Investments in Unconsolidated Real Estate Entities

6 Months Ended

Jun. 30, 2016

Equity Method Investments And Joint Ventures [Abstract]

Investments in Unconsolidated Real Estate Entities

3.	INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

At June 30, 2016, the Company held investments in two individual limited liability companies (the “Apartment LLCs”) with institutional investors that own four apartment communities, including three communities located in Atlanta, Georgia and one community located in Washington, D.C. The Company has a 25% and 35% equity interest in these Apartment LLCs.

The Company accounts for its investments in the Apartment LLCs using the equity method of accounting. At June 30, 2016 and December 31, 2015, the Company’s investment in the 35% owned Apartment LLC totaled $3,695 and $3,856, respectively, excluding the credit investments discussed below. The Company’s investment in the 25% owned Apartment LLC at June 30, 2016 and December 31, 2015 reflects a credit investment of $15,891 and $15,873, respectively. These credit balances resulted from distribution of financing proceeds in excess of the Company’s historical cost upon the formation of the Apartment LLC and are reflected in consolidated liabilities on the Company’s consolidated balance sheet. The operating results of the Company include its allocable share of net income from the investments in the Apartment LLCs. The Company provides property and asset management services to the Apartment LLCs for which it earns fees.

A summary of financial information for the Apartment LLCs in the aggregate is as follows:

	June 30,			December 31,
Apartment LLCs - Balance Sheet Data	2016			2015
Real estate assets, net of accumulated depreciation of $57,913 and $54,936 at June 30, 2016 and December 31, 2015, respectively	$	207,708		$	208,345
Cash and other		6,693			5,995
Total assets	$	214,401		$	214,340

Mortgage notes payable	$	177,556		$	177,503
Other liabilities		4,302			2,994
Total liabilities		181,858			180,497
Members' equity		32,543			33,843
Total liabilities and members' equity	$	214,401		$	214,340
Company's equity investment in Apartment LLCs (1)	$	(12,196	)	$	(12,017	)

At June 30, 2016 and December 31, 2015, the Company’s equity investment includes its credit investments of $15,891 and

$15,873, respectively, discussed above.

	Three months ended				Six months ended
	June 30,				June 30,
Apartment LLCs - Income Statement Data	2016		2015		2016		2015
Revenues
Rental	$	7,175	$	6,856	$	14,268	$	13,640
Other property revenues		582		538		1,089		993
Total revenues		7,757		7,394		15,357		14,633
Expenses
Property operating and maintenance		3,169		3,049		6,182		6,156
Depreciation		1,495		1,438		2,976		2,859
Interest		2,284		2,284		4,568		4,549
Total expenses		6,948		6,771		13,726		13,564
Net income	$	809	$	623	$	1,631	$	1,069
Company's share of net income in Apartment LLCs	$	589	$	568	$	1,232	$	965

At June 30, 2016, mortgage notes payable included four mortgage notes. The first mortgage note with a face value of $51,000 bears interest at a stated rate of 3.50% (effective rate of 3.57%), requires monthly interest only payments and matures in 2019. The second and third mortgage notes with a total face value of $85,724, bear interest at a stated rate of 5.63% (effective rate of 5.76%), require interest only payments and mature in 2017. The fourth mortgage note with a total face value of $41,000, bears interest at a stated rate of 5.71% (effective rate of 5.85%), requires interest only payments, and matures in January 2018 with a one-year automatic extension at a variable interest rate.