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Investment in Unconsolidated Joint Ventures
3 Months Ended
Mar. 31, 2012
Investment in Unconsolidated Joint Ventures  
Investment in Unconsolidated Joint Ventures

Note 4 - Investment in Unconsolidated Joint Ventures

 

In February 2012, the Company entered into a joint venture with an affiliate of Trammell Crow Company pursuant to which the venture contemplates re-developing the 6.2 acre site located in Plano, Texas into up to two Class A office buildings. The Company contributed this property to the joint venture in exchange for a 90% equity interest therein and Trammell Crow contributed $1,500,000 in exchange for a 10% equity interest therein which resulted in a $319,000 gain to the Company.  At March 31, 2012, the Company’s investment in this VIE was $12,083,000 which represents its maximum exposure to loss.

 

The Company’s six unconsolidated joint ventures each own and operate one property.  At March 31, 2012 and December 31, 2011, the Company’s equity investment in unconsolidated joint ventures totaled $17,137,000 and $5,093,000, respectively. The Company recorded equity in net earnings of $69,000 and $31,000 for the three months ended March 31, 2012 and 2011, respectively.