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Other Investments | 9 Months Ended
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Sep. 30, 2016
Investments, All Other Investments [Abstract] |
Other Investments | Other Investments The Company's other investments and its proportionate share of earnings (losses) from equity method investments were as follows ($ in thousands):
|  |  | Equity in Earnings (Losses)
| Carrying Value as of |  | For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| September 30, 2016 |  | December 31, 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015
Real estate equity investments |  |  |  |  |  |  |  |  |  |  |
iStar Net Lease I LLC ("Net Lease Venture") | $ | 103,468 |  |  | $ | 69,096 |  |  | $ | 723 |  |  | $ | 971 |  |  | $ | 2,613 |  |  | $ | 4,270 |
Marina Palms, LLC ("Marina Palms") | 32,714 |  |  | 30,099 |  |  | 6,182 |  |  | 10,017 |  |  | 19,583 |  |  | 19,636 |
Other real estate equity investments(1) | 72,918 |  |  | 81,452 |  |  | 16,289 |  |  | (2,906 | ) |  | $ | 43,187 |  |  | (4,545 | )
Subtotal | 209,100 |  |  | 180,647 |  |  | 23,194 |  |  | 8,082 |  |  | 65,383 |  |  | 19,361 |
Other strategic investments(2) | 53,396 |  |  | 73,525 |  |  | 3,346 |  |  | 2,490 |  |  | 8,871 |  |  | 6,543 |
Total | $ | 262,496 |  |  | 254,172 |  |  | $ | 26,540 |  |  | $ | 10,572 |  |  | $ | 74,254 |  |  | $ | 25,904 |
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(1) | During the nine months ended September 30, 2016, a majority-owned consolidated subsidiary of the Company sold its interest in a real estate equity method investment for net proceeds of $39.8 million and recognized equity in earnings of $31.5 million, of which $10.1 million was attributable to the noncontrolling interest. In September 2016, the Company received a distribution from one of its real estate equity method investments and recognized equity in earnings during the three and nine months ended September 30, 2016 of $15.8 million and $11.6 million, respectively.
(2) | In conjunction with the sale of the Company's interests in Oak Hill Advisors, L.P. in 2011, the Company retained a share of the carried interest related to various funds. During the three and nine months ended September 30, 2016, the Company recognized $0.6 million and $4.3 million, respectively, of carried interest income. During the nine months ended September 30, 2015, the Company recognized $2.2 million of carried interest income.
Net Lease Venture—In February 2014, the Company partnered with a sovereign wealth fund to form a new unconsolidated entity in which the Company has an equity interest of approximately 51.9%. This entity is not a VIE and the Company does not have controlling interest due to the substantive participating rights of its partner. The partners plan to contribute up to an aggregate $500 million of equity to acquire and develop net lease assets over time. The Company is responsible for sourcing new opportunities and managing the venture and its assets in exchange for a promote and management fee. Several of the Company's senior executives whose time is substantially devoted to the Net Lease Venture own a total of 0.6% equity ownership in the venture via co-investment. These senior executives are also entitled to an amount equal to 50% of any promote payment received based on the 47.5% partner's interest. During the nine months ended September 30, 2016, the Net Lease Venture acquired two office properties and the Company made contributions to the Net Lease Venture of $35.6 million. As of September 30, 2016 and December 31, 2015, the venture's carrying value of total assets was $493.3 million and $400.2 million, respectively. During the three and nine months ended September 30, 2016, the Company recorded $0.4 million and $1.2 million of management fees, respectively, and $0.4 million and $1.1 million for the three and nine months ended September 30, 2015, respectively, from the Net Lease Venture which are included in "Other income" in the Company's consolidated statements of operations. In June 2015, the venture placed ten year non-recourse financing of $120.0 million on one of its net lease assets. Net proceeds from the financing were distributed to its members of which the Company received approximately $61.2 million. Marina Palms—As of September 30, 2016, the Company owned a 47.5% equity interest in Marina Palms, a 468 unit, two tower residential condominium development in North Miami Beach, Florida. The 234 unit north tower has one unit remaining for sale as of September 30, 2016. The 234 unit south tower is 75% pre-sold as of September 30, 2016. This entity is not a VIE and the Company does not have controlling interest due to shared control of the entity with its partner. As of September 30, 2016 and December 31, 2015, the venture's carrying value of total assets was $202.3 million and $278.5 million, respectively. Other real estate equity investments—As of September 30, 2016, the Company's other real estate equity investments included equity interests in real estate ventures ranging from 19% to 85%, comprised of investments of $12.7 million in operating properties and $60.2 million in land assets. As of December 31, 2015, the Company's other real estate equity investments included $11.1 million in operating properties and $70.4 million in land assets. In 2014, the Company contributed land to a newly formed unconsolidated entity in which the Company received an initial equity interest of 85.7%. As of September 30, 2016, this entity is not a VIE due to shared control of the entity with the partner. Additionally, the Company committed to provide $45.7 million of mezzanine financing to the entity. As of December 31, 2015, the mezzanine loan balance was $33.7 million and is included in "Loans receivable and other lending investments, net" on the Company's consolidated balance sheets. In September 2016, the entity secured non-recourse financing from a third-party lender, paid off in full the mezzanine loan from the Company and distributed the excess proceeds from the financing to the partners. During the three and nine months ended September 30, 2016, the Company received a distribution in excess of its carrying value and recorded equity in earnings of $15.8 million and $11.6 million, respectively. The Company has no further obligation nor intention to fund the venture in the future. Subsequent to the distribution of the financing proceeds, the Company has a 50% interest in the entity. During the three and nine months ended September 30, 2016, the Company recorded $1.3 million and $3.6 million of interest income, respectively, and $1.1 million and $2.8 million for the three and nine months ended September 30, 2015, respectively, relating to the mezzanine loan that was paid off in September 2016. As of September 30, 2016 and December 31, 2015, the Company had a recorded equity interest of zero and $6.3 million, respectively. Other strategic investments—As of September 30, 2016, the Company also had smaller investments in real estate related funds and other strategic investments in several other entities that were accounted for under the equity method or cost method. As of September 30, 2016 and December 31, 2015, the carrying value of the Company's cost method investments was $1.4 million and $1.5 million, respectively. During the nine months ended September 30, 2015, the Company sold available-for-sale securities for proceeds of $7.3 million for gains of $2.5 million, which are included in "Other income" in the Company's consolidated statements of operations. The amount reclassified out of accumulated other comprehensive income into earnings was determined based on the specific identification method. Summarized investee financial information—The following table presents the investee level summarized financial information of the Company's equity method investments, which were significant subsidiaries for the nine months ended September 30, 2016 and 2015 ($ in thousands):
| Revenues |  | Expenses |  | Net Income Attributable to Parent Entities
For the Nine Months Ended September 30, 2016 |  |  |  |  |
Marina Palms | $ | 129,697 |  |  | $ | (72,736 | ) |  | $ | 56,961 |
For the Nine Months Ended September 30, 2015 |  |  |  |  |
Marina Palms | $ | 142,419 |  |  | $ | (88,661 | ) |  | $ | 53,758 |

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