Investments in Non-controlled Entities

9 Months Ended

Sep. 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 September 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 nine months ended September 30, 2013 (amounts in thousands):

	2013
Balance at beginning of year	$	76,879
Equity in net income	14,816
Distributions	(3,391		)
Balance at end of period	$	88,304

The following reflects summarized financial information of the non-controlled entities for the nine months ended September 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	$	98,561	$	11,357		$	16,076	$	13,652	$	139,646
Observatory revenue	76,680		—			—		—		76,680
Total revenue	175,241		11,357			16,076		13,652		216,326
Expenses:
Operating expenses—rental	89,117		5,669			7,825		10,100		112,711
Operating expenses—overage rent	10,894		—			—		106		11,000
Operating expenses—observatory	17,150		—			—		—		17,150
Interest	—		3,548			2,412		—		5,960
Depreciation and amortization	10,997		2,186			3,264		1,127		17,574
Total expenses	128,158		11,403			13,501		11,333		164,395
Net income (loss)	$	47,083	$	(46	)	$	2,575	$	2,319	$	51,931
Our predecessor's share of equity in net income (loss) of non-controlled entities	$	13,612	$	(23	)	$	1,104	$	123	$	14,816

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