XML 39 R29.htm IDEA: XBRL DOCUMENT v3.22.2.2
Investments in and Advances to Unconsolidated Affiliates (Tables)
 9 Months Ended
Sep. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investments The Company’s investments in and advances to unconsolidated affiliates consist of the following (dollars in thousands):

 

 

 

 

 

Ownership Interest

 

September 30,

 

 

December 31,

 

Portfolio

 

Property

 

September 30, 2022

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Core:

 

840 N. Michigan Avenue (a)

 

88.43%

 

$

341

 

 

$

51,513

 

 

 

Renaissance Portfolio

 

20%

 

 

28,904

 

 

 

28,466

 

 

 

Gotham Plaza

 

49%

 

 

29,666

 

 

 

29,187

 

 

 

Georgetown Portfolio (b)

 

50%

 

 

4,109

 

 

 

4,089

 

 

 

1238 Wisconsin Avenue (b)

 

80%

 

 

10,993

 

 

 

5,895

 

 

 

 

 

 

 

 

74,013

 

 

 

119,150

 

 

 

 

 

 

 

 

 

 

 

 

Mervyns II:

 

KLA/ABS (c)

 

36.7%

 

 

102,368

 

 

 

124,316

 

 

 

 

 

 

 

 

 

 

 

 

Fund III:

 

Self Storage Management (b)

 

0%

 

 

—

 

 

 

207

 

 

 

640 Broadway (d)

 

100%

 

 

—

 

 

 

17,825

 

 

 

 

 

 

 

 

—

 

 

 

18,032

 

 

 

 

 

 

 

 

 

 

 

 

Fund IV:

 

Fund IV Other Portfolio

 

98.57%

 

 

11,877

 

 

 

12,675

 

 

 

650 Bald Hill Road

 

90%

 

 

10,220

 

 

 

11,677

 

 

 

Paramus Plaza

 

50%

 

 

1,022

 

 

 

1,975

 

 

 

 

 

 

 

 

23,119

 

 

 

26,327

 

 

 

 

 

 

 

 

 

 

 

 

Fund V:

 

Family Center at Riverdale (a)

 

89.42%

 

 

11,852

 

 

 

12,449

 

 

 

Tri-City Plaza

 

90%

 

 

8,983

 

 

 

6,827

 

 

 

Frederick County Acquisitions

 

90%

 

 

13,096

 

 

 

10,748

 

 

 

Wood Ridge Plaza

 

90%

 

 

13,289

 

 

 

—

 

 

 

La Frontera Village

 

90%

 

 

21,097

 

 

 

—

 

 

 

Shoppes at South Hills

 

90%

 

 

45,436

 

 

 

—

 

 

 

 

 

 

 

 

113,753

 

 

 

30,024

 

 

 

 

 

 

 

 

 

 

 

 

Various:

 

Due from (to) Related Parties

 

 

 

 

175

 

 

 

666

 

 

 

Other (e)

 

 

 

 

3,994

 

 

 

3,811

 

 

 

Investments in and advances to
unconsolidated affiliates

 

 

 

$

317,422

 

 

$

322,326

 

 

 

 

 

 

 

 

 

 

 

 

Core:

 

Crossroads (f)

 

49%

 

$

8,880

 

 

$

9,939

 

 

 

Distributions in excess of income from,
and investments in, unconsolidated affiliates

 

 

 

$

8,880

 

 

$

9,939

 

 

 

a)
Represents a tenancy-in-common interest.
b)
Represents a VIE for which the Company is not the primary beneficiary. The Company's involvement with such entities is in the form of equity interests and fee arrangements. The maximum exposure to loss is limited to the amount of the Company's equity investment in these VIEs. Total unconsolidated VIE assets of $38.4 million and $32.2 million at September 30, 2022 and December 31, 2021, respectively. Total unconsolidated VIE liabilities of $46.1 million and $41.9 million at September 30, 2022 and December 31, 2021, respectively.
c)
Includes an interest in Albertsons at fair value, as described below ("Investment in Albertsons") (Note 8).
d)
In January 2022, the Company foreclosed on partner's interest and now owns 100% and consolidates the entity (Note 2).
e)
Includes cost-method investments in Storage Post, Fifth Wall and other investments.
Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may be required to return distributions to fund future obligations of the entity
Schedule of Condensed Balance Sheet

The following combined and condensed Balance Sheets and Statements of operations, in each period, summarize the financial information of the Company’s investments in unconsolidated affiliates that were held as of September 30, 2022, and accordingly exclude the results of any investments disposed of or consolidated prior to that date (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Combined and Condensed Balance Sheets

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

Rental property, net

 

$

681,799

 

 

$

631,661

 

Real estate under development

 

 

14,387

 

 

 

8,112

 

Other assets

 

 

133,731

 

 

 

78,300

 

Total assets

 

$

829,917

 

 

$

718,073

 

Liabilities and partners’ equity:

 

 

 

 

 

 

Mortgage notes payable

 

$

624,043

 

 

$

571,461

 

Other liabilities

 

 

99,566

 

 

 

69,166

 

Partners’ equity

 

 

106,308

 

 

 

77,446

 

Total liabilities and partners’ equity

 

$

829,917

 

 

$

718,073

 

 

 

 

 

 

 

 

Company's share of accumulated equity

 

$

145,270

 

 

$

113,285

 

Basis differential

 

 

53,061

 

 

 

66,031

 

Deferred fees, net of portion related to the Company's interest

 

 

3,674

 

 

 

4,071

 

Amounts receivable/payable by the Company

 

 

175

 

 

 

666

 

Investments in and advances to unconsolidated affiliates, net of Company's
   share of distributions in excess of income from and investments in
   unconsolidated affiliates

 

 

202,180

 

 

 

184,053

 

Investments carried at fair value or cost

 

 

106,362

 

 

 

128,334

 

Company's share of distributions in excess of income from and
   investments in unconsolidated affiliates

 

 

8,880

 

 

 

9,939

 

Investments in and advances to unconsolidated affiliates

 

$

317,422

 

 

$

322,326

 
Schedule of Condensed Income Statement

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Combined and Condensed Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

25,096

 

 

$

18,974

 

 

$

72,167

 

 

$

59,090

 

Operating and other expenses

 

 

(8,443

)

 

 

(7,174

)

 

 

(23,768

)

 

 

(21,584

)

Interest expense

 

 

(7,130

)

 

 

(4,978

)

 

 

(18,458

)

 

 

(15,799

)

Depreciation and amortization

 

 

(9,708

)

 

 

(6,785

)

 

 

(24,867

)

 

 

(23,154

)

Impairment of Investments

 

 

(57,423

)

 

 

—

 

 

 

(57,423

)

 

 

—

 

Gain on disposition of properties (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,206

 

Net (loss) income attributable to unconsolidated affiliates

 

$

(57,608

)

 

$

37

 

 

$

(52,349

)

 

$

1,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company’s share of equity in net (loss) income of unconsolidated affiliates

 

$

(50,331

)

 

$

910

 

 

$

(45,416

)

 

$

4,951

 

Income attributable to unconsolidated affiliates recently sold or consolidated

 

 

—

 

 

 

(283

)

 

 

—

 

 

 

(845

)

Basis differential amortization

 

 

(248

)

 

 

(255

)

 

 

(753

)

 

 

(953

)

Company’s equity in (losses) earnings of unconsolidated affiliates

 

$

(50,579

)

 

$

372

 

 

$

(46,169

)

 

$

3,153

 

 

Represents the gain on the sale of two land parcels by the Family Center at Riverdale on January 4, 2021