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Equity Investments in Real Estate (Tables)
 6 Months Ended
Jun. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments
The following table presents Equity in earnings of 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,
 
2018
 
2017
 
2018
 
2017
Equity Earnings from Equity Investments:
 
 
 
 
 
 
 
Net Lease
$
11,745

 
$
2,475

 
$
16,447

 
$
7,430

All Other (a) (b) (c)
2

 
460

 
595

 
(1,648
)
 
11,747

 
2,935

 
17,042

 
5,782

Amortization of Basis Differences on Equity Investments:
 
 
 
 
 
 
 
Net Lease
(525
)
 
(562
)
 
(1,060
)
 
(1,125
)
All Other (a) (b) (c)
(77
)
 
(103
)
 
(154
)
 
(402
)
 
(602
)
 
(665
)
 
(1,214
)
 
(1,527
)
Equity in earnings of equity method investments in real estate
$
11,145

 
$
2,270

 
$
15,828

 
$
4,255


__________
(a)
On October 3, 2017 we restructured our Shelborne Hotel investment. All equity interests in the investment were transferred to us in satisfaction of the underlying loan. Simultaneously, we transferred a 4.5% minority interest back to one of the original equity partners in exchange for a cash contribution of $4.0 million. As a result of the restructuring, we became the managing member with controlling financial interest in the investment. The minority interests have no decision-making control. Since the construction is now complete and the loan has been satisfied, we determined that this investment should no longer be accounted for as an ADC Arrangement and, as a result, have consolidated this investment as of the restructure date.
(b)
On May 19, 2017, we received the full repayment of our preferred equity interest in BPS Nevada LLC; therefore, the preferred equity interest was retired as of that date. As a result, the three and six months ended June 30, 2018 in the table above does not include any activity related to this investment.
(c)
On March 17, 2017, we restructured our investment in IDL Wheel Tenant, LLC (Note 13) and, as a result, this investment is accounted for as a loan receivable, included in Accounts receivable and other assets, net in the consolidated financial statements, and is no longer accounted for as an ADC Arrangement under the equity method of accounting.

The following table sets forth our ownership interests in our equity method investments in real estate and their respective carrying values (dollars in thousands):
 
 
 
 
Ownership Interest at
 
Carrying Value at
Lessee/Equity Investee
 
Co-owner
 
June 30, 2018
 
June 30, 2018
 
December 31, 2017
Net Lease:
 
 
 
 
 
 
 
 
Hellweg Die Profi-Baumärkte GmbH & Co. KG (referred to as Hellweg 2) (a) (b)
 
WPC
 
37%
 
$
107,125

 
$
109,933

Kesko Senukai (a)
 
Third Party
 
70%
 
55,769

 
58,136

Jumbo Logistiek Vastgoed B.V. (a) (c)
 
WPC
 
85%
 
52,090

 
55,162

U-Haul Moving Partners, Inc. and Mercury Partners, LP (b)
 
WPC
 
12%
 
35,053

 
35,897

Bank Pekao S.A. (a) (b)
 
CPA:18 – Global
 
50%
 
23,945

 
25,582

BPS Nevada, LLC (b) (d)
 
Third Party
 
15%
 
23,435

 
23,455

State Farm Automobile Co.(b)
 
CPA:18 – Global
 
50%
 
15,261

 
16,072

Berry Global Inc. (b)
 
WPC
 
50%
 
14,045

 
14,476

Tesco Global Aruhazak Zrt. (a) (b)
 
WPC
 
49%
 
10,266

 
10,707

Eroski Sociedad Cooperativa — Mallorca (a)
 
WPC
 
30%
 
7,352

 
7,629

Apply Sørco AS (referred to as Apply) (a)
 
CPA:18 – Global
 
49%
 
7,328

 
6,298

Dick’s Sporting Goods, Inc. (b)
 
WPC
 
45%
 
3,396

 
3,750

Konzum d.d. (referred to as Agrokor) (a) (b)
 
CPA:18 – Global
 
20%
 
3,153

 
3,433

 
 
 
 
 
 
358,218

 
370,530

All Other:
 
 
 
 
 
 
 
 
BG LLH, LLC (b) (d)
 
Third Party
 
6%
 
39,678

 
38,724

 
 
 
 
 
 
39,678

 
38,724

 
 
 
 
 
 
$
397,896

 
$
409,254

__________
(a)
Carrying value of investment is impacted by fluctuations in the exchange rate of the applicable foreign currency.
(b)
This investment is a VIE.
(c)
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 $73.3 million at June 30, 2018. Of this amount, $62.3 million represents the amount we are liable for and is included within the carrying value of this investment at June 30, 2018.
(d)
This investment is reported using the hypothetical liquidation at book value model, which may be different then pro rata ownership percentages, primarily due to the complex capital structure of the partnership agreement.