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Investments in Unconsolidated Joint Ventures (Tables)
 6 Months Ended
Jun. 30, 2023
Summary of Financial Information of Unconsolidated Joint Ventures

The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below.

 

(Amounts in thousands)

 

Paramount

 

As of

 

Our Share of Investments:

 

Ownership

 

June 30, 2023

 

 

December 31, 2022

 

712 Fifth Avenue (1)

 

50.0%

 

$

-

 

 

$

-

 

Market Center

 

67.0%

 

 

186,233

 

 

 

192,948

 

55 Second Street (2)

 

44.1%

 

 

84,202

 

 

 

85,340

 

111 Sutter Street (3)

 

49.0%

 

 

-

 

 

 

-

 

1600 Broadway (2)

 

9.2%

 

 

8,907

 

 

 

9,113

 

60 Wall Street

 

5.0%

 

 

-

 

(4)

 

25,034

 

One Steuart Lane (2)

 

35.0% (5)

 

 

115,902

 

 

 

77,961

 

Oder-Center, Germany (2)

 

9.5%

 

 

3,433

 

 

 

3,107

 

Investments in unconsolidated joint ventures

 

$

398,677

 

 

$

393,503

 

 

 

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

(Amounts in thousands)

June 30,

 

 

June 30,

 

Our Share of Net Income (Loss):

2023

 

 

2022

 

 

2023

 

 

2022

 

712 Fifth Avenue (1)

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

Market Center

 

(2,579

)

 

 

(2,487

)

 

 

(5,234

)

 

 

(4,850

)

55 Second Street (2)

 

(499

)

 

 

(792

)

 

 

(1,138

)

 

 

(1,471

)

111 Sutter Street (3)

 

-

 

 

 

(681

)

 

 

-

 

 

 

(1,459

)

1600 Broadway (2)

 

3

 

 

 

(20

)

 

 

-

 

 

 

(68

)

60 Wall Street

 

(24,984

)

(4)

 

53

 

 

 

(25,001

)

(4)

 

65

 

One Steuart Lane (2)

 

(358

)

 

 

(518

)

 

 

(2,774

)

 

 

(1,787

)

Oder-Center, Germany (2)

 

15

 

 

 

29

 

 

 

(17

)

 

 

41

 

Loss from unconsolidated joint ventures

$

(28,402

)

 

$

(4,416

)

 

$

(34,164

)

 

$

(9,529

)

 

(1)
At December 31, 2022, our basis in the joint venture that owns 712 Fifth Avenue was negative $13,427. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the six months ended June 30, 2023, the joint venture had net income of $2,374 of which our 50.0% share was $1,187. Accordingly, our basis in the joint venture, taking into account our share of income, was negative $12,240 as of June 30, 2023.
(2)
As of June 30, 2023, the carrying amount of our investments in 55 Second Street, 1600 Broadway, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $464, $308, $640 and $4,223, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs.
(3)
At December 31, 2022, our basis in the joint venture that owns 111 Sutter Street was negative $107. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. For the six months ended June 30, 2023, the joint venture had net loss of $7,773 of which our 49.0% share was $3,809. Accordingly, our basis in the joint venture, taking into account our share of loss, was negative $3,916 as of June 30, 2023.
(4)
In May 2023, the joint venture that owns 60 Wall Street defaulted on the $575,000 non-recourse mortgage loan securing the property. The joint venture is currently in negotiations with the lender to modify the loan. Additionally, in the second quarter of 2023, the joint venture recognized a $455,893 real estate impairment loss. Accordingly, we recognized a $24,734 impairment loss on our investment in 60 Wall Street. This impairment, together with our share of operating losses recognized in the second quarter, reduced our investment balance to below zero as of June 30, 2023. Since we have no further obligation to fund additional capital to the joint venture, we are no longer required to recognize our proportionate share of earnings from the joint venture until such time that our basis in the joint venture becomes positive. In the meantime, we will recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture.
(5)
Represents our consolidated Residential Development Fund’s (“RDF”) economic interest in One Steuart Lane, a for-sale residential condominium project. Our economic interest in One Steuart Lane (based on our 7.4% ownership interest in RDF) is 2.6%.
Unconsolidated Joint Ventures [Member]  
Summary of Financial Information of Unconsolidated Joint Ventures

The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates thereof and for the periods set forth below.

 

 

(Amounts in thousands)

As of

 

Balance Sheets:

June 30, 2023

 

 

December 31, 2022

 

Real estate, net

$

1,962,354

 

 

$

2,377,084

 

Cash and cash equivalents and restricted cash

 

213,591

 

 

 

252,540

 

Intangible assets, net

 

59,545

 

 

 

69,599

 

For-sale residential condominium units (1)

 

317,818

 

 

 

322,232

 

Other assets

 

87,951

 

 

 

87,054

 

Total assets

$

2,641,259

 

 

$

3,108,509

 

 

 

 

 

 

 

Notes and mortgages payable, net

$

1,738,958

 

 

$

1,834,916

 

Intangible liabilities, net

 

7,644

 

 

 

10,972

 

Other liabilities

 

56,801

 

 

 

50,783

 

Total liabilities

 

1,803,403

 

 

 

1,896,671

 

Equity

 

837,856

 

 

 

1,211,838

 

Total liabilities and equity

$

2,641,259

 

 

$

3,108,509

 

 

 

 

(Amounts in thousands)

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

Income Statements:

2023

 

 

2022

 

 

2023

 

 

2022

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

$

40,385

 

 

$

54,516

 

 

$

80,606

 

 

$

112,036

 

 

Other income (2)

 

3,861

 

 

 

31,444

 

 

 

5,618

 

 

 

50,026

 

 

Total revenues

 

44,246

 

 

 

85,960

 

 

 

86,224

 

 

 

162,062

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Operating (2)

 

24,990

 

 

 

52,293

 

 

 

49,691

 

 

 

94,801

 

 

Depreciation and amortization

 

17,713

 

 

 

23,508

 

 

 

35,478

 

 

 

50,406

 

 

Total expenses

 

42,703

 

 

 

75,801

 

 

 

85,169

 

 

 

145,207

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

783

 

 

 

58

 

 

 

1,492

 

 

 

16

 

 

Interest and debt expense

 

(17,915

)

 

 

(16,335

)

 

 

(33,361

)

 

 

(33,933

)

 

Real estate impairment loss

 

(455,893

)

 

 

-

 

 

 

(455,893

)

 

 

-

 

 

Loss before income taxes

 

(471,482

)

 

 

(6,118

)

 

 

(486,707

)

 

 

(17,062

)

 

Income tax expense

 

(19

)

 

 

(14

)

 

 

(30

)

 

 

(43

)

 

Net loss

$

(471,501

)

 

$

(6,132

)

 

$

(486,737

)

 

$

(17,105

)

 

 

 

(1)
Represents the cost of residential condominium units at One Steuart Lane that are available for sale.
(2)
Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane.