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Investment in Unconsolidated Ventures (Tables)
 12 Months Ended
Dec. 31, 2015
Schedule Of Equity Method Investments [Line Items]  
Investment in Real Estate Ventures and Share of Real Estate Ventures' Income (Loss)

The Company’s investment in Real Estate Ventures as of December 31, 2015 and 2014, and the Company’s share of the Real Estate Ventures’ income (loss) for the years ended December 31, 2015 and 2014 was as follows (in thousands):

 

 

 

 

 

 

 

Carrying Amount

 

 

Company's Share of Real Estate Venture Income (Loss)

 

 

Real Estate Venture Debt at 100%

 

 

 

 

 

 

 

 

 

Ownership Percentage (a)

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

Current Interest Rate

 

 

Debt Maturity

Office Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brandywine-AI Venture LLC

 

 

50%

 

 

$

50,760

 

 

$

45,712

 

 

$

(229

)

 

$

(185

)

 

$

132,717

 

 

$

133,843

 

 

 

3.94

%

 

(c)

DRA (G&I) Austin (b)

 

 

50%

 

 

 

60,427

 

 

 

40,374

 

 

 

(1,235

)

 

 

(574

)

 

 

410,066

 

 

 

382,100

 

 

 

3.38

%

 

(d)

1000 Chesterbrook Blvd.

 

 

50%

 

 

 

1,895

 

 

 

2,152

 

 

 

117

 

 

 

388

 

 

 

23,610

 

 

 

24,251

 

 

 

4.75

%

 

Dec 2021

Four Tower Bridge

 

 

65%

 

 

 

1,684

 

 

 

1,474

 

 

 

211

 

 

 

(144

)

 

 

10,162

 

 

 

10,353

 

 

 

5.20

%

 

Feb 2021

PJP VII

 

 

25%

 

 

 

872

 

 

 

911

 

 

 

211

 

 

 

177

 

 

 

5,621

 

 

 

5,785

 

 

L+2.65%

 

 

Dec 2019

PJP II

 

 

30%

 

 

 

435

 

 

 

403

 

 

 

32

 

 

 

73

 

 

 

3,201

 

 

 

3,492

 

 

 

6.12

%

 

Nov 2023

PJP V

 

 

25%

 

 

 

305

 

 

 

216

 

 

 

189

 

 

 

166

 

 

 

5,035

 

 

 

5,242

 

 

 

6.47

%

 

Aug 2019

PJP VI

 

 

25%

 

 

 

45

 

 

 

45

 

 

 

151

 

 

 

(67

)

 

 

7,918

 

 

 

8,168

 

 

 

6.08

%

 

Apr 2023

Invesco, L.P. (h)

 

 

 

 

 

 

-

 

 

 

-

 

 

 

349

 

 

 

989

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

Broadmoor Austin Associates (h)

 

 

 

 

 

 

-

 

 

 

65,407

 

 

 

(377

)

 

 

(460

)

 

 

-

 

 

 

53,516

 

 

 

 

 

 

 

G&I Interchange Office LLC (DRA-N. PA) (h)

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(658

)

 

 

-

 

 

 

174,595

 

 

 

 

 

 

 

Coppell Associates (e)

 

 

50%

 

 

 

(1,130

)

 

 

(1,214

)

 

 

84

 

 

 

(45

)

 

 

15,515

 

 

 

15,747

 

 

 

5.75

%

 

Feb 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HSRE-Campus Crest IX, LLC (b)

 

 

30%

 

 

 

15,003

 

 

 

14,314

 

 

 

(188

)

 

 

67

 

 

 

95,562

 

 

 

90,245

 

 

L+2.20%

 

 

Jul 2016

4040 Wilson

 

 

50%

 

 

 

36,626

 

 

 

27,415

 

 

 

(106

)

 

 

(132

)

 

 

-

 

 

 

-

 

 

 

 

 

 

 

TB-BDN Plymouth Apartments

 

 

50%

 

 

 

12,338

 

 

 

12,720

 

 

 

(252

)

 

 

(83

)

 

 

50,964

 

 

 

29,481

 

 

L+1.70%

 

 

Dec 2017

Residence Inn Tower Bridge (h)

 

 

 

 

 

 

-

 

 

 

723

 

 

 

367

 

 

 

107

 

 

 

-

 

 

 

13,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brandywine 1919 Ventures (b) (f)

 

 

50%

 

 

 

29,086

 

 

 

12,823

 

 

 

-

 

 

 

(21

)

 

 

19,411

 

 

 

-

 

 

L+2.25%

 

 

Oct 2018

51 N Street

 

 

70%

 

 

 

16,725

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

1250 First Street Office

 

 

70%

 

 

 

14,312

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

Seven Tower Bridge

 

 

20%

 

 

 

491

 

 

 

315

 

 

 

(135

)

 

 

(388

)

 

 

14,789

 

 

 

14,865

 

 

 

3.44

%

 

(g)

 

 

 

 

 

 

$

239,874

 

 

$

223,790

 

 

$

(811

)

 

$

(790

)

 

$

794,571

 

 

$

965,077

 

 

 

 

 

 

 

 

(a)

Ownership percentage represents the Company’s entitlement to residual distributions after payments of priority returns, where applicable.

(b)

The basis differences associated with these ventures are allocated between cost and the underlying equity in the net assets of the investee and is accounted for as if the entity were consolidated (i.e., allocated to the Company’s relative share of assets and liabilities with an adjustment to recognize equity in earnings for the appropriate depreciation/amortization).

(c)

The debt for these properties is comprised of three fixed rate mortgages: (1) $38.8 million with a 4.40% fixed interest rate due January 1, 2019, (2) $27.6 million with a 4.65% fixed interest rate due January 1, 2022, and (3) $66.5 million with a 3.22% fixed interest rate due August 1, 2019, resulting in a time weighted average rate of 3.94%.

(d)

The debt for these properties includes seven mortgages: (1) $34.0 million that was swapped to a 1.59% fixed rate (or an all-in fixed rate of 3.52% incorporating the 1.93% spread) due November 1, 2018, (2) $55.8 million that was swapped to a 1.49% fixed rate (or an all-in rate of 3.19% incorporating the 1.70% spread) due October 15, 2018, (3) $140.3 million  that was swapped to a 1.43% fixed rate (for an all-in fixed rate of 3.44% incorporating the 2.01% spread) due November 1, 2018, (4) $29.0 million with a 4.50% fixed interest rate due April 6, 2019, (5) $34.5 million with a 3.87% fixed interest rate due August 6, 2019, (6) $86.4 million that was swapped to a 1.36% fixed rate (or all-in fixed rate of 3.36% incorporating the 2.00% spread) due February 28, 2020, and (7) $30.0 million with a rate of LIBOR + 1.85% with a cap of 2.75%, resulting in a time and dollar weighted average rate of 3.38%.

(e)

Carrying amount represents the negative investment balance of the venture and is included in other liabilities.

(f)

The stated rate for the construction loan is LIBOR + 2.25%. The interest rate spread decreases to 2.00% upon receipt of certificate of occupancy.  It is further reduced to 1.75% upon stabilization.  To fulfill interest rate protection requirements an interest rate cap was purchased at 4.50%.

(g)

Comprised of two fixed rate mortgages totaling $8.0 million that mature on March 1, 2017 and accrue interest at a current rate of 7.00%, a $0.9 million 3.00% fixed rate loan through its September 1, 2025 maturity, a $2.0 million 4.00% fixed rate loan with interest only through its February 7, 2016 maturity and a $3.9 million 3.00% fixed rate loan with interest only beginning March 11, 2018 through its March 11, 2020 maturity, resulting in a time and dollar weighted average rate of 3.4%.

(h)

The ownership interest in Invesco, L.P. was sold prior to December 31, 2014.  The Company purchased the remaining 50% interest in Broadmoor Austin Associates on June 22, 2015.  The ownership interest in DRA-N. PA was disposed of on August 12, 2015. The ownership interest in Residence Inn Tower Bridge was sold on December 30, 2015.  See below for further detail on 2015 dispositions.

Summary of Financial Position of Real Estate Ventures

The following is a summary of the financial position of the Real Estate Ventures as of December 31, 2015 and December 31, 2014 (in thousands):

 

 

December 31, 2015

 

 

December 31, 2014

 

Net property

$

1,258,999

 

 

$

1,281,282

 

Other assets

 

158,672

 

 

 

195,121

 

Other liabilities

 

68,028

 

 

 

68,481

 

Debt

 

794,571

 

 

 

965,077

 

Equity

 

554,072

 

 

 

442,845

 

 

 

 

 

 

 

 

 

Company’s share of equity (Company’s basis) (a) (b)

$

241,004

 

 

$

225,004

 

 

(a)

This amount includes the effect of the basis difference between the Company’s historical cost basis and the basis recorded at the Real Estate Venture level, which is typically amortized over the life of the related assets and liabilities.  Basis differentials occur from the impairment of investments, purchases of third party interests in existing Real Estate Ventures and upon the transfer of assets that were previously owned by the Company into a Real Estate Venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the Real Estate Venture level.

(b)

Does not include the negative investment balance of one real estate venture totaling $1.1 million and $1.2 million as of December 31, 2015 and 2014, respectively, which is included in other liabilities.
Summary of Results of Operations of Real Estate Ventures with Interests

The following is a summary of results of operations of the Real Estate Ventures in which the Company had interests as of December 31, 2015, 2014 and 2013 (in thousands):

 

 

Years ended December 31,

 

 

2015

 

 

2014

 

 

2013

 

Revenue

$

164,928

 

 

$

147,236

 

 

$

102,919

 

Operating expenses

 

(70,136

)

 

 

(61,268

)

 

 

(40,436

)

Interest expense, net

 

(34,584

)

 

 

(36,511

)

 

 

(26,529

)

Depreciation and amortization

 

(68,100

)

 

 

(57,109

)

 

 

(35,138

)

Net income (loss)

$

(7,892

)

 

$

(7,652

)

 

$

816

 

 

 

 

 

 

 

 

 

 

 

 

 

Company’s share of income (loss) (Company’s basis)

$

(811

)

 

$

(790

)

 

$

3,664

 

 
Schedule of Maturities of Long-term Debt

As of December 31, 2015, the Company’s aggregate scheduled principal payments of debt obligations, excluding amortization of discounts and premiums, are as follows (in thousands):

 

2016

$

249,468

 

2017

 

333,682

 

2018

 

340,437

 

2019

 

16,768

 

2020

 

17,661

 

Thereafter

 

1,458,208

 

Total principal payments

 

2,416,224

 

Net unamortized premiums/(discounts)

 

(8,912

)

Net deferred financing costs

 

(22,595

)

Outstanding indebtedness

$

2,384,717

 

 
Unconsolidated Real Estate Ventures [Member]  
Schedule Of Equity Method Investments [Line Items]  
Schedule of Maturities of Long-term Debt

As of December 31, 2015, the aggregate principal payments of recourse and non-recourse debt payable to third-parties are as follows (in thousands):

 

2016

 

$

120,811

 

2017

 

 

68,319

 

2018

 

 

244,403

 

2019

 

 

175,975

 

2020

 

 

92,761

 

Thereafter

 

 

92,302

 

 

 

$

794,571