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Investments in Unconsolidated Joint Ventures
 9 Months Ended
Sep. 30, 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 September 30, 2021, the book value of these investments was $3.0 billion, net of investments with negative book values totaling $100.2 million for which we have an implicit commitment to fund future capital needs.
As of September 30, 2021, 800 Third Avenue, 21 East 66th Street, and certain properties within the Stonehenge Portfolio are VIEs in which we are not the primary beneficiary. As of December 31, 2020, 800 Third Avenue, 21 East 66th Street, 605 West 42nd Street, and certain properties within the Stonehenge Portfolio were VIEs in which we were not the primary beneficiary. Our net equity investment in these VIEs was $87.4 million and $134.0 million as of September 30, 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 September 30, 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 
11 Madison AvenuePGIM Real Estate60.00%60.00%2,314,000 
One Vanderbilt AvenueNational Pension Service of Korea/Hines Interest LP71.01%71.01%1,657,198 
Worldwide Plaza (5)
RXR Realty / New York REIT24.95%24.95%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 
15 Beekman (6)
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 (7)
National Pension Service of Korea/Hines Interest LP50.50%50.50%1,048,700 
220 East 42nd Street (8)
A fund managed by Meritz Alternative Investment Management51.00%51.00%1,135,000 
(1)Ownership interest and economic interest represent the Company's interests in the joint venture as of September 30, 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 two 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 May 2021, the Company and RXR Realty jointly acquired the 1.2% interest in the property previously held by a private investor. This resulted in an increase in the Company's ownership interest of 0.6%.
(6)In 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company.
(7)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 nine months ended September 30, 2021. The fair value of our investment was determined by the terms of the joint venture agreement. 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%. As of September 30, 2021, the total of the two partners' ownership interests based on equity contributed was 9.0%.
(8)In July 2021, the Company sold a 49% interest, which resulted in the Company no longer retaining a controlling interest in the entity, as defined in ASC 810, and the deconsolidation of the 51.0% interest we retained. We recorded our investment at fair value which resulted in the recognition of a fair value adjustment of $206.8 million during the three and nine months ended September 30, 2021. The fair value of our investment was determined by the terms of the joint venture agreement.
Disposition of Joint Venture Interests or Properties
The following table summarizes the investments in unconsolidated joint ventures disposed of during the nine months ended September 30, 2021:
PropertyOwnership Interest DisposedDisposition DateGross Asset Valuation (in millions)
(Loss) Gain on Sale (in millions) (1) (2)
885 Third Avenue (3)
N/AJanuary 2021N/AN/A
55 West 46th Street - Tower 4625.0%March 2021$275.0 $(15.2)
605 West 42nd Street - Sky20.0%June 2021858.1 8.9 
400 East 57th Street (4)
41.0%September 2021133.5 (1.0)
(1)Represents the Company's share of the gain or loss.
(2)The (losses) gains on sale are net of $1.4 million of employee compensation accrued in connection with the realization of the investment gains during the nine months ended September 30, 2021. Additionally, the amounts do not include adjustments for expenses recorded in subsequent periods.
(3)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."
(4)Prior to the close of the transaction and in connection with the contract we entered into to sell the property in April 2021, we recorded a charge of $5.7 million, which is included in Depreciable real estate reserves and impairment in the consolidated statements of operations.

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 as of September 30, 2021 and December 31, 2020, respectively, are as follows (dollars in thousands):
Property
Economic
Interest (1)
Current Maturity
Date
Final Maturity Date (2)
Interest
Rate (3)
September 30, 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 
919 Third Avenue51.00 %June 2023June 20235.12 %500,000 500,000 
1515 Broadway56.87 %March 2025March 20253.93 %806,627 820,607 
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 
Worldwide Plaza24.95 %November 2027November 20273.98 %1,200,000 1,200,000 
One Vanderbilt Avenue71.01 %July 2031July 20312.95 %3,000,000 — 
Stonehenge Portfolio (4)
VariousVariousVarious3.50 %195,685 195,899 
400 East 57th Street— 97,024 
885 Third Avenue— 272,000 
Total fixed rate debt $8,221,640 $5,604,858 
Floating Rate Debt:
1552 Broadway (5)
50.00 %October 2021October 2022L+2.65 %$195,000 $195,000 
2 Herald Square (5)
51.00 %November 2021November 2023L+1.45 %214,500 214,500 
11 West 34th Street30.00 %January 2022January 2023L+1.45 %23,000 23,000 
280 Park Avenue (6)
50.00 %September 2022September 2024L+1.73 %1,200,000 1,200,000 
121 Greene Street50.00 %November 2022November 2022L+2.00 %13,367 15,000 
220 East 42nd Street51.00 %June 2023June 2025L+2.75 %510,000 — 
115 Spring Street51.00 %September 2023September 2023L+3.40 %65,550 65,550 
Property
Economic
Interest (1)
Current Maturity
Date
Final Maturity Date (2)
Interest
Rate (3)
September 30, 2021December 31, 2020
100 Park Avenue49.90 %December 2023December 2025L+2.25 %360,000 360,000 
15 Beekman (7)
20.00 %January 2024July 2025L+1.50 %32,687 11,212 
10 East 53rd Street55.00 %February 2025February 2025L+1.35 %220,000 220,000 
One Madison Avenue (8)
50.50 %November 2025November 2026L+3.35 %106,049 — 
21 East 66th Street32.28 %June 2033June 2033T+2.75 %643 677 
One Vanderbilt Avenue— 1,210,329 
605 West 42nd Street— 550,000 
55 West 46th Street— 192,524 
Total floating rate debt$2,940,796 $4,257,792 
Total joint venture mortgages and other loans payable$11,162,436 $9,862,650 
Deferred financing costs, net(139,427)(113,446)
Total joint venture mortgages and other loans payable, net$11,023,009 $9,749,204 
(1)Economic interest represents the Company's interests in the joint venture as of September 30, 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 September 30, 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)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.
(5)In October 2021, the maturity date of this loan was extended by one year.
(6)In September 2021, the maturity date of this loan was extended by one year.
(7)This loan is a $125.0 million construction facility. Advances under the loan are subject to costs incurred.
(8)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.

We are entitled to receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We earned $5.3 million and $12.0 million from these services, net of our ownership share of the joint ventures, for the three and nine months ended September 30, 2021, respectively. 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. 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, 2021 and December 31, 2020 are as follows (in thousands):
September 30, 2021December 31, 2020
Assets (1)
Commercial real estate property, net$14,720,722 $16,143,880 
Cash and restricted cash791,702 357,076 
Tenant and other receivables, related party receivables, and deferred rents receivable506,129 403,883 
Other assets1,840,483 2,001,612 
Total assets$17,859,036 $18,906,451 
Liabilities and equity (1)
Mortgages and other loans payable, net$11,023,009 $9,749,204 
Deferred revenue1,216,079 1,341,571 
Lease liabilities982,309 1,002,563 
Other liabilities308,300 464,107 
Equity4,329,339 6,349,006 
Total liabilities and equity$17,859,036 $18,906,451 
Company's investments in unconsolidated joint ventures$3,028,084 $3,823,322 
(1)At September 30, 2021, $429.2 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 and nine months ended September 30, 2021 and 2020, are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Total revenues$314,288 $292,929 $905,017 $846,967 
Operating expenses54,157 44,650 142,800 131,578 
Real estate taxes58,367 56,459 166,974 161,566 
Operating lease rent5,644 6,385 16,931 18,947 
Interest expense, net of interest income90,710 79,723 248,588 245,685 
Amortization of deferred financing costs10,661 5,575 24,249 15,197 
Depreciation and amortization119,537 103,262 351,372 300,700 
Total expenses339,076 296,054 950,914 873,673 
Loss on early extinguishment of debt(1,158)— (2,484)— 
Net loss before gain on sale$(25,946)$(3,125)$(48,381)$(26,706)
Company's equity in net loss from unconsolidated joint ventures$(15,487)$(432)$(31,321)$(15,445)