Note 5 — Investments in Equity Affiliates

The following is a summary of our investments in equity affiliates:

	Investment in Equity Affiliates at				UPB of Loans to Equity Affiliates at
Equity Affiliates	June 30, 2015		December 31, 2014		June 30, 2015

Arbor Residential Investor LLC	$	19,457,171	$	—	$	—
West Shore Café	1,915,565		1,872,661		1,687,500
Lightstone Value Plus REIT L.P.	1,894,727		1,894,727		—
Issuers of Junior Subordinated Notes	578,000		578,000		—
JT Prime	425,000		425,000		—
East River Portfolio	97,816		98,578		4,994,166
Lexford Portfolio	100		100		33,400,000
Ritz-Carlton Club	—		—		—


Total	$	24,368,379	$	4,869,066	$	40,081,666

We account for all investments in equity affiliates under the equity method.

Arbor Residential Investor LLC (“ARI”) — In the first quarter of 2015, we invested $9.6 million for 50% of our Manager’s indirect interest in a joint venture with a third party that was formed to invest in a residential mortgage banking business. Our Manager retained a promote of 25% over a 10% return on this investment. As a result of this transaction, we had an initial indirect interest of 22.5% in the mortgage banking business, which is subject to dilution upon attaining certain profit hurdles of the business. As a result of the business’s profitability to date, we currently own a 20% indirect interest. During the three and six months ended June 30, 2015, we recorded $1.5 million and $4.6 million, respectively, to income from equity affiliates in our consolidated statements of income related to this investment.

In the first quarter of 2015, we invested $1.7 million through ARI for 100% of our Manager’s investment in non-qualified residential mortgages purchased from the mortgage banking business’s origination platform, resulting in a non-controlling ownership interest of 50% in this investment. We also funded $1.9 million and $1.7 million of additional mortgage purchases during the first and second quarters of 2015, respectively, for a total investment of $5.3 million as of June 30, 2015. During the three and six months ended June 30, 2015, we recorded a loss of less than $0.1 million for both periods to income from equity affiliates in our consolidated statements of income related to this investment.

930 Flushing & 80 Evergreen — In May 2014, our interest in these properties was sold, and we received $7.9 million in cash. As a result, we recorded a gain on sale of equity interest in our consolidated statements of income of $7.9 million and reduced our investment by its carrying value of $0.1 million. In July 2014, our outstanding loans totaling $22.9 million to this joint venture were repaid in full.