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Investment in Unconsolidated Joint Ventures | 6 Months Ended
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Jun. 30, 2018
Investment in Unconsolidated Joint Ventures |
Investment in Unconsolidated Joint Ventures | 3.Investment in Unconsolidated Joint Ventures Our investment in unconsolidated joint ventures consists of a preferred equity investment and two mezzanine loans which are accounted for as unconsolidated joint ventures in accordance with GAAP. The following table summarizes our investment in unconsolidated joint ventures (dollar amounts in thousands):
|  | Type |  | Type |  | Total |  |  | Currently |  |  | Number |  |  |  |  |  |  |
|  | of |  | of |  | Preferred |  |  | Paid in |  |  | of |  |  | Investment |  |  | Carrying |
State |  | Properties |  | Investment |  | Return |  |  | Cash |  |  | Beds/ Units |  |  | Commitment |  |  | Value |
Arizona |  | ALF/MC/ILF |  | Preferred Equity | (1) | 15 | % |  | 7 | % |  | 585 |  | $ | 25,650 |  | $ | 23,859 |
Florida |  | ALF/IL/MC |  | Mezzanine | (2) | 15 | % |  | 12 | % |  | 99 |  |  | 2,900 | (3) |  | 3,138 | (3)
Florida |  | UDP-ALF/MC |  | Mezzanine | (2) | 15 | % |  | 10 | % |  | 127 |  |  | 3,400 |  |  | 3,400 |
Total |  |  |  |  |  |  |  |  |  |  |  | 811 |  | $ | 31,950 |  | $ | 30,397 |
| (1) |  | We have concluded that the JV is a variable interest entity (“VIE”) in accordance with GAAP. However, because we do not control the entity, nor do we have any role in the day-to-day management, we are not the primary beneficiary of the JV. Therefore, we account for the JV investment using the equity method.
| (2) |  | We evaluated these acquisition, development and construction (“ADC”) arrangements and determined that the characteristics are similar to jointly-owned investments or partnerships, and accordingly, these investments are accounted for as unconsolidated joint ventures under the equity method of accounting instead of loan accounting.
| (3) |  | Since interest payments were deferred and no interest was recorded for the first twelve months of the loan, we used the effective interest method in accordance with GAAP to recognize interest income and recorded the difference between the effective interest income and cash interest income to the loan principal balance.
The following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures (in thousands):
|  | Six Months Ended June 30, |
Type |  | 2018 |  | 2017 |
of |  |  | Capital |  |  | Income |  |  | Cash Interest |  |  | Capital |  |  | Income |  |  | Cash Interest |
Properties |  |  | Contribution |  |  | Recognized |  |  | Received |  |  | Contribution |  |  | Recognized |  |  | Received |
ALF/MC/ILF |  | $ | 497 |  | $ | 951 |  | $ | 1,062 |  | $ | 987 |  | $ | 719 |  | $ | 619 |
ALF/IL/MC |  |  | — |  |  | 255 |  |  | 194 |  |  | — |  |  | 255 |  |  | 135 |
UDP-ALF/MC |  |  | — |  |  | 151 |  |  | — | (1) |  | 2,747 |  |  | 46 |  |  | — | (1)
Total |  | $ | 497 |  | $ | 1,357 |  | $ | 1,256 |  | $ | 3,734 |  | $ | 1,020 |  | $ | 754 |
| (1) |  | We withheld $653 at the time of loan origination which is being applied to interest. As of June 30, 2018, we still hold $336 which will be applied to future interest.

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- References No definition available. + Details
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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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