Note 6 – Investments in Unconsolidated Real Estate Joint Ventures

Following is a summary of the Company’s ownership interests in the investments we report under the equity method of accounting. The carrying amount of the Company’s investments in unconsolidated real estate joint ventures as of March 31, 2015 and December 31, 2014 is summarized in the table below (amounts in thousands):

	March 31,		December 31,
Property	2015		2014
Villas at Oak Crest	$	3,163	$	3,170
Alexan CityCentre		6,505		6,505
UCF Orlando		3,629		3,629
23Hundred@Berry Hill		202		4,906
Alexan Blaire House		8,679		-
Other		120		121
Total	$	22,298	$	18,331

The Company’s investments in the Villas at Oak Crest, Alexan CityCentre UCF Orlando, and Alexan Blaire House represent preferred equity investments with the following stated returns:

	Current Pay				Total
	Annualized		Accrued		Annualized
	Preferred		Annualized		Preferred
Property	Return		Preferred Return		Return
Villas at Oak Crest	10.5	%	4.5	%	15.0	%
Alexan CityCentre	15.0	%	—		15.0	%
UCF Orlando	15.0	%	—		15.0	%
Alexan Blaire House	15.0	%	—		15.0	%

The equity in income (loss) of the Company’s unconsolidated real estate joint ventures for the three months ended March 31, 2015 and 2014 is summarized below (amounts in thousands):

	March 31,		March 31,
Property	2015		2014
Villas at Oak Crest	$	105	$	—
Alexan CityCentre		241		—
UCF Orlando		134		—
Alexan Blaire House		261		—
Other		(11)		(6)
Equity in income (loss) of unconsolidated joint venture	$	730	$	(6)

Summary combined financial information for the Company’s investments in unconsolidated real estate joint ventures as of March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014, is as follows:

	March 31,		December 31,
	2015		2014
Balance Sheets:
Real estate, net of depreciation	$	62,585	$	55,091
Real estate, net of depreciation, held for sale		—		31,334
Other assets		8,790		1,193
Other assets, held for sale		486		2,458
Total assets	$	71,861	$	90,076

Mortgage payable	$	25,077	$	19,820
Mortgage payable, held for sale		—		23,569
Other liabilities		3,315		2,812
Other liabilities, held for sale		18		1,026
Total liabilities	$	28,410	$	47,227
Members’ equity		43,451		42,849
Total liabilities and members’ equity	$	71,861	$	90,076

	Three Months Ended March 31,
	2015		2014
Operating Statements:
Total revenues	$	683	$	599
Property operating expenses		(280)		(229)
Income before debt service, acquisition costs, and depreciation and amortization		403		370
Interest expense		(181)		(186)
Acquisition costs		—		—
Depreciation and amortization		(212)		(200)
Operating income (loss)		10		(16)
Gain on sale of real estate		29,197		—
Net income (loss)		29,207		(16)
Net (income) loss attributable to JV partners		(28,838)		11
Net income (loss) attributable to common stockholders		369		(5)
Amortization of deferred financing costs paid on behalf of joint venture		(7)		—

Equity in income (loss) of unconsolidated joint venture	$	362	$	(5)

Acquisition of Alexan Blaire House Interests

On January 12, 2015, through BRG Southside, LLC, a wholly-owned subsidiary of its Operating Partnership, the Company made a convertible preferred equity investment in a multi-tiered joint venture along with Fund II and Fund III, LLC, which are affiliates of the Manager, and an affiliate of Trammell Crow Residential to develop an approximately 269-unit Class A apartment community located in Houston, Texas, to be known as Alexan Blaire House. Alexan Blaire House will be developed upon a tract of land ground leased from Prokop Industries BH, L.P., a Texas limited partnership, by BR Bellaire BLVD, LLC, as tenant under an 85-year ground lease. We have made a capital commitment of $17.4 million to acquire 100% of the preferred equity interests in BRG Southside, LLC of which $8.7 million has been funded as of March 31, 2015.