Investments in Partially Owned Entities

6 Months Ended

Jun. 30, 2011

Investments in Partially Owned Entities [Abstract]

Investments in Partially Owned Entities

6. Investments in Partially Owned Entities

     The Company has co-invested in various properties with unrelated third parties which are either consolidated or accounted for under the equity method of accounting (unconsolidated). The following tables and information summarize the Company’s investments in partially owned entities as of June 30, 2011 (amounts in thousands except for project and apartment unit amounts):

	Consolidated
	Development Projects (VIEs)
	Held for		Completed
	and/or Under		and
	Development		Stabilized			Other			Total
Total projects (1)		—		3			19			22
Total apartments units (1)		—		931			3,440			4,371
Balance sheet information at 6/30/11 (at 100%):
ASSETS
Investment in real estate	$	25,067	$	376,057		$	440,998		$	842,122
Accumulated depreciation		—		(13,937	)		(131,837	)		(145,774	)
Investment in real estate, net		25,067		362,120			309,161			696,348
Cash and cash equivalents		527		2,870			9,777			13,174
Deposits — restricted		1,120		3,560			22,887			27,567
Escrow deposits — mortgage		—		48			—			48
Deferred financing costs, net		—		1,791			984			2,775
Other assets		126		181			106			413
Total assets	$	26,840	$	370,570		$	342,915		$	740,325
LIABILITIES AND EQUITY/CAPITAL
Mortgage notes payable	$	—	$	232,530		$	182,637		$	415,167
Accounts payable & accrued expenses		253		1,106			1,566			2,925
Accrued interest payable		—		333			573			906
Other liabilities		1,277		558			1,157			2,992
Security deposits		—		1,306			1,469			2,775
Total liabilities		1,530		235,833			187,402			424,765
Noncontrolling Interests — Partially Owned Properties		2,179		6,104			(4,988	)		3,295
Company equity/General and Limited Partners’ Capital		23,131		128,633			160,501			312,265
Total equity/capital		25,310		134,737			155,513			315,560
Total liabilities and equity/capital	$	26,840	$	370,570		$	342,915		$	740,325
Debt — Secured (2):
Company/Operating Partnership Ownership (3)	$	—	$	232,530		$	152,017		$	384,547
Noncontrolling Ownership		—		—			30,620			30,620
Total (at 100%)	$	—	$	232,530		$	182,637		$	415,167

	Consolidated
	Development Projects (VIEs)
	Held for
	and/or Under			Completed
	Development			and Stabilized			Other			Total
Operating information for the six months ended 6/30/11 (at 100%):
Operating revenue	$	—		$	10,763		$	28,261		$	39,024
Operating expenses		124			3,848			9,371			13,343
Net operating (loss) income		(124	)		6,915			18,890			25,681
Depreciation		—			5,872			7,491			13,363
General and administrative/other		103			5			27			135
Operating (loss) income		(227	)		1,038			11,372			12,183
Interest and other income		4			4			8			16
Other expenses		(207	)		—			(14	)		(221	)
Interest:
Expense incurred, net		(399	)		(4,440	)		(6,785	)		(11,624	)
Amortization of deferred financing costs		—			(1,337	)		(324	)		(1,661	)
(Loss) income before income and other taxes and net gains
on sales of land parcels and discontinued operations		(829	)		(4,735	)		4,257			(1,307	)
Income and other tax (expense) benefit		(57	)		—			(8	)		(65	)
Net gain on sales of land parcels		4,217			—			—			4,217
Net gain on sales of discontinued operations		169			—			—			169
Net income (loss)	$	3,500		$	(4,735	)	$	4,249		$	3,014

(1)	Project and apartment unit counts exclude all uncompleted development projects until those projects are substantially completed.
(2)	All debt is non-recourse to the Company with the exception of $14.0 million in mortgage debt on one development project.
(3)	Represents the Company’s/Operating Partnership’s current economic ownership interest.

     In 2010, the Company admitted an 80% institutional partner to an entity owning a developable land parcel in Florida in exchange for $11.7 million in cash and retained a 20% equity interest. This land parcel is now unconsolidated. Total project cost is approximately $78.2 million and construction will be predominantly funded with a long-term, non-recourse secured loan from the partner. The Company is responsible for constructing the project and has given certain construction cost overrun guarantees. The Company’s remaining funding obligation is currently estimated at approximately $2.4 million.

     The Company is the controlling partner in various consolidated partnership properties and development properties having a noncontrolling interest book value of $3.3 million at June 30, 2011. The Company has identified its development partnerships as VIEs as the Company provides substantially all of the capital for these ventures (other than third party mortgage debt, if any) despite the fact that each partner legally owns 50% of each venture. The Company is the primary beneficiary as it exerts the most significant power over the ventures, absorbs the majority of the expected losses and has the right to receive a majority of the expected residual returns. The assets net of liabilities of the Company’s VIEs are restricted in their use to the specific VIE to which they relate and are not available for general corporate use. The Company does not have any unconsolidated VIEs.