Investments in Joint Ventures

12 Months Ended

Dec. 31, 2013

Equity Method Investments and Joint Ventures [Abstract]

Investments in Joint Ventures

5. Investments in Joint Ventures

On May 16, 2003, we entered into the 2003 Net Lease Joint Venture with an institutional investor to invest in industrial properties. We own a 15% equity interest in and provide property management services to the 2003 Net Lease Joint Venture. At December 31, 2013, the 2003 Net Lease Joint Venture owned four industrial properties comprising approximately 2.5 million square feet of GLA. During January 2014, the 2003 Net Lease Joint Venture sold two properties comprising approximately 1.6 million square feet of GLA.

The 2003 Net Lease Joint Venture is considered a variable interest entity in accordance with the FASB guidance on the consolidation of variable interest entities. We continue to conclude that we are not the primary beneficiary of this venture. As of December 31, 2013, our investment in the 2003 Net Lease Joint Venture is $907. Our maximum exposure to loss is equal to our investment. We acquired the 85% equity interest in one property on February 13, 2012 and the 85% equity interest in another property on May 26, 2011, in each case from the institutional investor in the 2003 Net Lease Joint Venture (see Note 4).

During December 2007, we entered into the 2007 Europe Joint Venture with an institutional investor to invest in, own, develop, redevelop and operate industrial properties. We continue to hold our 10% equity interest in the 2007 Europe Joint Venture. As of December 31, 2013, the 2007 Europe Joint Venture did not own any properties.

During the years ended December 31, 2013, 2012 and 2011, we recognized fees of $231, $516 and $970, respectively, from our Joint Ventures.

The combined summarized financial information of the investments in Joint Ventures is as follows:

	December 31, 2013			December 31, 2012
Condensed Combined Balance Sheets:
Gross Investment in Real Estate	$	28,389		$	115,488
Less: Accumulated Depreciation	(4,253		)	(38,535		)
Net Investment in Real Estate	24,136			76,953
Real Estate and Other Assets Held for Sale, Net of Accumulated Depreciation and Amortization of $40,387 and $0	48,408			—
Other Assets	7,690			17,327
Total Assets	$	80,234		$	94,280
Indebtedness	$	24,656		$	81,764
Other Liabilities	1,615			4,817
Indebtedness, Accrued Interest Expense and Leasing Intangibles Held for Sale, Net of Accumulated Amortization of $3,208 and $0	48,651			—
Equity	5,312			7,699
Total Liabilities and Equity	$	80,234		$	94,280
Company’s Share of Equity	$	896		$	1,252
Basis Differentials(1)	(200		)	(448		)
Carrying Value of the Company’s Investments in Joint Ventures	$	696		$	804

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(1) This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level. Basis differentials are primarily comprised of impairments we recorded to reduce certain of our investments in the 2003 Net Lease Joint Venture to fair value and certain deferred fees which are not reflected at the joint venture level.

	Year Ended December 31,
	2013			2012			2011
Condensed Combined Statements of Operations:
Total Revenues	$	3,433		$	3,371		$	3,411
Expenses:
Property Expenses and Other	1,070			1,096			1,226
Depreciation and Other Amortization	931			764			836
Interest Expense	1,532			1,633			1,643
Total Expenses	3,533			3,493			3,705
Discontinued Operations:
Loss Attributable to Discontinued Operations	(1,300		)	(1,607		)	(1,587		)
Gain on Sale of Real Estate	513			4,974			3,137
(Loss) Income from Discontinued Operations	(787		)	3,367			1,550
Net (Loss) Income	$	(887	)	$	3,245		$	1,256
Equity in Income of Joint Ventures	$	136		$	1,559		$	980