
(6)	Investments in Real Estate Ventures

As of September 30, 2015 and December 31, 2014, we had Investments in real estate ventures of $311.8 million and $297.1 million, respectively. We account for the majority of our investments in real estate ventures under the equity method of accounting, however, we report certain of our direct investments at fair value. Our investments are primarily co-investments in approximately 50 separate property or commingled funds for which we also have an advisory agreement. Our investment ownership percentages in these funds range from less than 1% to 15%.

Approximately half of our $311.8 million balance in Investments in real estate ventures as of September 30, 2015 was attributable to investment vehicles which, utilizing our capital and outside capital primarily provided by institutional investors, invest in certain real estate ventures that own and operate real estate. Of this amount, the majority was placed with LaSalle Investment Company II ("LIC II"), in which we held an effective ownership interest of 48.78%. The remainder of our Investments in real estate ventures primarily represented direct investments in certain real estate ventures that own and operate real estate.

At September 30, 2015, LIC II had unfunded capital commitments to underlying ventures of $119.5 million and a $20.0 million revolving credit facility (the "LIC II Facility"), principally for working capital needs. LIC II's exposure to the liabilities and losses of the underlying real estate ventures in which it has invested is limited to existing capital contributions and remaining unfunded capital commitments. Considering our proportionate share of LIC II's commitments to underlying funds and our exposure to fund our proportionate share of the then outstanding balance on the LIC II facility, our maximum potential unfunded commitment to LIC II was $88.7 million as of September 30, 2015. We expect LIC II to draw down on our commitments over the next 3 to 5 years to satisfy its existing commitments to underlying real estate ventures.

The following table summarizes the above discussion relative to LIC II as of September 30, 2015 ($ in millions):



Our effective ownership interest in co-investment vehicle	48.78		%
Our maximum potential unfunded commitments	$	88.7
Our share of unfunded capital commitments to underlying funds	58.3
Our share of exposure on outstanding borrowings	0.1
Our maximum exposure, assuming facility is fully drawn	9.8

Exclusive of our LIC II commitment structure, we have potential unfunded commitment obligations to other like investment vehicles or direct investments, the aggregate maximum of which is $78.5 million as of September 30, 2015.

We evaluate our less-than-wholly-owned investments to determine whether the underlying entities are classified as variable interest entities ("VIEs"); each identified VIE is assessed to determine whether we are the primary beneficiary. We have determined that we are the primary beneficiary of certain VIEs and accordingly, consolidate such entities. The assets of the consolidated VIEs are available only for the settlement of the obligations of the respective entities and the mortgage loans of the consolidated VIEs are non-recourse to JLL.

Summarized balance sheets for our consolidated VIEs as of September 30, 2015 and December 31, 2014 are as follows ($ in millions):



	September 30, 2015		December 31, 2014
Property and equipment, net	$	32.5	37.8
Investment in real estate venture	3.3		5.0
Other assets	4.7		3.5
Total assets	$	40.5	46.3

Mortgage loans payable, included in other long-term liabilities	$	25.6	29.3
Total liabilities	25.6		29.3
Members' equity	14.9		17.0
Total liabilities and members' equity	$	40.5	46.3

Summarized statements of operations for our consolidated VIEs for the three and nine months ended September 30, 2015 and 2014 are as follows ($ in millions):



	Three Months Ended			Three Months Ended		Nine Months Ended			Nine Months Ended
	September 30, 2015			September 30, 2014		September 30, 2015			September 30, 2014
Revenue (1)	$	4.6		1.3		$	7.1		2.9
Gain on sale of investment	—			—		1.3			—
Operating and other expenses	(1.0		)	(1.3	)	(2.8		)	(2.7	)
Net income	$	3.6		—		$	5.6		0.2
(1) Includes $3.3 million for the three and nine months ended September 30, 2015, representing our pro rata share of the gain on the sale of real estate by an investment of one of our consolidated VIE's that was accounted for pursuant to the equity method.

The members' equity and net income of the consolidated VIEs are allocated to the noncontrolling interest holders to the extent of their ownership as Noncontrolling interest on our Consolidated Balance Sheets and as Net income attributable to noncontrolling interest in our Consolidated Statements of Comprehensive Income, respectively.

Impairment

We review our investments in real estate ventures on a quarterly basis, or as otherwise deemed necessary, for indications that we may not be able to recover the carrying value of our investments and whether such investments are other than temporarily impaired. Our assessments consider the existence of impairment indicators at the underlying real estate assets that comprise the majority of our investments. Such assessments, in regards to both the investment levels and underlying asset levels, are based on evaluations of regular updates to future cash flow models and on factors such as operational performance, market conditions, major tenancy matters, legal and environmental concerns, and our ability and intent to hold each investment. When events or changes in circumstances indicate that the carrying amount of one of our investments in real estate ventures may be other than temporarily impaired, we consider the likelihood of recoverability of the carrying amount of our investment as well as the estimated fair value and record an impairment charge as applicable. Impairment charges to write down the carrying value of the real estate assets underlying our investments, our proportionate share of which is recognized within Equity earnings from real estate ventures, are generally the result of completing discounted cash flow models that primarily rely upon Level 3 inputs to determine fair value. Impairment charges recorded within Equity earnings from real estate ventures aggregated to $0.1 million and $1.1 million for the three months ended September 30, 2015 and 2014, respectively, and $4.2 million and $2.0 million for the nine months ended September 30, 2015 and 2014, respectively.

Fair Value

We report our investments in certain real estate ventures at fair value. For such investments, we increase or decrease our investment each reporting period by the estimated change in fair value, which activity is reflected as gains or losses in our Consolidated Statements of Comprehensive Income within Equity earnings from real estate ventures. At September 30, 2015 and December 31, 2014, we had $150.3 million and $113.6 million, respectively, of investments that were reported at fair value. Fair value was estimated utilizing net asset value (''NAV'') per share (or its equivalent), generally a Level 3 input in the fair value hierarchy, as provided by our investees. Critical inputs to NAV estimates included valuations of the underlying real estate assets and borrowings, which incorporate investment-specific assumptions such as discount rates, capitalization rates, rental and expense growth rates and asset-specific market borrowing rates. No adjustments to NAV estimates provided by investees, including adjustments to contemplate any restrictions to the transferability of ownership interests embedded within investment agreements to which we are a party, were considered necessary based upon the following factors: (1) our understanding of the methodology utilized and inputs incorporated to estimate NAV at the investee level derived through LaSalle's role as advisor or manager of these ventures; (2) consideration of market demand for the specific types of real estate assets held by each venture; and (3) contemplation of real estate and capital markets conditions in the localities in which these ventures operate.

The following table shows the roll forward of our investments in real estate ventures that are accounted for at fair value ($ in millions):



	2015			2014
Fair value investments as of January 1,	$	113.6		78.9
Investments	28.0			18.2
Distributions	(5.6		)	(2.2	)
Net fair value gain	18.5			8.3
Foreign currency translation adjustments, net	(4.2		)	(2.2	)
Fair value investments as of September 30,	$	150.3		101.0