XML 55 R34.htm IDEA: XBRL DOCUMENT v3.6.0.2
Investments in Unconsolidated Joint Ventures (Tables)
 12 Months Ended
Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]  
Investments In Unconsolidated Joint Ventures
The investments in unconsolidated joint ventures consist of the following at December 31, 2016 and 2015:
 
 
 
 
 
 
Carrying Value of Investment (1)
Entity
 
Properties
 
Nominal %
Ownership
 
December 31,
2016
 
December 31,
2015
 
 
 
 
 
 
(in thousands)
Square 407 Limited Partnership
 
Market Square North
 
50.0
%
 
$
(8,134
)
 
$
(9,951
)
BP/CRF Metropolitan Square LLC
 
Metropolitan Square
 
20.0
%
(2) 
2,004

 
9,179

901 New York LLC
 
901 New York Avenue
 
25.0
%
(3) 
(10,564
)
 
(11,958
)
WP Project Developer LLC
 
Wisconsin Place Land and Infrastructure
 
33.3
%
(4)
41,605

 
43,524

Annapolis Junction NFM, LLC
 
Annapolis Junction
 
50.0
%
(5)
20,539

 
29,009

540 Madison Venture LLC
 
540 Madison Avenue
 
60.0
%
 
67,816

 
68,983

500 North Capitol LLC
 
500 North Capitol Street, NW
 
30.0
%
 
(3,389
)
 
(3,292
)
501 K Street LLC
 
1001 6th Street
 
50.0
%
(6)
42,528

 
42,584

Podium Developer LLC
 
The Hub on Causeway - Podium
 
50.0
%
 
29,869

 
18,508

Residential Tower Developer LLC
 
The Hub on Causeway - Residential
 
50.0
%
 
20,803

 
N/A

Hotel Tower Developer LLC
 
The Hub on Causeway - Hotel
 
50.0
%
 
933

 
N/A

1265 Main Office JV LLC
 
1265 Main Street
 
50.0
%
 
4,779

 
11,916

BNY Tower Holdings LLC
 
Dock 72 at the Brooklyn Navy Yard
 
50.0
%
(7)
33,699

 
11,521

CA-Colorado Center Limited Partnership
 
Colorado Center
 
49.8
%
 
510,623

 
N/A

 
 
 
 
 
 
$
753,111

 
$
210,023

 _______________
(1)
Investments with deficit balances aggregating approximately $22.1 million and $25.2 million at December 31, 2016 and 2015, respectively, have been reflected within Other Liabilities in the Company’s Consolidated Balance Sheets.
(2)
On October 20, 2016, the Company sold a 31% ownership interest in this joint venture.
(3)
The Company’s economic ownership has increased based on the achievement of certain return thresholds.
(4)
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.
(5)
The joint venture owns four in-service buildings and two undeveloped land parcels.
(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)
This 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: 
 
December 31,
2016
 
December 31,
2015
 
(in thousands)
ASSETS
 
 
 
Real estate and development in process, net
$
1,519,217

 
$
1,072,412

Other assets
297,263

 
252,285

Total assets
$
1,816,480

 
$
1,324,697

LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY
 
 
 
Mortgage and notes payable, net
$
865,665

 
$
830,125

Other liabilities
67,167

 
44,549

Members’/Partners’ equity
883,648

 
450,023

Total liabilities and members’/partners’ equity
$
1,816,480

 
$
1,324,697

Company’s share of equity
$
450,662

 
$
237,070

Basis differentials (1)
302,449

 
(27,047
)
Carrying value of the Company’s investments in unconsolidated joint ventures (2)
$
753,111

 
$
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 result from impairments of investments, acquisitions through joint ventures with no change in control 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. At December 31, 2016, there is an aggregate basis differential of approximately $328.8 million between the carrying value of the Company’s investment in the joint venture that owns Colorado Center and the joint venture’s basis in the assets and liabilities, which differential (excluding land) shall be amortized over the remaining lives of the related assets and liabilities.
(2)
Investments with deficit balances aggregating approximately $22.1 million and $25.2 million at December 31, 2016 and 2015, respectively, have been reflected within Other Liabilities in 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 year ended December 31,
 
2016
 
2015
 
2014
 
(in thousands)
Total revenue (1)
$
177,182

 
$
155,642

 
$
158,161

Expenses
 
 
 
 
 
Operating
76,741

 
65,093

 
62,974

Depreciation and amortization
44,989

 
36,057

 
37,041

Total expenses
121,730

 
101,150

 
100,015

Operating income
55,452

 
54,492

 
58,146

Other income (expense)
 
 
 
 
 
Interest expense
(34,016
)
 
(32,176
)
 
(31,896
)
Net income
$
21,436

 
$
22,316

 
$
26,250

 
 
 
 
 
 
Company’s share of net income (2)
$
9,873

 
$
22,031

 
$
11,913

Basis differential (3)
(1,799
)
 
739

 
856

Income from unconsolidated joint ventures
$
8,074

 
$
22,770

 
$
12,769

 
 
 
 
 
 
Gain on sale of investment in unconsolidated joint venture
$
59,370

 
$
—

 
$
—

_______________ 
(1)
Includes straight-line rent adjustments of approximately $18.1 million, $3.9 million and $3.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.
(2)
During the year ended December 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 year ended December 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.
(3)
Includes the Company’s share of straight-line rent adjustments of approximately $1.4 million and net below-market rent adjustments of approximately $0.9 million for the year ended December 31, 2016.
Colorado Center [Member]  
Schedule of Equity Method Investments [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
Land and improvements
$
189,597

Site improvements
9,050

Building and improvements
259,592

Tenant improvements
17,234

In-place lease intangibles
43,157

Above-market lease intangible
819

Below-market lease intangible
(16,461
)
Net assets
$
502,988