Unconsolidated Real Estate Affiliates

12 Months Ended

Dec. 31, 2012

Unconsolidated Real Estate Affiliates [Abstract]

UNCONSOLIDATED REAL ESTATE AFFILIATES

UNCONSOLIDATED REAL ESTATE AFFILIATES

Legacy Village

On August 25, 2004, we acquired a 46.5% membership interest in Legacy Village Investors, LLC which owns Legacy Village, a 595,000 square-foot lifestyle center in Lyndhurst, Ohio, built in 2003. The aggregate consideration for our 46.5% ownership interest was approximately $35,000.

111 Sutter Street

On March 29, 2005, we acquired an 80% membership interest in CEP Investors XII LLC, which owns 111 Sutter Street in San Francisco, California, a 286,000 square-foot, multi-tenant office building built in 1926 and renovated in 2001. The aggregate consideration paid for the 80% membership interest was approximately $24,646. On December 4, 2012 we acquired the remaining 20% membership interest and consolidated the property as of the purchase date.

9800 South Meridian and 18922 Forge Drive

At September 30, 2010, we assigned our 90% interests in the 9800 South Meridian and 18922 Forge Drive investments to our operating partner and subsequently received a distribution of $1,000 from property cash reserves. We recorded a loss on the assignment of our interest in 18922 Forge Drive of $428 which is included in equity in loss of unconsolidated affiliates on the Consolidated Statement of Operations and Comprehensive Loss. We recorded no loss on our assignment of interest in 9800 South Meridian as the investment was previously revalued to $0.

SUMMARIZED FINANCIAL INFORMATION OF INVESTMENTS IN UNCONSOLIDATED REAL ESTATE AFFILIATES

The following is summarized financial information for our unconsolidated real estate affiliates:

SUMMARIZED COMBINED BALANCE SHEETS—UNCONSOLIDATED REAL ESTATE AFFILIATES

	December 31, 2012		December 31, 2011
Total assets	$	104,882	$	171,652
Total liabilities	91,176		152,155
Members’ equity	13,706		19,497
Total liabilities and members' equity	$	104,882	$	171,652

COMPANY INVESTMENTS IN UNCONSOLIDATED REAL ESTATE AFFILIATES

	December 31, 2012			December 31, 2011
Members’ equity	$	13,706		$	19,497
Less: other members’ equity	(8,442		)	(8,275		)
Basis differential in investment in unconsolidated real estate affiliates, net (1)	14,724			14,962
Investments in unconsolidated real estate affiliates	$	19,988		$	26,184

(1) The basis differential in investment in the equity of the unconsolidated real estate affiliates is attributable to a difference in the fair value of Legacy Village over its historical cost at acquisition plus our own acquisition costs for Legacy Village. We amortize the basis differential over the lives of the related assets and liabilities that make up the fair value difference, primarily buildings and improvements. In some instances, the useful lives of these assets and liabilities differ from the useful lives being used to amortize the assets and liabilities by the other members. The basis differential allocated to land is not subject to amortization.

SUMMARIZED COMBINED STATEMENTS OF OPERATIONS—UNCONSOLIDATED REAL ESTATE AFFILIATES

	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Total revenues	$	25,379		$	25,229		$	30,875
Total operating expenses	17,483			18,450			23,382
Operating income	7,896			6,779			7,493
Total other expenses	(7,827		)	(8,298		)	(9,872		)
Net income (loss)	$	69		$	(1,519	)	$	(2,379	)

COMPANY EQUITY IN INCOME OF UNCONSOLIDATED REAL ESTATE AFFILIATES

	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2010
Net income (loss) of unconsolidated real estate affiliates	$	69		$	(1,519	)	$	(2,379	)
Other members’ share of net loss	(272		)	(45		)	663
Adjustments and other expenses	37			74			(228		)
Other expense from unconsolidated real estate affiliates	(10		)	(3		)	(1		)
Loss on assignment of 18922 Forge Drive	—			—			(428		)
Company equity in loss of unconsolidated real estate affiliates	$	(176	)	$	(1,493	)	$	(2,373	)