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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
Commitments
Real Estate Under Development
The following summarizes the Company’s real estate commitments at December 31, 2015 (dollars in thousands):
 
Number of
Properties
 
Costs Incurred
to Date (a)
 
Expected Costs
to Complete (unaudited)
 
 Average Ownership
Stake
Wholly-owned — under development
1
 
$
124,072

(b)
$
217,928

 
100
%
Wholly-owned — redevelopment
3
 
11,302

(b)
16,698

 
100
%
Joint ventures:
 
 
 
 
 
 
 
Unconsolidated joint ventures
4
 
497,350

 
81,979

(c)
Various

Participating loan investments
1
 
90,747

(d)
2,711

(e)
0
%
Preferred equity investments
5
 
136,327

(f)
—

 
48
%
Total
 
 
$
859,798

 
$
319,316

 
 


(a) Represents 100% of project costs incurred to date.

(b) Costs incurred to date include $12.6 million and $1.2 million of accrued fixed assets for development and redevelopment, respectively.

(c) Represents UDR’s proportionate share of expected remaining costs to complete.

(d) Represents the participating loan balance funded as of December 31, 2015.

(e) Represents UDR’s remaining participating loan commitment for Steele Creek.

(f)
Represents UDR’s share of capital contributed to the West Coast Development Joint Venture as of December 31, 2015.
Ground and Other Leases
UDR owns six communities which are subject to ground leases expiring between 2019 and 2103. In addition, UDR is a lessee to various operating leases related to office space rented by the Company with expiration dates through 2017. Future minimum lease payments as of December 31, 2015 are as follows (dollars in thousands):
 
Ground
Leases (a)
 
Office Space
2016
$
5,444

 
$
207

2017
5,444

 
179

2018
5,444

 
76

2019
5,444

 
76

2020
4,486

 
76

Thereafter
311,858

 
32

Total
$
338,120

 
$
646

(a)
For purposes of our ground lease contracts, the Company uses the minimum lease payment, if stated in the agreement. For ground lease agreements where there is a reset provision based on the communities appraised value or consumer price index but does not include a specified minimum lease payment, the Company uses the current rent over the remainder of the lease term.
UDR incurred $5.5 million, $5.4 million, and $5.2 million of ground rent expense for the years ended December 31, 2015, 2014, and 2013, respectively. These costs are reported within the line item Other Operating Expenses on the Consolidated Statements of Operations. The Company incurred $0.3 million, $1.3 million, and $1.3 million of rent expense related to office space for the years ended December 31, 2015, 2014, and 2013, respectively. These costs are included in General and Administrative on the Consolidated Statements of Operations. In February 2015, the Company acquired the office building in Highlands Ranch, Colorado, which housed its corporate offices it had previously leased. See Note 4, Real Estate Owned, for additional details.
Contingencies
Litigation and Legal Matters
The Company is subject to various legal proceedings and claims arising in the ordinary course of business. The Company cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The Company believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on our financial condition, results of operations or cash flow.