INVESTMENTS

Park City, Utah Lakeside Investment

In January 2017, Lakeside DV Holdings, LLC (“LDV Holdings”), a wholly-owned subsidiary of the Company, purchased the interest held in Lakeside JV by Park City Development, LLC (“PCD”) for $0.7 million and terminated PCD as manager. Upon purchase of PCD’s interest, LDV Holdings became the sole owner of Lakeside JV. As a result, Lakeside JV became a consolidated entity of the Company. The Company’s investment in Lakeside JV was previously accounted for under the equity method.

Equity Interests Acquired through Guarantor Recoveries

The Company has acquired certain real estate assets and equity interests in a number of limited liability companies and limited partnerships with various real estate holdings and related assets as a result of enforcement and collection efforts. Certain of these entities have been consolidated in the accompanying condensed consolidated financial statements while others have been accounted for under the equity method of accounting, depending on the extent of the Company’s financial interest in each such entity.

The Company’s ownership interests in these entities range from 2.4% to 48.0% and, collectively, the Company’s net investment in these entities totals $4.1 million and $3.1 million at June 30, 2017 and December 31, 2016, respectively.

In addition, during the six months ended June 30, 2017, the Company advanced a total of $0.6 million to five partnerships under the terms of certain note agreements secured by the assets of the respective partnerships. The outstanding principal of such notes totaled $1.0 million at June 30, 2017, had interest rates ranging from the JP Morgan Chase Prime rate plus 2.0% (6.25% at June 30, 2017) to 8% and mature no later than July 31, 2018.

During the three months ended June 30, 2017, the general partner of one of the five partnerships made a capital call of all partners to fund various operating and capital requirements. While the Company met its obligation under this request, none of the remaining partners did so, at which point the Company funded those portions as well totaling $1.1 million. As a result of the other partners’ failure to make the required contributions, the general partner declared a default by such limited partners under the terms of the partnership agreement and assigned those interests to the Company’s limited partner subsidiary. The assignment is being contested by one of the limited partners. As a result of the legal contingency of this matter, while we have recorded the contributions made by the Company in our investment in unconsolidated entities in the accompanying condensed consolidated balance sheets, we have not recorded the possible effects of recording those additional limited partner interests as of June 30, 2017.

Summarized Financial Information of Unconsolidated Entities (unaudited)

The following presents certain summarized financial information of the entities in which the Company holds investments that are recorded on the equity method as of June 30, 2017 and December 31, 2016 (in thousands):



	June 30, 2017		December 31, 2016
Total assets	$	15,578	$	19,456
Total liabilities	7,078		6,269

During both the six months ended June 30, 2017 and 2016, the equity loss recorded on these equity method investments in the accompanying condensed consolidated statements of operations was $0.2 million. During the three months ended June 30, 2017 and 2016, the equity loss recorded on these equity method investments in the accompanying condensed consolidated statements of operations was $0.1 million and $46.0 thousand, respectively.