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Investments in Unconsolidated Joint Ventures (Tables)
 6 Months Ended
Jun. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of General Information on Joint Ventures and Investments in Unconsolidated Joint Ventures Sold
The table below provides general information on each of our joint ventures as of June 30, 2024:
PropertyPartner
Ownership
Interest (1)
Economic
Interest (1)
Unaudited Approximate Square Feet
100 Park AvenuePrudential Real Estate Investors49.90%49.90%834,000 
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 Street (2)
Private Investor / Wharton Properties30.00%30.00%17,150 
280 Park AvenueVornado Realty Trust50.00%50.00%1,219,158 
1552-1560 Broadway (2) (3)
Wharton Properties50.00%50.00%57,718 
650 Fifth Avenue (2) (4)
Wharton Properties50.00%50.00%69,214 
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 (2)
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 Square (2) (5)
Israeli Institutional Investor95.00%95.00%369,000 
115 Spring Street (2)
Private 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 Fargo36.27%36.27%12,946 
One Madison Avenue (7)
National Pension Service of Korea / Hines Interest LP / International Investor25.50%25.50%1,048,700 
220 East 42nd StreetA fund managed by Meritz Alternative Investment Management51.00%51.00%1,135,000 
450 Park Avenue (8)
Korean Institutional Investor / Israeli Institutional Investor
50.10%25.10%337,000 
5 Times Square (2)
RXR Realty led investment group31.55%31.55%1,131,735 
245 Park AvenueU.S. Affiliate of Mori Trust Co., Ltd50.10%50.10%1,782,793 
625 Madison Avenue (9)
Private Investor90.93%90.93%591,123 
(1)Ownership interest and economic interest represent the Company's interests in the joint venture as of June 30, 2024. Changes in ownership or economic interests within the current year are disclosed in the notes below.
(2)Included in the Company's alternative strategy portfolio.
(3)The joint venture owns a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway.
(4)The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue.
(5)In January 2024, the Company closed on the acquisition of interests in the joint venture that owns the leasehold interest for no consideration, which increases the Company's interest in the joint venture to 95.0%.
(6)In 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company.
(7)In 2021, the Company admitted an additional partner to the development project with the partner's indirect ownership in the joint venture totaling 25.0%. The transaction did not meet sale accounting under ASC 860 and, as a result, was treated as a secured borrowing for accounting purposes and is included in Other liabilities in our consolidated balance sheets at June 30, 2024 and December 31, 2023.
(8)The 50.1% ownership interest reflected in this table is comprised of our 25.1% economic interest and a 25.0% economic interest held by a third-party. The third-party's economic interest is held within a joint venture that we consolidate and recognize in Noncontrolling interests in other partnerships on our consolidated balance sheet. An additional third-party owns the remaining 49.9% economic interest in the property.
(9)In connection with the sale of the fee ownership interest, the Company, together with its joint venture partner, originated a $235.4 million preferred equity investment in the property with a mandatory redemption date of December 2026. The Company's share, net of unamortized discounts, is $205.2 million with an aggregate weighted average current yield of 8.95% as of June 30, 2024.
The following table summarizes the investments in unconsolidated joint ventures sold during the six months ended June 30, 2024:
PropertyOwnership Interest SoldDisposition DateGross Asset Valuation (in millions)
Gain (Loss) on Sale (in millions) (1) (2)
717 Fifth Avenue10.92%January 2024$963.0 $24.9 
625 Madison Avenue (3)
90.43%May 2024634.6 (7.6)
(1)Represents the Company's share of the gain.
(2)For the six months ended June 30, 2024, the gain (loss) on sale is net of $7.8 million of employee compensation recognized in connection with the realization of the investment dispositions. Additionally, amounts do not include adjustments for expenses recorded in subsequent periods.
(3)In connection with the sale of the fee ownership interest, the Company, together with its joint venture partner, originated a $235.4 million preferred equity investment in the property. Prior to the completion of the sale, the Company recorded a charge of $5.9 million for capital contributions required during the three months ended March 31, 2024 while the investment was under contract, which is included in Depreciable real estate reserves and impairments in the consolidated statements of operations.
Schedule of Mortgage Notes and Other Loans Payable Collateralized by the Respective Joint Venture Properties and Assignment of Leases The mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases as of June 30, 2024 and December 31, 2023, respectively, are as follows (dollars in thousands):
Principal OutstandingPrincipal Outstanding
EconomicCurrent MaturityFinal Maturity InterestJune 30, 2024December 31, 2023
Property
Interest (1)
Date
Date (2)
Rate (3)
GrossSLG ShareGrossSLG Share
Fixed Rate Debt:
650 Fifth Avenue (4)
50.00 %
July 2024 (5)
July 2024 (5)
5.45%$65,000 $32,500 $65,000 $32,500 
5 Times Square (4)
31.55 %September 2024September 20267.23%551,020 173,847 477,783 150,740 
1515 Broadway56.87 %March 2025March 20253.93%751,580 427,416 762,002 433,344 
115 Spring Street (4)
51.00 %March 2025March 20255.50%65,550 33,431 65,550 33,431 
450 Park Avenue25.10 %June 2025June 20276.10%279,059 70,044 271,394 68,120 
11 Madison Avenue60.00 %September 2025September 20253.84%1,400,000 840,000 1,400,000 840,000 
One Madison Avenue (6)
25.50 %November 2025November 20267.10%574,938 146,609 733,103 186,941 
15 Beekman20.00 %January 2026January 20285.99%120,000 24,000 — — 
800 Third Avenue60.52 %February 2026February 20263.37%177,000 107,120 177,000 107,120 
919 Third Avenue51.00 %April 2026April 20286.11%500,000 255,000 500,000 255,000 
245 Park Avenue50.10 %June 2027June 20274.30%1,768,000 885,768 1,768,000 885,768 
Worldwide Plaza (4)
24.95 %November 2027November 20273.98%1,200,000 299,400 1,200,000 299,400 
One Vanderbilt Avenue71.01 %July 2031July 20312.95%3,000,000 2,130,300 3,000,000 2,130,300 
220 East 42nd Street— — 505,412 257,760 
625 Madison Avenue— — 199,987 180,848 
10 East 53rd Street— — 220,000 121,000 
717 Fifth Avenue— — 655,328 71,536 
Total fixed rate debt $10,452,147 $5,425,435 $12,000,559 $6,053,808 
Floating Rate Debt:
11 West 34th Street (4)
30.00 %
February 2023 (7)
February 2023 (7)
L+1.45%$23,000 $6,900 $23,000 $6,900 
1552 Broadway (4)
50.00 %
February 2024 (8)
February 2024 (8)
S+2.75%193,133 96,566 193,133 96,567 
650 Fifth Avenue (4)
50.00 %
July 2024 (5)
July 2024 (5)
S+2.25%210,000 105,000 210,000 105,000 
220 East 42nd Street (9)
51.00 %
July 2024 (9)
June 2025S+2.86%505,412 257,760 — — 
5 Times Square (4)
31.55 %September 2024September 2026S+5.59%608,609 192,016 610,010 192,458 
100 Park Avenue49.90 %December 2024December 2025S+2.36%360,000 179,640 360,000 179,640 
One Madison Avenue (6)
25.50 %November 2025November 2026S+3.10%256,363 65,373 — — 
280 Park Avenue50.00 %September 2026September 2028S+1.78%1,075,000 537,500 1,200,000 600,000 
2 Herald Square— — 182,500 93,075 
15 Beekman— — 124,137 24,827 
Total floating rate debt$3,231,517 $1,440,755 $2,902,780 $1,298,467 
Total joint venture mortgages and other loans payable$13,683,664 $6,866,190 $14,903,339 $7,352,275 
Deferred financing costs, net(89,982)(49,691)(104,062)(54,865)
Total joint venture mortgages and other loans payable, net$13,593,682 $6,816,499 $14,799,277 $7,297,410 
(1)Economic interest represents the Company's interests in the joint venture as of June 30, 2024. 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 conditions, including the operating performance of the property.
(3)Interest rates as of June 30, 2024, taking into account interest rate hedges at the joint venture. Corporate interest rate hedges are not taken into consideration. Floating rate debt is presented with the stated spread over Term SOFR ("S").
(4)Included in the Company's alternative strategy portfolio.
(5)In July 2024, the maturity date of the loan was extended by one month to August 2024. The Company is in discussions with the lenders on a further extension.
(6)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, the Company provided partial guarantees for interest and principal payments, the amounts of which are based on certain construction milestones and operating metrics.
(7)The Company's joint venture partner is in discussions with the lender on resolution of the past maturity.
(8)The Company is in discussions with the lender on resolution of the past maturity.
(9)In July 2024, the joint venture closed on a loan extension through December 2027.
Schedule of Combined Balance Sheets for the Unconsolidated Joint Ventures
The combined balance sheets for the unconsolidated joint ventures, at June 30, 2024 and December 31, 2023 are as follows (in thousands):
June 30, 2024December 31, 2023
Assets (1)
Commercial real estate property, net$16,514,243 $17,561,406 
Cash and restricted cash672,903 656,038 
Tenant and other receivables, related party receivables, and deferred rents receivable619,409 673,532 
Debt and preferred equity investments, net225,743 — 
Right-of-use assets931,159 905,934 
Other assets2,476,351 2,584,765 
Total assets$21,439,808 $22,381,675 
Liabilities and equity (1)
Mortgages and other loans payable, net$13,593,682 $14,799,277 
Deferred revenue1,022,793 1,108,180 
Lease liabilities1,014,419 990,276 
Other liabilities430,542 447,705 
Equity5,378,372 5,036,237 
Total liabilities and equity$21,439,808 $22,381,675 
Company's investments in unconsolidated joint ventures$2,895,399 $2,983,313 
(1)At June 30, 2024, $539.5 million of net unamortized basis differences between the carrying value of our investments 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.
Schedule of Combined Statements of Income for the Unconsolidated Joint Ventures
The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three months ended June 30, 2024 and 2023, are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Total revenues$365,007 $344,289 $730,346 $733,741 
Operating expenses59,733 58,776 125,483 120,744 
Real estate taxes73,479 66,124 149,111 131,864 
Operating lease rent8,478 7,258 17,503 14,439 
Interest expense, net of interest income142,196 129,154 292,050 258,631 
Amortization of deferred financing costs4,159 7,198 10,231 14,243 
Depreciation and amortization135,611 117,402 269,789 242,668 
Total expenses423,656 385,912 864,167 782,589 
Gain on early extinguishment of debt61,185 — 233,704 — 
Net income (loss) before loss on sale$2,536 $(41,623)$99,883 $(48,848)
Company's equity in net income (loss) from unconsolidated joint ventures$4,325 $(21,932)$115,485 $(29,344)