Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.10.0.1
Related Party Transactions
9 Months Ended
Sep. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
The amounts disclosed below reflect the activity between the Company and its affiliates (in thousands).
 
September 30,
 
2018
 
2017
 
 
 
 
 
(unaudited)
Amounts paid to affiliates
$
15

 
$
39

Amounts received from affiliates
$
113

 
$
1,573


 
September 30,
 
December 31,
 
2018
 
2017
 
(unaudited)
 
 
Notes receivable
$
6,739

 
$
6,739


As discussed in Note 4, the Company loaned $11.00 million for the partial funding of Pineland Station Shopping Center in Hilton Head, South Carolina to be known in the future as Sea Turtle Development and loaned $1.00 million for the sale of land to be used in the development. At December 31, 2017, the Company recognized a $5.26 million impairment charge on the note receivable as discussed in greater detail in Note 4. The Company has placed the notes receivable on nonaccrual status and has not recognized $363 thousand and $1.08 million of interest income due on the notes for the three and nine months ended September 30, 2018, respectively. In February 2018, the Company's agreement to perform development, leasing, property and asset management services for Sea Turtle Development was terminated. Sea Turtle Development is a related party as Jon Wheeler, the Company's former CEO and shareholder of the Company, is the managing member. Prior to the termination of the agreements, development fees of 5% of hard costs incurred were paid to the Company. Leasing, property and asset management fees were consistent with those charged for services provided to non-related properties.
The Company recovered $0 thousand and $77 thousand in amounts due from related parties for the three and nine months ended September 30, 2018, respectively, which were previously reserved. The recovery is included in “provision for credit losses” on the condensed consolidated statements of operations. The total allowance on related party receivables at September 30, 2018 and December 31, 2017 is $3.41 million and $2.36 million, respectively. These amounts are included in "related party receivables, net" on the consolidated balance sheets on our Form 10-K for 2017.
Amounts due from Sea Turtle Development are reserved due to uncertainty surrounding the collectability given the information currently available to the Company. Amounts due from other non-REIT properties have been reserved based on available cash flows at the respective properties and payment history. The management agreements for these properties have been terminated.