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Equity Investments in Real Estate (Tables)
 6 Months Ended
Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments
The following table presents Equity in earnings in equity method investments in real estate, which represents our proportionate share of the income or losses of these investments, as well as amortization of basis differences related to purchase accounting adjustments (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Equity Earnings from Equity Investments:
 
 
 
 
 
 
 
Net Lease
$
4,761

 
$
4,150

 
$
8,313

 
$
7,866

Self-Storage
—

 
(508
)
 
(394
)
 
(947
)
All Other
(2,124
)
 
1,917

 
(1,862
)
 
1,910

 
2,637

 
5,559

 
6,057

 
8,829

Amortization of Basis Differences on Equity Investments:
 
 
 
 
 
 
 
Net Lease
(820
)
 
(820
)
 
(1,640
)
 
(625
)
Self-Storage
—

 
(39
)
 
(39
)
 
(77
)
All Other
(237
)
 
(212
)
 
(626
)
 
(424
)
 
(1,057
)
 
(1,071
)
 
(2,305
)
 
(1,126
)
Equity in earnings of equity method investments in real estate
$
1,580

 
$
4,488

 
$
3,752

 
$
7,703

The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values, along with funding to developers for the acquisition, development, and construction of real estate, or ADC Arrangements, that are recorded as equity investments (dollars in thousands):
 
 
 
 
 
 
Carrying Value at
Lessee/Equity Investee
 
Co-owner
 
Ownership Interest
 
June 30, 2016
 
December 31, 2015
Net Lease:
 
 
 
 
 
 
 
 
C1000 Logistiek Vastgoed B.V. (a) (b)
 
WPC
 
85%
 
$
58,761

 
$
59,629

U-Haul Moving Partners, Inc. and Mercury Partners, LP (c)
 
WPC
 
12%
 
38,454

 
39,309

Bank Pekao S.A. (a) (c)
 
CPA®:18 – Global
 
50%
 
25,353

 
25,785

BPS Nevada, LLC (c) (d)
 
Third Party
 
15%
 
22,267

 
22,007

State Farm (c)
 
CPA®:18 – Global
 
50%
 
18,092

 
18,587

Berry Plastics Corporation (c)
 
WPC
 
50%
 
15,384

 
16,094

Apply Sørco AS (a)
 
CPA®:18 – Global
 
49%
 
14,947

 
15,170

Hellweg Die Prof-Baumärkte GmbH & Co. KG (referred to as Hellweg 2) (a) (c)
 
WPC
 
37%
 
12,094

 
12,212

Tesco plc (a) (c)
 
WPC
 
49%
 
12,006

 
11,849

Agrokor d.d. (referred to as Agrokor 5) (a) (c)
 
CPA®:18 – Global
 
20%
 
7,357

 
7,858

Eroski Sociedad Cooperativa – Mallorca (a)
 
WPC
 
30%
 
7,014

 
6,790

Dick’s Sporting Goods, Inc. (c)
 
WPC
 
45%
 
4,670

 
5,055

 
 
 
 
 
 
236,399

 
240,345

Self-Storage:
 
 
 
 
 
 
 
 
Madison Storage NYC, LLC and Veritas Group IX-NYC, LLC (c) (e)
 
Third Party
 
N/A
 
—

 
16,060

 
 
 
 
 
 
—

 
16,060

All Other:
 
 
 
 
 
 
 
 
Shelborne Property Associates, LLC (c) (d) (f)
 
Third Party
 
33%
 
143,696

 
148,121

IDL Wheel Tenant, LLC (c) (d) (f)
 
Third Party
 
N/A
 
37,523

 
44,387

BG LLH, LLC (c) (d)
 
Third Party
 
7%
 
36,850

 
37,720

BPS Nevada, LLC - Preferred Equity (c) (g)
 
Third Party
 
N/A
 
27,478

 
27,514

 
 
 
 
 
 
245,547

 
257,742

 
 
 
 
 
 
$
481,946

 
$
514,147

__________
(a)
The carrying value of this investment is affected by the impact of fluctuations in the exchange rate of the applicable foreign currency.
(b)
This investment represents a tenancy-in-common interest, whereby the property is encumbered by debt for which we are jointly and severally liable. The co-obligor is WPC and the amount due under the arrangement was approximately $72.7 million at June 30, 2016. Of this amount, $61.8 million represents the amount we agreed to pay and is included within the carrying value of this investment at June 30, 2016.
(c)
This investment is a VIE.
(d)
This investment is subject to the hypothetical liquidation at book value model.
(e)
At December 31, 2015, the carrying value of this investment includes our 45% equity interest as well as a 40% indirect economic interest. On April 11, 2016, we acquired the remaining 15% controlling interest in these entities and, as a result, now have 100% of the economic interest and consolidate this investment as of June 30, 2016 (Note 4).
(f)
Represents a domestic ADC Arrangement. There was no unfunded balance on the loan related to this investment at June 30, 2016.
(g)
This investment represents a preferred equity interest, with a preferred rate of return between 8%-12% during 2015 and 12% during 2016 and thereafter until November 19, 2019, the date on which the preferred equity interest is redeemable.