Investment in Consolidated and Unconsolidated Entities (Tables)

12 Months Ended

Dec. 31, 2018

Investment in Partially Owned Entities [Abstract]



	December 31, 2018		December 31, 2017
Net investment properties	$	39,634	$	165,875
Other assets	4,457		18,630
Total assets	44,091		184,505
Other liabilities	385		11,343
Total liabilities	385		11,343
Net assets	$	43,706	$	173,162

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



			Carrying Value of
			Investment at December 31,
Entity	Description	Ownership %	2018			2017
IAGM Retail Fund I, LLC (a)	Multi-tenant retail shopping centers	55%	$	126,195		$	123,693
Downtown Railyard Venture, LLC (b)	Land development	90%	30,049			57,183
Other unconsolidated entities	Various real estate investments	Various	(112		)	(112		)
			$	156,132		$	180,764

(a)

On April 17, 2013, the Company entered into a joint venture, IAGM, 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 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.

The Company contributed 14 properties to IAGM during the year ended December 31, 2013, and treated the contribution as a partial sale under ASC 360-20, Property, Plant and Equipment - Real Estate Sales, and deferred an aggregate gain of $15,625 as a result of the property sales into the joint venture. Through December 31, 2017, the Company was amortizing the basis adjustment over 30 years, consistent with the depreciation period of the investee's underlying assets. In accordance with the provisions of ASU No. 2017-05, full gain recognition may be required for property sales in which the Company has continuing involvement, where those gains may have been deferred under prior GAAP. As of January 1, 2018, with the adoption of ASU No. 2017-05, the Company's remaining $12,756 of the aforementioned deferred gain has been recognized through beginning distributions in excess of accumulated net income.

(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 in Sacramento, California. 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. 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'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.

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, 2018			December 31, 2017
	(unaudited)			(unaudited)
Assets:
Real estate assets, net of accumulated depreciation	$	494,583		$	586,671
Other assets	103,565			73,423
Total assets	598,148			660,094
Liabilities and equity:
Mortgage debt, net	272,629			311,574
Other liabilities	42,569			49,032
Equity	282,950			299,488
Total liabilities and equity	598,148			660,094
Company’s share of equity	185,814			193,572
Impairment of investment in unconsolidated entity	(29,933		)	—
Cost of investments in excess of the Company's share of underlying net book value, net of accumulated amortization of $0 and $2,647, respectively.	251			(12,808		)
Carrying value of investments in unconsolidated entities	$	156,132		$	180,764



	Year ended December 31,
	2018			2017			2016
	(unaudited)			(unaudited)			(unaudited)

Revenues	$	58,322		$	62,367		$	70,385
Expenses:
Depreciation and amortization	21,001			26,860			27,209
Operating expenses, ground rent and general and administrative expenses	19,732			22,304			21,671
Provision for asset impairment	3,673			4,745			—
Total operating expenses	44,406			53,909			48,880
Operating income	13,916			8,458			21,505
Interest expense and loan cost amortization	(13,205		)	(13,419		)	(13,015		)
(Loss) gain on sale of real estate	(4,123		)	434			—
Loss on debt extinguishment	(20		)	—			—
Net (loss) income	$	(3,432	)	$	(4,527	)	$	8,490

Company's share of net (loss) income, net of excess basis depreciation of $0, $520, and $520, respectively	$	(1,870	)	$	(1,930	)	$	4,109
Distributions from unconsolidated entities in excess of the investments' carrying value	410			1,126			5,190
Impairment of investment in unconsolidated entity	(29,933		)	—			—
Equity in (losses) earnings and (impairment), net, of unconsolidated entities	$	(31,393	)	$	(804	)	$	9,299

Schedule of Maturities of Long-term Debt

The following table shows the scheduled maturities of the Company's unconsolidated entities' total third party mortgage debt of $275,308 as of December 31, 2018, for each of the next five years, and thereafter:



	Maturities during the year ending December 31,
	2019		2020		2021		2022		2023		Thereafter		Total
Mortgages payable	$	31,353	$	—	$	23,150	$	—	$	180,125	$	40,680	$	275,308

- 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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