Investments in Unconsolidated Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of Equity Method Investments [Line Items]

Investments In Unconsolidated Joint Ventures

The investments in unconsolidated joint ventures consist of the following at March 31, 2020 and December 31, 2019:

					Carrying Value of Investment (1)
Entity	Properties	Nominal % Ownership			March 31, 2020			December 31, 2019
					(in thousands)
Square 407 Limited Partnership	Market Square North	50.0	%		$	(4,469	)	$	(4,872	)
BP/CRF Metropolitan Square, LLC	Metropolitan Square	20.0	%		13,130			9,134
901 New York, LLC	901 New York Avenue	25.0	%	(2)	(12,069		)	(12,113		)
WP Project Developer LLC	Wisconsin Place Land and Infrastructure	33.3	%	(3)	36,446			36,789
Annapolis Junction NFM LLC	Annapolis Junction	50.0	%	(4)	25,461			25,391
540 Madison Venture LLC	540 Madison Avenue	60.0	%	(5)	2,961			2,953
500 North Capitol Venture LLC	500 North Capitol Street, NW	30.0	%		(5,688		)	(5,439		)
501 K Street LLC	1001 6th Street	50.0	%	(6)	42,774			42,496
Podium Developer LLC	The Hub on Causeway - Podium	50.0	%		49,605			49,466
Residential Tower Developer LLC	Hub50House	50.0	%		54,414			55,092
Hotel Tower Developer LLC	The Hub on Causeway - Hotel Air Rights	50.0	%		9,889			9,883
Office Tower Developer LLC	100 Causeway Street	50.0	%		57,079			56,606
1265 Main Office JV LLC	1265 Main Street	50.0	%		3,636			3,780
BNY Tower Holdings LLC	Dock 72	50.0	%		95,362			94,804
BNYTA Amenity Operator LLC	Dock 72	50.0	%		—			—
CA-Colorado Center Limited Partnership	Colorado Center	50.0	%		251,146			252,069
7750 Wisconsin Avenue LLC	7750 Wisconsin Avenue	50.0	%		57,003			56,247
BP-M 3HB Venture LLC	3 Hudson Boulevard	25.0	%		84,301			67,499
SMBP Venture LP	Santa Monica Business Park	55.0	%		151,997			163,937
Platform 16 Holdings LP	Platform 16	55.0	%	(7)	93,991			29,501
Gateway Portfolio Holdings LLC	Gateway Commons	50.0	%	(8)	348,143			N/A
					$	1,355,112		$	933,223

 _______________

(1) Investments with deficit balances aggregating approximately $22.2 million and $22.4 million at March 31, 2020 and December 31, 2019, respectively, are included 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. At March 31, 2020 and December 31, 2019, the Company’s economic ownership was approximately 50%.

(3) The Company’s wholly-owned subsidiary that owns Wisconsin Place Office also owns a 33.3% interest in the joint venture entity that owns the land, parking garage and infrastructure of the project.

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

(5) The property was sold on June 27, 2019. As of March 31, 2020 and December 31, 2019, the investment is comprised of undistributed cash.

(6) 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.

(7)

This 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: 

	March 31, 2020		December 31, 2019
	(in thousands)
ASSETS
Real estate and development in process, net (1)	$	4,469,460	$	3,904,400
Other assets	578,468		502,706
Total assets	$	5,047,928	$	4,407,106
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY
Mortgage and notes payable, net	$	2,312,938	$	2,218,853
Other liabilities (2)	638,892		749,675
Members’/Partners’ equity	2,096,098		1,438,578
Total liabilities and members’/partners’ equity	$	5,047,928	$	4,407,106
Company’s share of equity	$	956,136	$	591,905
Basis differentials (3)	398,976		341,318
Carrying value of the Company’s investments in unconsolidated joint ventures (4)	$	1,355,112	$	933,223

 _______________

(1) At March 31, 2020 and December 31, 2019, this amount includes right of use assets - finance leases totaling approximately $248.9 million and $383.9 million, respectively, and right of use assets - operating leases totaling approximately $11.9 million and $12.1 million, respectively.

(2) At March 31, 2020 and December 31, 2019, this amount includes lease liabilities - finance leases totaling approximately $391.0 million and $510.8 million, respectively, and lease liabilities - operating leases totaling approximately $17.4 million and $17.3 million, respectively.

(3) 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 March 31, 2020 and December 31, 2019, there was an aggregate basis differential of approximately $310.1 million and $311.3 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. At March 31, 2020, there was an aggregate basis differential of approximately $55.7 million between the carrying value of the Company’s investment in the joint venture that owns Gateway Commons and the joint venture’s basis in the assets and liabilities. These basis differentials (excluding land) shall be amortized over the remaining lives of the related assets and liabilities.

(4)

Investments with deficit balances aggregating approximately $22.2 million and $22.4 million at March 31, 2020 and December 31, 2019, 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 March 31,
	2020			2019
	(in thousands)
Total revenue (1)	$	93,203		$	82,955
Expenses
Operating	35,401			30,499
Depreciation and amortization	32,035			28,646
Total expenses	67,436			59,145
Other income (expense)
Interest expense	(22,583		)	(20,757		)
Net income	$	3,184		$	3,053
Company’s share of net income	$	1,252		$	1,584
Basis differential (2)	(1,621		)	(1,371		)
Income (loss) from unconsolidated joint ventures	$	(369	)	$	213

_______________ 

(1) Includes straight-line rent adjustments of approximately $9.7 million and $5.8 million for the three months ended March 31, 2020 and 2019, respectively.

(2)

Includes straight-line rent adjustments of approximately $0.5 million and $0.5 million for the three months ended March 31, 2020 and 2019, respectively. Also includes net above-/below-market rent adjustments of approximately $0.3 million and $0.4 million for the three months ended March 31, 2020 and 2019, respectively.