Preferred Equity Investments

3 Months Ended

Mar. 31, 2016

4. Preferred Equity Investments

As of March 31, 2016 we own a 24.4% interest in PGRESS Equity Holdings L.P., an entity that owns certain preferred equity investments. The following table is a summary of the preferred equity investments.

(Amounts in thousands, except square feet)						As of
Preferred equity investment	% Ownership		Dividend Rate		Initial Maturity	March 31, 2016		December 31, 2015
470 Vanderbilt Avenue ⁽¹⁾		24.4%		10.3%	Feb-2019	$	35,474	$	35,305
2 Herald Square⁽²⁾		24.4%		10.3%	Apr-2017		18,830		18,636
Total preferred equity investments						$	54,304	$	53,941

⁽¹⁾Represents a $33,750 preferred equity investment in a partnership that owns 470 Vanderbilt Avenue, a 650,000 square foot office building located in Brooklyn, New York. The preferred equity has a dividend rate of 10.3%, of which 8.0% was being paid in cash through February 2016 and increased thereafter to 10.3% through maturity, and the unpaid portion accretes to the balance of the investment.

⁽²⁾Represents a $17,500 preferred equity investment in a partnership that owns 2 Herald Square, a 369,000 square foot office and retail property in Manhattan. The preferred equity has a dividend rate of 10.3%, of which 7.0% is paid currently and the remainder accretes to the balance of the investment. The preferred equity investment has two one-year extension options.