Investment in Unconsolidated Joint Ventures (Tables)

6 Months Ended

Jun. 30, 2011

Investment in Unconsolidated Joint Ventures

Schedule of general information on joint ventures

The table below provides general information on each of our joint ventures as of June 30, 2011 (in thousands):

Property	Partner	OwnershipInterest	EconomicInterest	SquareFeet	Acquired	AcquisitionPrice(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 34th Street	Sutton	50.00%	50.00%	30	07/05	$	22,400
800 Third Avenue(2)	Private Investors	42.95%	42.95%	526	12/06	$	285,000
One Court Square	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(3)	Onyx	50.00%	50.00%	582	09/07	$	111,500
388 and 390 Greenwich Street(4)	SITQ	50.60%	50.60%	2,600	12/07	$	1,575,000
27-29 West 34th Street	Sutton	50.00%	50.00%	41	01/06	$	30,000
1551-1555 Broadway	Sutton	10.00%	10.00%	26	07/05	$	80,100
717 Fifth Avenue	Sutton/Nakash	32.75%	32.75%	120	09/06	$	251,900
141 Fifth Avenue(5)	Sutton/Rapport	50.00%	50.00%	22	09/05	$	13,250
180/182 Broadway and 63 Nassau Street(5)(6)	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 34th Street(7)	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(8)	Moinian	48.90%	48.90%	769	01/11	$	500,000
280 Park Avenue(9)	Vornado	50.00%	50.00%	1,237	03/11	$	400,000
450 West 33rd Street(10)	Normandy	50.00%	50.00%	1,622	04/11	$	28,824

(1)	Acquisition price represents the actual or implied purchase price for the joint venture.
(2)	We invested approximately $109.5 million in this asset through the origination of a loan secured by up to 47% of the interests in the property’s ownership, with an option to convert the loan to an equity interest, which was exercised in December 2008. Certain existing members had the right to re-acquire approximately 4% of the property’s equity. These interests were re-acquired in December 2008 and reduced our interest to 42.95%
(3)	We, along with Onyx, acquired the remaining 50% interest on a pro-rata basis in September 2009.
(4)	The property is subject to a 13-year triple-net lease arrangement with a single tenant. The lease commenced in 2007.
(5)	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.
(6)	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.
(7)	In December 2010, the Company’s $12.0 million first mortgage collateralized by 11 West 34th 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.
(8)	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. 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.
(9)	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 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 underlying investment.
(10)	This joint venture holds an investment in a debt position.

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

Property	Maturity Date	Interest Rate(1)			June 30, 2011		December 31, 2010
100 Park Avenue(2)	09/2014	6.64	%	$	213,813	$	204,946
21 West 34th 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(3)	04/2012	5.66	%		27,000		27,000
388 and 390 Greenwich Street(4)	12/2017	5.19	%		1,106,758		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 34th Street	01/2016	4.87	%		17,891		18,000
1551-1555 Broadway(7)	07/2021	5.10	%		180,000		---
280 Park Avenue	06/2016	6.55	%		710,000		---
Total fixed rate debt				$	3,220,122	$	2,321,364
1515 Broadway(5)	---	---			---		462,896
The Meadows(6)	09/2012	1.56	%		85,871		87,034
388 and 390 Greenwich Street(4)	12/2017	1.36	%		31,622		31,622
16 Court Street	10/2013	2.71	%		86,145		86,844
27-29 West 34th Street(12)	05/2012	1.87	%		54,150		54,375
1551-1555 Broadway(7)	---	---			---		128,600
521 Fifth Avenue(8)	---	---			---		140,000
717 Fifth Avenue(9)	09/2011	5.25	%		245,000		245,000
379 West Broadway(12)	07/2012	1.86	%		20,991		20,991
600 Lexington Avenue	10/2017	2.28	%		125,000		125,000
180/182 Broadway(10)	12/2013	2.96	%		18,722		8,509
3 Columbus Circle(11)	01/2014	2.36	%		258,730		---
Other loan payable	06/2016	1.12	%		30,000		---
Total floating rate debt				$	956,231	$	1,390,871
Total mortgages and other loan payable				$	4,176,353	$	3,712,235

(1)	Interest rate represents the effective all-in weighted average interest rate for the quarter ended June 30, 2011.
(2)	This loan has a committed amount of $215.0 million.
(3)	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.
(4)	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. 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 guarantee.
(5)	In December 2009 the $625.0 million mortgage was repaid and replaced with a $475.0 million mortgage. In connection with the refinancing, the partners made an aggregate $163.9 million capital contribution to the joint venture. 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.
(6)	This loan has a committed amount of $91.2 million.
(7)	This loan was refinanced in June 2011.
(8)	We acquired the interest in this joint venture in January 2011. As a result, we have consolidated this investment since January 2011. See Notes 3 and 8.
(9)	This loan has a committed amount of $285.0 million.
(10)	The $31.0 million loan was repaid in December 2010 as part of a recapitalization of the joint venture. The new loan, which has a committed amount of $90.0 million, is only secured by 180/182 Broadway.
(11)	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.
(12)	In May 2011, this loan was extended by 1-year.

Schedule of combined balance sheets for the unconsolidated joint ventures

	June 30, 2011		December 31, 2010
Assets
Commercial real estate property, net	$	5,750,916	$	4,831,897
Debt investments	29,312		---
Other assets	621,675		516,049
Total assets	$	6,401,903	$	5,347,946
Liabilities and members’ equity
Mortgages and other loan payable	$	4,176,353	$	3,712,235
Other liabilities	342,484		233,463
Members’ equity	1,883,066		1,402,248
Total liabilities and members’ equity	$	6,401,903	$	5,347,946
Company’s net investment in unconsolidated joint ventures	$	896,632	$	631,570

Schedule of combined statements of income for the unconsolidated joint ventures

		Three Months Ended					Six Months Ended
		June 30,					June 30,
		2011			2010		2011		2010
Total revenues	$	113,792		$	149,822	$	237,352	$	323,962
Operating expenses		16,080			22,189		36,681		52,356
Real estate taxes		12,290			17,591		25,740		39,897
Interest expense, net of interest income		53,587			55,528		101,224		109,485
Depreciation and amortization		33,865			36,546		65,589		74,293
Transaction related costs		752			---		817		---
Other income/expenses		---			1,075		---		1,075
Total expenses		116,574			132,929		230,051		277,106
Net (loss) income	$	(2,782	)	$	16,893	$	7,301	$	46,856
Company’s equity in net income of unconsolidated joint ventures	$	2,184		$	10,005	$	10,390	$	25,381