Related Party Transactions

6 Months Ended

Jun. 30, 2020

RELATED PARTY TRANSACTIONS

Related party assets and liabilities included in the Company’s condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019 consisted of the following (in thousands):


	June 30, 2020		December 31, 2019
Related Party Assets:
Contract assets (see Note 3)	$	72,839	$	68,133
Operating lease right-of-use asset (see Note 11)	21,992		23,047
Other	2,542		6,381
	$	97,373	$	97,561
Related Party Liabilities:
Reimbursement obligation	$	94,992	$	102,403

Payable to holders of Management Company’s Class B interests	9,000		9,000
Operating lease liability (see Note 11)	15,746		16,282
Other	21		197
	$	119,759	$	127,882

Contingent Consideration to Class A Members of the San Francisco Venture

In early 2019, the Company and the members of a joint venture formed between affiliates of The Macerich Company, Lennar and Castlelake, that intended to construct a retail outlet shopping district at Candlestick decided not to proceed with the project. As part of the termination of the project, the San Francisco Venture was released from its obligation to convey parcels of property on which the project was intended to be developed and from certain development obligations. As a result of terminating the project and agreements related thereto, the San Francisco Venture recognized a gain of $64.9 million for the six months ended June 30, 2019, representing the settlement of the contingent consideration pertaining to the development obligations and relief from the conveyance of these parcels.

Concurrent with the termination of the retail mall project, the San Francisco Venture issued 436,498 Class A units (and the Holding Company issued 436,498 of its Class B common shares) to, and received a contribution of $5.5 million from, the holders of Class A units of the San Francisco Venture.

Indirect Legacy Interest in Great Park Venture

The Company holds an indirect interest in rights to certain Legacy Interests in the Great Park Venture through an equity method investment. In January 2020, the Company received a $1.7 million Legacy Interest distribution from the Great Park Venture. At June 30, 2020 and December 31, 2019, the carrying value of the indirect interest was $0.1 million and $1.8 million, respectively and is included in other related party assets in the table above.

Reimbursement obligation

In April 2020, a related party affiliate agreed to defer, until April 2025, $12.6 million in reimbursement obligations that were due. The deferred amount will accrue interest at a rate of 6% per year and can be prepaid at any time without any premium or penalty. Additionally, the Company has been notified by related party affiliates that certain reimbursements that were previously expected to be due in 2020 have been deferred. These deferred amounts continue to incur interest at the original interest rate. Subject to extensions, the Company currently expects to make reimbursement payments of $49.4 million, $6.0 million, $26.9 million and $12.6 million in the balance of 2020, 2021, 2022 and 2025, respectively.