Related Parties

6 Months Ended

Jun. 30, 2024

Related Party Transactions [Abstract]

Related Parties

20.Related Parties

Management Agreements

We provide property management, leasing and other related services to certain properties owned by members of the Otto Family. We recognized fee income of $190,000 and $266,000 for the three months ended June 30, 2024 and 2023, respectively, and $367,000 and $529,000 for the six months ended June 30, 2024 and 2023, respectively, in connection with these agreements, which is included as a component of “fee and other income” in our consolidated statements of income. As of June 30, 2024 and December 31, 2023, amounts owed to us under these agreements aggregated $39,000 and $40,000, respectively, which are included as a component of “accounts and other receivables” on our consolidated balance sheets.

We also provide asset management, property management, leasing and other related services to our unconsolidated joint ventures and real estate related funds. We recognized fee income of $3,447,000 and $4,050,000 for the three months ended June 30, 2024 and 2023, respectively, and $8,810,000 and $7,703,000 for the six months ended June 30, 2024 and 2023, respectively, in connection with these agreements, which is included as a component of “fee and other income” in our consolidated statements of income. As of June 30, 2024 and December 31, 2023, amounts owed to us under these agreements aggregated $1,717,000 and $2,552,000, respectively, which are included as a component of “accounts and other receivables” on our consolidated balance sheets.

HT Consulting GmbH

We have an agreement with HT Consulting GmbH (“HTC”), a licensed broker in Germany, to supervise selling efforts for our joint ventures and private equity real estate related funds (or investments in feeder vehicles for these funds) to investors in Germany. Pursuant to this agreement, we have agreed to pay HTC for the costs incurred plus a mark-up of 10%. HTC is 100% owned by Albert Behler, our Chairman, Chief Executive Officer and President. We incurred costs aggregating $122,000 and $63,000 for the three months ended June 30, 2024 and 2023, respectively, and $245,000 and $191,000 for the six months ended June 30, 2024 and 2023, respectively, in connection with this agreement. As of June 30, 2024 and December 31, 2023, we owed $110,000 and $102,000, respectively, to HTC under this agreement, which are included as a component of “accounts payable and accrued expenses” on our consolidated balance sheets.

ParkProperty Capital, LP

ParkProperty Capital, LP (“ParkProperty”), an entity partially owned by Katharina Otto-Bernstein, who is a member of our board of directors, leases 4,233 square feet at 1325 Avenue of the Americas, pursuant to a lease agreement that expires in November 2027. We recognized rental revenue of $70,000 and $69,000 for the three months ended June 30, 2024 and 2023, respectively, and $141,000 and $138,000 for the six months ended June 30, 2024 and 2023, respectively, pursuant to this lease.

Mannheim Trust

A subsidiary of Mannheim Trust leases 3,127 square feet of office space at 712 Fifth Avenue, our 50.0% owned unconsolidated joint venture, pursuant to a lease agreement which expires in June 2025. The Mannheim Trust is for the benefit of the children of Dr. Martin Bussmann, who is a member of our board of directors. We recognized $29,000 and $31,000 for the three months ended June 30, 2024 and 2023, respectively, and $59,000 and $124,000 for the six months ended June 30, 2024 and 2023, respectively, for our share of rental income pursuant to this lease.

Other

We have entered into an agreement with Kramer Design Services (“Kramer Design”) to develop branding and signage for the Paramount Club at 1301 Avenue of the Americas. Kramer Design is 100% owned by the spouse of Albert Behler, our Chairman, Chief Executive Officer and President. We incurred and paid Kramer Design $17,000 and $84,000 during the three months ended June 30, 2024 and 2023, respectively, and $42,000 and $84,000 during the six months ended June 30, 2024 and 2023, respectively, in connection with services rendered pursuant to this agreement.