From time to time, we enter into joint venture agreements through which we own a partial interest in real estate entities that own, develop, and operate real estate properties. As of December 31, 2019, our real estate joint ventures held the following properties:



	Property	Market	Submarket	Our Ownership Interest ⁽¹⁾
Consolidated joint ventures⁽²⁾:
	225 Binney Street	Greater Boston	Cambridge		30.0	%
	75/125 Binney Street	Greater Boston	Cambridge		40.0	%
	409 and 499 Illinois Street	San Francisco	Mission Bay/SoMa		60.0	%
	1500 Owens Street	San Francisco	Mission Bay/SoMa		50.1	%
	500 Forbes Boulevard	San Francisco	South San Francisco		10.0	%
	Campus Pointe by Alexandria⁽³⁾	San Diego	University Town Center		55.0	%
	5200 Illumina Way	San Diego	University Town Center		51.0	%
	9625 Towne Centre Drive	San Diego	University Town Center		50.1	%
	SD Tech by Alexandria	San Diego	Sorrento Mesa		50.0	%

Unconsolidated joint ventures⁽²⁾:
	Menlo Gateway	San Francisco	Greater Stanford		49.0	%
	1401/1413 Research Boulevard	Maryland	Rockville		65.0	%	⁽⁴⁾
	704 Quince Orchard Road	Maryland	Gaithersburg		56.8	%	⁽⁴⁾
	1655 and 1725 Third Street	San Francisco	Mission Bay/SoMa		10.0	%

Our consolidation policy is fully described under the “Consolidation” section in Note 2 – “Summary of Significant Accounting Policies” to our consolidated financial statements. Consolidation accounting is highly technical, but its framework is primarily based on the controlling financial interests and benefits of the joint ventures.

We generally consolidate a joint venture that is a legal entity that we control (i.e., we have the power to direct the activities of the joint venture that most significantly affect its economic performance) through contractual rights, regardless of our ownership interest, and where we determine that we have benefits through the allocation of earnings or losses and fees paid to us that could be significant to the joint venture (the “VIE model”).

We also generally consolidate joint ventures when we have a controlling financial interest through voting rights and where our voting interest is greater than 50% (the “voting model”). Voting interest differs from ownership interest for some joint ventures.



Property	Consolidation Model	Voting Interest	Consolidation Analysis		Conclusion

225 Binney Street	VIE model	Not applicable under the VIE model	We have:		Consolidated
75/125 Binney Street			(i)	The power to direct the activities of the joint venture that most significantly affect its economic performance; and
409 and 499 Illinois Street
1500 Owens Street
500 Forbes Boulevard
Campus Pointe by Alexandria			(ii)	Benefits that can be significant to the joint venture.
5200 Illumina Way				Benefits that can be significant to the joint venture.
9625 Towne Centre Drive			Therefore, we are the primary beneficiary of each VIE
SD Tech by Alexandria			Therefore, we are the primary beneficiary of each VIE
Menlo Gateway			We do not control the joint venture and are therefore not the primary beneficiary		Equity method of accounting
1401/1413 Research Boulevard
704 Quince Orchard Road	Voting model	Does not exceed 50%	Our voting interest is 50% or less
1655 and 1725 Third Street	Voting model	Does not exceed 50%	Our voting interest is 50% or less

In February 2019, we completed a partial sale of a 60% interest in 75/125 Binney Street, a Class A property in our Cambridge submarket, aggregating 388,270 RSF, for a sales price of $438.0 million, or $1,880 per RSF. We accounted for the $202.2 million difference between the consideration received and the book value of the 60% interest sold as an equity transaction, with no gain recognized in earnings.

We formed a joint venture with the buyer of the partial interest in 75/125 Binney Street. We hold a 40% ownership interest in this joint venture. As part of the joint venture agreement, we are responsible for operations that most significantly impact the economic performance of the joint venture. Our joint venture partner lacks kick-out rights over our role as property manager. Also, our partner lacks substantive participating rights that would allow it to significantly impact the economic performance of the joint venture, and can affect the operations of the joint venture primarily through the exercise of its protective rights. Therefore, we determined that we are the primary beneficiary of the joint venture. Accordingly, we have consolidated the joint venture under the variable interest model. Refer to the “Consolidation” section in Note 2 – “Summary of Significant Accounting Policies” to our consolidated financial statements for additional information.

In August 2019, we completed the sale of a 90% interest in 500 Forbes Boulevard, located in our South San Francisco submarket, aggregating 155,685 RSF for a sales price of $139.5 million, or $996 per RSF. We accounted for the $48.4 million difference between the consideration received and the book value of the 90% interest sold as an equity transaction with no gain recognized in earnings. The property has been leased to a single investment-grade tenant since 2009.

We formed a joint venture with the buyer of the partial interest in 500 Forbes Boulevard. We hold a 10% ownership interest in this joint venture. As part of the joint venture agreement, we are responsible for operations that most significantly impact the economic performance of the joint venture. Our joint venture partner lacks kick-out rights over our role as property manager. Also, our partner lacks substantive participating rights that would allow it to significantly impact the economic performance of the joint venture, and can affect the operations of the joint venture primarily through the exercise of its protective rights. Therefore, we determined that we are the primary beneficiary of the joint venture. Accordingly, we have consolidated the joint venture under the variable interest model. Refer to the “Consolidation” section in Note 2 – “Summary of Significant Accounting Policies” to our consolidated financial statements for additional information.

In August 2019, we completed the sale of a 49% interest in 5200 Illumina Way, a Class A campus in our University Town Center submarket of San Diego, aggregating 792,687 RSF across six operating buildings and a land parcel available for future development. The total sales price of $286.7 million for the 49% partial interest comprises $264.6 million, or $681 per RSF, for the operating buildings and $22.1 million, or $100 per RSF, for the developable land parcel. The operating buildings are 100% occupied by Illumina, Inc. with a remaining lease term of 12 years. This transaction values 100% of the campus at $585.2 million and represents a value in excess of book basis aggregating $269.1 million, or $131.9 million for the 49% interest sold. We accounted for the $131.9 million difference between the consideration received and the book value of the 49% interest sold as an equity transaction, with no gain recognized in earnings.

We formed a joint venture with the buyer of the partial interest in 5200 Illumina Way. We hold a 51% ownership interest in this joint venture. As part of the joint venture agreement, we are responsible for operations that most significantly impact the economic performance of the joint venture. Our joint venture partner lacks kick-out rights over our role as property manager. Also, our partner lacks substantive participating rights that would allow them to significantly impact the economic performance of the joint venture, and can affect the operations of the joint venture primarily through the exercise of their protective rights. As a result, we have determined that we are the primary beneficiary of the joint venture. Accordingly, we have consolidated the joint venture under the variable interest model. Refer to the “Consolidation” section in Note 2 – “Summary of Significant Accounting Policies” to our consolidated financial statements for additional information.



	December 31,
	2019		2018
Investments in real estate	$	2,678,476	$	1,108,385
Cash and cash equivalents	81,021		42,178
Other assets	280,343		74,901
Total assets	$	3,039,840	$	1,225,464

Secured notes payable	$	—	$	—
Other liabilities	149,471		59,336
Total liabilities	149,471		59,336
Redeemable noncontrolling interests	2,388		874
Alexandria Real Estate Equities, Inc.’s share of equity	1,600,729		624,349
Noncontrolling interests’ share of equity	1,287,252		540,905
Total liabilities and equity	$	3,039,840	$	1,225,464

In determining whether to aggregate the balance sheet information of our consolidated VIEs, we considered the similarity of each VIE, including the primary purpose of these entities to own, manage, operate, and lease real estate properties owned by the VIEs, and the similar nature of our involvement in each VIE as a managing member. Due to the similarity of the characteristics, we present the balance sheet information of these entities on an aggregated basis. For each of our consolidated VIEs, none of its assets have restrictions that limit their use to settle specific obligations of the VIE. There are no creditors or other partners of our consolidated VIEs that have recourse to our general credit. Our maximum exposure to our consolidated VIEs is limited to our variable interests in each VIE.

Our investments in unconsolidated real estate joint ventures, accounted for under the equity method of accounting presented in our consolidated balance sheets of December 31, 2019 and 2018, consisted of the following (in thousands):



	December 31,
Property	2019		2018
Menlo Gateway	$	288,408	$	186,504
1401/1413 Research Boulevard	7,696		8,197
704 Quince Orchard Road	4,748		4,547
1655 and 1725 Third Street	37,016		34,917
Other	9,022		3,342
	$	346,890	$	237,507



		Maturity Date		Stated Rate	Interest Rate⁽¹⁾	100% at Joint Venture Level
Unconsolidated Joint Venture	Our Share	Maturity Date		Stated Rate	Interest Rate⁽¹⁾	Debt Balance⁽²⁾		Remaining Commitments
1401/1413 Research Boulevard	65.0%		5/17/20	L+2.50%	5.18%	$	26,158	$	2,619
1655 and 1725 Third Street	10.0%		6/29/21	L+3.70%	5.41%	309,275		65,725
704 Quince Orchard Road	56.8%		3/16/23	L+1.95%	3.94%	9,172		5,709
Menlo Gateway, Phase II	49.0%		5/1/35	4.53%	4.59%	56,321		99,529
Menlo Gateway, Phase I	49.0%		8/10/35	4.15%	4.18%	142,101		—
						$	543,027	$	173,582