Investment in Unconsolidated Entities (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Equity Method Investments [Line Items]

Schedule of Unconsolidated Investments and Debt [Table Text Block]

The Company is the guarantor of the construction and mortgage debt or credit facilities of its joint ventures with HSRE and Beaumont. See Note 17. Details of the Company’s unconsolidated investments at December 31, 2014 are presented in the following table (dollars in thousands):

														Debt
																Weighted
						Number of										Average
	Our			Year		Properties In		Total		Total ⁽⁵⁾		Net Total		Amount		Interest
Unconsolidated Entities	Ownership			Founded		Operation		Investment		Impairment		Investment		Outstanding		Rate			Maturity Date / Range
HSRE-Campus Crest I, LLC		63.9	%		2009		3	$	10,380	$	(10,168)	$	212	$	32,485		2.67	%⁽¹⁾		5/9/2015
HSRE-Campus Crest V, LLC		10.0	%		2011		3		4,093		(4,093)		-		49,614		2.89	%⁽¹⁾		4/20/2015-5/05/2015
HSRE-Campus Crest VI, LLC		20.0	%		2012		3		15,089		(8,274)		6,815		53,706		2.48	%⁽¹⁾		5/08/2015 – 12/19/2015
HSRE-Campus Crest IX, LLC		30.0	%		2013		1		18,975		-		18,975		90,204		2.37	%⁽¹⁾		7/25/2016
HSRE-Campus Crest X, LLC		30.0	%		2013		2		12,307		(4,234)		8,073		40,739		2.36	%⁽¹⁾		9/06/2016-9/30/2018
CB Portfolio		48.0	%⁽³⁾		2013		35		218,718		-		218,718		227,698		5.14	%⁽²⁾		9/01/2015 – 10/01/2020
CSH Montreal		47.0	%⁽⁴⁾		2013		2		33,470		(26,523)		6,947		87,970		6.39	%⁽¹⁾		1/13/2016
Total unconsolidated entities							49	$	313,032	$	(53,292)	$	259,740	$	582,416		4.13	%

⁽¹⁾	Variable interest rates.

⁽²⁾	Comprised of fixed rate debt.

⁽³⁾	As of December 31, 2014, the Company had a 48.0% ownership interest in the CB Portfolio.

⁽⁴⁾	As of January 2014, the Company’s ownership increased to 20.0% from 47.0% due to the acquisition of Holiday Inn Midtown in Montreal, Quebec. See discussion above.

⁽⁵⁾

During the year ended December 31, 2014, the Company recognized an impairment of unconsolidated entities of $57.8 million, of which $53.3 million reduced the carrying value of the investments and $4.5 million was recorded as a guarantee obligation in other liabilities in the accompanying consolidated balance sheet.

Equity Method Investment Summarized Financial Information Combined Financial Information [Table Text Block]

The following is a summary of the combined financial position of the Company’s unconsolidated entities with HSRE and Beaumont in their entirety, not only its interest in the entities, for the periods presented (in thousands):

	December 31,
	2014		2013
Assets
Student housing properties, net	$	437,108	$	289,797
Development in process		7,429		81,994
Other assets		12,947		15,341
Total assets	$	457,484	$	387,132

Liabilities and Equity
Mortgage and construction loans	$	354,759	$	165,445
Other liabilities		29,364		58,948
Owners' equity		73,361		162,739
Total liabilities and owners' equity	$	457,484	$	387,132

Company's share of historical owners' equity	$	30,481	$	41,390
Preferred investment⁽¹⁾		7,322		16,468
Net difference in carrying value of investment versus net book value of underlying net assets⁽²⁾		3,219		5,568
Carrying value of investment in HSRE and other non-Copper Beech entities	$	41,022	$	63,426

⁽¹⁾

As of December 31, 2014, the Company had Class B membership interests in The Grove at Indiana, Pennsylvania, The Grove at Greensboro, North Carolina, and The Grove at Louisville, Kentucky, of approximately $2.7 million, $2.7 million and $1.9 million, respectively, entitling the Company to a 9.0% return on its investment upon the respective property being operational. The Company also had, from January to September 2, 2014, a CAD 16 million ($13.8 million at December 31, 2014 exchange rate) Class A interest in CSH Holdings entitling it to a commitment fee of 1.0% of the Class A interest each quarter and a 10.0% annual return on its investment.

⁽²⁾

This amount represents the aggregate difference between the Company’s carrying amount and its underlying equity in the net assets of its investments, which is typically amortized over the life of the related asset. The basis differential occurs primarily due to the other than temporary impairments recorded during 2014 (see Note 4), the difference between the allocated value to acquired entity interests and the venture’s basis in those interests, the capitalization of additional investment in the unconsolidated entity, and the elimination of service related revenue to the extent of the Company’s percentage ownership.

Equity Method Investment Summarized Financial Information Statement Of Operation [Table Text Block]

The following is a summary of the operating results for the Company’s unconsolidated Copper Beech entities in their entirety, not only its interest in the entities. For the year ended December 31, 2014, this summary includes results for 28 properties from January 1, 2014 through August 18, 2014 and results for 35 unconsolidated properties from August 19, 2014 through December 31, 2014 (in thousands):

			Period from
	Year Ended		March 18, 2013 to
	December 31, 2014		December 31, 2013

Revenues	$	83,108	$	67,545
Expenses:
Operating expenses		34,525		28,316
Interest expense		13,152		11,852
Depreciation and amortization		35,827		56,106
Total expenses		83,504		96,274
Net loss	$	(396)	$	(28,729)

Schedule of Equity in Losses in the CB Portfolio [Table Text Block]

The following table is the calculation of the Company’s equity in losses in the CB Portfolio for the year ended December 31, 2014 and for the period from March 18, 2013 to December 31, 2013. As there are several components of the calculation, set forth below are notes corresponding to the notes included in the Company’s calculation to further explain these components (in thousands).

	Year Ended		Period from
	December 31,		March 18, 2013 to
	2014		December 31, 2013
Net loss incurred by the CB Portfolio based on the Company's purchase price ⁽¹⁾	$	(396)	$	(28,729)
Campus Crest's share of net loss ⁽²⁾		(606)		(9,215)
Campus Crest percentage of preferred payment ⁽³⁾		911		5,663
Campus Crest earnings from Copper Beech		305		(3,552)
Amortization of basis difference ⁽⁴⁾		(557)		(264)
Total equity in earnings (loss) in the CB Portfolio	$	(252)	$	(3,816)

⁽¹⁾

The basis of the financial statements of the CB Portfolio used in the calculation of the Company’s equity in earnings for the year ended December 31, 2014 was computed using the cost basis for its investment in the CB Portfolio’s underlying assets and liabilities for its properties at the dates the Company acquired its interests in the CB Portfolio. The calculation includes the effects of purchase price adjustments determined at the date the Company acquired its interests in the CB Portfolio.

The Company consummated the acquisition of a 48.0% interest in 36 properties of the CB Portfolio. As a result of lender consents that were required to be obtained from various lenders to the CB Portfolio prior to its ownership, the Company completed its acquisition of the 48.0% interest in stages, which resulted in a variation in its ownership percentage from 25.3% to 48.0% in all 36 of the CB Portfolio operating properties from March 18, 2013 to September 30, 2013. Effective October 1, 2013, the Company and the CB Portfolio sellers amended the purchase and sale agreement, subject to receipt of all required third party consents, to increase the Company’s ownership interest by 19.0% in 28 of the 35 properties (thereby increasing its ownership in the 28 properties to 67%) in exchange for the Company’s 48.0% interest in seven of the properties (thereby reducing its ownership in the seven properties to 0%) and deferring the Company’s acquisition of any interests in two of the properties, plus a $20.2 million cash payment. Accordingly, the Company recognized its proportionate share of earnings of the CB Portfolio for the specific percentage of ownership interest it held during the applicable period, which was a 67.0% effective interest in the 28 properties during the first and second quarters of 2014 and through August 18, 2014. Due to the Company's decision not to exercise the first purchase option to acquire additional interests in the CB Portfolio, on August 19, 2014, the Company's ownership interest in all 35 unconsolidated operating properties in the CB Portfolio reverted to 48.0% and remained at 48.0% through December 31, 2014.

⁽²⁾

For the year ended December 31, 2014, the losses incurred from January 1, 2014 through August 18, 2014 while the Company held 67% ownership in 28 of the properties exceeded the income earned from August 19, 2014 through December 31, 2014 while the Company held 48% ownership in 36 properties.

⁽³⁾

The Company was entitled to a preferred payment for the first year of its investment and the proportionate share of the remaining operating cash flows in the CB Portfolio and it was currently entitled to its proportionate share of the operating cash flows in the CB Portfolio. During the period from March 18, 2013 to March 17, 2014, the Company was entitled to $13.0 million related to its preferred payment, all of which has been paid, and the Company received approximately $1.0 million in other distributions, as of December 31, 2014.

⁽⁴⁾

The Company recorded in the calculation of equity in losses in the CB Portfolio the amortization of the net difference in the Company’s carrying value of investment as compared to the underlying equity in net assets of the investee.

HSRE and DCV Holdings [Member]

Schedule of Equity Method Investments [Line Items]

Equity Method Investment Summarized Financial Information Combined Financial Information [Table Text Block]

The following is a summary of the combined operating results for the Company’s unconsolidated entities with HSRE and Beaumont in their entirety, not only its interest in the entities, for the periods presented (in thousands):

	Year Ended December 31,
	2014		2013		2012

Revenues	$	30,811	$	23,422	$	17,934
Expenses:
Operating expenses		21,846		17,434		9,665
Interest expense		7,577		5,025		4,962
Depreciation and amortization		11,091		6,304		4,807
Total expenses		40,514		28,763		19,434
Net loss	$	(9,703)	$	(5,341)	$	(1,500)

Copper Beech [Member]

Schedule of Equity Method Investments [Line Items]

Equity Method Investment Summarized Financial Information Statement Of Operation [Table Text Block]

The following is a summary of the financial position reflecting the cost basis of the Company’s investments in the Copper Beech entities in their entirety for the 35 and 28 unconsolidated properties in the CB Portfolio as of December 31, 2014 and December 31, 2013, respectively (in thousands):

	December 31,
	2014		2013
Assets
Student housing properties, net	$	906,614	$	748,280
Intangible assets		7,212		37,100
Other assets		14,293		5,201
Total assets	$	928,119	$	790,581

Liabilities and Equity
Mortgage and construction loans	$	476,985	$	421,239
Other liabilities		15,541		13,112
Owners' equity		435,593		356,230
Total liabilities and owners' equity	$	928,119	$	790,581

Company's share of historical owners' equity	$	199,281	$	244,964
Net difference in carrying value of investment versus net book value of underlying net assets⁽¹⁾		19,437		16,628
Carrying value of investment in unconsolidated entity	$	218,718	$	261,592

⁽¹⁾

This amount represents the aggregate difference between the historical cost basis and the basis reflected at the entity level, which is typically amortized over the life of the related asset. The basis differential occurs primarily due to the impairment recognized in connection with not exercising the Copper Beech purchase option offset by the capitalization of transaction costs incurred to acquire the Company's interests in the Copper Beech entities.