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Investments in Partially-Owned Entities
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2013
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| Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments in Partially-Owned Entities | Investments in Partially-Owned Entities The following table summarizes the Company’s investments in partially-owned entities at September 30, 2013 and December 31, 2012:
Star Asia Opportunity, LLC In August 2011, the Company acquired a 27.59% interest in Star Asia Opportunity, LLC (SAO). SAO initially held a portfolio of six Japanese commercial real estate properties. During 2012, these properties were sold and the Company received distributions of $4,982. The remaining residual interest in SAO is expected to be distributed in 2013 at which time SAO will be dissolved. Star Asia Opportunity, LLC II In September 2012, the Company made a $4,700 investment in Star Asia Opportunity II, LLC (SAO II), which represented a 20.33% ownership interest. SAO II was a newly formed single purpose LLC vehicle which directly held a Japanese real estate property as well as a CMBS position. Including the Company, SAO II had a total of four investors. On December 20, 2012, SAO II contributed its interest in these assets to Star Asia Japan Special Situations Sub (SAJSS Sub), a newly formed LP. At that time, two of the investors withdrew their membership interests in SAO II so as to retain their interest in SAJSS Sub through a newly formed entity, Star Asia Japan Special Situations LP (SAJSS). As a result of the departure of these two investors, the Company and the other remaining investor each held a 50% interest in SAO II. The Company and the remaining investor share control equitably with no one party having more control or economic interest than the other party. As such, the Company accounts for this investment under the equity method. Senior Management Concepts Senior Living Portfolio The Company owns an investment in one independent and assisted living facility located in Utah and operated by Senior Management Concepts, LLC (SMC), a privately held operator of senior housing facilities. Four affiliates of SMC each entered into 15-year leases for the respective facilities that expire in 2022. The Company holds 100% of the preferred equity interests and 10% of the common equity interest in the property. This facility contains 120 senior living units of which one-half are assisted living and one-half are independent living. The property is subject to a lease which expires in 2022. For the nine month periods ended September 30, 2013 and 2012, the Company recognized approximately $250 and $243, respectively, in equity income from its interest in SMC. The Company recognized an impairment charge of approximately $40 for the three and nine month periods ended September 30, 2013. |
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