Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

On April 5, 2011, the Company entered into a management agreement with RiverBanc LLC (“RiverBanc”), pursuant to which RiverBanc provides investment management services to the Company. On March 13, 2013, the Company entered into an amended and restated management agreement with RiverBanc (as amended, the “RiverBanc Management Agreement”). The RiverBanc Management Agreement replaces the prior management agreement between RiverBanc and the Company, dated as of April 5, 2011. The amended and restated agreement has an effective date of January 1, 2013 and had an initial term that expired on December 31, 2015 and is now subject to automatic annual one-year renewals (subject to any notice of termination).

As of December 31, 2015 and December 31, 2014, the Company owned a 20% membership interest in RiverBanc. For the years ended December 31, 2015, 2014 and 2013, the Company recognized $0.8 million, $2.6 million and 0.3 million in income related to its investment in RiverBanc, respectively.

RiverBanc manages an entity, RB Multifamily Investors LLC (“RBMI”), in which the Company owns, as of December 31, 2015 and December 31, 2014, approximately 67%, respectively of the outstanding common equity interests. Pursuant to a management agreement between RiverBanc and this entity, RiverBanc is entitled to receive base management and incentive fees for its management of assets owned by RBMI. Our total investment in RBMI, which is included in receivable and other assets on the accompanying consolidated balance sheets, amounts to approximately $56.9 million and $36.6 million as of December 31, 2015 and December 31, 2014, respectively. Included in our total investment in RBMI are preferred equity interests amounting to approximately $41.5 million and $22.9 million as of December 31, 2015 and December 31, 2014, respectively. For the twelve months endedDecember 31, 2015, the Company recognized $5.3 million in income related to its investment in RBMI. For the twelve months endedDecember 31, 2014, the Company recognized $0.5 million in income related to its investment in RBMI. The Company did not recognize any income related to its investment in RBMI for the twelve months ended December 31, 2013.

For the years ended December 31, 2015, 2014 and 2013, the Company expensed $8.1 million, $14.8 million and $3.4 million in fees to RiverBanc, respectively. As of December 31, 2015 and December 31, 2014, the Company had management fees payable to RiverBanc of $1.7 million and $6.3 million, respectively, included in accrued expenses and other liabilities.