Related Party Transactions

12 Months Ended

Dec. 31, 2016

Cleaning/ Security/ Messenger and Restoration Services

Alliance Building Services, or Alliance, and its affiliates are partially owned by Gary Green, a son of Stephen L. Green, the chairman of SL Green's board of directors, and provide services to certain properties owned by us. Alliance’s affiliates include First Quality Maintenance, L.P., or First Quality, Classic Security LLC, Bright Star Couriers LLC and Onyx Restoration Works, and provide cleaning, extermination, security, messenger, and restoration services, respectively. In addition, First Quality has the non-exclusive opportunity to provide cleaning and related services to individual tenants at our properties on a basis separately negotiated with any tenant seeking such additional services. The Service Corporation has entered into an arrangement with Alliance whereby it will receive a profit participation above a certain threshold for services provided by Alliance to certain tenants at certain buildings above the base services specified in their lease agreements.

Income earned from profit participation, which is included in other income on the consolidated statements of operations, was $3.5 million, $3.8 million, and $3.8 million for the years ended December 31, 2016, 2015 and 2014, respectively. We also recorded expenses, inclusive of capitalized expenses, of $23.4 million, $21.3 million, and $21.5 million the years ended December 31, 2016, 2015 and 2014, respectively, for these services (excluding services provided directly to tenants).

Management Fees

S.L. Green Management Corp., a consolidated entity, receives property management fees from an entity in which Stephen L. Green owns an interest. We received management fees from this entity of $0.7 million, $0.5 million and $0.4 million for the years ended December 31, 2016, 2015, and 2014 respectively.

One Vanderbilt Co-Investment

In December 2016, we entered into agreements with entities owned and controlled by Messrs. Holliday and Mathias, pursuant to which they agreed to make a co-investment with us in our One Vanderbilt development project. Pursuant to these agreements, Messrs. Holliday and Mathias agreed to purchase interests in the One Vanderbilt development project that will entitle them to receive approximately 2.50%-3.00% of the profit generated from this project in excess of capital contributions. 50% of these interests were purchased on December 31, 2016 and the remaining 50% are to be purchased on December 31, 2017. The aggregate purchase price for these interests is $2.4 million, which equals the fair market value of these interests as of the date the co-investment agreements were entered into as determined by an independent third party appraisal that we obtained.

Messrs. Holliday and Mathias cannot monetize their interests until after stabilization of the property (50% within three years after stabilization and 100% three years or more after stabilization). In addition, the agreement calls for us to repurchase these interests in the event of a sale of One Vanderbilt or a transactional change of control of the Company. We also have the right to repurchase these interests on the seven-year anniversary of the stabilization of the project or upon the occurrence of certain separation events prior to the stabilization of the project relating to each of Messrs. Holliday’s and Mathias’s continued service with us. The price paid upon monetization of the interests will equal the liquidation value of the interests at the time, with the value of One Vanderbilt being based on its sale price, if applicable, or fair market value as determined by an independent third party appraiser.

Other

Amounts due from related parties at December 31, 2016 and 2015 consisted of the following (in thousands):



	December 31,
	2016		2015
Due from joint ventures	$	1,240	$	1,334
Other	14,616		9,316
Related party receivables	$	15,856	$	10,650