Investment in and Advances to Non-Consolidated Entities

6 Months Ended

Jun. 30, 2017

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, 2017, the Company had ownership interests ranging from 15% to 25% 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 $46,734 at June 30, 2017 (the Company's proportionate share was $8,411) with rates ranging from 3.7% to 4.7%.

In February 2017, the Company sold its 40% tenant-in-common interest in its Oklahoma City, Oklahoma office property for $6,198. 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 gains of $1,452 and $5,378, respectively, in connection with these sales, which are included in equity in earnings of non-consolidated entities.

During the six months ended June 30, 2017, the Company recognized an impairment charge of $3,512 on its investment in a retail property in Palm Beach Gardens, Florida due to the bankruptcy of its tenant. This impairment charge reduced the Company's investment balance to zero.

In November 2014, the Company formed a joint venture to construct a private school in Houston, Texas. As of June 30, 2017, the Company had a 25% equity interest in the joint venture. The joint venture completed the project during 2016 for a total construction cost of $79,964. The Company was contractually obligated to provide construction financing to the joint venture up to $56,686. As of June 30, 2017, the Company's loan balance, net of origination costs, of $49,424 was included in investment in and advances to non-consolidated entities. The Houston, Texas property is net leased for a 20-year term that expires in August 2036.

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.

The Partnership's carrying value in NLS at June 30, 2017 and December 31, 2016 was $6,072 and $5,224, respectively. The Partnership recognized net income from NLS of $251 and $193 in equity in earnings from non-consolidated entities during the six months ended June 30, 2017 and 2016, respectively. The Partnership contributed $1,067 to NLS during the six months ended June 30, 2017. In addition, the Partnership received distributions of $470 and $478 from NLS during the six months ended June 30, 2017 and 2016, respectively.