Variable Interest Entities

3 Months Ended

Mar. 31, 2021

Variable Interest Entities [Abstract]

Variable Interest Entities

Variable Interest Entities

Other Real Estate Partnerships

The Other Real Estate Partnerships are variable interest entities ("VIEs") of the Operating Partnership and the Operating Partnership is the primary beneficiary, thus causing the Other Real Estate Partnerships to be consolidated by the Operating Partnership. In addition, the Operating Partnership is a VIE of the Company and the Company is the primary beneficiary.

The following table summarizes the assets and liabilities of the Other Real Estate Partnerships included in our consolidated balance sheets, net of intercompany amounts:

	March 31, 2021		December 31, 2020
ASSETS
Assets:
Net Investment in Real Estate	$	255,897	$	245,396
Operating Lease Right-of-Use Assets	13,152		13,173
Cash and Cash Equivalents	3,955		4,090
Deferred Rent Receivable	9,695		9,219
Prepaid Expenses and Other Assets, Net	9,800		8,077
Total Assets	$	292,499	$	279,955
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgage Loans Payable, Net	$	6,250	$	6,292
Accounts Payable, Accrued Expenses and Other Liabilities	7,654		10,067
Operating Lease Liabilities	10,297		10,304
Rents Received in Advance and Security Deposits	4,128		4,130
Partners' Capital	264,170		249,162
Total Liabilities and Partners' Capital	$	292,499	$	279,955

Joint Ventures

Through a wholly-owned TRS of the Operating Partnership, we own a 49% interest in a joint venture ("Joint Venture I") and a 43% interest in another joint venture ("Joint Venture II", together with Joint Venture I, the "Joint Ventures"). The Joint Ventures were both formed for the purpose of developing, leasing, operating and potentially selling land located in the Phoenix, Arizona metropolitan area.

Under the operating agreements for each of the Joint Ventures, we act as the managing member and are entitled to receive fees for providing management, leasing, development, construction supervision, disposition and asset management services. In addition, both of the Joint Ventures' operating agreements provide us the ability to earn incentive fees based on the ultimate financial performance of each of the Joint Ventures.

During the three months ended March 31, 2021 and 2020, we recognized fees of $125 and $60 from the Joint Ventures related to asset management and development services we provided to the Joint Ventures. At March 31, 2021, we had an aggregate receivable from the Joint Ventures of $77.

As part of our assessment of the appropriate accounting treatment for the Joint Ventures, we reviewed the operating agreements of each Joint Venture in order to determine our rights and the rights of our joint venture partners, including whether those rights are protective or participating. Each operating agreement contains certain protective rights, such as the requirement of both members' approvals to sell, finance or refinance the property and to pay capital expenditures and operating expenditures outside of the approved budget. Also, we and our Joint Venture partners jointly (i) approve the annual budget, (ii) approve certain expenditures, (iii) review and approve the Joint Venture's tax return before filing, and (iv) approve each lease at a developed property. We consider the latter rights substantive participation rights that result in shared, joint power over the activities that most significantly impact the performance of each Joint Venture. As such, we concluded to account for our investments in each Joint Venture under the equity method of accounting.