Investments in Unconsolidated Real Estate Entities

9 Months Ended

Sep. 30, 2015

Equity Method Investments And Joint Ventures [Abstract]

Investments in Unconsolidated Real Estate Entities

3. INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

At September 30, 2015, the Company held investments in two individual limited liability companies (the “Apartment LLCs”) with institutional investors that own four apartment communities, including three communities located in Atlanta, Georgia and one community located in Washington, D.C.  The Company has a 25% and 35% equity interest in these Apartment LLCs.  

The Company accounts for its investments in the Apartment LLCs using the equity method of accounting.  At September 30, 2015 and December 31, 2014, the Company’s investment in the 35% owned Apartment LLC totaled $3,983 and $4,059, respectively, excluding the credit investments discussed below.  The Company’s investment in the 25% owned Apartment LLC at September 30, 2015 and December 31, 2014 reflects a credit investment of $15,882 and $16,624, respectively.  These credit balances resulted from distribution of financing proceeds in excess of the Company’s historical cost upon the formation of the Apartment LLC and are reflected in consolidated liabilities on the Company’s consolidated balance sheet.  The operating results of the Company include its allocable share of net income from the investments in the Apartment LLCs.  The Company provides property and asset management services to the Apartment LLCs for which it earns fees.  

A summary of financial information for the Apartment LLCs in the aggregate is as follows:

	September 30,			December 31,
Apartment LLCs - Balance Sheet Data	2015			2014
Real estate assets, net of accumulated depreciation of $53,466    and $52,012 at September 30, 2015 and December 31, 2014,    respectively	$	208,287		$	208,493
Cash and other		6,512			5,490
Total assets	$	214,799		$	213,983
Mortgage notes payable	$	177,723		$	177,723
Other liabilities		2,535			3,445
Total liabilities		180,258			181,168
Members' equity		34,541			32,815
Total liabilities and members' equity	$	214,799		$	213,983
Company's equity investment in Apartment LLCs (1)	$	(11,899	)	$	(12,565	)

1) At September 30, 2015 and December 31, 2014, the Company’s equity investment includes its credit investments of $15,882 and

$16,624, respectively, discussed above.

	Three months ended				Nine months ended
	September 30,				September 30,
Apartment LLCs - Income Statement Data	2015		2014		2015		2014
Revenues
Rental	$	7,036	$	6,701	$	20,677	$	19,821
Other property revenues		494		481		1,487		1,410
Total revenues		7,530		7,182		22,164		21,231
Expenses
Property operating and maintenance		2,762		3,167		8,919		8,749
Depreciation and amortization		1,479		1,412		4,391		4,175
Interest		2,278		2,278		6,774		6,774
Total expenses		6,519		6,857		20,084		19,698
Net income	$	1,011	$	325	$	2,080	$	1,533
Company's share of net income in Apartment LLCs	$	603	$	422	$	1,568	$	1,408

At September 30, 2015, mortgage notes payable included four mortgage notes.  The first $51,000 mortgage note bears interest at 3.50%, requires monthly interest only payments and matures in 2019.  The second and third mortgage notes total $85,724, bear interest at 5.63%, require interest only payments and mature in 2017.  The fourth mortgage note totals $41,000, bears interest at 5.71%, requires interest only payments, and matures in January 2018 with a one-year automatic extension at a variable interest rate.