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Investments in Unconsolidated Joint Ventures (Tables)
 6 Months Ended
Jun. 30, 2025
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, 2025:
PropertyPartner
Economic
Interest (1)
Unaudited Approximate Square Feet
800 Third AvenuePrivate Investors60.52%526,000 
919 Third AvenueNew York State Teacher's Retirement System51.00%1,454,000 
11 West 34th Street (2)
Private Investor / Wharton Properties30.00%17,150 
280 Park AvenueVornado Realty Trust50.00%1,219,158 
1552-1560 Broadway (2) (3)
Wharton Properties50.00%57,718 
650 Fifth Avenue (2) (4)
Wharton Properties50.00%69,214 
11 Madison AvenuePGIM Real Estate60.00%2,314,000 
One Vanderbilt Avenue (5)
National Pension Service of Korea / Hines Interest LP60.01%1,657,198 
Worldwide Plaza (2)
RXR Realty / New York REIT24.95%2,048,725 
1515 BroadwayAllianz Real Estate of America56.87%1,750,000 
2 Herald Square (2)
Israeli Institutional Investor95.00%369,000 
115 Spring Street (2)
Private Investor51.00%5,218 
15 Beekman (5)
A fund managed by Meritz Alternative Investment Management20.00%221,884 
One Madison Avenue (6)
National Pension Service of Korea / Hines Interest LP / International Investor25.50%1,048,700 
220 East 42nd StreetA fund managed by Meritz Alternative Investment Management51.00%1,135,000 
450 Park Avenue (7)
Korean Institutional Investor / Israeli Institutional Investor
25.10%337,000 
245 Park AvenueU.S. Affiliate of Mori Trust Co., Ltd50.10%1,782,793 
625 Madison Avenue (8)
Private Investor90.93%563,000 
(1)Economic interest represent the Company's interests in the joint venture as of June 30, 2025. 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 2020, the Company formed a joint venture, which then entered into a long-term sublease with the Company.
(6)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 Topic 860, Transfers and Servicing ("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, 2025 and December 31, 2024.
(7)The 25.1% economic interest reflected in this table is net of a 25.0% economic interest held by a third party. The third-party's economic interest is held in a joint venture that we consolidate as a 50.1% ownership interest. The third-party's 25.0% economic interest is recognized in Noncontrolling interests in other partnerships on our consolidated balance sheet. A separate third-party owns the remaining 49.9% economic interest in the property.
(8)In connection with the sale of the fee ownership in the property, which closed in May 2024, 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. In June 2025, pursuant to the sale of 50% of the investment, the Company recorded a charge of $14.5 million, which is included in "Equity in net (loss) income from unconsolidated joint ventures" in the consolidated statements of operations. The Company's share of the investment, net of unamortized discounts and loan loss reserves, is $209.7 million with an aggregate weighted average current yield of 8.76% as of June 30, 2025.
The following table summarizes the investments in unconsolidated joint ventures sold during the six months ended June 30, 2025.
PropertyOwnership Interest SoldDisposition DateGross Asset Valuation (in millions)
Loss on Sale (in millions) (1) (2)
85 Fifth Avenue36.27%April 2025$46.8 $(1.9)
(1)Represents the Company's share of the loss.
(2)For the six months ended June 30, 2025, the loss on sale is net of $2.0 million of employee compensation recognized in connection with the investment disposition. Amounts do not include adjustments for expenses recorded in subsequent periods.
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, 2025 and December 31, 2024, respectively, are as follows (dollars in thousands):
Principal OutstandingPrincipal Outstanding
EconomicCurrent MaturityFinal Maturity InterestJune 30, 2025December 31, 2024
Property
Interest (1)
Date
Date (2)
Rate (3)
GrossSLG ShareGrossSLG Share
Fixed Rate Debt:
650 Fifth Avenue ⁽⁴⁾50.00 %July 2025 ⁽⁵⁾July 2025 ⁽⁵⁾5.45%$65,000 $32,500 $65,000 $32,500 
115 Spring Street ⁽⁴⁾51.00 %August 2025August 20255.50%65,550 33,431 65,550 33,431 
11 Madison Avenue60.00 %September 2025September 20253.84%1,400,000 840,000 1,400,000 840,000 
15 Beekman20.00 %January 2026January 20285.99%120,000 24,000 120,000 24,000 
800 Third Avenue60.52 %February 2026February 20263.37%177,000 107,120 177,000 107,120 
1515 Broadway56.87 %March 2026March 20283.93%730,017 415,154 740,947 421,369 
919 Third Avenue51.00 %April 2026April 20286.11%500,000 255,000 500,000 255,000 
450 Park Avenue25.10 %June 2026June 20276.10%289,257 72,603 284,835 71,494 
280 Park Avenue50.00 %September 2026September 20285.84%1,075,000 537,500 1,075,000 537,500 
245 Park Avenue50.10 %June 2027June 20274.30%1,768,000 885,768 1,768,000 885,768 
One Madison Avenue ⁽⁶⁾25.50 %November 2027November 20277.10%656,679 167,453 658,357 167,881 
Worldwide Plaza ⁽⁴⁾24.95 %November 2027November 20273.98%1,200,000 299,400 1,200,000 299,400 
220 East 42nd Street51.00 %December 2027December 20276.77%496,412 253,170 496,412 253,170 
One Vanderbilt Avenue60.01 %July 2031July 20312.95%3,000,000 1,800,300 3,000,000 1,800,300 
Total fixed rate debt $11,542,915 $5,723,399 $11,551,101 $5,728,933 
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%193,132 96,566 193,132 96,566 
650 Fifth Avenue ⁽⁴⁾50.00 %July 2025 ⁽⁵⁾July 2025 ⁽⁵⁾S+2.25%210,000 105,000 210,000 105,000 
One Madison Avenue ⁽⁶⁾25.50 %November 2027November 2027S+3.10%437,518 111,567 354,757 90,463 
Total floating rate debt$863,650 $320,033 $780,889 $298,929 
Total joint venture mortgages and other loans payable$12,406,565 $6,043,432 $12,331,990 $6,027,862 
Deferred financing costs, net(87,590)(43,647)(97,729)(49,058)
Total joint venture mortgages and other loans payable, net$12,318,975 $5,999,785 $12,234,261 $5,978,804 
(1)Economic interest represents the Company's interests in the joint venture as of June 30, 2025. 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, 2025, 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)The Company is in discussions with the lender on resolution of the past maturity.
(6)The loan is a $1.25 billion construction facility, which was fully extended to November 2027. 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)During the three months ended June 30, 2025, an affiliate of the Company and a joint venture partner acquired the outstanding mortgage loan at 1552 Broadway that was in maturity default for $63.0 million, of which our share was $31.5 million. An initial allowance of $132.0 million was established, of which our share was $66.0 million. This investment is included in "Investment in unconsolidated joint ventures" in our consolidated balance sheets.
Schedule of Combined Balance Sheets for the Unconsolidated Joint Ventures
The combined balance sheets for the unconsolidated joint ventures, at June 30, 2025 and December 31, 2024 are as follows (in thousands):
June 30, 2025December 31, 2024
Assets (1)
Commercial real estate property, net$15,257,048 $15,327,542 
Cash and restricted cash569,042 649,426 
Tenant and other receivables, related party receivables, and deferred rents receivable702,422 621,748 
Debt and preferred equity investments, net246,057 236,512 
Right-of-use assets907,583 919,658 
Other assets1,638,957 1,739,549 
Total assets$19,321,109 $19,494,435 
Liabilities and equity (1)
Mortgages and other loans payable, net$12,318,975 $12,234,261 
Deferred revenue897,575 956,217 
Lease liabilities1,001,482 1,008,085 
Other liabilities422,585 519,582 
Equity4,680,492 4,776,290 
Total liabilities and equity$19,321,109 $19,494,435 
Company's investments in unconsolidated joint ventures$2,701,382 $2,690,138 
(1)At June 30, 2025, $477.0 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.
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 and six months ended June 30, 2025 and 2024, are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Total revenues$382,176 $365,007 $754,102 $730,346 
Operating expenses63,197 59,733 131,212 125,483 
Real estate taxes71,658 73,479 143,162 149,111 
Operating lease rent5,942 8,478 12,523 17,503 
Loan loss and other investment reserves, net of recoveries1,438 — 1,438 — 
Interest expense, net of interest income130,336 142,196 259,232 292,050 
Amortization of deferred financing costs5,878 4,159 11,897 10,231 
Depreciation and amortization125,535 135,611 246,840 269,789 
Total expenses403,984 423,656 806,304 864,167 
Gain on early extinguishment of debt— 61,185 — 233,704 
Net (loss) income before gain on sale$(21,808)$2,536 $(52,202)$99,883 
Company's equity in net (loss) income from unconsolidated joint ventures$(22,775)$4,325 $(21,605)$115,485