5.	Preferred Equity Investments

On December 16, 2015, we acquired PGRESS-A, which owned a 20% interest in a PGRESS Equity Holdings L.P., for $12,150,000. PGRESS Equity Holdings L.P. owns certain preferred equity investments that are also owned by PGRESS and PGRESS-H (together with PGRESS-A, the “PGRESS Funds”). Prior to our acquisition of PGRESS-A, we owned a 5.4% interest in the underlying investments held by the PGRESS and PGRESS-H Funds, which were consolidated into our consolidated financial statements. These investments were reflected as a component of “real estate fund investments” on our consolidated balance sheets and the income from these investments was reflected as a component of “income from real estate fund investments” on our consolidated statements of income. Subsequent to our acquisition of PGRESS-A, we are required to consolidate PGRESS Equity Holdings L.P. Accordingly, we reclassified the underlying investments to “preferred equity investments” on our consolidated balance sheets and income from the investments is now reflected as a component of “interest and other income (loss), net” on our consolidated statements of income.

The following table is a summary of the preferred equity investments.

(Amounts in thousands)						As of
Preferred Equity Investment	% Ownership		Dividend Rate		Initial Maturity	December 31, 2015		December 31, 2014
470 Vanderbilt Avenue ⁽¹⁾		25.4%		10.3%	Feb-2019	$	35,305	$	-
2 Herald Square⁽²⁾		25.4%		10.3%	Apr-2017		18,636		-
Total Preferred Equity Investments						$	53,941	$	-

⁽¹⁾

Represents a $33,750 preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 650,000 square foot office building located in Brooklyn, New York. The preferred equity has a dividend rate of 10.3%, of which 8.0% is being paid in cash through February 2016 and will increase thereafter to 10.3% through maturity, and the unpaid portion accretes to the balance of the investment.

⁽²⁾

Represents a $17,500 preferred equity investment in a partnership that owns 2 Herald Square, a 369,000 square foot office and retail property in Manhattan. The preferred equity has a dividend rate of 10.3%, of which 7.0% is paid currently and the remainder accretes to the balance of the investment. The preferred equity investment has two one-year extension options.