Investments in Unconsolidated Real Estate Joint Ventures | Investments in Unconsolidated Real Estate Joint Ventures The equity method of accounting is used to account for each of the individual joint ventures. We have an ownership interest in the following unconsolidated real estate joint ventures: As of March 31, 2016 Joint Venture Outlet Center Location Ownership % Square Feet (in 000's) Carrying Value of Investment (in millions) Total Joint Venture Net Debt (in millions) (1) Columbus Columbus, OH 50.0 % — $ 30.7 $ — National Harbor National Harbor, MD 50.0 % 339 5.5 85.9 RioCan Canada Various 50.0 % 902 126.4 11.9 Savannah (2) Savannah, GA 50.0 % 377 43.8 93.5 Westgate Glendale, AZ 58.0 % 411 12.3 61.9 $ 218.7 $ 253.2 Charlotte (3) Charlotte, NC 50.0 % 398 $ (1.4 ) $ 89.6 Galveston/Houston (3) Texas City, TX 50.0 % 353 (2.1 ) 64.8 $ (3.5 ) $ 154.4 As of December 31, 2015 Joint Venture Outlet Center Location Ownership % Square Feet (in 000's) Carrying Value of Investment (in millions) Total Joint Venture Net Debt (1) Columbus Columbus, OH 50.0 % — $ 21.1 $ — National Harbor National Harbor, MD 50.0 % 339 6.1 85.8 RioCan Canada Various 50.0 % 870 117.2 11.3 Savannah (2) Savannah, GA 50.0 % 377 44.4 87.6 Westgate Glendale, AZ 58.0 % 411 12.3 61.9 $ 201.1 $ 246.6 Charlotte (3) Charlotte, NC 50.0 % 398 $ (1.1 ) $ 89.6 Galveston/Houston (3) Texas City, TX 50.0 % 353 (1.5 ) 64.7 $ (2.6 ) $ 154.3 (1) Net of debt origination costs and including premiums of $2.8 million and $3.3 million as of March 31, 2016 and December 31, 2015, respectively. (2) Based on capital contribution and distribution provisions in the joint venture agreement, we expect our economic interest in the venture's cash flow to be greater than indicated in the Ownership column, which states our legal interest in this venture. As of March 31 2016, based upon the liquidation proceeds we would receive from a hypothetical liquidation of our investment based on depreciated book value, our estimated economic interest in the venture was approximately 98% . Our economic interest may fluctuate based on a number of factors, including mortgage financing, partnership capital contributions and distributions, and proceeds from gains or losses of asset sales. (3) The negative carrying value is due to the distributions of proceeds from mortgage loans and quarterly distributions of excess cash flow exceeding the original contributions from the partners. Fees we received for various services provided to our unconsolidated joint ventures were recognized in management, leasing and other services as follows (in thousands): Three months ended March 31, 2016 2015 Fee: Development and leasing $ 192 $ 581 Loan guarantee 182 196 Management and marketing 747 506 Total Fees $ 1,121 $ 1,283 Our investments in real estate joint ventures are reduced by the percentage of the profits earned for leasing and development services associated with our ownership interest in each joint venture. Our carrying value of investments in unconsolidated joint ventures differs from our share of the assets reported in the "Summary Balance Sheets - Unconsolidated Joint Ventures" shown below due to adjustments to the book basis, including intercompany profits on sales of services that are capitalized by the unconsolidated joint ventures. The differences in basis (totaling $4.1 million and $3.9 million as of March 31, 2016 and December 31, 2015 , respectively) are amortized over the various useful lives of the related assets. Columbus, Ohio During the second quarter of 2015, the joint venture purchased land for approximately $8.9 million and began construction on Tanger Outlets Columbus. We and our partner currently expect to complete construction in time to open the center during the second quarter of 2016. As of March 31, 2016 , we and our partner had each contributed $30.0 million to fund development activities. Our partner is providing development services to the joint venture and we, along with our partner, are providing joint leasing services. Once the center opens, we will provide property management, marketing and leasing services to the joint venture. Condensed combined summary financial information of unconsolidated joint ventures accounted for using the equity method is as follows (in thousands): Condensed Combined Balance Sheets - Unconsolidated Joint Ventures March 31, 2016 December 31, 2015 Assets Land $ 107,403 $ 103,046 Buildings, improvements and fixtures 632,456 615,662 Construction in progress, including land 83,701 62,308 823,560 781,016 Accumulated depreciation (69,754 ) (60,629 ) Total rental property, net 753,806 720,387 Cash and cash equivalents 27,671 28,723 Deferred lease costs, net 18,605 18,399 Prepaids and other assets 17,217 14,455 Total assets $ 817,299 $ 781,964 Liabilities and Owners' Equity Mortgages payable, net $ 407,640 $ 400,935 Accounts payable and other liabilities 27,604 31,805 Total liabilities 435,244 432,740 Owners' equity 382,055 349,224 Total liabilities and owners' equity $ 817,299 $ 781,964 Three months ended Condensed Combined Statements of Operations March 31, - Unconsolidated Joint Ventures 2016 2015 Revenues $ 27,698 $ 23,965 Expenses Property operating 10,318 9,144 General and administrative 117 218 Depreciation and amortization 8,799 7,822 Total expenses 19,234 17,184 Operating income 8,464 6,781 Interest expense (2,554 ) (1,770 ) Other nonoperating income 1 8 Net income $ 5,911 $ 5,019 The Company and Operating Partnership's share of: Net income $ 3,499 $ 2,543 Depreciation expense (real estate related) $ 5,339 $ 4,076 |