XML 47 R32.htm IDEA: XBRL DOCUMENT v3.22.0.1
Investments in Real Estate and Other Affiliates (Tables)
 12 Months Ended
Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Summary of investments in real estate and other affiliates
Investments in real estate and other affiliates are reported as follows:
 Economic/Legal OwnershipCarrying ValueShare of Earnings/Dividends
 December 31,December 31December 31,December 31Year Ended Year Ended December 31,
thousands except percentages2021202020212020202120202019
Equity Method Investments
Operating Assets
110 North Wacker (a)(b)see belowsee below$194,999 $261,143 $(74,309)$(13,896)$— 
The Metropolitan Downtown Columbia (c)50.0 %50.0 %— — 582 765 694 
Stewart Title of Montgomery County, TX50.0 %50.0 %4,185 3,924 1,860 1,250 1,105 
Woodlands Sarofim #120.0 %20.0 %3,215 3,120 96 125 125 
m.flats/TEN.M (d)50.0 %50.0 %— 1,247 974 666 (1,875)
Master Planned Communities
The Summit (e)see belowsee below41,536 96,300 59,407 17,845 28,336 
Trillium (e)50.0 %— %59,080 — (8)— — 
Seaport
Mr. C Seaport (f)— %— %— — — (6,900)(1,980)
The Lawn Club (e)see belowsee below447 — — — — 
Ssäm Bar (Momofuku) (e)see belowsee below5,852 7,101 (1,988)(2,392)(612)
Strategic Developments
Circle T Ranch and Power Center (g)— %— %— — — 2,463 950 
HHMK Development 50.0 %50.0 %10 10 — — — 
KR Holdings50.0 %50.0 %127 347 (221)(69)263 
West End Alexandria (e)see belowsee below56,546 — — — — 
110 North Wacker (a)see belowsee below— — — 267,518 — 
365,997 373,192 (13,607)267,375 27,006 
Other equity investments (h)3,952 3,953 3,755 3,724 3,623 
Investments in real estate and other affiliates$369,949 $377,145 $(9,852)$271,099 $30,629 
(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 transferred from the Strategic Development segment to the Operating Asset segment. Refer to the discussion below for additional details.
(b)During the fourth quarter of 2021, the Company recognized a $17.7 million impairment related to its investment in 110 North Wacker. See Note 4 - Impairment for additional information.
(c)The Metropolitan Downtown Columbia was in a deficit position of $11.3 million at December 31, 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 December 31, 2021 and 2020. The increase in the deficit balance is primarily due to a $5.0 million distribution in the third quarter of 2021.
(d)M.flats/TEN.M was in a deficit position of $6.0 million at December 31, 2021, due to distributions from operating cash flows in excess of basis. The deficit balance is presented in Accounts payable and accrued expenses at December 31, 2021.
(e)Refer to the discussion below for details on the ownership structure.
(f)During the third quarter of 2020, the Company completed the sale of its 35% equity investment in Mr. C Seaport.
(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. See Note 1 - Summary of Significant Accounting Policies for additional information. There were no impairments, or upward or downward adjustments to the carrying amounts of these securities either during current year 2021, or cumulatively.
Changes in redeemable noncontrolling interest
The following table presents changes in Redeemable noncontrolling interest:
thousandsRedeemable Noncontrolling Interest
Balance as of December 31, 2019
$— 
Reclassification of redeemable noncontrolling interest to temporary equity6,091 
Net income (loss) attributable to noncontrolling interest22,881 
Share of investee's other comprehensive income142 
Balance as of December 31, 2020
$29,114 
Net income (loss) attributable to noncontrolling interest(7,431)
Share of investee's other comprehensive income817 
Balance as of December 31, 2021
$22,500 
Summarized financial information The following tables include relevant summarized financial statement information for all equity method investments:
thousandsThe Summit (a)(b)(c)110 North Wacker (d)Other Investments (e)
Balance Sheet
December 31, 2021
Total Assets$225,133 $707,005 $510,756 
Total Liabilities169,814 515,665 233,368 
Total Equity55,319 191,340 277,388 
December 31, 2020
Total Assets$310,855 $634,274 $247,742 
Total Liabilities209,968 415,452 166,418 
Total Equity100,887 218,822 81,324 
Income Statement
Year ended December 31, 2021
Revenues$302,174 $38,699 $36,964 
Gross Margin116,641 n/an/a
Operating Incomen/a8,525 20,305 
Net income (loss)95,604 (36,556)10,856 
Year Ended December 31, 2020
Revenues$148,822 $5,333 $36,450 
Gross Margin29,012 n/an/a
Operating Incomen/a(3,148)17,100 
Net income (loss)21,924 (8,236)11,220 
Year Ended December 31, 2019
Revenues$120,337 $— $42,778 
Gross Margin32,205 n/an/a
Operating Incomen/a— 16,085 
Net income (loss)26,298 — 5,162 
(a)The Summit adopted ASU 2014-09, Revenues from Contracts with Customers (Topic 606) effective in the fourth quarter of 2019 using the modified retrospective transition method. Therefore, for 2019, revenues allocated to each of The Summit’s performance obligations is recognized over time based on an input measure of progress. Prior period amounts have not been adjusted and are recognized on a percentage of completion basis. The Summit’s adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements.
(b)The decrease in Total Equity for The Summit is primarily the result of distributions made in the second quarter of 2021.
(c)The increase in Revenues for The Summit is due to an increase in units closed, with 46 units closed during the year ended December 31, 2021, compared to 29 units closed for the year ended December 31, 2020.
(d)The income statement amounts for 110 North Wacker only include activity for the three months ended December 31, 2020, to correspond with the period it was accounted for under the equity method. Losses for 2021 and 2020 are the result of the asset still being in the lease-up period.
(e)Other Investments includes Trillium, West End Alexandria, The Metropolitan Downtown Columbia, Stewart Title, Woodlands Sarofim #1, m.flats / TEN.M, Ssäm Bar, Mr. C Seaport, Circle T Ranch and Power, HHMK Development and KR Holdings. As the Company sold its interests Mr. C Seaport and Circle T Ranch and Power in 2020, the income statement amounts only include activity through the date of sale and the balance sheet amounts do not include balances for these assets as of December 31, 2021 or 2020. Increases in the balance sheet amounts are primarily related to the acquisitions of interests in Trillium and West End Alexandria in 2021, as discussed above.