Investments in and Advances to Unconsolidated Affiliates (Tables)

9 Months Ended

Sep. 30, 2018

Equity Method Investments And Joint Ventures [Abstract]

The Company’s investments in and advances to unconsolidated affiliates consist of the following (dollars in thousands):

		Nominal Ownership Interest			September 30,		December 31,
Portfolio	Property	September 30, 2018			2018		2017
Core:
	840 N. Michigan^(a)		88.43	%	$	66,632	$	69,846
	Renaissance Portfolio		20	%		32,495		35,041
	Gotham Plaza		49	%		29,788		29,416
	Town Center^{(a, b)}		75.22	%		99,741		78,801
	Georgetown Portfolio		50	%		4,615		3,479
						233,271		216,583

Mervyns I & II:	KLA/Mervyn's, LLC ^(c)		10.5	%		—		—

Fund III:
	Fund III Other Portfolio		90	%		166		167
	Self Storage Management ^(d)		95	%		206		206
						372		373
Fund IV:
	Broughton Street Portfolio ^(e)		50	%		38,764		48,335
	Fund IV Other Portfolio		90	%		15,648		20,199
	650 Bald Hill Road		90	%		12,993		13,609
						67,405		82,143

Various Funds:	Due from Related Parties ^(f)					113		2,415
	Other ^(g)					556		556
	Investments in and advances to unconsolidated affiliates				$	301,717	$	302,070

Core:
	Crossroads ^(h)		49	%	$	15,596	$	15,292
	Distributions in excess of income from, and investments in, unconsolidated affiliates				$	15,596	$	15,292

(a)	Represents a tenancy-in-common interest.

(b)	During November 2017 and March 2018, as discussed below, the Company increased its ownership in Town Center.

(c)	Distributions, discussed below, have exceeded the Company’s non-recourse investment, therefore the carrying value is zero.

(d)	Represents a variable interest entity for which the Company was determined not to be the primary beneficiary.

(e)

The Company is entitled to a 15% return on its cumulative capital contribution which was $15.9 million and $15.4 million at September 30, 2018 and December 31, 2017, respectively. In addition, the Company is entitled to a 9% preferred return on a portion of its equity, which was $36.7 million and $41.2 million at September 30, 2018 and December 31, 2017, respectively.

(f)	Represents deferred fees.

(g)	Includes a cost-method investment in Albertson’s (Note 8), Storage Post and other investments.

(h)	Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may be required to return distributions to fund future obligations of the entity.

Schedule of Condensed Balance Sheet

The following combined and condensed Balance Sheets and Statements of Income, in each period, summarize the financial information of the Company’s investments in unconsolidated affiliates (in thousands):

	September 30,		December 31,
	2018		2017
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	526,857	$	518,900
Real estate under development		—		26,681
Investment in unconsolidated affiliates		6,853		6,853
Other assets		90,143		100,901
Total assets	$	623,853	$	653,335
Liabilities and partners’ equity:
Mortgage notes payable	$	406,117	$	405,652
Other liabilities		56,060		61,932
Partners’ equity		161,676		185,751
Total liabilities and partners’ equity	$	623,853	$	653,335

Company's share of accumulated equity	$	179,029	$	185,533
Basis differential		104,810		95,358
Deferred fees, net of portion related to the Company's interest		2,169		3,472
Amounts receivable by the Company		113		2,415
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates		286,121		286,778
Company's share of distributions in excess of income from and investments in unconsolidated affiliates		15,596		15,292
Investments in and advances to unconsolidated affiliates	$	301,717	$	302,070

Schedule of Condensed Income Statement

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Combined and Condensed Statements of Income
Total revenues	$	19,971		$	20,883		$	59,730		$	63,460
Operating and other expenses		(6,028	)		(6,847	)		(17,479	)		(18,985	)
Interest expense		(5,240	)		(4,788	)		(15,365	)		(13,967	)
Depreciation and amortization		(5,502	)		(6,208	)		(17,340	)		(18,720	)
Loss on debt extinguishment		—			—			—			(154	)
(Loss) gain on disposition of properties		(263	)		—			(1,673	)		17,778
Net income attributable to unconsolidated affiliates	$	2,938		$	3,040		$	7,873		$	29,412

Company’s share of equity in net income of unconsolidated affiliates	$	1,136		$	4,544		$	9,396		$	23,156
Basis differential amortization		(760	)		(543	)		(2,317	)		(2,112	)
Company’s equity in earnings of unconsolidated affiliates	$	376		$	4,001		$	7,079		$	21,044