Investment in and Advances to Non-Consolidated Entities

6 Months Ended

Jun. 30, 2016

Schedule of Equity Method Investments [Line Items]

Investment in and Advances to Non-Consolidated Entities

Investment in and Advances to Non-Consolidated Entities

As of June 30, 2016, 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 $47,331 at June 30, 2016 (the Company's proportionate share was $8,532) with rates ranging from 3.7% to 4.7%. In January 2016, the Company received $6,681 in connection with the sale of a non-consolidated office property in Russellville, Arkansas. The Company recognized a gain of $5,378 relating to the sale, which is included in equity in earnings of non-consolidated entities.

In November 2014, the Company formed a joint venture to construct a private school in Houston, Texas. As of June 30, 2016, the Company had a 25% interest in the joint venture. The total anticipated construction cost is $86,491. The Company is contractually obligated to provide construction financing to the joint venture up to $56,686, of which $33,946 had been funded as of June 30, 2016. Upon completion, the property will be net leased for a 20-year term.

LCIF [Member]

Schedule of Equity Method Investments [Line Items]

Investment in and Advances to Non-Consolidated Entities

Investments in and Advances to Non-Consolidated Entities

In July 2014, the Partnership acquired a 1.0% interest in an office property in Philadelphia, Pennsylvania for $263. The Partnership accounts for this investment under the cost basis of accounting.

On September 1, 2012, the Partnership acquired a 2% equity interest in Net Lease Strategic Assets Fund L.P. (“NLS”) for cash of $189 and the issuance of 457,211 limited partner units to Lexington. At the date of acquisition, NLS owned 41 properties totaling 5.8 million square feet in 23 states, plus a 40% tenant-in-common interest in an office property.

The Partnership's carrying value in NLS at June 30, 2016 and December 31, 2015 was $5,337 and $5,622, respectively. The Partnership recognized net income from NLS of $193 and $76 in equity in earnings from non-consolidated entities during the six months ending June 30, 2016 and 2015, respectively. The Partnership contributed $1,610 to NLS during the six months ended June 30, 2015. In addition, the Partnership received distributions of $478 and $239 from NLS during the six months ended June 30, 2016 and 2015, respectively.