Quarterly report pursuant to Section 13 or 15(d)

Investment in and Advances to Unconsolidated Joint Ventures

v3.21.1
Investment in and Advances to Unconsolidated Joint Ventures
 3 Months Ended
Mar. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Investment in and Advances to Unconsolidated Joint Ventures Investment in and Advances to Unconsolidated Joint Ventures
As of March 31, 2021 and December 31, 2020, the Company had two unconsolidated joint ventures with ownership interests of 51% and 25% in LS-NJ Port Imperial JV LLC and LS-Boston Point LLC, respectively, and concluded that these joint ventures were variable interest entities. The Company concluded that it was not the primary beneficiary of the variable interest entities and, accordingly, accounted for these entities under the equity method of accounting. The Company's maximum exposure to loss is limited to the investment in the unconsolidated joint venture amounts included on the consolidated balance sheets.
The condensed combined balance sheets for the Company’s unconsolidated joint ventures accounted for under the equity method are as follows:
March 31, 2021 December 31, 2020
(dollars in thousands)
Cash and cash equivalents $ 6,603  $ 2,740 
Restricted cash —  4,870 
Real estate inventories 30,145  41,214 
Other assets 122  123 
Total assets $ 36,870  $ 48,947 
 
Accounts payable $ 207  $ 188 
Accrued expenses and other liabilities 4,183  3,928 
Due to affiliates 871  5,735 
Total liabilities 5,261  9,851 
Members' capital 31,609  39,096 
Total liabilities and members' capital $ 36,870  $ 48,947 
The condensed combined statements of operations for the Company’s unconsolidated joint ventures accounted for under the equity method are as follows:
Three Months Ended March 31,
2021 2020
(dollars in thousands)
Revenues $ 14,080  $ 10,561 
Cost of sales and expenses (13,431) (13,106)
Net income (loss) of unconsolidated joint ventures 649  (2,545)
Equity in net (loss) of unconsolidated joint ventures (1)
$ (21) $ (1,743)
(1)     The equity in net (loss) income of unconsolidated joint ventures consists of the allocation of the Company's proportionate share of income or loss from the unconsolidated joint ventures of $0.3 million income and $1.4 million loss, as well as $0.4 million and $0.3 million of expense related to capitalized interest and other costs for the three months ended March 31, 2021 and 2020, respectively.
For the three months ended March 31, 2021 and 2020, no impairment charges were recorded related to either of the unconsolidated joint ventures.