Related Parties

6 Months Ended

Jun. 30, 2025

Related Party Transactions [Abstract]

Related Parties

21.Related Parties

HT Consulting GmbH

Albert Behler, our Chairman, Chief Executive Officer and President, owns 100% of HT Consulting GmbH (“HTC”), a licensed broker in Germany. We have an agreement with HTC 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%. We incurred costs aggregating $99,000 and $122,000 for the three months ended June 30, 2025 and 2024, respectively, and $219,000 and $245,000 for the six months ended June 30, 2025 and 2024, respectively, in connection with this agreement. As of June 30, 2025 and December 31, 2024, we owed $109,000 and $113,000, respectively, to HTC under this agreement, which is included as a component of “accounts payable and accrued expenses” on our consolidated balance sheets.

Aircraft Services

Mr. Behler owns 50% of a private aviation company, in addition to owning a private aircraft that is managed by third-party aviation management companies. From time to time, Mr. Behler utilizes aircraft sourced from his private aviation company and his private aircraft for business travel. We did not incur any costs for the three months ended June 30, 2025. We incurred costs aggregating $427,000 for the three months ended June 30, 2024, and $147,000 and $804,000 for the six months ended June 30, 2025 and 2024, respectively, related to the charter by Mr. Behler of such aircraft for business purposes, which is included as a component of “general and administrative” in our consolidated statements of income.

Kramer Design Services

Kramer Design Services (“Kramer Design”) is 100% owned by the spouse of Mr. Behler. In February 2025, we entered into agreements with Kramer Design to provide branding and design services relating to certain of our properties in San Francisco for an aggregate cost of $220,000 excluding expenses. We paid Kramer Design $39,000 for the six months ended June 30, 2025, in connection with services rendered pursuant to these agreements. In addition, we had entered into an agreement with Kramer Design to develop branding and signage for the Paramount Club, our amenity center at 1301 Avenue of the Americas, which opened in May 2024. We paid Kramer Design $17,000 and $42,000 for the three and six months ended June 30, 2024, respectively, in connection with services rendered pursuant to this agreement.

Mannheim Trust

The Mannheim Trust is for the benefit of the children of Dr. Martin Bussmann, who is a member of our board of directors. 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 August 2026. We recognized $30,000 and $29,000 for the three months ended June 30, 2025 and 2024, respectively, and $61,000 and $59,000 for the six months ended June 30, 2025 and 2024, respectively, for our share of rental income pursuant to this lease.

ParkProperty Capital, LP

ParkProperty Capital, LP (“ParkProperty”), an entity partially owned by Katharina Otto-Bernstein, leases 4,233 square feet at 1325 Avenue of the Americas, pursuant to a lease agreement that expires in November 2027. Ms. Otto-Bernstein is a former member of our board of directors whose term ended in May 2025 and is currently one of our significant stockholders. We recognized rental revenue of $71,000 and $70,000 for the three months ended June 30, 2025 and 2024, respectively, and $142,000 and $141,000 for the six months ended June 30, 2025 and 2024, respectively, pursuant to this lease.

Debevoise and Plimpton LLP

We have entered into indemnification agreements with each of our directors and executive officers, including Wilbur Paes, our former Chief Operating Officer, Chief Financial Officer and Treasurer. Pursuant to the indemnification agreement with Mr. Paes, we have agreed to reimburse Mr. Paes for certain costs incurred in connection with the investigation described in Note 22, Commitments and Contingencies. These costs include certain legal fees paid to Mr. Paes’s counsel, Debevoise and Plimpton LLP, where Mr. Paes’s brother is a partner, which aggregated $202,000 and $274,000 for the three and six months ended June 30, 2025, respectively.

Management Agreements

We provide property management, leasing and other related services to certain properties owned by members of the Otto Family, which are collectively one of our significant stockholders. We recognized fee income of $144,000 and $190,000 for the three months ended June 30, 2025 and 2024, respectively, and $291,000 and $367,000 for the six months ended June 30, 2025 and 2024, 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, 2025 and December 31, 2024, amounts owed to us under these agreements aggregated $41,000 and $31,000, 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 $3,213,000 and $3,447,000 for the three months ended June 30, 2025 and 2024, respectively, and $6,513,000 and $8,810,000 for the six months ended June 30, 2025 and 2024, 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, 2025 and December 31, 2024, amounts owed to us under these agreements aggregated $1,591,000 and $1,652,000, respectively, which are included as a component of “accounts and other receivables” on our consolidated balance sheets.