Investments in Non-controlled Entities

6 Months Ended

Jun. 30, 2014

Equity Method Investments and Joint Ventures [Abstract]

Investments in Non-controlled Entities

Investments in Non-controlled Entities

On October 7, 2013, as part of the Offering and formation transactions, we acquired the assets and liabilities held by the four non-controlled entities. The investments in non-controlled entities consisted of the following at June 30, 2013:

Entity	Property	Nominal % Ownership
Empire State Building Company, L.L.C.	350 Fifth Ave, New York, NY	23.750	%
1333 Broadway Associates, L.L.C.	1333 Broadway, New York, NY	50.000	%
1350 Broadway Associates, L.L.C.	1350 Broadway, New York, NY	50.000	%
501 Seventh Avenue Associates, L.L.C.	501 Seventh Ave, New York, NY	20.469	%

Empire State Building Company, L.L.C. was the operating lessee of the property at 350 Fifth Avenue. The land and fee owner, Empire State Building Associates L.L.C., was a predecessor controlled entity whose operations are included in our predecessor's consolidated financial statements.

1333 Broadway Associates, L.L.C. owned the fee and leasehold positions at the same address.

1350 Broadway Associates, L.L.C. was the operating lessee of the property at the same address.

501 Seventh Avenue Associates L.L.C. was the operating lessee of the property at the same address. The fee owner, Seventh Avenue Building Associates L.L.C., was a predecessor controlled entity whose operations are included in our predecessor's consolidated financial statements.

Our predecessor's share of income from these entities may have exceeded nominal ownership percentages based on the achievement of certain income thresholds as set forth in the relevant partnership agreements.

The following table reflects the activity in our investments in non-controlled entities for the six months ended June 30, 2013 (amounts in thousands):

	2013
Balance at beginning of year	$	76,879
Equity in net income	7,898
Distributions	(2,262		)
Balance at end of period	$	82,515

The following reflects summarized financial information of the non-controlled entities for the six months ended June 30, 2013 (amounts in thousands):

Statements of Operations	Empire State Building Co.		1333 Broadway Associates			1350 Broadway Associates		501 Seventh Avenue Associates			Total
Revenue:
Rental revenue and other	$	62,866	$	7,062		$	10,622	$	8,865		$	89,415
Observatory revenue	44,052		—			—		—			44,052
Total revenue	106,918		7,062			10,622		8,865			133,467
Expenses:
Operating expenses—rental	57,602		3,315			5,051		6,578			72,546
Operating expenses—overage rent	14,424		—			—		450			14,874
Operating expenses—observatory	10,669		—			—		—			10,669
Interest	—		2,369			1,567		—			3,936
Depreciation and amortization	7,287		1,459			2,157		761			11,664
Total expenses	89,982		7,143			8,775		7,789			113,689
Net income (loss)	$	16,936	$	(81	)	$	1,847	$	1,076		$	19,778
Our predecessor's share of equity in net income (loss) of non-controlled entities	$	7,267	$	(41	)	$	803	$	(131	)	$	7,898

At June 30, 2014, we had no investments in non-controlled entities.