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Real Estate and Other Affiliates (Tables)
 9 Months Ended
Sep. 30, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Summary equity of investments in real estate and other affiliates
Equity investments in real estate and other affiliates are reported as follows:
 Economic/Legal OwnershipCarrying ValueShare of Earnings/Dividends
 September 30,December 31,September 30,December 31,Three Months Ended
September 30,		Nine Months Ended
September 30,
thousands except percentages20212020202120202021202020212020
Equity Method Investments  
Operating Assets:  
110 North Wacker (a)see belowsee below$224,004 $261,143 $(15,954)— $(42,966)$— 
The Metropolitan Downtown Columbia (b)50 %50 %— — (233)215 (122)637 
Stewart Title of Montgomery County, TX50 %50 %4,424 3,924 715 375 1,349 878 
Woodlands Sarofim #120 %20 %3,207 3,120 34 32 87 96 
m.flats/TEN.M50 %50 %563 1,247 330 340 966 496 
Master Planned Communities:
The Summit (c)see belowsee below39,196 96,300 8,277 (1,563)54,568 4,403 
Seaport
Mr. C Seaport (d)— %— %— — — — — (6,900)
The Lawn Club (e)see belowsee below123 — — — — — 
Ssäm Bar (Momofuku) (f)
see belowsee below6,142 7,101 (1,009)(288)(1,697)(2,064)
Strategic Developments:
Circle T Ranch and Power Center (g)— %— %— — — 216 — 891 
HHMK Development50 %50 %10 10 — — — — 
KR Holdings50 %50 %222 347 (8)(7)(125)(44)
110 North Wacker (a)see belowsee below— — — 267,518 — 267,518 
277,891 373,192 (7,848)266,838 12,060 265,911 
Other equity investments (h)3,952 3,953 — — 3,755 3,724 
Investments in real estate and other affiliates$281,843 $377,145 $(7,848)$266,838 $15,815 $269,635 
(a)During the third quarter of 2020, 110 North Wacker was completed and placed in service. This triggered a reconsideration event that resulted in the deconsolidation of 110 North Wacker and the recognition of the retained equity method investment at fair market value. The $267.5 million gain on deconsolidation was recorded in the Strategic Developments segment and the equity method investment was then transferred from the Strategic Development segment to the Operating Asset segment. Refer to the discussion below for additional details.
(b)The Metropolitan Downtown Columbia was in a deficit position of $11.0 million at September 30, 2021, and $5.0 million at December 31, 2020, due to distributions from operating cash flows in excess of basis. These deficit balances are presented in Accounts payable and accrued expenses at September 30, 2021, and December 31, 2020. The increase in the deficit balance is primarily due to a $5.0 million distribution in the third quarter of 2021.
(c)The decrease in investment balance is primarily due to distributions of $100.5 million received during the second quarter of 2021 and $10.0 million received during the third quarter of 2021 partially offset by an increase in income. Refer to discussion below for details on the ownership structure.
(d)During the third quarter of 2020, the Company completed the sale of its 35% equity investment in Mr. C Seaport.
(e)Refer to the discussion below for details on the ownership structure.
(f)During the first quarter of 2021, Bar Wayō was rebranded as Ssäm Bar. Refer to the discussion below for details on the ownership structure.
(g)During the fourth quarter of 2020, the Company completed the sale of its 50% equity investment in Circle T Ranch and Power Center.
(h)Other equity investments represent equity investments not accounted for under the equity method. The Company elected the measurement alternative as these investments do not have readily determinable fair values. There were no impairments, or upward or downward adjustments to the carrying amounts of these securities either during current year or cumulatively.
Changes in redeemable noncontrolling interest The following table presents changes in Redeemable noncontrolling interest:
thousandsRedeemable Noncontrolling Interest
Balance as of December 31, 2020
$29,114 
Net income (loss) attributable to noncontrolling interest(4,296)
Share of investee’s other comprehensive income582 
Balance as of September 30, 2021
$25,400 
Balance as of December 31, 2019
$— 
Reclassification of redeemable noncontrolling interest from permanent equity6,091 
Net income (loss) attributable to noncontrolling interest24,270 
Balance as of September 30, 2020
$30,361 
Relevant financial statement information Relevant financial statement information for significant equity method investments is summarized as follows:
thousandsThe Summit (a)(b)110 North Wacker (c)(d)
Balance Sheet
September 30, 2021
Total assets$226,600 $677,419 
Total liabilities175,960 484,721 
Total equity50,640 192,698 
December 31, 2020
Total assets$310,855 $634,274 
Total liabilities209,968 415,452 
Total equity100,887 218,822 
Income Statement
Nine Months Ended September 30, 2021
Revenues$260,398 $22,279 
Gross margin87,837 — 
Operating income (loss)— 13,811 
Net income (loss)85,925 (32,597)
Nine Months Ended September 30, 2020
Revenues$96,022 $— 
Gross margin10,501 — 
Net income (loss)6,028 — 
(a)The decrease in Total Equity for The Summit is primarily the result of distributions made in the second quarter of 2021.
(b)The increase in Revenues for The Summit is due to an increase in units closed, with 43 units closing during the nine months ended September 30, 2021 compared to 19 units closing during the nine months ended September 30, 2020.
(c)The income statement amounts for 110 North Wacker do not include activity for the nine months ended September 30, 2020, as it was not accounted for under the equity method during this period.
(d)The Net loss at 110 North Wacker is disproportionately impacted by interest expense, real estate taxes and depreciation expense as the asset is still in the lease-up period.