Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2014

Real Estate Investments, Net [Abstract]

The carrying values of the Company’s co-investments, all accounted for under the equity method of accounting, as of December 31, 2014 and 2013 are as follows ($ in thousands):



	2014		2013
Membership interest/Partnership interest in:
Wesco I and III	$	188,404	$	181,098
Fund II	696		4,166
Expo	7,352		12,041
The Huxley	11,471		11,224
Connolly Station	46,653		45,242
Epic Phase I and II	122,968		106,845
Wesco IV	86,289		—
BEXAEW	73,771		—
Palm Valley	70,186		—
Total operating co-investments	607,790		360,616
Membership interest in:
Limited liability companies with CPPIB that own and are developing Epic Phase III, Mosso I and II, Park 20, The Emme, The Owens and Hacienda	268,016		149,451
One South Market	30,919		17,115
The Dylan	7,874		7,321
Century Towers	13,121		—
Total development co-investments	319,930		173,887

Membership interest in Wesco II that owns a preferred equity interest in Park Merced with a preferred return of 10.1%	—		94,711
Preferred interest in related party limited liability company that owns Sage at Cupertino with a preferred return of 9.5% (matures in May 2016)	16,571		15,775
Preferred interest in a related party limited liability company that owns Madison Park at Anaheim with a preferred return of 9% (matures in September 2020)	13,824		13,824
Preferred interest in related party limited liability company that owns an apartment development in Redwood City with a preferred return of 12% (matures in July 2016 with one one-year extension option)	10,396		9,455
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 12% (matures in August 2016 with one one-year extension option)	10,011		8,865
Preferred interest in a limited liability company that owns 8th & Thomas with a preferred return of 10.0% (matures in June 2018 with one one-year extension option)	13,145		—
Preferred interest in a limited liability company that owns Newbury Park with a preferred return of 12.0% (matures in January 2019)	13,150		—
Preferred interest in a limited liability company that owns Century Towers ⁽¹⁾ (matures in August 2019)	12,357		—
Preferred interest in a limited liability company that owns an apartment development in San Jose with a preferred return of 9% (matures in January 2023)	19,237		—
Total preferred interest investments	108,691		142,630
Total co-investments	$	1,036,411	$	677,133

Summarized Financial Statement for Co Investment Accounted for Under the Equity Method

The combined summarized financial information of co-investments is as follows ($ in thousands):



	December 31,
	2014		2013
Balance sheets:
Rental properties and real estate under development	$	3,426,574	$	1,953,328
Other assets	107,902		61,578
Total assets	$	3,534,476	$	2,014,906
Debt ⁽¹⁾	$	1,677,089	$	690,132
Other liabilities	91,579		125,479
Equity	1,765,808		1,199,295
Total liabilities and partners' equity	$	3,534,476	$	2,014,906
Company's share of equity	$	1,036,411	$	677,133



	Years ended December 31,
	2014			2013			2012
Statements of operations:
Property revenues	$	188,548		$	100,402		$	130,128
Property operating expenses	(71,419		)	(37,518		)	(55,990		)
Net operating income	117,129			62,884			74,138
Gain on sale of real estate	23,333			146,758			106,016
Interest expense	(39,990		)	(24,155		)	(34,959		)
General and administrative	(6,321		)	(5,344		)	(3,697		)
Equity income from co-investments ⁽²⁾	26,798			18,703			18,051
Depreciation and amortization	(74,657		)	(36,831		)	(47,917		)
Net income	$	46,292		$	162,015		$	111,632
Company's share of net income ⁽³⁾	$	39,893		$	55,865		$	41,745