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Investments in Unconsolidated Joint Ventures
 3 Months Ended
Mar. 31, 2023
Investments In Unconsolidated Joint Ventures [Abstract]  
Investments In Unconsolidated Joint Ventures
5. Investments in Unconsolidated Joint Ventures
The investments in unconsolidated joint ventures consist of the following at March 31, 2023 and December 31, 2022:
 Carrying Value of Investment (1)
EntityPropertiesNominal % OwnershipMarch 31, 2023December 31, 2022
(in thousands)
Square 407 Limited PartnershipMarket Square North50.00 %$(6,097)$(6,198)
BP/CRF Metropolitan Square LLCMetropolitan Square20.00 %(38,782)(37,629)
901 New York, LLC901 New York Avenue25.00 %(2) (12,311)(12,493)
WP Project Developer LLC
Wisconsin Place Land and Infrastructure
33.33 %(3) 31,723 31,971 
500 North Capitol Venture LLC500 North Capitol Street, NW30.00 %(8,941)(9,185)
501 K Street LLC
1001 6th Street
50.00 %(4) 43,661 42,922 
Podium Developer LLCThe Hub on Causeway - Podium50.00 %45,622 46,839 
Residential Tower Developer LLCHub50House50.00 %42,046 45,414 
Hotel Tower Developer LLC
The Hub on Causeway - Hotel Air Rights
50.00 %12,582 12,366 
Office Tower Developer LLC100 Causeway Street50.00 %59,811 59,716 
1265 Main Office JV LLC1265 Main Street50.00 %3,605 3,465 
BNY Tower Holdings LLCDock 72 50.00 %(5)(15,362)(19,921)
CA-Colorado Center, LLCColorado Center50.00 %234,635 233,862 
7750 Wisconsin Avenue LLC 7750 Wisconsin Avenue 50.00 %51,549 52,152 
BP-M 3HB Venture LLC3 Hudson Boulevard25.00 %115,966 116,397 
SMBP Venture LPSanta Monica Business Park55.00 %161,786 164,735 
Platform 16 Holdings LPPlatform 1655.00 %(6)171,010 158,109 
Gateway Portfolio Holdings LLCGateway Commons50.00 %337,535 324,038 
Rosecrans-Sepulveda Partners 4, LLCBeach Cities Media Campus50.00 %26,987 27,000 
Safeco Plaza REIT LLCSafeco Plaza33.67 %(7)68,196 69,785 
360 PAS Holdco LLC360 Park Avenue South42.21 %(8)116,828 114,992 
PR II/BXP Reston Gateway LLCReston Next Residential20.00 %(9)11,431 11,351 
751 Gateway Holdings LLC751 Gateway 49.00 %85,430 80,714 
200 Fifth Avenue JV LLC200 Fifth Avenue26.69 %114,919 120,083 
ABXP Worldgate Investments LLC13100 and 13150 Worldgate Drive50.00 %17,295 N/A
$1,671,124 $1,630,485 
 _______________
(1)Investments with deficit balances aggregating approximately $81.5 million and $85.4 million at March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022, the Company’s economic ownership was approximately 50%.
(3)The Company’s wholly-owned subsidiary that owns Wisconsin Place Office also owns a 33.33% interest in the joint venture entity that owns the land, parking garage and infrastructure of the project.
(4)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 in excess of 520,000 square feet and achieving certain project returns at stabilization.
(5)This property includes net equity balances from the amenity joint venture.
(6)This entity is a VIE (See Note 2).
(7)The Company’s ownership includes (1) a 33.0% direct interest in the joint venture, and (2) an additional 1% interest in each of the two entities through which each partner owns its interest in the joint venture.
(8)The Company’s ownership includes (1) a 35.79% direct interest in the joint venture, (2) an additional 5.837% indirect ownership in the joint venture, and (3) an additional 1% interest in each of the two entities through which each partner owns its interest in the joint venture. The Company’s partners will fund required capital until their aggregate investment is approximately 58% of all capital contributions; thereafter, the partners will fund required capital according to their percentage interests.
(9)The Company’s partner will fund required capital until its aggregate investment is approximately 80% of all capital contributions; thereafter, the partners will fund required capital according to their percentage interests.
Certain of the Company’s unconsolidated joint venture agreements include provisions whereby, at certain specified times, each partner has the right to initiate a purchase or sale of its interest in the joint ventures. Under certain of the Company’s joint venture agreements, if certain return thresholds are achieved, the partners or the Company will be entitled to an additional promoted interest or payments.
The combined summarized balance sheets of the Company’s unconsolidated joint ventures are as follows: 
March 31, 2023December 31, 2022
 (in thousands)
ASSETS
Real estate and development in process, net (1)$6,649,580 $6,537,554 
Other assets755,055 756,786 
Total assets$7,404,635 $7,294,340 
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY
Mortgage and notes payable, net$4,037,789 $4,022,746 
Other liabilities (2)723,660 716,271 
Members’/Partners’ equity2,643,186 2,555,323 
Total liabilities and members’/partners’ equity$7,404,635 $7,294,340 
Company’s share of equity$1,271,419 $1,238,929 
Basis differentials (3)399,705 391,556 
Carrying value of the Company’s investments in unconsolidated joint ventures (4)$1,671,124 $1,630,485 
_______________
(1)At March 31, 2023 and December 31, 2022, this amount included right of use assets - finance leases totaling approximately $248.9 million. At March 31, 2023 and December 31, 2022, this amount included right of use assets - operating leases totaling approximately $20.9 million and $21.2 million, respectively.
(2)At March 31, 2023 and December 31, 2022, this amount included lease liabilities - finance leases totaling approximately $381.0 million and $382.2 million, respectively. At March 31, 2023 and December 31, 2022, this amount included lease liabilities - operating leases totaling approximately $30.5 million.
(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. The majority of the Company’s basis differences are as follows:
March 31, 2023December 31, 2022
Property(in thousands)
Colorado Center$301,097 $301,820 
200 Fifth Avenue99,381 94,497 
Gateway Commons47,707 47,808 
Dock 72(98,120)(98,980)
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 $81.5 million and $85.4 million at March 31, 2023 and December 31, 2022, respectively, are reflected within Other Liabilities in the Company’s Consolidated Balance Sheets.
The combined summarized statements of operations of the Company’s unconsolidated joint ventures are as follows: 
 Three months ended March 31,
 20232022
 (in thousands)
Total revenue (1)$151,423 $124,491 
Expenses
Operating57,206 45,641 
Transaction costs74 — 
Depreciation and amortization49,978 44,664 
Total expenses107,258 90,305 
Other income (expense)
Loss from early extinguishment of debt— (1,327)
Interest expense(57,250)(30,373)
Unrealized loss on derivative instruments(10,610)— 
Net income (loss)$(23,695)$2,486 
Company’s share of net income (loss)$(6,902)$3,394 
Basis differential (2)(667)(1,205)
Income (loss) from unconsolidated joint ventures$(7,569)$2,189 
_______________ 
(1)Includes straight-line rent adjustments of approximately $6.3 million and $27.5 million for the three months ended March 31, 2023 and 2022, respectively.
(2)Includes straight-line rent adjustments of approximately $0.3 million and $0.1 million for the three months ended March 31, 2023 and 2022, respectively. Also includes net above-/below-market rent adjustments of approximately $0.2 million and $0.1 million for the three months ended March 31, 2023 and 2022, respectively.
On January 31, 2023, the Company acquired a 50% interest in a joint venture that owns 13100 and 13150 Worldgate Drive located in Herndon, Virginia for a gross purchase price of approximately $17.0 million. The acquisition was completed with available cash. 13100 and 13150 Worldgate Drive consists of two vacant office buildings aggregating approximately 350,000 rentable square feet and a 1,200-space structured parking deck situated on a 10-acre site. The joint venture intends to redevelop the property for residential use. There can be no assurance that the joint venture will commence the development as currently contemplated or at all.