Investment in and Advances to Non-Consolidated Entities

12 Months Ended

Dec. 31, 2016

Investments in and Advances to Affiliates [Line Items]

Investment in and Advances to Non-Consolidated Entities

Investment in and Advances to Non-Consolidated Entities

As of December 31, 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 $47,037 at December 31, 2016 (the Company's proportionate share was $8,472) with rates ranging from 3.7% to 4.7%. In 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 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, which was in the form of a loan provided by the Company, 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, 2016, the Company had a 25% interest in the joint venture. The joint venture completed the project in 2016 for a total construction cost of $79,964. The Company is contractually obligated to provide construction financing to the joint venture up to $56,686, of which $46,441 has been funded as of December 31, 2016. The property is net leased for a 20-year term.

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 $693, $223 and $348 for the years ended December 31, 2016, 2015 and 2014, respectively.

LCIF [Member]

Investments in and Advances to Affiliates [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.

The Partnership's carrying value in NLS at December 31, 2016 and 2015 was $5,224 and $5,622, respectively. The Partnership recognized net income from NLS of $302, $141 and $114 in equity in earnings from non-consolidated entities during 2016, 2015 and 2014, respectively. The Partnership contributed $81 and $1,643 to NLS in 2016 and 2015. In addition, the Partnership received distributions of $781, $636 and $738 from NLS in 2016, 2015 and 2014, respectively.