Investments in Unconsolidated Joint Ventures

9 Months Ended

Sep. 30, 2021

Equity Method Investments And Joint Ventures [Abstract]

Investments in Unconsolidated Joint Ventures

4.	Investments in Unconsolidated Joint Ventures

The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below.

(Amounts in thousands)	Paramount	As of
Our Share of Investments:	Ownership	September 30, 2021		December 31, 2020
712 Fifth Avenue ⁽¹⁾	50.0%	$	-	$	-
Market Center	67.0%		186,301		192,306
55 Second Street ⁽²⁾	44.1%		89,576		92,298
111 Sutter Street	49.0%		35,956		37,818
60 Wall Street ⁽²⁾	5.0%		19,216		19,164
One Steuart Lane ⁽²⁾	35.0% ⁽³⁾		70,656		67,505
Oder-Center, Germany ⁽²⁾	9.5%		3,686		3,633
Investments in unconsolidated joint ventures		$	405,391	$	412,724

	For the Three Months Ended							For the Nine Months Ended
(Amounts in thousands)	September 30,							September 30,
Our Share of Net Income (Loss):	2021				2020			2021				2020
712 Fifth Avenue ⁽¹⁾	$	431			$	229		$	(10,697	)		$	458
Market Center		(2,228	)			(2,654	)		(9,272	)			(8,578	)
55 Second Street ⁽²⁾		(702	)			(713	)		(2,171	)			(2,059	)
111 Sutter Street		(685	)			(884	)		(1,874	)			(2,413	)
60 Wall Street ⁽²⁾		18				10			52				(81	)
One Steuart Lane ⁽²⁾		3,363		⁽⁴⁾		(223	)		3,138		⁽⁴⁾		(1,773	)
Oder-Center, Germany ⁽²⁾		26				(33	)		14				2
Income (loss) from unconsolidated joint ventures	$	223			$	(4,268	)	$	(20,810	)		$	(14,444	)

⁽¹⁾

At December 31, 2020, our basis in the joint venture that owns 712 Fifth Avenue was negative $22,345. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. During the nine months ended September 30, 2021, we received $1,053 in distributions from the joint venture and made an $11,750 contribution to the joint venture. Accordingly, we recognized a loss of $10,697, which is included in “loss from unconsolidated joint ventures” on our consolidated statements of income for the nine months ended September 30, 2021. Additionally, the joint venture had net losses of $3,439 for the nine months ended September 30, 2021, of which our 50.0% share was $1,720. Accordingly, our basis in the joint venture, taking into account distributions received, contributions made and our share of losses, was negative $13,368 as of September 30, 2021.

⁽²⁾

As of September 30, 2021, the carrying amount of our investments in 55 Second Street, 60 Wall Street, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $480, $2,628, $970 and $4,797, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs. Basis differences allocated to depreciable assets are being amortized into income or loss from the unconsolidated joint ventures to which they relate, over the estimated useful life of the related assets.

⁽³⁾	Represents our consolidated Residential Development Fund’s (“RDF”) economic interest in One Steuart Lane, a for-sale residential condominium development project.

⁽⁴⁾	Includes RDF’s share of gain on sale of residential condominium units.

The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates thereof and for the periods set forth below.

(Amounts in thousands)	As of
Balance Sheets:	September 30, 2021		December 31, 2020
Real estate, net	$	2,254,141	$	2,674,858
Cash and cash equivalents and restricted cash		210,194		120,149
Intangible assets, net		71,193		110,307
For-sale residential condominium units ⁽¹⁾		389,755		-
Other assets		62,099		45,761
Total assets	$	2,987,382	$	2,951,075

Notes and mortgages payable, net	$	1,846,667	$	1,801,084
Intangible liabilities, net		20,447		26,772
Other liabilities		73,926		87,575
Total liabilities		1,941,040		1,915,431
Equity		1,046,342		1,035,644
Total liabilities and equity	$	2,987,382	$	2,951,075


	For the Three Months Ended							For the Nine Months Ended
(Amounts in thousands)	September 30,							September 30,
Income Statements:	2021				2020			2021				2020
Revenues:
Rental revenue	$	57,998			$	61,340		$	171,721			$	182,923
Other income		92,360		⁽²⁾		625			93,698		⁽²⁾		2,149
Total revenues		150,358				61,965			265,419				185,072
Expenses:
Operating		102,949		⁽²⁾		26,381			153,526		⁽²⁾		81,963
Depreciation and amortization		26,432				29,700			80,899				88,981
Total expenses		129,381				56,081			234,425				170,944
Other income (expense):
Interest and other (loss) income		(27	)			(45	)		(83	)			3
Interest and debt expense		(17,503	)			(14,030	)		(45,135	)			(44,244	)
Net income (loss) before income taxes		3,447				(8,191	)		(14,224	)			(30,113	)
Income tax expense		(17	)			(1	)		(32	)			(45	)
Net income (loss)	$	3,430			$	(8,192	)	$	(14,256	)		$	(30,158	)

⁽¹⁾	Represents the cost of residential condominium units at One Steuart Lane that are available for sale.

⁽²⁾	Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.