Investment in Joint Ventures (Equity Method)

3 Months Ended

Mar. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investment in Joint Ventures (Equity Method)

(11) Investments in Joint Ventures (Equity Method).

Brooksville. In 2006, the Company entered into a Joint Venture Agreement with Vulcan Materials Company to jointly own and develop approximately 4,300 acres of land near Brooksville, Florida. Under the terms of the joint venture, FRP contributed its fee interest in approximately 3,443 acres formerly leased to Vulcan under a long-term mining lease which had a net book value of $2,548,000. Vulcan is entitled to mine a portion of the property until 2032 and pay royalties to the Company. FRP also contributed $3,018,000 for one-half of the acquisition costs of a 288-acre contiguous parcel. Vulcan contributed 553 acres that it owned as well as its leasehold interest in the 3,443 acres that it leased from FRP and $3,018,000 for one-half of the acquisition costs of the 288-acre contiguous parcel. The joint venture is jointly controlled by Vulcan and FRP. Distributions will be made on a 50-50 basis except for royalties and depletion specifically allocated to the Company. Other income for the three months ended March 31, 2018 includes a loss of $12,000 representing the Company’s portion of the loss of this joint venture.

BC FRP Realty (Windlass Run). During the quarter ending March 2016, we entered into an agreement with a Baltimore development company (St. John Properties, Inc.) to jointly develop the remaining lands of our Windlass Run Business Park. The 50/50 partnership initially calls for FRP to combine its 25 acres (valued at $7,500,000) with St. John Properties’ adjacent 10 acres fronting on a major state highway (valued at $3,239,536) which resulted in an initial cash distribution of $2,130,232 to FRP in May, 2016. Thereafter, the venture will jointly develop the combined properties into a multi-building business park to consist of approximately 329,000 square feet of single story office space. On September 28, 2017 BC FRP Realty, LLC obtained $17,250,000 of construction financing commitments for 4 buildings through September 15, 2022 and $330,000 for one lot through September 15, 2018 from BB&T at 2.5% over LIBOR. The balance outstanding on these loans at March 31, 2018 was $4,409,532.

Investments in Joint Ventures (in thousands):

									The
									Company's
						Total Assets	Net Loss		Share of Net
				Total		of the	of the		Loss of the
	Ownership			Investment		Partnership	Partnership		Partnership
As of March 31, 2018
Brooksville Quarry, LLC	50.00	%			7,503	14,408	(24	)	(12	)
BC FRP Realty, LLC	50.00	%			5,919	16,814	—		—
Total			$		13,422	31,222	(24	)	(12	)
As of December 31, 2017
RiverFront Holdings I, LLC (1)	—		$		—	—	(2,019	)	(1,558	)
Brooksville Quarry, LLC	50.00	%			7,516	14,411	(80	)	(40	)
BC FRP Realty, LLC	50.00	%			5,890	15,027	—		—
Total			$		13,406	29,438	(2,099	)	(1,598	)

(1) The Company consolidated this joint venture effective July 1, 2017 (see Footnote 12).

Income statements for the RiverFront Holdings I, LLC, prior to consolidation July 1, 2017 (in thousands):

	Three Months Ended March 31,
	2017
Revenues:
Rental Revenue		$	1,311
Revenue – Reimbursements			15
Total Revenues			1,326
Cost of operations:
Depreciation and amortization			863
Operating expenses			475
Property taxes			219
Total cost of operations			1,557
Total operating profit			(231	)
Interest expense			(756	)
Net loss of the Partnership		$	(987	)

The amount of consolidated accumulated deficit for these joint ventures was $(2,646,000) and $(2,638,000) as of March 31, 2018 and December 31, 2017 respectively.