 

$

1,684