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Investments in Unconsolidated Joint Ventures
 3 Months Ended
Mar. 31, 2021
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 March 31, 2021, the book value of these investments was $3.7 billion, net of investments with negative book values totaling $92.4 million for which we have an implicit commitment to fund future capital needs.
As of March 31, 2021 and December 31, 2020, 800 Third Avenue, 21 East 66th Street, 605 West 42nd 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 $132.7 million and $134.0 million as of March 31, 2021 and December 31, 2020, 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 March 31, 2021:
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 
Stonehenge PortfolioVariousVariousVarious1,439,016 
605 West 42nd Street (5)
The Moinian Group20.00%20.00%927,358 
11 Madison AvenuePGIM Real Estate60.00%60.00%2,314,000 
400 East 57th Street (6)
BlackRock, Inc and Stonehenge Partners51.00%41.00%290,482 
One VanderbiltNational Pension Service of Korea/Hines Interest LP71.01%71.01%1,657,198 
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 
PropertyPartner
Ownership
Interest (1)
Economic
Interest (1)
Unaudited Approximate Square Feet
115 Spring StreetPrivate Investor51.00%51.00%5,218 
15 Beekman (7)
A fund managed by Meritz Alternative Investment Management20.00%20.00%221,884 
85 Fifth AvenueWells Fargo36.30%36.30%12,946 
One Madison Avenue (8)
National Pension Service of Korea/Hines Interest LP50.50%50.50%1,048,700 
(1)Ownership interest and economic interest represent the Company's interests in the joint venture as of March 31, 2021. Changes in ownership or economic interests within the current year are disclosed in the notes below.
(2)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 April 2021, we entered into contract to sell our interest in the property. This transaction is expected to close in the second quarter of 2021 subject to customary closing conditions.
(6)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. In April 2021, we entered into contract to sell our interest in the property. In connection with this contract, we recorded a charge of $5.7 million, which is included in depreciable real estate reserves and impairment in the consolidated statements of operations. This transaction is expected to close in the third quarter of 2021 subject to customary closing conditions.
(7)In 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company.
(8)In 2020, the Company admitted partners to the One Madison Avenue development project, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and the deconsolidation of our remaining 50.5% interest. We recorded our investment at fair value, which resulted in the recognition of a fair value adjustment of $187.5 million in 2020 and a fair value adjustment of $2.7 million during the three months ended March 31, 2021. The fair value of our investment was determined by the terms of the joint venture agreement governing the capitalization of the project. The partners have committed aggregate equity to the project totaling no less than $492.2 million and their ownership interest in the joint venture is based on their capital contributions, up to an aggregate maximum of 49.5%. At March 31, 2021, the total of the two partners' ownership interests based on equity contributed was 9.0%.

Disposition of Joint Venture Interests or Properties
The following table summarizes the investments in unconsolidated joint ventures disposed of during the three months ended March 31, 2021:
PropertyOwnership Interest DisposedDisposition DateGross Asset Valuation (in thousands)
Gain (Loss) on Sale (in thousands) (1)
885 Third Avenue (2)
N/AJanuary 2021N/AN/A
55 West 46th Street - Tower 4625.0%March 2021$275.0 $(15.2)
(1)Represents the Company's share of the gain or loss.
(2)In January 2021, pursuant to the partnership documents of our 885 Third Avenue investment, certain participating rights of the common member expired. As a result, it was determined that we are the primary beneficiary of the VIE and the investment was consolidated in our financial statements. See Note 3, "Property Acquisitions."
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 March 31, 2021 and December 31, 2020, respectively, are as follows (dollars in thousands):
Property
Economic
Interest (1)
Initial Maturity
Date
Final Maturity Date (2)
Interest
Rate (3)
March 31, 2021December 31, 2020
Fixed Rate Debt:
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 
Property
Economic
Interest (1)
Initial Maturity
Date
Final Maturity Date (2)
Interest
Rate (3)
March 31, 2021December 31, 2020
919 Third Avenue51.00 %June 2023June 20235.12 %500,000 500,000 
1515 Broadway56.87 %March 2025March 20253.93 %815,876 820,607 
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 Street (4)
41.00 %November 2026November 20263.00 %97,024 97,024 
Worldwide Plaza24.35 %November 2027November 20273.98 %1,200,000 1,200,000 
Stonehenge Portfolio (5)
VariousVariousVarious3.50 %195,899 195,899 
885 Third Avenue (6)
— 272,000 
Total fixed rate debt $5,328,127 $5,604,858 
Floating Rate Debt:
280 Park Avenue50.00 %September 2021September 2024L+1.73 %$1,200,000 $1,200,000 
One Vanderbilt (7)
71.01 %September 2021September 2023L+2.50 %1,283,292 1,210,329 
1552 Broadway50.00 %October 2021October 2022L+2.65 %195,000 195,000 
2 Herald Square51.00 %November 2021November 2023L+1.45 %214,500 214,500 
11 West 34th Street30.00 %January 2022January 2023L+1.45 %23,000 23,000 
121 Greene Street (8)
50.00 %November 2022November 2022L+2.00 %13,771 15,000 
115 Spring Street51.00 %September 2023September 2023L+3.40 %65,550 65,550 
100 Park Avenue49.90 %December 2023December 2025L+2.25 %360,000 360,000 
15 Beekman (9)
20.00 %January 2024July 2025L+1.50 %19,165 11,212 
10 East 53rd Street55.00 %February 2025February 2025L+1.35 %220,000 220,000 
One Madison Avenue (10)
50.50 %November 2025November 2026L+3.35 %40,104 — 
605 West 42nd Street (11)
20.00 %August 2027August 2027L+1.44 %550,000 550,000 
21 East 66th Street32.28 %June 2033June 2033T+2.75 %666 677 
55 West 46th Street— 192,524 
Total floating rate debt$4,185,048 $4,257,792 
Total joint venture mortgages and other loans payable$9,513,175 $9,862,650 
Deferred financing costs, net(98,252)(113,446)
Total joint venture mortgages and other loans payable, net$9,414,923 $9,749,204 
(1)Economic interest represents the Company's interests in the joint venture as of March 31, 2021. 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 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 March 31, 2021, 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 ("L") or 1-year Treasury ("T").
(4)In April 2021, we entered into a contract to sell our interest in the property. This transaction is expected to close in the third quarter of 2021 subject to customary closing conditions.
(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 was repaid in the first quarter of 2021, and as of March 31, 2021, the property is consolidated in our financial statements. See Note 3, "Property Acquisitions."
(7)This loan is a $1.75 billion construction facility with reductions in interest cost based on meeting certain conditions, the first of which has been satisfied, and has an initial term of three years with two one year extension options. Advances under the loan are subject to costs incurred. In conjunction with the loan, we provided partial guarantees for interest and principal payments, the amounts of which are based on certain construction milestones and operating metrics.
(8)In March 2021, the maturity date of this loan was extended by one year.
(9)This loan is a $125.0 million construction facility. Advances under the loan are subject to costs incurred.
(10)The loan is a $1.25 billion construction facility with an initial term of five years with one one year extension option. Advances under the loan are subject to costs incurred. In conjunction with the loan, we provided partial guarantees for interest and principal payments, the amounts of which are based on certain construction milestones and operating metrics.
(11)In April 2021, we entered into contract to sell our interest in the property. This transaction is expected to close in the second quarter of 2021 subject to customary closing conditions.
We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned $2.4 million from these services, net of our ownership share of the joint ventures, for the three months ended March 31, 2021. We earned $2.2 million from these services, net of our ownership share of the joint ventures, for the three months ended March 31, 2020. 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 March 31, 2021 and December 31, 2020 are as follows (in thousands):
March 31, 2021December 31, 2020
Assets (1)
Commercial real estate property, net$15,243,331 $16,143,880 
Cash and restricted cash317,753 357,076 
Tenant and other receivables, related party receivables, and deferred rents receivable412,203 403,883 
Other assets1,950,444 2,001,612 
Total assets$17,923,731 $18,906,451 
Liabilities and equity (1)
Mortgages and other loans payable, net$9,414,923 $9,749,204 
Deferred revenue1,311,191 1,341,571 
Lease liabilities985,622 1,002,563 
Other liabilities373,400 464,107 
Equity5,838,595 6,349,006 
Total liabilities and equity$17,923,731 $18,906,451 
Company's investments in unconsolidated joint ventures$3,698,701 $3,823,322 
(1)At March 31, 2021, $174.2 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 months ended March 31, 2021 and 2020, are as follows (in thousands):
Three Months Ended March 31,
20212020
Total revenues$301,541 $282,520 
Operating expenses46,233 51,590 
Real estate taxes54,592 53,372 
Operating lease rent5,644 6,361 
Interest expense, net of interest income78,749 86,324 
Amortization of deferred financing costs6,384 4,814 
Depreciation and amortization114,879 98,584 
Total expenses306,481 301,045 
Net loss before gain on sale$(4,940)$(18,525)
Company's equity in net loss from unconsolidated joint ventures$(2,864)$(12,814)