Investment in and Advances to Non-Consolidated Entities

12 Months Ended

Dec. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Investment in and Advances to Non-Consolidated Entities

Investment in and Advances to Non-Consolidated Entities

As of December 31, 2015, the Company had ownership interests ranging from 15% to 40% in certain non-consolidated entities, which primarily own single-tenant net-leased assets. The acquisitions of these assets by the non-consolidated entities were partially funded through non-recourse mortgage debt with an aggregate balance of $47,621 at December 31, 2015 (the Company's proportionate share was $8,591) with rates ranging from 3.7% to 4.7%. In 2015, the Company invested $5,613 in the Oklahoma City tenant-in-common. The Company's contribution, together with the other tenant-in-common's contribution, was used to satisfy the related maturing mortgage loan.

In November 2014, the Company formed a joint venture to construct a private school in Houston, Texas. As of December 31, 2015, the Company had a 25% interest in the joint venture. The anticipated total construction cost is $86,491. The Company is providing construction financing to the joint venture up to $56,686 of which $8,519 has been funded as of December 31, 2015. Upon completion, the property will be net leased for a 20-year term.

In August 2013, the Company invested $5,000 in a joint venture, which acquired the fee interest and the related office building improvements of a property in Baltimore, Maryland. In November 2015, the Company's interest in the joint venture was redeemed in exchange for a distribution to the Company of the fee interest, which is subject to a long-term ground lease with the leaseholder.

During 2014 and 2013, the Company recognized other-than-temporary impairment charges on a non-consolidated joint venture due to changes in the Company's estimate of net proceeds to be received upon liquidation of the joint venture. Accordingly, the Company recognized $930 and $925, respectively, in impairment charges in equity in earnings (losses) of non-consolidated entities. The underlying property was sold in October 2014 and the Company recognized a gain of $87 in equity in earnings (losses) of non-consolidated entities.

LRA earns advisory fees from certain of these non-consolidated entities for services related to acquisitions, asset management and debt placement. Advisory fees earned from these non-consolidated investments were $223, $348 and $512 for the years ended December 31, 2015, 2014 and 2013, respectively.