Real Estate and Real Estate-Related Investments

6 Months Ended

Jun. 30, 2016

Real Estate [Abstract]

Real Estate and Real Estate-Related Investments

Real Estate and Real Estate-Related Investments

As of June 30, 2016, we consolidated eight real estate assets in our condensed consolidated balance sheet. The following table presents certain information about our consolidated investments as of June 30, 2016:

Property Name	Description	Location	Date Acquired	Ownership Interest
Gardens Medical Pavilion	Medical office building	Palm Beach Gardens, Florida	October 20, 2010	80.9%
Courtyard Kauai Coconut Beach Hotel	Hotel	Kauai, Hawaii	October 20, 2010	80%
River Club and the Townhomes at River Club	Student housing	Athens, Georgia	April 25, 2011	85%
Lakes of Margate	Multifamily	Margate, Florida	October 19, 2011	92.5%
Arbors Harbor Town	Multifamily	Memphis, Tennessee	December 20, 2011	94%
22 Exchange	Student housing	Akron, Ohio	April 16, 2013	90%
Parkside Apartments (“Parkside”)	Multifamily	Sugar Land, Texas	August 8, 2013	90%
Lakewood Flats(1)	Multifamily	Dallas, Texas	October 10, 2014	100%

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(1) We received an unsolicited offer from an unaffiliated third party for our Lakewood Flats investment. Following the termination of the original PSA on May 27, 2016, we entered into an amended PSA for the investment with the unaffiliated third party on July 22, 2016.

Sales of Real Estate Reported in Continuing Operations

The following table presents our sale of real estate for the six months ended June 30, 2015 (in millions):

Date of Sale	Property	Ownership Interest	Sales Contract Price		Net Cash Proceeds(1)		Gain on Sale of Real Estate
January 8, 2015	Babcock Self Storage	85%	$	5.4	$	5.2	$	2.0
February 21, 2015	Alte Jakobstraße	99.7%	$	14.1	$	13.0	$	3.3

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(1) A portion of the net cash proceeds was used to pay off the property-associated debt of $2.1 million and $6.5 million for Babcock Self Storage (“Babcock”) and AJS, respectively.

The Company does not view the 2015 disposals of Babcock and AJS as a strategic shift. Therefore, the results of operations for Babcock and AJS are presented in continuing operations in the condensed consolidated statements of operations for the six months ended June 30, 2015. Net income attributable to the Company for the six months ended June 30, 2015 related to Babcock and AJS was $2.4 million and includes the gains on sale of Babcock and AJS for a total of $5.3 million.

Real Estate Held for Sale

As of June 30, 2016, Lakewood Flats was classified as real estate held for sale on our condensed consolidated balance sheet. In 2014, we acquired the property for a purchase price of $60.5 million. We received an unsolicited offer from an unaffiliated third party and, on April 7, 2016, entered into an agreement to sell Lakewood Flats to the unaffiliated third party for a contract sales price of $68.8 million. The prospective buyer terminated the contract on May 27, 2016. We continued to negotiate with the prospective buyer and reinstated the contract on July 22, 2016. The Company does not view the impending sale of the property as a strategic shift. Therefore, its results of operations are presented in continuing operations for the three and six months ended June 30, 2016 and 2015. At the time of this filing, we cannot give any assurances that the closing of this sale will occur.

We did not have any real estate assets classified as held for sale as of December 31, 2015.

The major classes of assets and liabilities associated with our real estate held for sale as of June 30, 2016 were as follows:

Description	Amount
Land and improvements, net	$	8,050
Building and improvements, net	46,975
Furniture, fixtures and equipment, net	772
Assets associated with real estate held for sale	$	55,797
Notes payable	$	33,500
Deferred financing fees(1)	(375		)
Notes payable, net	33,125
Other	210
Obligations associated with real estate held for sale	$	33,335

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(1) Effective January 1, 2016, we adopted ASU 2015-03, which requires companies to present the debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of the related debt liability. See Note 4, New Accounting Pronouncements, for further details.