INVESTMENTS IN JOINT VENTURES AND PARTNERSHIPS

3 Months Ended

Mar. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN JOINT VENTURES AND PARTNERSHIPS

INVESTMENTS IN JOINT VENTURES AND PARTNERSHIP

As of March 31, 2019 and December 31, 2018, we consolidated multiple variable interest entities (“VIE’s”) relating to two projects: one is comprised of real estate holdings and one is an operating hotel property. We are deemed to be the primary beneficiaries of these consolidated VIE’s as we have the power to direct the activities that most significantly affect their economic performance and we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our consolidated VIE’s are only available to settle the obligations of the respective entities.

The following table summarizes the carrying amounts of the above referenced entities’ assets and liabilities included in the Company’s condensed consolidated balance sheets at March 31, 2019 and December 31, 2018, net of intercompany eliminations (in thousands):

	March 31, 2019			December 31, 2018
Total assets	$	94,510		$	85,240
Total liabilities	49,860			37,770
Net loss	(3,150		)	(2,720		)

The Company’s maximum exposure to loss consists of its combined equity in those entities which totaled $32.9 million as of March 31, 2019. The Hotel Fund made Preferred Distributions of $0.3 million and $20 thousand during the three months ended March 31, 2019 and 2018, respectively.