Drive Shack Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN OTHER REAL ESTATE, NET OF ACCUMULATED DEPRECIATION

INVESTMENTS IN OTHER REAL ESTATE, NET OF ACCUMULATED DEPRECIATION

12 Months Ended

Dec. 31, 2015

INVESTMENTS IN OTHER REAL ESTATE, NET OF ACCUMULATED DEPRECIATION

The following table summarizes the balances of other real estate assets at December 31, 2015.



			Initial Cost											Gross Carrying Amount (A) (C)
			Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction In-Progress		Costs Capitalized Subsequent to Acquisition			Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction In-Progress				Accumulated Depreciation (A)(B)			Net Book Value
Property Name	City	State	Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction In-Progress		Costs Capitalized Subsequent to Acquisition			Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction In-Progress		Total		Accumulated Depreciation (A)(B)			Net Book Value
Owned Properties
Bear Creek	Woodinville	WA	$	3,573	$	2,178	$	179	$	28	$	214		$	3,573	$	2,271	$	327	$	1	$	6,172	$	(582	)	$	5,590
Bradshaw Farm	Woodstock	GA	773		1,962		92		—		405			773		1,972		487		—		3,232		(544		)	2,688
Brookstone	Acworth	GA	579		2,448		200		—		808			579		2,927		529		—		4,035		(692		)	3,343
Canyon Oaks	Chico	CA	1,545		4,127		205		13		144			1,545		4,156		323		10		6,034		(946		)	5,088
Casta Del Sol	Mission Viejo	CA	5,794		—		—		—		495			5,794		28		152		315		6,289		(26		)	6,263
El Camino	Oceanside	CA	4,635		2,960		158		80		380			4,635		3,237		312		29		8,213		(684		)	7,529
Forrest Crossing	Franklin	TN	3,187		807		76		55		215			3,187		848		264		41		4,340		(263		)	4,077
Gettysvue	Knoxville	TN	2,994		1,428		235		181		284			2,994		1,647		396		85		5,122		(561		)	4,561
Lomas Santa Fe (Executive)	Solana Beach	CA	3,766		—		—		—		120			3,766		63		21		36		3,886		(18		)	3,868
Marbella	SJ Capistrano	CA	5,794		9,114		410		—		1,944			5,794		9,215		857		1,396		17,262		(1,948		)	15,314
Monterey	Palm Desert	CA	5,698		3,004		202		19		892			5,698		3,471		646		—		9,815		(903		)	8,912
Oakhurst	Clayton	CA	1,449		2,575		428		1,645		(1,251		)	1,449		2,649		653		95		4,846		(946		)	3,900
Oregon Golf Club	West Linn	OR	4,828		8,011		416		51		604			4,828		8,039		856		187		13,910		(1,742		)	12,168
Palm Valley	Palm Desert	CA	7,531		8,864		379		56		232			7,531		8,744		665		122		17,062		(1,845		)	15,217
Plantation	Boise	ID	2,607		2,236		262		13		248			2,607		2,314		445		—		5,366		(663		)	4,703
Rancho San Joaquin	Irvine	CA	12,650		3,775		279		1,366		(12		)	12,650		4,668		730		10		18,058		(995		)	17,063
Seascape	Aptos	CA	2,897		4,944		108		67		289			2,897		4,967		360		81		8,305		(904		)	7,401
Summitpointe	Milpitas	CA	2,511		3,271		128		8		746			2,511		3,542		584		27		6,664		(717		)	5,947
Sunset Hills	Thousand Oaks	CA	2,125		5,447		383		—		799			2,125		5,525		1,022		82		8,754		(1,329		)	7,425
Tanoan	Albuquerque	NM	1,642		7,600		431		364		419			1,642		8,020		786		8		10,456		(1,996		)	8,460
Trophy Club of Apalachee	Dacula	GA	483		640		55		—		397			483		879		166		47		1,575		(221		)	1,354



			Initial Cost										Gross Carrying Amount (A) (C)
			Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction In-Progress		Costs Capitalized Subsequent to Acquisition		Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction In-Progress				Accumulated Depreciation (A)(B)			Net Book Value
Property Name	City	State	Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction In-Progress		Costs Capitalized Subsequent to Acquisition		Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction In-Progress		Total		Accumulated Depreciation (A)(B)			Net Book Value
Trophy Club of Atlanta	Alpharetta	GA	483		3,898		60		—		377		483		3,935		198		202		4,818		(638		)	4,180
Vista Valencia	Valencia	CA	1,352		5,199		91		—		344		1,352		5,399		225		10		6,986		(948		)	6,038
Wood Ranch	Simi Valley	CA	2,125		1,951		239		416		678		2,125		2,284		927		73		5,409		(789		)	4,620
Other	N/A	N/A	9,303		—		—		—		689		9,303		236		362		91		9,992		(99		)	9,893
Total Owned Properties			$	90,324	$	86,439	$	5,016	$	4,362	$	10,460	$	90,324	$	91,036	$	12,293	$	2,948	$	196,601	$	(20,999	)	$	175,602



Managed Properties
Candler Park	Atlanta	GA	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—		$	—
El Cariso	Sylmar	CA	—		—		—		—		32		—		—		32		—		32		(2		)	30
Fullerton	Fullerton	CA	—		—		—		—		478		—		—		373		105		478		(37		)	441
John A White	Atlanta	GA	—		—		—		—		—		—		—		—		—		—		—			—
Lomas Santa Fe	Solana Beach	CA	—		—		8		—		290		—		—		298		—		298		(36		)	262
Paradise Knolls	Riverside	CA	—		—		46		—		—		—		—		46		—		46		(46		)	—
Santa Clara	Santa Clara	CA	—		—		—		—		—		—		—		—		—		—		—			—
Westchester	Los Angeles	CA	—		—		—		—		19		—		—		19		—		19		—			19
Woodlands	Wayne	MI	—		—		—		—		8		—		—		8		—		8		—			8
Yorba Linda	Yorba Linda	CA	—		—		5		—		95		—		—		100		—		100		(16		)	84
Total Managed Properties			$	—	$	—	$	59	$	—	$	922	$	—	$	—	$	876	$	105	$	981	$	(137	)	$	844

Total Leased Properties			—		48,412		8,798		1,273		15,694		—		51,522		21,207		1,448		74,177		(23,660		)	50,517

Corporate	N/A	N/A	—		—		3,219		—		1,141		—		—		4,360		—		4,360		(3,416		)	944

Total Properties			$	90,324	$	134,851	$	17,092	$	5,635	$	28,217	$	90,324	$	142,558	$	38,736	$	4,501	$	276,119	$	(48,212	)	$	227,907


(A)	The following is a rollforward of the gross carrying amount and accumulated depreciation of other real estate for the years ended December 31, 2015 and 2014.



	Year ended December 31, 2015			Year ended December 31, 2014
Gross Carrying Amount
Balance at beginning of year	$	263,103		$	250,208
Additions:
Acquisitions of other real estate	—			—
Improvements	14,970			15,109
Disposals:
Disposal of long-lived assets	(1,954		)	(2,214		)
Balance at end of year	$	276,119		$	263,103

Accumulated Depreciation
Balance at beginning of year	$	(23,820	)	$	—
Additions:
Depreciation expense	(24,943		)	(24,740		)
Disposals:
Disposal of long-lived assets	551			920
Balance at end of year	$	(48,212	)	$	(23,820	)


(B)	Depreciation is calculated on a straight line basis using the estimated useful lives detailed in Note 2.


(C)	The aggregate United States federal income tax basis for Newcastle’s other operating real estate, including furniture, fixtures and equipment at December 31, 2015 was approximately $344.8 million.

The real estate assets in the Golf business are encumbered by various debt obligations, as described in Note 11, at December 31, 2015.

In March 2015, the Golf business entered into a lease for a 27-hole municipal golf property owned by Los Angeles County, California. The lease is for a term of 21 years and encompasses the golf course, a driving range, food and beverage facilities and a pro shop. In August 2015, the lease on a golf property in Hawaii expired, and the Golf business did not renew the lease for such property. In October 2015, the owner of a managed golf property in Oregon sold it to a third party who terminated the management agreement on such property.