Investments in Unconsolidated Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2016

Investments In Unconsolidated Joint Ventures [Abstract]

Investments In Unconsolidated Joint Ventures

The investments in unconsolidated joint ventures consist of the following at March 31, 2016 and December 31, 2015:

		Nominal % Ownership			Carrying Value of Investment (1)
Entity	Properties				March 31, 2016			December 31, 2015
					(in thousands)
Square 407 Limited Partnership	Market Square North	50.0	%		$	(9,506	)	$	(9,951	)
The Metropolitan Square Associates LLC	Metropolitan Square	51.0	%		9,238			9,179
BP/CRF 901 New York Avenue LLC	901 New York Avenue	25.0	%	(2)	(11,617		)	(11,958		)
WP Project Developer LLC	Wisconsin Place Land and Infrastructure	33.3	%	(3)	43,057			43,524
Annapolis Junction NFM, LLC	Annapolis Junction	50.0	%	(4) (5)	21,134			29,009
540 Madison Venture LLC	540 Madison Avenue	60.0	%		67,715			68,983
500 North Capitol LLC	500 North Capitol Street, NW	30.0	%		(3,470		)	(3,292		)
501 K Street LLC	1001 6th Street	50.0	%	(6)	42,540			42,584
Podium Developer LLC	The Hub on Causeway	50.0	%		23,881			18,508
1265 Main Office JV LLC	1265 Main Street	50.0	%		16,143			11,916
BNY Tower Holdings LLC	Dock72 at the Brooklyn Navy Yard	50.0	%	(7)	12,196			11,521
					$	211,311		$	210,023

 _______________

(1) Investments with deficit balances aggregating approximately $24.6 million and $25.2 million at March 31, 2016 and December 31, 2015, respectively, have been reflected within Other Liabilities on the Company’s Consolidated Balance Sheets.

(2) The Company’s economic ownership has increased based on the achievement of certain return thresholds.

(3) The Company’s wholly-owned entity that owns the office component of the project also owns a 33.3% interest in the entity owning the land, parking garage and infrastructure of the project.

(4) The joint venture owns four in-service buildings and two undeveloped land parcels.

(5) See Note 13.

(6) Under the joint venture agreement for this land parcel, the partner will be entitled to up to two additional payments from the venture based on increases in total entitled square footage of the project above 520,000 square feet and achieving certain project returns at stabilization.

(7) Entity is a VIE (See Note 2).

Schedule Of Balance Sheets Of The Unconsolidated Joint Ventures [Text Block]

The combined summarized balance sheets of the Company’s unconsolidated joint ventures are as follows:

	March 31, 2016			December 31, 2015
	(in thousands)
ASSETS
Real estate and development in process, net	$	1,041,533		$	1,072,412
Other assets	225,200			252,285
Total assets	$	1,266,733		$	1,324,697
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY
Mortgage and notes payable, net	$	829,089		$	830,125
Other liabilities	38,920			44,549
Members’/Partners’ equity	398,724			450,023
Total liabilities and members’/partners’ equity	$	1,266,733		$	1,324,697
Company’s share of equity	$	238,166		$	237,070
Basis differentials (1)	(26,855		)	(27,047		)
Carrying value of the Company’s investments in unconsolidated joint ventures (2)	$	211,311		$	210,023

 _______________

(1) This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from impairment of investments and upon the transfer of assets that were previously owned by the Company into a joint venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the joint venture level.

(2) Investments with deficit balances aggregating approximately $24.6 million and $25.2 million at March 31, 2016 and December 31, 2015, respectively, have been reflected within Other Liabilities on the Company’s Consolidated Balance Sheets.

Statements Of Operations Of The Joint Ventures

The combined summarized statements of operations of the Company’s unconsolidated joint ventures are as follows:

	For the three months ended March 31,
	2016		2015
	(in thousands)
Total revenue (1)	$	37,669	$	39,532
Expenses
Operating	16,667		16,275
Depreciation and amortization	9,064		9,071
Total expenses	25,731		25,346
Operating income	11,938		14,186
Other expense
Interest expense	8,389		7,980
Net income	$	3,549	$	6,206
Company’s share of net income	$	1,599	$	14,642	(2)
Basis differential	192		192
Income from unconsolidated joint ventures	$	1,791	$	14,834

 _______________ 

(1) Includes straight-line rent adjustments of approximately $2.2 million and $1.6 million for the three months ended March 31, 2016 and 2015, respectively.

(2) During the three months ended March 31, 2015, the Company received a distribution of approximately $24.5 million, which was generated from the excess loan proceeds from the refinancing of 901 New York Avenue’s mortgage loan to a new 10-year mortgage loan totaling $225.0 million.  The Company’s allocation of income and distributions for the three months ended March 31, 2015 was not proportionate to its nominal ownership interest as a result of the achievement of specified investment return thresholds, as provided for in the joint venture agreement.