Investments in Unconsolidated Joint Ventures

6 Months Ended

Jun. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Joint Ventures

In August 2024, the joint venture that owned Market Center, in which we had a 67.0% ownership interest, ceased making debt service payments on the non-recourse mortgage loan due to insufficient property cash flows. In January 2025, the joint venture defaulted on the $416,544,000 mortgage loan, as it was not repaid at maturity. Subsequently, on May 30, 2025, the lenders completed the sale of Market Center through a deed-in-lieu of foreclosure. In December 2023, we wrote off our investment in Market Center to zero and discontinued the equity method of accounting. Accordingly, this sale did not have any impact on our consolidated financial statements.

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, 2025		December 31, 2024
One Steuart Lane (1)	35.0% (2)	$	70,609	$	76,579
1600 Broadway (1)	9.2%		7,933		8,161
60 Wall Street	5.0%		5,959		1,212
Other (3)	Various		-		-
Investments in unconsolidated joint ventures		$	84,501	$	85,952


	For the Three Months Ended						For the Six Months Ended
(Amounts in thousands)	June 30,						June 30,
Our Share of Net Income (Loss):	2025			2024			2025		2024
One Steuart Lane	$	(8	)	$	(798	)	$	1,840	$	(107	)
1600 Broadway		1			-			1		1
60 Wall Street		59			56			118		(1,631	)
Other (3)		-			(29	)		-		(380	)
Income (loss) from unconsolidated joint ventures	$	52		$	(771	)	$	1,959	$	(2,117	)

(1)

As of June 30, 2025, the carrying amount of our investments in One Steuart Lane and 1600 Broadway was greater than our share of equity in these investments by $478 and $295, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs.

(2)

Represents RDF’s 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%.

(3)

As of June 30, 2025, the carrying amount of our investments in the joint ventures that own 712 Fifth Avenue, 55 Second Street, 111 Sutter Street and Oder-Center, Germany were $0. Since we have no further obligation to fund additional capital to these joint ventures, we have discontinued the equity method of accounting, and accordingly, we no longer recognize our proportionate share of earnings. Instead, we recognize income only to the extent we receive cash distributions from the joint ventures and recognize losses to the extent we make cash contributions to the 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, 2025		December 31, 2024
Real estate, net	$	1,331,836	$	1,567,771
Cash and cash equivalents and restricted cash		155,658		154,669
Intangible assets, net		36,893		42,672
For-sale residential condominium units (1)		181,203		195,113
Deferred rent receivable		32,884		42,128
Other assets		22,010		26,813
Total assets	$	1,760,484	$	2,029,166

Notes and mortgages payable, net	$	1,396,262	$	1,783,587
Accounts payable and accrued expenses		38,062		59,860
Intangible liabilities, net		2,032		2,480
Other liabilities		67,922		73,129
Total liabilities		1,504,278		1,919,056
Equity		256,206		110,110
Total liabilities and equity	$	1,760,484	$	2,029,166



(Amounts in thousands)	For the Three Months Ended June 30,							For the Six Months Ended June 30,
Income Statements:	2025				2024			2025				2024
Revenues:
Rental revenue	$	26,740			$	35,247		$	59,224			$	71,183
Other income (2)		9,585				3,246			28,333				18,244
Total revenues		36,325				38,493			87,557				89,427
Expenses:
Operating (3)		17,314				23,921			49,913				56,360
Depreciation and amortization		10,137				12,606			20,887				25,768
Total expenses		27,451				36,527			70,800				82,128
Other income (expense):
Interest and other income		1,730				1,870			3,546				2,496
Interest and debt expense		(15,422	)			(12,358	)		(34,137	)			(29,947	)
Gain on extinguishment of debt		162,517		(4)		-			162,517		(4)		-
Income (loss) before income taxes		157,699				(8,522	)		148,683				(20,152	)
Income tax expense		(3	)			(9	)		(29	)			(25	)
Net income (loss)	$	157,696			$	(8,531	)	$	148,654			$	(20,177	)

(1)

Represents residential condominium units at One Steuart Lane that are available for sale.

(2)

Includes proceeds from the sale of residential condominium units at One Steuart Lane.

(3)

Includes cost of sales relating to residential condominium units sold at One Steuart Lane.

(4)

Represents gain on extinguishment of debt related to Market Center. In December 2023, we wrote off our investment in Market Center to zero and discontinued the equity method of accounting for this joint venture. Accordingly, the gain on extinguishment of debt did not have an impact on our consolidated financial statements.