Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.19.2
Related Party Transactions
6 Months Ended
Jun. 30, 2019
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
The following summarizes related party activity for the six months ended June 30, 2019 and 2018 and as of June 30, 2019 and December 31, 2018. The amounts disclosed below reflect the activity between the Company and its affiliates (in thousands).
 
Six Months Ended
June 30,
 
2019
 
2018
 
(unaudited)
Amounts paid to affiliates
$

 
$
15

Amounts received from affiliates
$
12

 
$
92

 
June 30,
 
December 31,
 
2019
 
2018
 
(unaudited)
 
 
Notes receivable
$

 
$
5,000


As discussed in Note 4, the Company loaned $11.00 million for the partial funding of Sea Turtle and loaned $1.00 million for the sale of land to be used in the development. As of June 30, 2019, the Company in total has recognized $12.00 million in impairment charges on the notes receivable reducing the carrying value to zero, as discussed in greater detail in Note 4. During the three and six months ended June 30, 2019, the Company recognized $5.00 million in impairment charges on the notes receivable. The Company has placed the notes receivable on nonaccrual status and has not recognized $359 thousand and $714 thousand of interest income due on the notes for the three and six months ended June 30, 2019, respectively. The Company has not recognized $359 thousand and $714 thousand of interest income due on the notes for the three and six months ended June 30, 2018, respectively. In February 2018, the Company's agreement to perform development, leasing, property and asset management services for Sea Turtle was terminated. Sea Turtle 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 due to the Company. Leasing, property and asset management fees were consistent with those charged for services provided to non-related properties.

The Company did not recover any amounts due from related parties for the three and six months ended June 30, 2019, respectively, which were previously reserved. The Company recovered $0 thousand and $77 thousand in amounts due from related parties for the three and six months ended June 30, 2018, respectively, which were previously reserved. The recovery is included in “asset management fees” on the condensed consolidated statements of operations. The total allowance on related party receivables at June 30, 2019 and December 31, 2018 is $2.20 million. There were no additional reserves recorded for the three and six months ended June 30, 2019 and the year ended December 31, 2018.