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Investments in Unconsolidated Joint Ventures
 3 Months Ended
Mar. 31, 2024
Equity Method Investments and 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, 2024 and December 31, 2023:
 Carrying Value of Investment (1)
EntityPropertiesNominal % OwnershipMarch 31, 2024December 31, 2023
(in thousands)
Square 407 Limited PartnershipMarket Square North50.00 %$(6,103)$(5,996)
901 New York, LLC901 New York Avenue25.00 %(2)— (11,764)
WP Project Developer LLCWisconsin Place Land and Infrastructure33.33 %(3)30,221 30,375 
500 North Capitol Venture LLC500 North Capitol Street, NW30.00 %(10,773)(10,253)
501 K Street LLC1001 6th Street50.00 %45,013 44,774 
Podium Developer LLCThe Hub on Causeway - Podium50.00 %45,068 45,201 
Residential Tower Developer LLCHub50House50.00 %42,250 40,235 
Hotel Tower Developer LLCThe Hub on Causeway - Hotel Air Rights50.00 %13,680 13,494 
Office Tower Developer LLC100 Causeway Street50.00 %57,079 57,660 
1265 Main Office JV LLC1265 Main Street50.00 %3,583 3,585 
BNY Tower Holdings LLCDock 72 50.00 %(4)(12,501)(11,890)
CA-Colorado Center, LLCColorado Center50.00 %235,143 237,815 
7750 Wisconsin Avenue LLC 7750 Wisconsin Avenue 50.00 %49,756 50,064 
BP-M 3HB Venture LLC3 Hudson Boulevard25.00 %114,331 115,103 
Platform 16 Holdings LPPlatform 1655.00 %51,349 45,564 
Gateway Portfolio Holdings LLCGateway Commons50.00 %385,568 376,834 
Rosecrans-Sepulveda Partners 4, LLCBeach Cities Media Campus50.00 %27,042 27,034 
Safeco Plaza REIT LLCSafeco Plaza33.67 %(5)43,860 44,734 
360 PAS Holdco LLC360 Park Avenue South71.11 %(6)49,888 42,988 
PR II/BXP Reston Gateway LLCSkymark - Reston Next Residential20.00 %15,323 15,184 
751 Gateway Holdings LLC751 Gateway 49.00 %95,863 93,411 
200 Fifth Avenue JV LLC200 Fifth Avenue26.69 %76,728 75,718 
ABXP Worldgate Investments LLC13100 and 13150 Worldgate Drive50.00 %18,079 17,546 
$1,370,447 $1,337,416 
 _______________
(1)Investments with deficit balances aggregating approximately $29.4 million and $39.9 million at March 31, 2024 and December 31, 2023, respectively, are included within Other Liabilities in the Company’s Consolidated Balance Sheets.
(2)At December 31, 2023, the Company’s economic ownership was approximately 50%. On January 8, 2024, the Company completed the acquisition of its joint venture partner’s 50% economic ownership interest for a gross purchase price of $10.0 million, as described in Note 3 and this Note 5.
(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)This property includes net equity balances from the amenity joint venture.
(5)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.
(6)The Company’s ownership includes (1) a 35.79% direct interest in the joint venture, (2) an additional 35.02% indirect ownership in the joint venture, and (3) an additional 1% interest in the entity through which the partner owns its interest in the joint venture.
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, 2024December 31, 2023
 (in thousands)
ASSETS
Real estate and development in process, net (1)$5,740,545 $5,811,763 
Other assets (2)619,559 682,291 
Total assets$6,360,104 $6,494,054 
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY
Mortgage and notes payable, net$3,162,545 $3,351,873 
Other liabilities (3)318,708 361,357 
Members’/Partners’ equity2,878,851 2,780,824 
Total liabilities and members’/partners’ equity$6,360,104 $6,494,054 
Company’s share of equity$1,313,484 $1,278,483 
Basis differentials (4)56,963 58,933 
Carrying value of the Company’s investments in unconsolidated joint ventures (5)$1,370,447 $1,337,416 
_______________
(1)At March 31, 2024 and December 31, 2023, this amount included right of use assets - operating leases totaling approximately $19.8 million and $20.1 million, respectively.
(2)At March 31, 2024 and December 31, 2023, this amount included sales-type lease receivable, net totaling approximately $14.0 million and $13.9 million, respectively.
(3)At March 31, 2024 and December 31, 2023, this amount included lease liabilities - operating leases totaling approximately $30.5 million.
(4)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, 2024December 31, 2023
Property(in thousands)
Colorado Center$298,190 $298,906 
200 Fifth Avenue56,193 58,308 
Gateway Commons49,593 48,971 
Safeco Plaza(29,432)(29,678)
360 Park Avenue South(116,188)(116,534)
Dock 72(94,586)(95,521)
Platform 16(142,671)(143,052)
These basis differentials (excluding land) will be amortized over the remaining lives of the related assets and liabilities.
(5)Investments with deficit balances aggregating approximately $29.4 million and $39.9 million at March 31, 2024 and December 31, 2023, 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,
 20242023
 (in thousands)
Total revenue (1)$130,392 $151,423 
Expenses
Operating49,194 57,206 
Transaction costs2 74 
Depreciation and amortization39,424 49,978 
Total expenses88,620 107,258 
Other income (expense)
Interest expense(43,563)(57,250)
Unrealized gain (loss) on derivative instruments10,112 (10,610)
Net income (loss)$8,321 $(23,695)
Company’s share of net income (loss)$2,960 $(6,902)
Gain on sale / consolidation21,696 — 
Basis differential (2)(5,470)(667)
Income (loss) from unconsolidated joint ventures$19,186 $(7,569)
_______________ 
(1)Includes straight-line rent adjustments of approximately $7.7 million and $6.3 million for the three months ended March 31, 2024 and 2023, respectively.
(2)Includes depreciation and amortization of approximately $2.9 million and $3.7 million for the three months ended March 31, 2024 and 2023, respectively. Includes unrealized gain (loss) on derivative instruments of approximately $2.7 million and $(2.8) million for the three months ended March 31, 2024 and 2023, respectively. Includes straight-line rent adjustments of approximately $0.3 million for the three months ended March 31, 2024 and 2023. Also includes net above-/below-market rent adjustments of approximately $0.2 million for the three months ended March 31, 2024 and 2023.
On January 2, 2024, a joint venture in which the Company has a 50% interest partially placed in-service 651 Gateway, an approximately 327,000 net rentable square foot laboratory/life sciences project in South San Francisco, California. The property is approximately 21% pre-leased as of May 2, 2024.
On January 8, 2024, the Company acquired its joint venture partner’s 50% economic ownership interest in the joint venture that owns 901 New York Avenue, located in Washington, DC, for a gross purchase price of $10.0 million in cash (See Note 3). Prior to the acquisition, the Company had a 50% economic ownership interest in the joint venture and accounted for it under the equity method of accounting. The acquisition resulted in the Company having full ownership of the joint venture such that the Company now accounts for the assets, liabilities, and operations of it on a consolidated basis in its financial statements instead of under the equity method of accounting and as a result recognized a gain on consolidation of approximately $21.8 million.
On February 6, 2024, a joint venture in which the Company owns a 25% interest extended the maturity date of the loan collateralized by its 3 Hudson Boulevard property. The extended loan continues to bear interest at a variable rate equal to Term SOFR plus approximately 3.61% per annum and matures on May 9, 2024. At the time of the extension, the loan had an outstanding balance totaling $80.0 million and was scheduled to mature on February 9, 2024. 3 Hudson Boulevard consists of land and improvements held for future development located in New York, New York.
On February 9, 2024, a joint venture in which the Company owns a 50% interest exercised an option to extend the maturity date of the construction loan collateralized by its 7750 Wisconsin Avenue property. The construction loan had a total commitment amount of approximately $252.6 million. The extended loan continues to bear interest at a variable rate equal to Term SOFR plus 1.35% per annum and matures on April 26, 2025. At the time of the extension, the loan had an outstanding balance totaling approximately $251.6 million and was scheduled to mature
on April 26, 2024. 7750 Wisconsin Avenue is a premier workplace with approximately 736,000 net rentable square feet located in Bethesda, Maryland.