Investments in Non-Consolidated Entities

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in Non-Consolidated Entities

Below is a schedule of the Company's investments in non-consolidated entities:



		Percentage Ownership at	Investment Balance as of
Investment		December 31, 2019	December 31, 2019		December 31, 2018
NNN JV	(1)	20%	$	39,288	$	53,144
Etna Park 70 LLC	(2)	90%	8,352		4,774
Etna Park 70 East LLC	(3)	90%	4,310		—
Other	(4)	15% to 25%	5,218		8,265
			$	57,168	$	66,183

(1)

During 2018, the Company disposed of 21 office assets to NNN JV for an aggregate gross disposition price of $725,800 and acquired a 20% interest in NNN JV. Two of the 21 properties, with a combined estimated fair value of $45,653, were contributed to NNN JV along with cash of $8,053. The Company recognized a gain of $14,645 in connection with the contribution of the two office assets to NNN JV, and in addition, NNN JV assumed an aggregate of $103,400 of non-recourse mortgage debt in the transaction. NNN JV obtained an aggregate of $362,800 of non-recourse mortgage financing which bears interest at LIBOR plus 200 basis points and has an initial term of three years but can be extended for two additional terms of one-year each. There is a rate increase of 15 basis points upon each extension. NNN JV entered into interest rate agreements which cap the LIBOR component of the $362,800 mortgage financing at 4.0% for two years.

(2)

Joint venture formed in 2017 with a developer entity to acquire a 151-acre parcel of developable land and pursue industrial build-to-suit opportunities. The Company determined it is not the primary beneficiary. In December 2018, the parcel was subdivided and the Company received a distribution of an ownership interest in a 57-acre parcel with a historical cost of $3,008. The Company acquired control of the parcel via the purchase of the Company's joint venture partners' interest.


(3)	Joint venture formed in 2019 with a developer entity to acquire a 129.6 -acre parcel of developable land and pursue industrial build-to-suit opportunities. The Company determined it is not the primary beneficiary.


(4)	At December 31, 2019, represents one joint venture investment, which owns a single-tenant, net-leased asset.

In February 2019, a non-consolidated real estate entity, in which the Company owned a 15% ownership interest, sold its only asset and the Company received $2,317 of proceeds. The Company recognized a gain on the transaction of $824, which is included in equity in earnings of non-consolidated entities in its Consolidated Statement of Operations.

During 2019, NNN JV sold four assets and the Company recognized aggregate gains on the transactions of $3,529 within equity in earnings of non-consolidated entities in its consolidated statement of operations. In conjunction with these property sales, NNN JV received aggregate net proceeds of $45,208 after satisfaction of an aggregate of $101,520 of its non-recourse mortgage indebtedness. The NNN JV distributed $7,549 of the net proceeds to the Company as a result of the property sales.

In December 2018, the Company received $4,312 from a non-consolidated investment in connection with its sale of a six-property office portfolio. In February 2017, the Company sold its 40% tenant-in-common interest in its Oklahoma City, Oklahoma office property for $6,198. The Company recognized gains of $1,777 and $1,452, respectively, in connection with these sales, which are included in equity in earnings of non-consolidated entities.

During 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. During 2018, the property was sold in a foreclosure sale.

The Company 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 $3,596, $1,443 and $807 for the years ended December 31, 2019, 2018 and 2017.