Investment in Unconsolidated Joint Venture

On October 30, 2013, the Company purchased a 48.9% equity interest in WWP Holdings, LLC ("Worldwide Plaza") for a contract purchase price of $220.1 million, based on the property value for Worldwide Plaza of $1,325.0 million less $875.0 million of debt on the property. As of March 31, 2015, the Company's pro-rata portion of debt on Worldwide Plaza was $427.9 million. The debt on the property has a weighted average interest rate of 4.6% and matures in March 2023. The Company accounts for the investment in Worldwide Plaza using the equity method of accounting because the Company exercises significant influence over, but does not control, the entity.

Pursuant to the terms of the membership agreement governing the Company’s purchase of the 48.9% equity interest in Worldwide Plaza, the Company retains an option to purchase the balance of the equity interest in Worldwide Plaza beginning 38 months following the closing of the acquisition, or December 2016, at an agreed-upon property value of $1.4 billion, subject to certain adjustments, including, but not limited to, adjustments for certain loans that are outstanding at the time of any exercise, adjustments for the percentage equity interest being acquired and any of the Company's preferred return in arrears. If the Company were to not exercise its purchase option, it would be subject to a fee in the amount of $25.0 million.

At acquisition, the Company's investment in Worldwide Plaza exceeded the Company's share of the book value of the net assets of Worldwide Plaza by $260.6 million. This basis difference resulted from the excess of the Company's purchase price for its equity interest in Worldwide Plaza over the book value of Worldwide Plaza's net assets. Substantially all of this basis difference was allocated to the fair values of Worldwide Plaza's assets and liabilities. The Company amortizes the basis difference over the anticipated useful lives of the underlying tangible and intangible assets acquired and liabilities assumed. The basis difference related to the land will be recognized upon disposition of the Company's investment. As of March 31, 2015 and December 31, 2014, the carrying value of the Company's investment in Worldwide Plaza was $225.7 million and $225.5 million, respectively.

During the three months ended March 31, 2015 and 2014, the Company recorded $0.2 million of income and $2.0 million of loss, respectively, related to its investment in Worldwide Plaza. Net income (loss) related to Worldwide Plaza for the three months ended March 31, 2015 and 2014 includes $3.9 million of preferred distributions earned in each period, net of the Company's pro rata share of Worldwide Plaza's net loss of $0.5 million and $2.6 million, respectively, and $3.1 million and $3.2 million, respectively, of depreciation and amortization expense relating to the amortization of the basis difference. The income (loss) related to the Company's investment in Worldwide Plaza is included in other income (expenses) on the consolidated statements of operations and comprehensive income (loss).

The amounts reflected in the following tables (except for the Company’s share of equity and income) are based on the financial information of Worldwide Plaza. The Company does not record losses of the joint venture in excess of its investment balance because the Company is not liable for the obligations of the joint venture or is otherwise committed to provide financial support to the joint venture.

The condensed balance sheets as of March 31, 2015 and December 31, 2014 for Worldwide Plaza are as follows:



(In thousands)	March 31, 2015			December 31, 2014
Real estate assets, at cost	$	704,257		$	704,143
Less accumulated depreciation and amortization	(102,127		)	(97,181		)
Total real estate assets, net	602,130			606,962
Other assets	261,698			255,784
Total assets	$	863,828		$	862,746

Debt	$	875,000		$	875,000
Other liabilities	10,765			12,442
Total liabilities	885,765			887,442
Deficit	(21,937		)	(24,696		)
Total liabilities and deficit	$	863,828		$	862,746

Company's basis	$	225,736		$	225,501

The condensed statement of operations for the three months ended March 31, 2015 and 2014 for Worldwide Plaza is as follows:



	Three Months Ended March 31,
(In thousands)	2015			2014
Rental income	$	30,514		$	27,655
Other revenue	1,217			1,215
Total revenue	31,731			28,870
Operating expenses:
Operating expense	12,241			11,513
Depreciation and amortization	6,850			6,368
Total operating expenses	19,091			17,881
Operating income	12,640			10,989
Interest expense	(9,882		)	(9,882		)
Net income	2,758			1,107
Company's preferred distribution	(3,851		)	(3,851		)
Joint venture partner distributions	—			(2,560		)
Net loss to members	$	(1,093	)	$	(5,304	)

Company's preferred distribution	$	3,851		$	3,851
Company's share of net loss from Worldwide Plaza	(534		)	(2,594		)
Amortization of difference in basis	(3,082		)	(3,241		)
Company's loss from Worldwide Plaza	$	235		$	(1,984	)