XML 39 R24.htm IDEA: XBRL DOCUMENT v3.20.2
Investments in Unconsolidated Joint Ventures (Tables)
 6 Months Ended
Jun. 30, 2020
Schedule of Equity Method Investments [Line Items]  
Investments In Unconsolidated Joint Ventures
The investments in unconsolidated joint ventures consist of the following at June 30, 2020 and December 31, 2019:
 Carrying Value of Investment (1)
EntityPropertiesNominal %
Ownership		June 30,
2020		December 31,
2019
(in thousands)
Square 407 Limited PartnershipMarket Square North50.0 %$(4,123) $(4,872) 
BP/CRF Metropolitan Square, LLC
Metropolitan Square20.0 %(7,319) 9,134  
901 New York, LLC901 New York Avenue25.0 %(2) (12,174) (12,113) 
WP Project Developer LLC
Wisconsin Place Land and Infrastructure
33.3 %(3) 36,102  36,789  
Annapolis Junction NFM LLCAnnapolis Junction50.0 %(4) 12,967  25,391  
540 Madison Venture LLC540 Madison Avenue60.0 %(5) 201  2,953  
500 North Capitol Venture LLC500 North Capitol Street, NW30.0 %(5,530) (5,439) 
501 K Street LLC
1001 6th Street
50.0 %(6) 42,673  42,496  
Podium Developer LLCThe Hub on Causeway - Podium50.0 %49,160  49,466  
Residential Tower Developer LLCHub50House50.0 %53,340  55,092  
Hotel Tower Developer LLC
The Hub on Causeway - Hotel Air Rights
50.0 %10,228  9,883  
Office Tower Developer LLC100 Causeway Street50.0 %56,544  56,606  
1265 Main Office JV LLC1265 Main Street50.0 %4,116  3,780  
BNY Tower Holdings LLCDock 72 50.0 %96,013  94,804  
BNYTA Amenity Operator LLC Dock 72 50.0 %—  —  
CA-Colorado Center Limited Partnership
Colorado Center50.0 %236,287  252,069  
7750 Wisconsin Avenue LLC 7750 Wisconsin Avenue 50.0 %57,130  56,247  
BP-M 3HB Venture LLC3 Hudson Boulevard25.0 %91,422  67,499  
SMBP Venture LPSanta Monica Business Park55.0 %148,665  163,937  
Platform 16 Holdings LPPlatform 1655.0 %(7)99,734  29,501  
Gateway Portfolio Holdings LLCGateway Commons50.0 %(8)345,142  N/A
$1,310,578  $933,223  
 _______________
(1)Investments with deficit balances aggregating approximately $29.1 million and $22.4 million at June 30, 2020 and December 31, 2019, respectively, are included 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. At June 30, 2020 and December 31, 2019, the Company’s economic ownership was approximately 50%.
(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 two in-service buildings.
(5)The property was sold on June 27, 2019. As of June 30, 2020 and December 31, 2019, the investment is comprised of undistributed cash.
(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).
(8)As a result of the partner’s deferred contribution, the Company owns an approximately 55% interest in the joint venture at June 30, 2020. Future development projects will be owned 49% by the Company and 51% by its partner.
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: 
June 30,
2020		December 31,
2019
 (in thousands)
ASSETS
Real estate and development in process, net (1)$4,527,828  $3,904,400  
Other assets535,870  502,706  
Total assets$5,063,698  $4,407,106  
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY
Mortgage and notes payable, net$2,465,039  $2,218,853  
Other liabilities (2)655,709  749,675  
Members’/Partners’ equity1,942,950  1,438,578  
Total liabilities and members’/partners’ equity$5,063,698  $4,407,106  
Company’s share of equity$911,682  $591,905  
Basis differentials (3)398,896  341,318  
Carrying value of the Company’s investments in unconsolidated joint ventures (4)$1,310,578  $933,223  
 _______________
(1)At June 30, 2020 and December 31, 2019, this amount includes right of use assets - finance leases totaling approximately $248.9 million and $383.9 million, respectively, and right of use assets - operating leases totaling approximately $11.7 million and $12.1 million, respectively.
(2)At June 30, 2020 and December 31, 2019, this amount includes lease liabilities - finance leases totaling approximately $390.2 million and $510.8 million, respectively, and lease liabilities - operating leases totaling approximately $17.4 million and $17.3 million, respectively.
(3)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 June 30, 2020 and December 31, 2019, there was an aggregate basis differential of approximately $309.0 million and $311.3 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. At June 30, 2020, there was an aggregate basis differential of approximately $54.4 million between the carrying value of the Company’s investment in the joint venture that owns Gateway Commons and the joint venture’s basis in the assets and liabilities. These basis differentials (excluding land) will be amortized over the remaining lives of the related assets and liabilities.
(4)Investments with deficit balances aggregating approximately $29.1 million and $22.4 million at June 30, 2020 and December 31, 2019, respectively, are 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 June 30,Six months ended June 30,
 2020201920202019
 (in thousands)
Total revenue (1)$89,563  $80,204  $182,766  $163,159  
Expenses
Operating33,704  30,134  69,105  60,633  
Depreciation and amortization37,390  24,818  69,425  53,464  
Total expenses71,094  54,952  138,530  114,097  
Other income (expense)
Interest expense(23,306) (20,803) (45,889) (41,560) 
Gains on sales of real estate11,720  34,572  11,720  34,572  
Net income$6,883  $39,021  $10,067  $42,074  
Company’s share of net income$4,024  $22,376  $5,276  $23,960  
Basis differential (2)(2,192) 25,588  (3,813) 24,217  
Income from unconsolidated joint ventures$1,832  $47,964  $1,463  $48,177  
_______________ 
(1)Includes straight-line rent adjustments of approximately $8.5 million and $7.6 million for the three months ended June 30, 2020 and 2019, respectively, and $18.2 million and $13.4 million for the six months ended June 30, 2020 and 2019, respectively.
(2)Includes straight-line rent adjustments of approximately $0.4 million and $0.5 million for the three months ended June 30, 2020 and 2019, respectively, and $0.9 million and $1.1 million for the six months ended June 30, 2020 and 2019, respectively. Also includes net above-/below-market rent adjustments of approximately $0.2 million and $0.4 million for the three months ended June 30, 2020 and 2019, respectively, and $0.5 million and $0.8 million for the six months ended June 30, 2020 and 2019, respectively.