Investment in Consolidated and Unconsolidated Entities (Tables)

12 Months Ended

Dec. 31, 2017

Investment in Partially Owned Entities [Abstract]

As of December 31, 2017, River Oaks and Kyle Marketplace were the Company's only active Reverse 1031 Exchanges.



	December 31, 2017		December 31, 2016
Net investment properties	$	165,875	$	—
Other assets	18,630		—
Total assets	184,505		—
Other liabilities	11,343		—
Total liabilities	11,343		—
Net assets	$	173,162	$	—

Schedule of net equity investment and share of net income or loss



			Carrying Value of
			Investment at December 31,
Entity	Description	Ownership %	2017			2016
IAGM Retail Fund I, LLC (a)	Multi-tenant retail shopping centers	55%	$	123,693		$	126,090
Downtown Railyard Venture, LLC (b)	Land development	90%	57,183			52,365
Other unconsolidated entities	Various real estate investments	Various	(112		)	273
			$	180,764		$	178,728

(a)

On April 17, 2013, the Company entered into a joint venture, IAGM Retail Fund I, LLC ("IAGM"), with PGGM Private Real Estate Fund ("PGGM"), for the purpose of acquiring, owning, managing, supervising, and disposing of properties and sharing in the profits and losses from those properties and its activities. The Company initially contributed 13 retail properties totaling 2,109,324 square feet from its portfolio to IAGM for an equity interest of $96,788, and PGGM contributed $79,190. The gross disposition price was $409,280. On July 1, 2013, the Company contributed another retail property for a gross disposition price of $34,350. The Company treated these dispositions as a partial sale. The Company amortizes the basis adjustment over 30 years, consistent with the depreciation of the investee's underlying assets. The Company is the managing member of IAGM, responsible for the day-to-day activities and earns fees for venture management, property management, leasing and other services provided.

(b)

On September 30, 2015, the Company was admitted as a member to Downtown Railyard Venture, LLC ("DRV"), which is a joint venture established in order to develop and sell a land development. Simultaneously, the Company structured and closed the sale of a non-core land development to DRV, which for accounting purposes is treated as a contribution of the land development to DRV in exchange for an equity interest of $46,174 in DRV (the foregoing transaction is referred to as the "Railyards Transaction"). Concurrent with the formation of the joint venture, and included in the basis of the Company's investment in DRV, the Company established an $18,088 loan to DRV at a 4.0% interest rate, compounded annually. The loan matures on June 30, 2023. The Company recorded a loss of $12,919 on the Railyards Transaction in 2015 due to the difference between the carrying value of the land and the estimated fair value of the equity interest. The Company's ownership percentage in DRV is based upon a waterfall calculation outlined in the operating agreement. The joint venture partner is the developer and managing member of DRV, responsible for the day-to-day activities and earns fees for managing the venture. During the year ended December 31, 2015, the Company received return of capital proceeds of $4,092 related to the sale of a land parcel and contributed $3,000 in capital to the joint venture.

Schedule of Combined Financial Information of Investment in Unconsolidated Entities

The following tables present the combined financial information for the Company’s investments in unconsolidated entities.



	As of
	December 31, 2017			December 31, 2016
	(unaudited)			(unaudited)
Assets:
Real estate assets, net of accumulated depreciation	$	586,671		$	628,667
Other assets	73,423			71,288
Total assets	660,094			699,955
Liabilities and equity:
Debt, net	311,574			311,378
Other liabilities	49,032			65,225
Equity	299,488			323,352
Total liabilities and equity	660,094			699,955
Company’s share of equity	193,572			192,124
Net excess of the net book value of underlying assets over the cost of investments (net of accumulated amortization of $2,647 and $2,229, respectively)	(12,808		)	(13,396		)
Carrying value of investments in unconsolidated entities	$	180,764		$	178,728



	Year ended December 31,
	2017			2016		2015
	(unaudited)			(unaudited)		(unaudited)

Revenues	$	62,367		$	70,385	$	67,033
Expenses:
Interest expense and loan cost amortization	13,419			13,015		15,319
Depreciation and amortization	26,860			27,209		23,252
Operating expenses, ground rent and general and administrative expenses	22,304			21,671		21,200
Impairments	4,745			—		—
Total expenses	67,328			61,895		59,771
Net income before gain on sale of real estate	(4,961		)	8,490		7,262
Gain on sale of real estate	434			—		35,462
Net income	$	(4,527	)	$	8,490	$	42,724

Company's share of net income, net of excess basis depreciation of $520, $520, and $520, respectively	$	(1,930	)	$	4,109	$	17,307
Distributions from unconsolidated entities in excess of the investments' carrying value	1,126			5,190		17,771
Equity in (losses) earnings of unconsolidated entities	$	(804	)	$	9,299	$	35,078

Schedule of Maturities of Long-term Debt

The unconsolidated entities had total third party mortgage debt of $312,233 at December 31, 2017 that matures as follows:



Maturities during the year ended December 31,	Amount
2018	$	204,028
2019	16,250
2020	—
2021	23,150
2022	—
Thereafter	68,805
	$	312,233

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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