Investment in Unconsolidated Joint Ventures (Tables)

12 Months Ended

Dec. 31, 2011

Investment in Unconsolidated Joint Ventures

Schedule of general information on joint ventures

Property	Partner							Acquisition Price⁽¹⁾

100 Park Avenue	Prudential	49.90	%	49.90	%	834	02/00	$	95,800
379 West Broadway	Sutton	45.00	%	45.00	%	62	12/05	$	19,750
21 West 34^th Street	Sutton	50.00	%	50.00	%	30	07/05	$	22,400
800 Third Avenue	Private Investors	42.95	%	42.95	%	526	12/06	$	285,000
One Court Square⁽¹⁰⁾	JP Morgan	30.00	%	30.00	%	1,402	01/07	$	533,500
1604-1610 Broadway	Onyx/Sutton	45.00	%	63.00	%	30	11/05	$	4,400
1745 Broadway	Witkoff/SITQ/Lehman Bros.	32.26	%	32.26	%	674	04/07	$	520,000
1 and 2 Jericho Plaza	Onyx/Credit Suisse	20.26	%	20.26	%	640	04/07	$	210,000
16 Court Street	CIF	35.00	%	35.00	%	318	07/07	$	107,500
The Meadows⁽²⁾	Onyx	50.00	%	50.00	%	582	09/07	$	111,500
388 and 390 Greenwich Street⁽³⁾	SITQ	50.60	%	50.60	%	2,600	12/07	$	1,575,000
27-29 West 34^th Street	Sutton	50.00	%	50.00	%	41	01/06	$	30,000
717 Fifth Avenue	Sutton/Nakash	32.75	%	32.75	%	120	09/06	$	251,900
141 Fifth Avenue⁽⁴⁾	Sutton/Rapport	50.00	%	50.00	%	22	09/05	$	13,250
180/182 Broadway⁽⁴⁾⁽⁵⁾	Harel/Sutton	25.50	%	25.50	%	71	02/08	$	43,600
600 Lexington Avenue	CPPIB	55.00	%	55.00	%	304	05/10	$	193,000
11 West 34^th Street⁽⁶⁾	Private Investor/Sutton	30.00	%	30.00	%	17	12/10	$	10,800
7 Renaissance	Cappelli	50.00	%	50.00	%	37	12/10	$	4,000
3 Columbus Circle⁽⁷⁾	Moinian	48.90	%	48.90	%	769	01/11	$	500,000
280 Park Avenue⁽⁸⁾	Vornado	50.00	%	50.00	%	1,237	03/11	$	400,000
1552-1560 Broadway⁽⁹⁾	Sutton	50.00	%	50.00	%	49	08/11	$	136,550
747 Madison Avenue	Harel/Sutton	33.33	%	33.33	%	10	09/11	$	66,250

⁽¹⁾: Represents the actual or implied purchase price for the joint venture.
⁽²⁾: We, along with Onyx, acquired the remaining 50% interest on a pro-rata basis in September 2009. We recorded a $2.8 million impairment charge in 2010, included in depreciable real estate reserves, against this joint venture investment.
⁽³⁾: The property is subject to a 13-year triple-net lease arrangement with a single tenant. The lease commenced in 2007.
⁽⁴⁾: The deconsolidation of these joint ventures in 2010 resulted in an adjustment to retained earnings of approximately $3.0 million and to the noncontrolling interests in other partnerships of approximately $9.5 million.
⁽⁵⁾: In December 2010, the Company's 180-182 Broadway joint venture with Jeff Sutton announced an agreement with Pace University to convey a long-term ground lease condominium interest to Pace University for 20 floors of student housing. The joint venture also admitted Harel, which contributed $28.1 million to the joint venture, for a 49 percent partnership interest. In August 2011, the joint venture sold the property located at 63 Nassau Street for $2.8 million.
⁽⁶⁾: In December 2010, the Company's $12.0 million first mortgage collateralized by 11 West 34^th Street was repaid at par, resulting in the Company's recognition of additional income of approximately $1.1 million. Simultaneous with the repayment, the joint venture was recapitalized with the Company having a 30 percent interest. The property is subject to a long-term net lease arrangement.
⁽⁷⁾: We issued 306,296 operating partnership units in connection with this investment. We have committed to fund an additional $47.5 million to the joint venture, of which $34.5 million has been funded as of December 31, 2011. This liability is recorded in accrued interest payable and other liabilities. In addition, we made a $125.0 million bridge loan to this joint venture which was bearing interest at a rate of 7.5%. This loan was repaid when the joint venture refinanced its debt in April 2011.
⁽⁸⁾: In March 2011, we contributed our debt investment with a carrying value of $286.6 million to a newly formed joint venture in which we hold a 50% interest. We realized $38.7 million of additional income upon the contribution. This income is included in preferred equity and investment income. The joint venture paid us approximately $111.3 million and also assumed $30.0 million of related floating rate financing which matures in June 2016. See Note 5. In May 2011, this joint venture took control of the underlying property as part of a recapitalization transaction which valued the investment at approximately $1.1 billion. We hold an effective 49.5% ownership interest in the joint venture.
⁽⁹⁾: In connection with this acquisition, the joint venture also acquired a long-term leasehold interest in the retail space and certain other spaces at 1560 Broadway, which is adjacent to 1552 Broadway. The purchase price relates only to the purchase of the 1552 Broadway interest which comprises 13,045 square feet.
⁽¹⁰⁾: This property is under contract for sale for $475.0 million. The transaction, which is subject to the assumption of the joint venture's debt, is expected to close during the first quarter of 2012.

Schedule of first mortgage notes payable collateralized by the respective joint venture properties and assignment of leases

Property				December 31, 2011		December 31, 2010

100 Park Avenue	09/2014	6.64	%	$	214,625	$	204,946
21 West 34^th Street	12/2016	5.76	%		100,000		100,000
800 Third Avenue	08/2017	6.00	%		20,910		20,910
One Court Square	09/2015	4.91	%		315,000		315,000
1604-1610 Broadway⁽²⁾	04/2012	5.66	%		27,000		27,000
388 and 390 Greenwich Street⁽³⁾	12/2017	5.19	%		1,106,757		1,106,758
1745 Broadway	01/2017	5.68	%		340,000		340,000
141 Fifth Avenue	06/2017	5.70	%		25,000		25,000
1 and 2 Jericho Plaza	05/2017	5.65	%		163,750		163,750
11 West 34^th Street	01/2016	4.82	%		17,761		18,000
280 Park Avenue	06/2016	6.57	%		710,000		—

Total fixed rate debt				$	3,040,803	$	2,321,364

1515 Broadway⁽⁴⁾	—	—			—		462,896
The Meadows⁽⁵⁾	09/2012	1.63	%		84,698		87,034
388 and 390 Greenwich Street⁽³⁾	12/2017	1.43	%		31,622		31,622
16 Court Street	10/2013	2.75	%		85,728		86,844
27-29 West 34^th Street⁽¹¹⁾	05/2012	1.90	%		53,900		54,375
1551-1555 Broadway⁽⁶⁾	—	—			—		128,600
521 Fifth Avenue⁽⁷⁾	—	—			—		140,000
717 Fifth Avenue⁽⁸⁾	09/2012	5.25	%		245,000		245,000
379 West Broadway⁽¹¹⁾	07/2012	1.94	%		20,991		20,991
600 Lexington Avenue	10/2017	2.38	%		125,000		125,000
180/182 Broadway⁽⁹⁾	12/2013	3.00	%		30,722		8,509
3 Columbus Circle⁽¹⁰⁾	04/2016	2.47	%		254,896		—
1552 Broadway⁽¹²⁾	08/2013	3.28	%		95,405		—
747 Madison Avenue	10/2014	3.02	%		33,125		—
Other loan payable	06/2016	1.15	%		30,000		—

Total floating rate debt				$	1,091,087	$	1,390,871

Total mortgages and other loan payable				$	4,131,890	$	3,712,235

⁽¹⁾: Rate represents the effective all-in weighted average interest rate for the quarter ended December 31, 2011.
⁽²⁾: This loan went into default in November 2009 due to the non-payment of debt service. The joint venture is in discussions with the special servicer to resolve this default.
⁽³⁾: Comprised of a $576.0 million mortgage and a $562.4 million mezzanine loan, both of which are fixed rate loans, except for $16.0 million of the mortgage and $15.6 million of the mezzanine loan which are floating rate loans. Up to $200.0 million of the mezzanine loan, secured indirectly by these properties, is recourse to us. We believe it is unlikely that we will be required to perform under this guaranty.
⁽⁴⁾: We acquired the remaining interest in this joint venture in April 2011. As a result, we have consolidated this investment since April 2011. See Notes 3 and 8.
⁽⁵⁾: This loan has a committed amount of $91.2 million.
⁽⁶⁾: This loan was refinanced in June 2011. We sold our interest in this joint venture in August 2011.
⁽⁷⁾: We acquired the remaining interest in this joint venture in January 2011. As a result, we have consolidated this investment since January 2011. See Notes 3 and 8.
⁽⁸⁾: This loan has a committed amount of $285.0 million.
⁽⁹⁾: The $31.0 million loan was repaid in December 2010 as part of a recapitalization of the joint venture. The new loan has a committed amount of $90.0 million.
⁽¹⁰⁾: We provided 50% of a bridge loan to this joint venture. In April 2011, our joint venture with The Moinian Group which owns the property located at 3 Columbus Circle, New York, refinanced the bridge loan and replaced it with a $260.0 million 5-year mortgage with the Bank of China, which carries a floating rate of interest of 210 basis points over the 30-day LIBOR, at which point SL Green and Deutsche Bank's bridge loan was repaid. The joint venture has the ability to increase the mortgage by $40.0 million based on meeting certain performance hurdles. In connection with this obligation, SLG has executed a master lease agreement. SLG's partner has executed a contribution agreement to reflect its pro rata obligation under the master lease.
⁽¹¹⁾: In May 2011, this loan was extended by 1-year.
⁽¹²⁾: This loan has a committed amount of $125.0 million.

Schedule of combined balance sheets for the unconsolidated joint ventures

	2011		2010

*Assets*
Commercial real estate property, net	$	5,699,113	$	4,831,897
Other assets		599,596		516,049

Total assets	$	6,298,709	$	5,347,946

*Liabilities and members' equity*
Mortgages and other loans payable	$	4,131,890	$	3,712,235
Other liabilities		250,925		233,463
Members' equity		1,915,894		1,402,248

Total liabilities and members' equity	$	6,298,709	$	5,347,946

Company's net investment in unconsolidated joint ventures	$	893,933	$	631,570

Schedule of combined statements of income for the unconsolidated joint ventures

	2011			2010		2009

Total revenues	$	480,935		$	593,159	$	689,087

Operating expenses		75,513			94,515		120,215
Real estate taxes		51,511			66,588		84,827
Transaction related costs		2,665			1,105		—
Interest		223,400			224,766		208,295
Depreciation and amortization		137,070			141,284		156,470

Total expenses		490,159			528,258		569,807

Net (loss) income before gain on sale	$	(9,224	)	$	64,901	$	119,280

Company's equity in net income of unconsolidated joint ventures	$	1,583		$	39,607	$	62,878

- Definition

Tabular disclosure of equity method investments in common stock. The disclosure may include: (a) the name of each investee or group of investments for which combined disclosure is appropriate, (2) the percentage ownership of common stock, (3) the difference, if any, between the carrying amount of an investment and the value of the underlying equity in the net assets and the accounting treatment of difference, if any, and (4) the aggregate value of each identified investment based on its quoted market price, if available.

+ References+ Details