INVESTMENT IN JOINT VENTURES AND PARTNERSHIPS

Consolidated Variable Interest Entities

As of March 31, 2020 and December 31, 2019, we consolidated multiple variable interest entities (“VIEs”) relating to two primary projects: 1) various partnerships which own land and water rights located in New Mexico for which the Company retains both general partner and limited partner interests, and 2) the L’Auberge de Sonoma Resort Fund (the “Hotel Fund”) for which the Company is the sponsor and its subsidiary is the common member that owns MacArthur Place. We are deemed to be the primary beneficiaries of these consolidated VIEs 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 these consolidated VIEs 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 accompanying condensed consolidated balance sheets at March 31, 2020 and December 31, 2019 (in thousands):



	March 31, 2020		December 31, 2019
Total assets	$	100,490	$	99,990
Total liabilities	61,930		59,920

The following table summarizes the consolidated VIEs results of operations for the three months ended March 31, 2020 and 2019, net of intercompany eliminations (in thousands):



	Three months ended March 31,
	2020			2019
Net loss	$	(3,077	)	$	(3,150	)

The Company’s maximum exposure to loss of its combined equity in those entities totaled $28.1 million as of March 31, 2020.

Investment in Unconsolidated Entities

In the second quarter of 2019, the Company entered into a joint venture agreement with Juniper New Mexico, LLC and Juniper Bishops Manager, LLC (both related parties of Jay Wolf, a director of the Company) to participate in a $10.0 million mezzanine loan to be used to finance the renovation of a luxury resort located in Santa Fe, New Mexico. The mezzanine loan is secondary to a senior mortgage loan funded by an unrelated party. The joint venture is named Juniper Bishops, LLC (“Juniper Bishops” or the “JV”), and is sponsored and managed by Juniper Bishops Manager, LLC, which manages and controls the joint venture. IMH’s subsidiary, IMH Bishops Lodge Mezz Lender, LLC (“IMH BL Mezz Lender”), is a limited member in the joint venture and does not manage, control or have any decision-making powers nor is it the primary beneficiary, and therefore, it is not consolidated. As such, we have accounted for this investment using the equity method of accounting. IMH BL Mezz Lender’s maximum commitment under this investment is $3.9 million, (or 39% of the $10.0 million loan), all of which was funded as of March 31, 2020. Under the terms of the mezzanine loan agreement, the interest rate of the loan is based on the one-month LIBOR plus 15% with a LIBOR floor of 2.4%, and of which 6.0% is accrued and deferred, and the balance is paid on a current basis. While the Company is entitled to a 7% return under the terms of the JV agreement, the Company expects to receive a total preferred annualized return of 11.4%, less a management fee of 1.5%, of which 5.4% is payable quarterly in arrears, with the remaining 6.0% accrued and to be paid upon maturity in June 2021. During the three months ended March 31, 2020, the Company recorded $0.1 million in earnings on the investment and received distributions totaling $0.1 million. As of March 31, 2020, we recorded uncollected accrued revenue of $0.1 million.