Unconsolidated Joint Ventures

3 Months Ended

Mar. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

As of March 31, 2016 and December 31, 2015, the Company had ownership interests in 13 and 14, respectively, unconsolidated joint ventures with ownership percentages that generally range from 5% to 35%. The condensed combined balance sheets for our unconsolidated joint ventures accounted for under the equity method are as follows:



	March 31,			December 31,
	2016			2015
	(Dollars in thousands)
Cash and cash equivalents	$	44,154		$	53,936
Restricted cash	12,919			12,279
Real estate inventories	422,564			415,730
Other assets	2,108			3,972
Total assets	$	481,745		$	485,917

Accounts payable and accrued liabilities	$	52,742		$	57,813
Notes payable	113,008			94,890
Total liabilities	165,750			152,703
The Company's equity	48,717			60,572
Other partners' equity	267,278			272,642
Total equity	315,995			333,214
Total liabilities and equity	$	481,745		$	485,917
Debt-to-capitalization ratio	26.3		%	22.2		%

The condensed combined statements of operations for our unconsolidated joint ventures accounted for under the equity method are as follows:



	Three Months Ended March 31,
	2016			2015
	(Dollars in thousands)
Revenues	$	41,957		$	81,224
Cost of sales	35,904			63,798
Gross margin	6,053			17,426
Operating expenses	3,912			6,660
Net income of unconsolidated joint ventures	$	2,141		$	10,766
Equity in net income (loss) of unconsolidated joint ventures reflected in the accompanying consolidated statements of operations	$	(7	)	$	1,868

The Company has entered into agreements with its unconsolidated joint ventures to provide management services related to the underlying projects (collectively referred to as the “Management Agreements”). Pursuant to the Management Agreements, the Company receives a management fee from its unconsolidated joint ventures based on each project's revenues. For the three months ended March 31, 2016 and 2015, the Company earned $2.2 million and $3.0 million, respectively, in management fees, which have been recorded as fee building revenues in the accompanying condensed consolidated statements of operations.

In January 2016, we acquired the remaining outside equity interest of our San Juan (Oliva) joint venture by paying $20.6 million to our joint venture partner. Upon the change of control, we were required to consolidate this venture as it is now a wholly owned subsidiary of the Company. There was no remeasurement gain or loss on our unconsolidated interest prior to the change in control. The purchase consideration and the cost basis of our previous investment in unconsolidated joint ventures related to this joint venture are included in real estate inventories as of March 31, 2016.