Investments in Unconsolidated Joint Ventures

6 Months Ended

Jun. 30, 2015

Equity Method Investments And Joint Ventures [Abstract]

Investments in Unconsolidated Joint Ventures

4. Investments in Unconsolidated Joint Ventures

The following table summarizes our investments in unconsolidated joint ventures as of June 30, 2015 and December 31, 2014.

	Percentage
	ownership at			As of
(Amounts in thousands)	June 30, 2015			June 30, 2015		December 31, 2014
Investments:
712 Fifth Avenue		50.0	%	$	2,690	$	1,697
Oder-Center, Germany		9.5	%		3,438		4,052
				$	6,128	$	5,749

The following table summarizes income from unconsolidated joint ventures for the three and six months ended June 30, 2015 and 2014.


	Percentage			The Company				The Predecessor
	ownership at			Three Months Ended		Six Months Ended		Three Months Ended			Six Months Ended
(Amounts in thousands)	June 30, 2015			June 30, 2015		June 30, 2015		June 30, 2014			June 30, 2014
Our share of Net Income (Loss):
712 Fifth Avenue		50.0	%	$	1,984	$	2,925	$	934		$	2,024
1325 Avenue of the Americas	n/a				-		-		(31	)		11
900 Third Avenue ⁽¹⁾	n/a				-		-		-			-
Oder-Center ⁽²⁾		9.5	%		27		61		-			-
				$	2,011	$	2,986	$	903		$	2,035

⁽¹⁾

As of June 30, 2014, our Predecessor’s investment in 900 Third Avenue had a deficit balance and since our Predecessor had no obligations to fund operating losses, it did not recognize any losses in excess of its investment balance. All unrecognized losses were aggregated to offset future net income until all unrecognized losses were utilized.

⁽²⁾	We account for our interest in Oder-Center on a one quarter lag basis.

712 Fifth Avenue

As of June 30, 2015, we own a 50.0% interest in a joint venture that owns 712 Fifth Avenue, which is accounted under the equity method. The following tables summarize 712 Fifth Avenue’s financial information as of the dates of and for the periods set forth below.

(Amounts in thousands)	As of
Balance Sheets	June 30, 2015			December 31, 2014
Rental property, net	$	198,722		$	221,827
Other assets		56,156			46,126
Total assets	$	254,878		$	267,953

Mortgage and notes payable	$	246,500		$	246,500
Other liabilities		15,260			30,321
Total liabilities		261,760			276,821
Equity ⁽¹⁾		(6,882	)		(8,868	)
Total liabilities and equity	$	254,878		$	267,953


⁽¹⁾ The carrying amount of our investment in 712 Fifth Avenue is greater than our share of 712 Fifth Avenue's equity by approximately $6,131. This basis difference resulted from distributions in excess of the equity in net earnings of 712 Fifth Avenue.

	The Company						The Predecessor
(Amounts in thousands)	Three months ended			Six Months Ended			Three months ended			Six Months Ended
Income Statements	June 30, 2015			June 30, 2015			June 30, 2014			June 30, 2014
Rental income	$	12,392		$	24,446		$	11,457		$	22,689
Tenant reimbursement income		1,375			2,736			1,124			2,269
Fee and other income		344			623			283			638
Total revenue		14,111			27,805			12,864			25,596

Operating		5,831			12,057			5,565			11,326
Depreciation and amortization		2,954			5,884			2,786			5,525
General and administrative		-			-			25			55
Total expenses		8,785			17,941			8,376			16,906
Operating income		5,326			9,864			4,488			8,690
Unrealized gain on interest rate swaps		1,248			2,020			1,058			2,645
Interest and other income, net		4			5			-			-
Interest and debt expense		(2,611	)		(6,039	)		(3,677	)		(7,286	)
Net income	$	3,967		$	5,850		$	1,869		$	4,049