Investments in Unconsolidated Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2018

Investments In Unconsolidated Joint Ventures [Abstract]

Investments In Unconsolidated Joint Ventures

The investments in unconsolidated joint ventures consist of the following at March 31, 2018 and December 31, 2017:

		Nominal % Ownership			Carrying Value of Investment (1)
Entity	Properties				March 31, 2018			December 31, 2017
					(in thousands)
Square 407 Limited Partnership	Market Square North	50.0	%		$	(7,811	)	$	(8,258	)
The Metropolitan Square Associates LLC	Metropolitan Square	20.0	%		3,372			3,339
BP/CRF 901 New York Avenue LLC	901 New York Avenue	25.0	%	(2)	(13,262		)	(13,811		)
WP Project Developer LLC	Wisconsin Place Land and Infrastructure	33.3	%	(3)	39,340			39,710
Annapolis Junction NFM, LLC	Annapolis Junction	50.0	%	(4)	17,974			18,381
540 Madison Venture LLC	540 Madison Avenue	60.0	%		66,259			66,179
500 North Capitol Venture LLC	500 North Capitol Street, NW	30.0	%		(4,129		)	(3,876		)
501 K Street LLC	1001 6th Street	50.0	%	(5)	42,636			42,657
Podium Developer LLC	The Hub on Causeway	50.0	%		67,883			67,120
Residential Tower Developer LLC	The Hub on Causeway - Residential	50.0	%	(6)	29,752			28,212
Hotel Tower Developer LLC	The Hub on Causeway - Hotel Air Rights	50.0	%		1,751			1,690
1265 Main Office JV LLC	1265 Main Street	50.0	%		4,539			4,641
BNY Tower Holdings LLC	Dock 72 at the Brooklyn Navy Yard	50.0	%		71,582			72,104
CA-Colorado Center Limited Partnership	Colorado Center	50.0	%		254,226			254,440
7750 Wisconsin Avenue LLC	7750 Wisconsin Avenue	50.0	%	(6)	67,404			21,452
					$	641,516		$	593,980

 _______________

(1) Investments with deficit balances aggregating approximately $25.2 million and $25.9 million at March 31, 2018 and December 31, 2017, respectively, have been reflected within Other Liabilities in 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 subsidiary that owns Wisconsin Place Office also owns a 33.3% interest in the joint venture entity that owns the land, parking garage and infrastructure of the project.

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

(5) 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.

(6) 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:

	March 31, 2018		December 31, 2017
	(in thousands)
ASSETS
Real estate and development in process, net	$	1,844,695	$	1,768,996
Other assets	376,127		367,743
Total assets	$	2,220,822	$	2,136,739
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY
Mortgage and notes payable, net	$	1,471,762	$	1,437,440
Other liabilities	95,597		99,215
Members’/Partners’ equity	653,463		600,084
Total liabilities and members’/partners’ equity	$	2,220,822	$	2,136,739
Company’s share of equity	$	335,580	$	286,495
Basis differentials (1)	305,936		307,485
Carrying value of the Company’s investments in unconsolidated joint ventures (2)	$	641,516	$	593,980

 _______________

(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 March 31, 2018 and December 31, 2017, there was an aggregate basis differential of approximately $321.1 million and $322.5 million, respectively, 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 $25.2 million and $25.9 million at March 31, 2018 and December 31, 2017, 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:

	Three months ended March 31,
	2018			2017
	(in thousands)
Total revenue (1)	$	56,486		$	54,761
Expenses
Operating	22,849			22,079
Depreciation and amortization	14,725			14,309
Total expenses	37,574			36,388
Operating income	18,912			18,373
Other expense
Interest expense	14,424			9,300
Net income	$	4,488		$	9,073
Company’s share of net income	$	1,826		$	4,323
Basis differential (2)	(1,365		)	(1,239		)
Income from unconsolidated joint ventures	$	461		$	3,084

 _______________ 

(1) Includes straight-line rent adjustments of approximately $1.8 million and $7.0 million for the three months ended March 31, 2018 and 2017, respectively.

(2) Includes straight-line rent adjustments of approximately $0.7 million and $0.7 million for the three months ended March 31, 2018 and 2017, respectively. Also includes net above-/below-market rent adjustments of approximately $0.4 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively.