Preferred Equity Investments (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Preferred Equity Investments

The following table is a summary of the preferred equity investments.

(Amounts in thousands, except square feet)	Paramount					As of
Preferred Equity Investment	Ownership		Dividend Rate		Initial Maturity	June 30, 2016		December 31, 2015
470 Vanderbilt Avenue ⁽¹⁾		24.4%		10.3%	Feb-2019	$	35,519	$	35,305
2 Herald Square⁽²⁾		24.4%		10.3%	Apr-2017		19,076		18,636
Total preferred equity investments						$	54,595	$	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 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.