Consolidated and unconsolidated real estate joint ventures (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30, 2021, our real estate joint ventures held the following properties:

Property

Market

Submarket

Our Ownership Interest(1)

Consolidated joint ventures(2):

75/125 Binney Street

Greater Boston

Cambridge/Inner Suburbs

40.0

225 Binney Street

Greater Boston

Cambridge/Inner Suburbs

30.0

99 Coolidge Avenue

Greater Boston

Cambridge/Inner Suburbs

75.0

409 and 499 Illinois Street

San Francisco Bay Area

Mission Bay

60.0

(3)

1500 Owens Street

San Francisco Bay Area

Mission Bay

50.1

(3)

Alexandria Technology Center® – Gateway(4)

San Francisco Bay Area

South San Francisco

48.1

213 East Grand Avenue

San Francisco Bay Area

South San Francisco

30.0

500 Forbes Boulevard

San Francisco Bay Area

South San Francisco

10.0

Alexandria Center® for Life Science – Millbrae Station

San Francisco Bay Area

South San Francisco

37.6

Alexandria Point(5)

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(6)

San Diego

Sorrento Mesa

50.0

Pacific Technology Park

San Diego

Sorrento Mesa

50.0

The Eastlake Life Science Campus by Alexandria(7)

Seattle

Lake Union

30.0

400 Dexter Avenue North

Seattle

Lake Union

30.0

Unconsolidated joint ventures(2):

1655 and 1725 Third Street

San Francisco Bay Area

Mission Bay

10.0

Menlo Gateway

San Francisco Bay Area

Greater Stanford

49.0

1401/1413 Research Boulevard

Maryland

Rockville

65.0

(8)

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

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

(3)Refer to the “Formation of consolidated real estate joint ventures and sales of partial interests” section within this Note 4 for additional information.

(4)Includes 601, 611, 651, 681, 685, 701, and 751 Gateway Boulevard in our South San Francisco submarket.

(5)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4161, 4224, and 4242 Campus Point Court in our University Town Center submarket.

(6)Includes 9605, 9645, 9675, 9685, 9725, 9735, 9808, 9855, and 9868 Scranton Road and 10055 and 10065 Barnes Canyon Road in our Sorrento Mesa submarket.

(7)Includes 1201 and 1208 Eastlake Avenue East and 199 East Blaine Street in our Lake Union submarket.

(8)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 September 30, 2021, and December 31, 2020 (in thousands):


	September 30, 2021		December 31, 2020
Investments in real estate	$	4,418,245	$	3,196,215
Cash and cash equivalents	131,321		95,565
Other assets	433,827		341,524
Total assets	$	4,983,393	$	3,633,304

Secured notes payable	$	—	$	—
Other liabilities	260,901		183,237
Total liabilities	260,901		183,237
Redeemable noncontrolling interests	2,069		1,731
Alexandria Real Estate Equities, Inc.’s share of equity	2,483,248		1,742,039
Noncontrolling interests’ share of equity	2,237,175		1,706,297
Total liabilities and equity	$	4,983,393	$	3,633,304

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 as of September 30, 2021, and December 31, 2020, consisted of the following (in thousands):


Property	September 30, 2021		December 31, 2020
Menlo Gateway	$	296,086	$	300,622
1655 and 1725 Third Street	14,093		14,939
Other	11,558		16,788
	$	321,737	$	332,349

Summary of unconsolidated real estate joint ventures loans

The following table presents key terms related to our unconsolidated real estate joint ventures’ secured loans as of September 30, 2021 (dollars in thousands):


Unconsolidated Joint Venture	Our Share	Maturity Date		Stated Rate	Interest Rate(1)				Debt Balance at 100%(2)

1401/1413 Research Boulevard	65.0%		5/17/22	L+2.50%		3.50	%	(3)	$	27,145
1655 and 1725 Third Street	10.0%		3/10/25	4.50%		4.57	%		598,550
Menlo Gateway, Phase II	49.0%		5/1/35	4.53%		4.59	%		154,992
Menlo Gateway, Phase I	49.0%		8/10/35	4.15%		4.18	%		137,578
									$	918,265

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

(2)Represents outstanding principal, net of unamortized deferred financing costs, as of September 30, 2021.

(3)This loan is subject to a fixed floor rate of 3.50%.

- 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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