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Other Investments | 6 Months Ended
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Jun. 30, 2013
Investments, All Other Investments [Abstract] |
Other Investments | Other Investments The Company's other investments and its proportionate share of results from equity method investments were as follows ($ in thousands):
| Carrying Value as of |  | Equity in Earnings
| June 30, 2013 |  | December 31, 2012 |  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
|  |  |  |  | 2013 |  | 2012 |  | 2013 |  | 2012
LNR | $ | — |  |  | $ | 205,773 |  |  | $ | 1,719 |  |  | $ | 8,674 |  |  | $ | 16,465 |  |  | $ | 20,811 |
Madison Funds | 60,109 |  |  | 56,547 |  |  | 4,865 |  |  | (767 | ) |  | 7,124 |  |  | 8,731 |
Oak Hill Funds | 24,624 |  |  | 29,840 |  |  | 909 |  |  | 508 |  |  | 2,065 |  |  | 3,883 |
Real estate equity investments | 47,684 |  |  | 47,619 |  |  | 957 |  |  | 8,719 |  |  | 2,721 |  |  | 15,490 |
Other equity method investments | 48,166 |  |  | 47,939 |  |  | (127 | ) |  | 1,286 |  |  | 1,626 |  |  | 4,291 |
Total equity method investments | $ | 180,583 |  |  | $ | 387,718 |  |  | $ | 8,323 |  |  | $ | 18,420 |  |  | $ | 30,001 |  |  | $ | 53,206 |
Other | 9,035 |  |  | 11,125 |  |  |  |  |  |  |  |  |
Total other investments | $ | 189,618 |  |  | $ | 398,843 |  |  |  |  |  |  |  |  |
Equity Method Investments LNR—On July 29, 2010, the Company acquired an ownership interest of approximately 24% in LNR Property Corporation ("LNR"). LNR is a servicer and special servicer of commercial mortgage loans and CMBS and a diversified real estate investment, finance and management company. In the transaction, the Company and a group of investors, including other creditors of LNR, acquired 100% of the common stock of LNR in exchange for cash and the extinguishment of existing senior notes of LNR's parent holding company (the "Holdco Notes"). The Company contributed $100.0 million aggregate principal amount of Holdco Notes and $100.0 million in cash in exchange for an equity interest of $120.0 million. On April 22, 2013, the Company completed the sale of its 24% equity interest in LNR and received $220.3 million in net proceeds, which approximated our carrying value on the disposition date. Approximately $25.2 million of net proceeds were placed in escrow for potential indemnification obligations through April 2014. The Company is not currently aware that any material indemnification claims are probable of occurring. The following tables represent the latest available investee level summarized financial information for LNR ($ in thousands)(1):
| For the Three Months Ended March 31, |  | For the Six Months Ended March 31,
| 2013 |  | 2012 |  | 2013 |  | 2012
Income Statements |  |  |  |  |  |  |
Total revenue(2) | $ | 68,779 |  |  | $ | 71,337 |  |  | $ | 146,579 |  |  | $ | 148,696 |
Income tax expense | $ | 1,121 |  |  | $ | 1,805 |  |  | $ | 1,401 |  |  | $ | 3,642 |
Net income attributable to LNR | $ | 42,452 |  |  | $ | 36,178 |  |  | $ | 231,701 |  |  | $ | 86,799 |
iStar's ownership percentage | 24 | % |  | 24 | % |  | 24 | % |  | 24 | %
Subtotal | $ | 10,178 |  |  | $ | 8,674 |  |  | $ | 55,553 |  |  | $ | 20,811 |
Basis difference(3) | $ | (8,459 | ) |  | $ | — |  |  | $ | (39,088 | ) |  | $ | — |
iStar's equity in earnings from LNR | $ | 1,719 |  |  | $ | 8,674 |  |  | $ | 16,465 |  |  | $ | 20,811 |
| As of March 31, |  | As of September 30,
| 2013 |  | 2012
Balance Sheets |  |  |
Total assets(2) | $ | 1,675,581 |  |  | $ | 1,384,337 |
Total debt(2) | $ | 492,590 |  |  | $ | 398,912 |
Total liabilities(2) | $ | 575,738 |  |  | $ | 517,088 |
Noncontrolling interests | $ | 1,603 |  |  | $ | 1,560 |
LNR Property LLC equity | $ | 1,098,241 |  |  | $ | 865,689 |
iStar's ownership percentage | 24 | % |  | 24 | %
iStar's equity in LNR(4) | $ | — |  |  | $ | 205,773 |
Explanatory Notes: _______________________________________________________________________________
(1) | The Company records its investment in LNR on a one quarter lag, therefore, amounts in the Company's financial statements for the three and six months ended June 30, 2013 and 2012 are based on balances and results from LNR for the three and six months ended March 31, 2013 and 2012.
(2) | LNR consolidates certain commercial mortgage-backed securities and collateralized debt obligation trusts that are considered VIEs (and for which it is the primary beneficiary), that have been excluded from the amounts presented above. As of March 31, 2013 and September 30, 2012, the assets of these trusts, which aggregated $92.50 billion and $97.52 billion, respectively, were the sole source of repayment of the related liabilities, which aggregated approximately $92.15 billion and $97.21 billion, respectively, and are non-recourse to LNR and its equity holders, including the Company. In addition, total revenue presented above includes $21.1 million and $16.3 million for the three months ended March 31, 2013 and 2012, respectively, and $50.4 million and $45.1 million for the six months ended March 31, 2013 and 2012, respectively, of servicing fee revenue that is eliminated upon consolidation of the VIE's at the LNR level. This income is then added back through consolidation at the LNR level as an adjustment to income allocable to noncontrolling entities and has no net impact on net income attributable to LNR.
(3) | The Company has limited its recognition of its proportionate share of earnings in LNR for the three and six months ended June 30, 2013 to the amount of proceeds it received from the sale.
(4) | Represents the Company's investment in LNR at June 30, 2013 and December 31, 2012, respectively.
Madison Funds—As of June 30, 2013, the Company owned a 29.52% interest in Madison International Real Estate Fund II, LP, a 32.92% interest in Madison International Real Estate Fund III, LP and a 29.52% interest in Madison GP1 Investors, LP (collectively, the "Madison Funds"). The Madison Funds invest in ownership positions of entities that own real estate assets. The Company determined that these entities are variable interest entities and that the Company is not the primary beneficiary. Oak Hill Funds—As of June 30, 2013, the Company owned a 5.92% interest in OHA Strategic Credit Master Fund, L.P. ("OHASCF"). OHASCF was formed to acquire and manage a diverse portfolio of assets, investing in distressed, stressed and undervalued loans, bonds, equities and other investments. The Company determined that this entity is a variable interest entity and that the Company is not the primary beneficiary. Real estate equity investments—During the quarter ended June 30, 2013, the Company sold land for net proceeds of $21.4 million to a newly formed unconsolidated entity in which the Company has a preferred partnership interest and a 47.5% equity interest. The Company has a recorded equity interest of $10.6 million, which represents the Company's proportionate share of the assets retained on a carryover basis. As of June 30, 2013, the Company's real estate equity investments included equity interests in real estate ventures ranging from 31% to 70%, comprised of investments of $16.4 million in net lease assets, $18.2 million in operating properties and $13.1 million in other land assets. As of December 31, 2012, the Company's real estate equity investments included $16.4 million in net lease assets, $25.7 million in operating properties and $5.5 million in land assets. One of the Company's equity investments in operating properties represents a 33% interest in residential property units. The Company's earnings from its interest in this property includes income from sales of residential units of $1.5 million and $10.2 million for the three months ended June 30, 2013 and 2012, respectively, and $4.0 million and $18.2 million for the six months ended June 30, 2013 and 2012, respectively. Other Equity Method Investments—The Company also had smaller investments in several other entities that were accounted for under the equity method. Several of these investments are in real estate related funds or other strategic investments.

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