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Investments in Unconsolidated Joint Ventures
 9 Months Ended
Sep. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Joint Ventures Investments in Unconsolidated Joint Ventures
We have investments in several real estate joint ventures with various partners. As of September 30, 2020, the book value of these investments was $2.9 billion, net of investments with negative book values totaling $85.8 million for which we have an implicit commitment to fund future capital needs.
As of September 30, 2020 and December 31, 2019, 800 Third Avenue, 21 East 66th Street, 605 West 42nd Street, 333 East 22nd Street, and certain properties within the Stonehenge Portfolio are VIEs in which we are not the primary beneficiary. Our net equity investment in these VIEs was $136.3 million and $145.9 million as of September 30, 2020 and December 31, 2019, respectively. Our maximum loss is limited to the amount of our equity investment in these VIEs. See the "Principles of Consolidation" section of Note 2, "Significant Accounting Policies". All other investments below are voting interest entities. As we do not control the joint ventures listed below, we account for them under the equity method of accounting.
The table below provides general information on each of our joint ventures as of September 30, 2020:
PropertyPartner
Ownership
Interest(1)
Economic
Interest(1)
Unaudited Approximate Square Feet
100 Park AvenuePrudential Real Estate Investors49.90%49.90%834,000 
717 Fifth AvenueWharton Properties/Private Investor10.92%10.92%119,500 
800 Third AvenuePrivate Investors60.52%60.52%526,000 
919 Third AvenueNew York State Teacher's Retirement System51.00%51.00%1,454,000 
11 West 34th StreetPrivate Investor/Wharton Properties30.00%30.00%17,150 
280 Park AvenueVornado Realty Trust50.00%50.00%1,219,158 
1552-1560 Broadway(2)
Wharton Properties50.00%50.00%57,718 
10 East 53rd StreetCanadian Pension Plan Investment Board55.00%55.00%354,300 
21 East 66th Street(3)
Private Investors32.28%32.28%13,069 
650 Fifth Avenue(4)
Wharton Properties50.00%50.00%69,214 
121 Greene StreetWharton Properties50.00%50.00%7,131 
55 West 46th StreetPrudential Real Estate Investors25.00%25.00%347,000 
Stonehenge PortfolioVariousVariousVarious1,439,016 
605 West 42nd StreetThe Moinian Group20.00%20.00%927,358 
11 Madison AvenuePGIM Real Estate60.00%60.00%2,314,000 
333 East 22nd StreetPrivate Investors33.33%33.33%26,926 
400 East 57th Street(5)
BlackRock, Inc and Stonehenge Partners51.00%41.00%290,482 
PropertyPartner
Ownership
Interest(1)
Economic
Interest(1)
Unaudited Approximate Square Feet
One VanderbiltNational Pension Service of Korea/Hines Interest LP71.01%71.01%— 
Worldwide PlazaRXR Realty / New York REIT / Private Investor24.35%24.35%2,048,725 
1515 BroadwayAllianz Real Estate of America56.87%56.87%1,750,000 
2 Herald SquareIsraeli Institutional Investor51.00%51.00%369,000 
115 Spring StreetPrivate Investor51.00%51.00%5,218 
885 Third Avenue(6)
Private Investor(6)100.00%625,300 
126 Nassau Street(7)
Meritz Alternative Investment Management20.00%20.00%98,412 
(1)Ownership interest and economic interest represent the Company's interests in the joint venture as of September 30, 2020. Changes in ownership or economic interests within the current year are disclosed in the notes below.
(2)The acquisition price represents only the purchase of the 1552 Broadway interest, which comprised approximately 13,045 square feet. The joint venture also owns a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway.
(3)We hold a 32.28% interest in three retail units and one residential unit at the property and a 16.14% interest in three residential units at the property.
(4)The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue.
(5)In October 2016, we sold a 49% interest in this property. Our interest in the property was sold within a consolidated joint venture owned 90% by the Company and 10% by Stonehenge. The transaction resulted in the deconsolidation of the venture's remaining 51% interest in the property. Our joint venture with Stonehenge remains consolidated resulting in the combined 51% interest being shown within investments in unconsolidated joint ventures on our balance sheet.
(6)We hold 100% of the preferred equity interest in the property and believe there is no value to the common equity.
(7)In August 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company. As a result of this transaction, we recognized a gain of $17.7 million, which is included in Gain on sale of real estate, net, in our consolidated statements of operations. This gain was calculated in accordance with ASC 842, as the Company identified the lease and non-lease components included in the sublease agreement and allocated the consideration in the agreement to each lease and non-lease component based on each components’ standalone selling price, which was estimated utilizing a combination of the adjusted market assessment and residual approaches as provided for in ASC 606.
Disposition of Joint Venture Interests or Properties
We did not dispose of any investments in unconsolidated joint ventures during the nine months ended September 30, 2020:
Joint Venture Mortgages and Other Loans Payable
We generally finance our joint ventures with non-recourse debt. In certain cases we may provide guarantees or master leases for tenant space, which terminate upon the satisfaction of specified circumstances or repayment of the underlying loans. The mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases at September 30, 2020 and December 31, 2019, respectively, are as follows (dollars in thousands):
Property
Economic
Interest (1)
Initial Maturity
Date
Final Maturity Date (2)
Interest
Rate (3)
September 30, 2020December 31, 2019
Fixed Rate Debt:
885 Third Avenue (4)
100.00 %April 2021April 20213.35 %$272,000 $— 
717 Fifth Avenue (mortgage)10.92 %July 2022July 20224.45 %300,000 300,000 
717 Fifth Avenue (mezzanine)10.92 %July 2022July 20225.50 %355,328 355,328 
650 Fifth Avenue (mortgage)50.00 %October 2022October 20224.46 %210,000 210,000 
650 Fifth Avenue (mezzanine)50.00 %October 2022October 20225.45 %65,000 65,000 
21 East 66th Street32.28 %April 2023April 20283.60 %12,000 12,000 
919 Third Avenue51.00 %June 2023June 20235.12 %500,000 500,000 
1515 Broadway56.87 %March 2025March 20253.93 %825,204 838,546 
11 Madison Avenue60.00 %September 2025September 20253.84 %1,400,000 1,400,000 
800 Third Avenue60.52 %February 2026February 20263.37 %177,000 177,000 
400 East 57th Street41.00 %November 2026November 20263.00 %97,024 97,735 
Worldwide Plaza24.35 %November 2027November 20273.98 %1,200,000 1,200,000 
Stonehenge Portfolio (5)
VariousVariousVarious3.50 %195,899 196,112 
Property
Economic
Interest (1)
Initial Maturity
Date
Final Maturity Date (2)
Interest
Rate (3)
September 30, 2020December 31, 2019
Total fixed rate debt $5,609,455 $5,351,721 
Floating Rate Debt:
121 Greene Street50.00 %November 2020November 2021L+1.50 %$15,000 $15,000 
11 West 34th Street30.00 %January 2021January 2023L+1.45 %23,000 23,000 
100 Park Avenue49.90 %February 2021February 2021L+1.75 %354,087 356,972 
280 Park Avenue50.00 %September 2021September 2024L+1.73 %1,200,000 1,200,000 
One Vanderbilt (6)
71.01 %September 2021September 2023L+2.50 %1,094,873 732,928 
1552 Broadway50.00 %October 2021October 2022L+2.65 %195,000 195,000 
2 Herald Square51.00 %November 2021November 2023L+1.45 %214,500 190,000 
55 West 46th Street (7)
25.00 %August 2022August 2024L+1.25 %192,524 192,524 
115 Spring Street51.00 %September 2023September 2023L+3.40 %65,550 65,550 
126 Nassau Street (8)
20.00 %January 2024July 2025L+1.50 %5,593 — 
10 East 53rd Street55.00 %February 2025February 2025L+1.35 %220,000 170,000 
605 West 42nd Street20.00 %August 2027August 2027L+1.44 %550,000 550,000 
21 East 66th Street32.28 %June 2033June 20331 Year Treasury+2.75 %688 712 
Total floating rate debt$4,130,815 $3,691,686 
Total joint venture mortgages and other loans payable$9,740,270 $9,043,407 
Deferred financing costs, net(87,763)(91,538)
Total joint venture mortgages and other loans payable, net$9,652,507 $8,951,869 
(1)Economic interest represents the Company's interests in the joint venture as of September 30, 2020. Changes in ownership or economic interests, if any, within the current year are disclosed in the notes to the investment in unconsolidated joint ventures table above.
(2)Reflects exercise of all available extension options. The ability to exercise extension options may be subject to certain tests based on the operating performance of the property.
(3)Interest rates as of September 30, 2020, taking into account interest rate hedges in effect during the period. Floating rate debt is presented with the stated spread over the 30-day LIBOR, unless otherwise specified.
(4)The Company holds 100% of the preferred equity interest in the property and believes that there is no value to the common equity. In August 2020, the servicer asserted certain loan defaults. The venture has determined that the servicer is misinterpreting the loan documents and is contesting the assertion. The servicer has taken no additional action on the loan.
(5)Comprised of three mortgages totaling $132.4 million that mature in April 2028 and two mortgages totaling $63.5 million that mature in July 2029.
(6)This loan is a $1.75 billion construction facility with reductions in interest cost based on meeting conditions, the first of which has been satisfied, and has an initial five-year term with two one-year extension options. Advances under the loan are subject to costs incurred.
(7)This loan has a committed amount of $198.0 million, of which $5.5 million was unfunded as of September 30, 2020.
(8)This loan is a $125.0 million construction facility. Advances under the loan are subject to costs incurred.

We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned $2.2 million and $6.1 million from these services, net of our ownership share of the joint ventures, for the three and nine months ended September 30, 2020, respectively. We earned $2.4 million and $8.8 million from these services, net of our ownership share of the joint ventures, for the three and nine months ended September 30, 2019, respectively. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.
The combined balance sheets for the unconsolidated joint ventures, at September 30, 2020 and December 31, 2019 are as follows (in thousands):
September 30, 2020December 31, 2019
Assets (1)
Commercial real estate property, net$15,045,603 $14,349,628 
Cash and restricted cash326,488 336,189 
Tenant and other receivables, related party receivables, and deferred rents receivable404,138 371,065 
Other assets1,940,540 2,039,429 
Total assets$17,716,769 $17,096,311 
Liabilities and equity (1)
Mortgages and other loans payable, net$9,652,507 $8,951,869 
Deferred revenue1,400,458 1,501,616 
Lease liabilities1,015,477 897,380 
Other liabilities294,972 308,304 
Equity5,353,355 5,437,142 
Total liabilities and equity$17,716,769 $17,096,311 
Company's investments in unconsolidated joint ventures$2,946,673 $2,912,842 
(1)The combined assets, liabilities and equity for the unconsolidated joint ventures reflects the effect of step ups in basis on the retained, non-controlling interests in deconsolidated investments as a result of the adoption of ASC 610-20 in January 2018. In addition, at September 30, 2020, $166.8 million of net unamortized basis differences between the amount at which our investments are carried and our share of equity in net assets of the underlying property will be amortized through equity in net income (loss) from unconsolidated joint ventures over the remaining life of the underlying items having given rise to the differences.
The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three and nine months ended September 30, 2020 and 2019, are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Total revenues$292,929 $286,010 $846,967 $883,977 
Operating expenses44,650 50,759 131,578 153,397 
Real estate taxes56,459 53,321 161,566 159,544 
Operating lease rent6,385 6,713 18,947 18,848 
Interest expense, net of interest income79,723 92,601 245,685 282,917 
Amortization of deferred financing costs5,575 4,436 15,197 14,434 
Depreciation and amortization103,262 100,736 300,700 308,748 
Total expenses296,054 308,566 873,673 937,888 
Loss on early extinguishment of debt— (1,031)— (1,031)
Net loss before gain on sale (1)
$(3,125)$(23,587)$(26,706)$(54,942)
Company's equity in net loss from unconsolidated joint ventures (1)
$(432)$(9,864)$(15,445)$(22,644)
(1)The combined statements of operations and the Company's equity in net loss for the unconsolidated joint ventures reflects the effect of step ups in basis on the retained non-controlling interests in deconsolidated investments as a result of the adoption of ASC 610-20 in January 2018.