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Investments in Unconsolidated Real Estate Ventures
 12 Months Ended
Dec. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Real Estate Ventures
INVESTMENTS IN UNCONSOLIDATED REAL ESTATE VENTURES
Investments in unconsolidated real estate ventures consist of the following:
 
Number of Properties
Equity
Ownership %
 
Excess Profit
Participation %
 
December 31,
 
2017
 
2016
VRS Self Storage, LLC ("VRS")
16
45%
 
54%
 
$
19,467

 
$
20,433

Storage Portfolio I LLC ("SP I")
24
25%
 
40%
 
11,495

 
11,782

Storage Portfolio II JV LLC ("SP II'")
36
10%
 
30%
 
(3,140
)
 
—

PRISA Self Storage LLC ("PRISA")
85
4%
 
4%
 
9,638

 
10,152

Extra Space West Two LLC ("ESW II")
5
5%
 
40%
 
3,939

 
4,048

WCOT Self Storage LLC ("WCOT")
16
5%
 
20%
 
(357
)
 
160

Extra Space West One LLC ("ESW")
7
5%
 
40%
 
(900
)
 
(546
)
Extra Space Northern Properties Six LLC ("ESNPS")
10
10%
 
35%
 
(1,279
)
 
(905
)
Other minority owned stores
15
10-50%
 
19-50%
 
31,228

 
34,446

 
214
 
 
 
 
$
70,091

 
$
79,570


In these joint ventures, the Company and the joint venture partner generally receive a preferred return on their invested capital. To the extent that cash/profits in excess of these preferred returns are generated through operations or capital transactions, the Company would receive a higher percentage of the excess cash/profits than its equity interest.
In accordance with ASC 810, the Company reviews all of its joint venture relationships annually to ensure that there are no entities that require consolidation. As of December 31, 2017, there were no previously unconsolidated entities that were required to be consolidated as a result of this review.
The Company has entered into several new unconsolidated real estate ventures. The Company accounts for its investment in the following ventures under the equity method of accounting. Information about these real estate ventures is summarized as follows:
 
Number of new unconsolidated joint ventures
Number of Stores
 
Equity ownership %
 
Total initial investment
Year ended December 31, 2017
4
39
 
10.0% - 25.0%
 
$
13,341

Year ended December 31, 2016
8
8
 
20.0% - 50.0%
 
$
26,387

Year ended December 31, 2015
1
1
 
50%
 
$
2,885



On September 16, 2016, subsequent to its acquisition of 23 properties as outlined in Note 4, the Company sold its 4.42% interest in PRISA II to Prudential for $34,758 in cash. The carrying value of the Company's investment prior to the acquisition was $3,912, and the Company recorded a gain on the sale of $30,846. This gain is included in equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partners' interests on the Company's consolidated statements of operations.

On April 25, 2016, the Company and Prudential entered into the “Second Amendment to Amended and Restated Operating Agreement of ESS PRISA LLC” and the “First Amendment to Amended and Restated Operating Agreement of ESS PRISA II LLC” (the “Amendments”). The Amendments are deemed effective as of April 1, 2016. Under the Amendments, the Company gave up any future rights to receive distributions from these joint ventures at the higher “excess profit participation” percentage of 17.0% in exchange for a higher equity ownership percentage. The Company’s equity ownership in ESS PRISA LLC increased from 2.0% to 4.0%, and the Company’s equity ownership in ESS PRISA II LLC increased from 2.0% to 4.4%. The Company continues to account for its investment in PRISA under the equity method of accounting. The Company subsequently sold its interest in PRISA II as noted above.
Equity in earnings of unconsolidated real estate ventures consists of the following:
 
For the Year Ended December 31,
 
2017
 
2016
 
2015
Equity in earnings of VRS
$
3,562

 
$
2,919

 
$
4,041

Equity in earnings of SP I
2,684

 
2,380

 
1,951

Equity in earnings of SP II
33

 
—

 
—

Equity in earnings of PRISA
2,430

 
1,912

 
1,013

Equity in earnings of ESW II
1,210

 
174

 
145

Equity in earnings of WCOT
1,033

 
614

 
569

Equity in earnings of ESW
2,502

 
2,269

 
1,875

Equity in earnings of ESNPS
918

 
823

 
633

Equity in earnings of other minority owned stores
959

 
1,804

 
2,124

 
$
15,331

 
$
12,895

 
$
12,351


Equity in earnings of ESW II, SP I and VRS and other minority owned stores includes the amortization of the Company’s excess purchase price of $27,691 of these equity investments over its original basis. The excess basis is amortized over 40 years.