Related Party Arrangements (Tables)

6 Months Ended

Jun. 30, 2020

Related Party Transactions [Abstract]

Schedule of the Fees and Reimbursements Incurred to the Advisor and Dealer Manager

The following tables present the fees and reimbursements incurred and paid to the Advisor (dollars in thousands):

Type of Fee or Reimbursement		Due to Related Party as of December 31, 2019		Six Months Ended June 30, 2020					Due to Related Party as of June 30, 2020 (Unaudited)
	Financial Statement Location			Incurred		Paid
Fees to Advisor Entities(1)
Asset management(2)	Asset management and other fees-related party	$	1,477	$	8,862	$	(8,862)	(2)	$	1,477
Reimbursements to Advisor Entities
Operating costs(3)	General and administrative expenses	4,303		4,880		(7,213)			1,970
Total		$	5,780	$	13,742	$	(16,075)		$	3,447

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(1)The Company did not incur any disposition fees during the six months ended June 30, 2020, nor were any such fees outstanding as of June 30, 2020.

(2)Includes $5.0 million paid in shares of the Company’s common stock.

(3)As of June 30, 2020, the Advisor did not have any unreimbursed operating costs which remained eligible to be allocated to the Company.

Schedule of Joint Ventures

The following tables present the Company’s investments in unconsolidated ventures (dollars in thousands):

				Carrying Value
Portfolio	Acquisition Date	Ownership		June 30, 2020 (Unaudited)		December 31, 2019(1)
Eclipse	May-2014	5.6	%	$	5,906	$	9,483
Envoy(2)	Sep-2014	11.4	%	207		399
Griffin-American	Dec-2014	14.3	%	85,162		125,597
Espresso(3)	Jul-2015	36.7	%	—		—
Trilogy(4)	Dec-2015	23.2	%	139,816		133,361
Subtotal				$	231,091	$	268,840
Operator Platform(5)	Jul-2017	20.0	%	6		54
Total				$	231,097	$	268,894

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(1)Includes $1.3 million, $13.4 million, $7.6 million, and $9.8 million of capitalized acquisition costs for the Company’s investments in the Eclipse, Griffin-American, Espresso and Trilogy joint ventures, respectively.

(2)In March 2019, the Envoy joint venture completed the sale of its remaining 11 properties for a sales price of $118.0 million, which generated net proceeds to the Company totaling $4.3 million. The Company’s carrying value for its investment in the Envoy joint venture represents additional proceeds to be received upon satisfaction of certain conditions under the sale.

(3)As a result of impairments and other non-cash reserves recorded by the joint venture, the Company’s carrying value of its Espresso unconsolidated investment was reduced to zero in the fourth quarter of 2018. The Company has recorded the excess equity in losses related to its unconsolidated venture as a reduction to the carrying value of its mezzanine loan, which was originated to a subsidiary of the Espresso joint venture.

(4)In October 2018, the Company sold 20.0% of its ownership interest in the Trilogy joint venture, which generated gross proceeds of $48.0 million and reduced the Company’s ownership interest in the joint venture from approximately 29% to 23%.

(5)Represents investment in Solstice Senior Living, LLC (“Solstice”), the manager of the Winterfell portfolio. Solstice is a joint venture between affiliates of Integral Senior Living, LLC (“ISL”), a management company of ILF, ALF and MCF founded in 2000, which owns 80.0%, and the Company, which owns 20.0%.

	Three Months Ended June 30, 2020						Three Months Ended June 30, 2019
Portfolio	Equity in Earnings (Losses)		Select Revenues and (Expenses), net(1)		Cash Distribution		Equity in Earnings (Losses)		Select Revenues and (Expenses), net(1)		Cash Distribution
Eclipse	$	(3,293)	$	(3,410)	$	—	$	(232)	$	(622)	$	208
Envoy	—		—		—		—		(12)		38
Griffin-American	(35,999)		(37,573)		—		(3,433)		(6,229)		3,435
Espresso	(365)		(2,752)		—		(1,771)		(2,217)		—
Trilogy	4,928		(3,625)		—		1,037		(3,329)		1,451
Subtotal	$	(34,729)	$	(47,360)	$	—	$	(4,399)	$	(12,409)	$	5,132
Operator Platform(2)	(34)		—		—		(6)		—		—
Total	$	(34,763)	$	(47,360)	$	—	$	(4,405)	$	(12,409)	$	5,132

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(1)Represents the net amount of the Company’s proportionate share of select revenues and expenses, including: straight-line rental income (expense), (above)/below market lease and in-place lease amortization, (above)/below market debt and deferred financing costs amortization, depreciation and amortization expense, acquisition fees and transaction costs, loan loss reserves, liability extinguishment gains, debt extinguishment losses, impairment, as well as unrealized and realized gain (loss) from sales of real estate and investments.

(2)Represents the Company’s investment in Solstice.

	Six Months Ended June 30, 2020						Six Months Ended June 30, 2019
Portfolio	Equity in Earnings (Losses)		Select Revenues and (Expenses), net(1)		Cash Distributions		Equity in Earnings (Losses)		Select Revenues and (Expenses), net(1)		Cash Distributions
Eclipse	$	(3,492)	$	(3,918)	$	86	$	(332)	$	(1,152)	$	287
Envoy	—		—		192		96		(822)		4,339		(3)
Griffin-American	(38,090)		(42,456)		1,487		(4,028)		(9,812)		4,551
Espresso	(582)		(5,442)		—		(2,367)		(4,050)		—
Trilogy	6,456		(7,352)		—		2,032		(6,657)		2,902
Subtotal	$	(35,708)	$	(59,168)	$	1,765	$	(4,599)	$	(22,493)	$	12,079
Operator Platform(2)	(48)		—		—		(30)		—		—
Total	$	(35,756)	$	(59,168)	$	1,765	$	(4,629)	$	(22,493)	$	12,079

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(1)Represents the net amount of the Company’s proportionate share of select revenues and expenses, including: straight-line rental income (expense), (above)/below market lease and in-place lease amortization, (above)/below market debt and deferred financing costs amortization, depreciation and amortization expense, acquisition fees and transaction costs, loan loss reserves, liability extinguishment gains, debt extinguishment losses, impairment, as well as unrealized and realized gain (loss) from sales of real estate and investments.

(2)Represents the Company’s investment in Solstice.

(3)In March 2019, the Envoy joint venture completed the sale of its remaining 11 properties for a sales price of $118.0 million, which generated net proceeds to the Company totaling $4.3 million.

Summarized Financial Data

The combined balance sheets as of June 30, 2020 and December 31, 2019 and combined statements of operations for the three and six months ended June 30, 2020 and 2019, for the Company’s Griffin-American and Trilogy unconsolidated ventures are as follows (dollars in thousands):

	June 30, 2020 (Unaudited)		December 31, 2019			Three Months Ended June 30,				Six Months Ended June 30,
						2020		2019		2020		2019
Assets
Operating real estate, net	$	3,317,306	$	3,566,586	Total revenues	$	335,511	$	331,390	$	670,661	$	656,895
Other assets	1,087,599		1,053,433		Net income (loss)	$	(230,332)	$	(19,528)	$	(238,356)	$	(19,384)
Total assets	$	4,404,905	$	4,620,019
Liabilities and equity
Total liabilities	$	3,297,832	$	3,257,970
Equity	1,107,073		1,362,049
Total liabilities and equity	$	4,404,905	$	4,620,019

The below table indicates the Company’s investments for which Colony Capital is also an equity partner in the joint venture. Each investment was approved by the Company’s board of directors, including all of its independent directors. Refer to Note 4, “Investments in Unconsolidated Ventures” for further discussion of these investments:

Portfolio	Partner(s)	Acquisition Date	Ownership
Eclipse	Colony Capital/Formation Capital, LLC	May 2014	5.6%
Griffin-American	Colony Capital	December 2014	14.3%