Investments in Unconsolidated Joint Ventures

3 Months Ended

Mar. 31, 2017

Equity Method Investments And Joint Ventures [Abstract]

Investments in Unconsolidated Joint Ventures

4.	Investments in Unconsolidated Joint Ventures

On January 24, 2017, a joint venture in which we have a 5.2% ownership interest, acquired 60 Wall Street, a 1.6 million square foot office tower in Manhattan, for $1.04 billion from certain of our real estate funds (see Note 5, Real Estate Fund Investments). In connection with the acquisition, the joint venture completed a $575,000,000 financing of the property. We began accounting for our investment in 60 Wall Street, under the equity method, from the date of the acquisition.

The following tables summarize our investments in unconsolidated joint ventures as of March 31, 2017 and December 31, 2016 and income from these investments for the three months ended March 31, 2017 and 2016.


(Amounts in thousands)	Paramount		As of
Our Share of Investments:	Ownership		March 31, 2017		December 31, 2016
712 Fifth Avenue		50.0%	$	4,842	$	2,912
60 Wall Street ⁽¹⁾		5.2%		27,852		-
Oder-Center, Germany ⁽²⁾		9.5%		3,265		3,499
Investments in unconsolidated joint ventures			$	35,959	$	6,411

(Amounts in thousands)	Paramount		For the Three Months Ended March 31,
Our Share of Net Income (Loss):	Ownership		2017			2016
712 Fifth Avenue		50.0%	$	1,930		$	1,476
60 Wall Street ⁽¹⁾		5.2%		(5	)		-
Oder-Center, Germany ⁽²⁾		9.5%		12			20
Income from unconsolidated joint ventures			$	1,937		$	1,496

⁽¹⁾	Represents our share of earnings from the date of acquisition through March 31, 2017.

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

712 Fifth Avenue

As of March 31, 2017, we own a 50% interest in a joint venture that owns 712 Fifth Avenue, which is accounted for under the equity method. The following tables provide summarized financial information of 712 Fifth Avenue as of the dates and for the periods set forth below.

(Amounts in thousands)	As of
Balance Sheets:	March 31, 2017			December 31, 2016
Rental property, net	$	206,700		$	207,632
Other assets		46,173			40,701
Total assets	$	252,873		$	248,333

Notes and mortgages payable, net	$	246,092		$	245,990
Other liabilities		9,361			8,783
Total liabilities		255,453			254,773
Equity ⁽¹⁾		(2,580	)		(6,440	)
Total liabilities and equity	$	252,873		$	248,333

⁽¹⁾

The carrying amount of our investment is greater than our share of the equity by approximately $6,130. This basis difference resulted from distributions in excess of the equity in net earnings of 712 Fifth Avenue.


(Amounts in thousands)	For the Three Months Ended March 31,
Income Statements:	2017			2016
Rental income	$	12,945		$	12,678
Tenant reimbursement income		1,308			1,116
Fee and other income		126			518
Total revenues		14,379			14,312
Operating expenses		5,966			5,617
Depreciation and amortization		2,920			3,008
Total expenses		8,886			8,625
Operating income		5,493			5,687
Interest and other income, net		24			14
Interest and debt expense		(2,825	)		(2,748	)
Unrealized gain on interest rate swaps		1,168			-
Net income	$	3,860		$	2,953