Investments in Unconsolidated Joint Ventures (Tables)

9 Months Ended

Sep. 30, 2017

Investments In Unconsolidated Joint Ventures [Abstract]

Investments In Unconsolidated Joint Ventures

The investments in unconsolidated joint ventures consist of the following at September 30, 2017 and December 31, 2016:

		Nominal % Ownership			Carrying Value of Investment (1)
Entity	Properties				September 30, 2017			December 31, 2016
					(in thousands)
Square 407 Limited Partnership	Market Square North	50.0	%		$	(8,474	)	$	(8,134	)
The Metropolitan Square Associates LLC	Metropolitan Square	20.0	%		2,537			2,004
BP/CRF 901 New York Avenue LLC	901 New York Avenue	25.0	%	(2)	(10,747		)	(10,564		)
WP Project Developer LLC	Wisconsin Place Land and Infrastructure	33.3	%	(3)	40,158			41,605
Annapolis Junction NFM, LLC	Annapolis Junction	50.0	%	(4)	18,771			20,539
540 Madison Venture LLC	540 Madison Avenue	60.0	%		67,046			67,816
500 North Capitol Venture LLC	500 North Capitol Street, NW	30.0	%		(3,642		)	(3,389		)
501 K Street LLC	1001 6th Street	50.0	%	(5)	42,442			42,528
Podium Developer LLC	The Hub on Causeway	50.0	%		55,917			29,869
Residential Tower Developer LLC	The Hub on Causeway - Residential	50.0	%		25,811			20,803
Hotel Tower Developer LLC	The Hub on Causeway - Hotel	50.0	%		1,596			933
1265 Main Office JV LLC	1265 Main Street	50.0	%		4,686			4,779
BNY Tower Holdings LLC	Dock 72 at the Brooklyn Navy Yard	50.0	%	(6)	67,901			33,699
CA-Colorado Center Limited Partnership	Colorado Center	50.0	%		263,834			510,623
7750 Wisconsin Avenue LLC	7750 Wisconsin Avenue	50.0	%	(6)	21,101			N/A
					$	588,937		$	753,111

 _______________

(1) Investments with deficit balances aggregating approximately $22.9 million and $22.1 million at September 30, 2017 and December 31, 2016, respectively, have been reflected within Other Liabilities in the Company’s Consolidated Balance Sheets.

(2) The Company’s economic ownership has increased based on the achievement of certain return thresholds.

(3) The Company’s wholly-owned entity that owns the office component of the project also owns a 33.3% interest in the entity owning the land, parking garage and infrastructure of the project.

(4) The joint venture owns four in-service buildings and two undeveloped land parcels.

(5) Under the joint venture agreement for this land parcel, the partner will be entitled to up to two additional payments from the venture based on increases in total entitled square footage of the project above 520,000 square feet and achieving certain project returns at stabilization.

(6) The entity is a VIE (See Note 2).

Schedule Of Balance Sheets Of The Unconsolidated Joint Ventures [Text Block]

The combined summarized balance sheets of the Company’s unconsolidated joint ventures are as follows:

	September 30, 2017		December 31, 2016
	(in thousands)
ASSETS
Real estate and development in process, net	$	1,716,447	$	1,519,217
Other assets	374,484		297,263
Total assets	$	2,090,931	$	1,816,480
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY
Mortgage and notes payable, net	$	1,411,401	$	865,665
Other liabilities	86,971		67,167
Members’/Partners’ equity	592,559		883,648
Total liabilities and members’/partners’ equity	$	2,090,931	$	1,816,480
Company’s share of equity	$	291,029	$	450,662
Basis differentials (1)	297,908		302,449
Carrying value of the Company’s investments in unconsolidated joint ventures (2)	$	588,937	$	753,111

 _______________

(1) This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials result from impairments of investments, acquisitions through joint ventures with no change in control and upon the transfer of assets that were previously owned by the Company into a joint venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the joint venture level. At September 30, 2017 and December 31, 2016, there was an aggregate basis differential of approximately $324.4 million and $328.8 million, respectively, between the carrying value of the Company’s investment in the joint venture that owns Colorado Center and the joint venture’s basis in the assets and liabilities, which differential (excluding land) shall be amortized over the remaining lives of the related assets and liabilities.

(2) Investments with deficit balances aggregating approximately $22.9 million and $22.1 million at September 30, 2017 and December 31, 2016, respectively, have been reflected within Other Liabilities in the Company’s Consolidated Balance Sheets.

Statements Of Operations Of The Joint Ventures

The combined summarized statements of operations of the Company’s unconsolidated joint ventures are as follows:

	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
	(in thousands)
Total revenue (1)	$	55,516		$	49,002		$	166,139		$	125,039
Expenses
Operating	23,128			21,753			67,310			54,779
Depreciation and amortization	16,440			12,038			44,973			30,306
Total expenses	39,568			33,791			112,283			85,085
Operating income	15,948			15,211			53,856			39,954
Other expense
Interest expense	13,088			8,400			31,815			25,172
Net income	$	2,860		$	6,811		$	22,041		$	14,782
Company’s share of net income	$	2,909		$	3,179		$	11,576		$	6,830
Basis differential (2)	(2,066		)	(1,715		)	(4,541		)	(1,341		)
Income from unconsolidated joint ventures	$	843		$	1,464		$	7,035		$	5,489

 _______________ 

(1) Includes straight-line rent adjustments of approximately $5.1 million and $5.2 million for the three months ended September 30, 2017 and 2016, respectively, and $16.4 million and $11.0 million for the nine months ended September 30, 2017 and 2016, respectively.

(2) Includes straight-line rent adjustments of approximately $0.7 million and $0.7 million for the three months ended September 30, 2017 and 2016, respectively, and $2.2 million and $0.7 million for the nine months ended September 30, 2017 and 2016, respectively. Also includes net above-/below-market rent adjustments of approximately $0.4 million and $0.5 million for the three months ended September 30, 2017 and 2016, respectively, and $1.3 million and $0.5 million for the nine months ended September 30, 2017 and 2016, respectively.