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Consolidated and unconsolidated real estate joint ventures (Tables)

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Consolidated And Unconsolidated Real Estate Joint Venture Properties

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	%


(1)	Refer to the table on the next page that shows our categorization of our existing significant joint ventures under the consolidation framework.


(2)	In addition to the consolidated real estate joint ventures listed, various partners hold insignificant noncontrolling interests in six other joint ventures in North America and we hold an interest in one other insignificant unconsolidated real estate joint venture in North America.


(3)	Excludes 9880 Campus Point Drive in our University Town Center submarket.

(4)

Represents our ownership interest; our voting interest is limited to 50%.

Consolidated VIE's balance sheet information

The table below aggregates the balance sheet information of our consolidated VIEs as of December 31, 2019 and 2018 (in thousands):



	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

Investment in unconsolidated real estate joint ventures

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

Summary of unconsolidated real estate joint ventures loans

Our unconsolidated real estate joint ventures have the following non-recourse secured loans that include the following key terms as of December 31, 2019 (dollars in thousands):



		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


(1)	Includes interest expense and amortization of loan fees.

(2)

Represents outstanding principal, net of unamortized deferred financing costs, as of December 31, 2019.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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