Consolidated and unconsolidated real estate joint ventures (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2021, our real estate joint ventures held the following properties:


	Property	Market	Submarket	Our Ownership Interest(1)
Consolidated joint ventures(2):
	50 and 60 Binney	Greater Boston	Cambridge/Inner Suburbs		34.0	%	(3)
	75/125 Binney Street	Greater Boston	Cambridge/Inner Suburbs		40.0	%
	225 Binney Street	Greater Boston	Cambridge/Inner Suburbs		30.0	%	(4)
	99 Coolidge Avenue	Greater Boston	Cambridge/Inner Suburbs		75.0	%
	409 and 499 Illinois Street	San Francisco Bay Area	Mission Bay		25.0	%	(3)
	1500 Owens Street	San Francisco Bay Area	Mission Bay		25.0	%	(3)
	1700 Owens Street	San Francisco Bay Area	Mission Bay		25.0	%	(3)
	455 Mission Bay Boulevard South	San Francisco Bay Area	Mission Bay		25.0	%	(3)
	Alexandria Technology Center® – Gateway(5)	San Francisco Bay Area	South San Francisco		49.9	%
	213 East Grand Avenue	San Francisco Bay Area	South San Francisco		30.0	%	(3)
	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		40.3	%
	Alexandria Point(6)	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(7)	San Diego	Sorrento Mesa		50.0	%
	Pacific Technology Park	San Diego	Sorrento Mesa		50.0	%	(3)
	1201 and 1208 Eastlake Avenue East and 199 East Blaine Street	Seattle	Lake Union		30.0	%
	400 Dexter Avenue North	Seattle	Lake Union		30.0	%	(3)

Unconsolidated joint ventures(2):
	1655 and 1725 Third Street	San Francisco Bay Area	Mission Bay		10.0	%
	1401/1413 Research Boulevard	Maryland	Rockville		65.0	%	(8)
	1450 Research Boulevard	Maryland	Rockville		73.2	%	(9)
	101 West Dickman Street	Maryland	Beltsville		57.9	%	(9)

(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 three 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 interest” section within this Note 4 for additional information.

(4)225 Binney Street is owned through a tenancy in common arrangement. We directly own 26.316% of the tenancy in common and a real estate joint venture owns the remaining 73.684% of the tenancy in common. We own 5% of this real estate joint venture, resulting in an aggregate ownership of 30% of this property. We determined that we are the primary beneficiary of the real estate joint venture and we consolidate this joint venture under the variable interest model.

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

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

(7)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.

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

(9)Represent joint ventures with local real estate operators. Each of these joint ventures operates one office property which are expected to be redeveloped into office/lab. Our investments into 101 West Dickman Street and 1450 Research Boulevard joint ventures were $8.3 million and $4.0 million, respectively. The joint ventures each have a construction loan in place which is expected to fund future redevelopment cost; therefore, we expect minimal equity contributions to be required in the future. Our partners manage the day-to-day activities that most significantly affect the economic performance of each joint venture; therefore, we account for these investments under the equity method of accounting.

Consolidated VIE's balance sheet information

The table below aggregates the balance sheet information of our consolidated VIEs as of December 31, 2021 and 2020 (in thousands):


	December 31,
	2021		2020
Investments in real estate	$	5,014,842	$	3,196,215
Cash and cash equivalents	181,074		95,565
Other assets	509,281		341,524
Total assets	$	5,705,197	$	3,633,304

Secured notes payable	$	7,991	$	—
Other liabilities	269,605		183,237
Total liabilities	277,596		183,237
Redeemable noncontrolling interests	—		1,731
Alexandria Real Estate Equities, Inc.’s share of equity	2,593,505		1,742,039
Noncontrolling interests’ share of equity	2,834,096		1,706,297
Total liabilities and equity	$	5,705,197	$	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 as presented in our consolidated balance sheets of December 31, 2021 and 2020, consisted of the following (in thousands):


	December 31,
Property	2021		2020
Menlo Gateway(1)	$	—	$	300,622
1655 and 1725 Third Street	14,034		14,939
1450 Research Boulevard	4,455		—
101 West Dickman Street	8,481		—
704 Quince Orchard Road	—		4,961
Other	11,513		11,827
	$	38,483	$	332,349

(1)During the three months ended December 31, 2021, we sold our entire 49.0% equity interest in this unconsolidated real estate joint venture.

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 December 31, 2021 (dollars in thousands):


Unconsolidated Joint Venture	Our Share	Maturity Date		Stated Rate		Interest Rate(1)		Aggregate Commitment at 100%		Debt Balance at 100%(2)
1401/1413 Research Boulevard	65.0%		12/23/24	2.70%			3.14%	$	28,500	$	28,124
1655 and 1725 Third Street	10.0%		3/10/25	4.50%			4.57%	600,000		598,657
101 West Dickman Street	57.9%		11/10/26	SOFR + 1.95%	(3)		2.81%	26,750		9,947
1450 Research Boulevard	73.2%		12/10/26	SOFR + 1.95%	(3)		N/A	13,000		—
								$	668,250	$	636,728

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

(2)Represents outstanding principal, net of unamortized deferred financing costs, as of December 31, 2021.

(3)This loan is subject to a fixed SOFR floor rate of 0.75%.

- 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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