5.	Investments in Unconsolidated Joint Ventures

On January 24, 2017, a joint venture in which we have a 5.0% 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 and the other investors (see Note 6, 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.

Prior to May 5, 2017, our consolidated Residential Development Fund (“RDF”), owned 100% of the equity interests in 75 Howard Street, a fully-entitled residential condominium land parcel (“75 Howard”) in San Francisco, California. On May 5, 2017, RDF sold 80.0% of the equity interest in 75 Howard for $88,000,000 and recognized a $23,406,000 net gain on sale, of which our share, net of income taxes, was $1,661,000. Subsequent to the sale, RDF deconsolidated its investment in 75 Howard and began accounting for the remaining 20.0% under the equity method of accounting, however, we continue to consolidate our interest in RDF. We now have a 7.4% ownership interest in RDF; accordingly, our economic interest in 75 Howard is 1.5%.

The following tables summarize our investments in unconsolidated joint ventures as of September 30, 2017 and December 31, 2016 and income from these investments for the three and nine months ended September 30, 2017 and 2016.


(Amounts in thousands)	Paramount			As of
Our Share of Investments:	Ownership			September 30, 2017			December 31, 2016
712 Fifth Avenue		50.0%		$	-	⁽¹⁾	$	2,912
60 Wall Street		5.0%			26,406			-
75 Howard		20.0%	⁽²⁾		16,077			-
Oder-Center, Germany		9.5%			3,531			3,499
Investments in unconsolidated joint ventures				$	46,014		$	6,411

				For the Three Months Ended						For the Nine Months Ended
(Amounts in thousands)	Paramount			September 30,						September 30,
Our Share of Net Income (Loss):	Ownership			2017				2016		2017				2016
712 Fifth Avenue		50.0%		$	596		⁽¹⁾	$	1,772	$	19,030		⁽¹⁾	$	5,233
60 Wall Street		5.0%			(45	)			-		(81	)			-
75 Howard		20.0%	⁽²⁾		100				-		133				-
Oder-Center, Germany		9.5%			20				20		61				58
Income from unconsolidated joint ventures				$	671			$	1,792	$	19,143			$	5,291

⁽¹⁾

Prior to June 30, 2017, the basis of our investment in the property was $4,928. On June 30, 2017, we received a $20,000 distribution for our
50.0% share of net proceeds from refinancing the property. Because the distributions resulted in our basis becoming negative and because we have no further obligation to fund additional capital to the venture, in accordance with GAAP, we can no longer recognize our proportionate share of earnings from the venture until our basis is above zero. Accordingly, we are only recognizing income to the extent we receive cash distributions from the venture.

⁽²⁾	Represents RDF’s ownership interest in the property. We own a 7.4% ownership interest in RDF; accordingly, our economic interest in 75 Howard is 1.5%.

712 Fifth Avenue

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:	September 30, 2017			December 31, 2016
Real estate, net	$	204,083		$	207,632
Other assets		56,710			40,701
Total assets	$	260,793		$	248,333

Notes and mortgages payable, net	$	296,051		$	245,990
Other liabilities		5,765			8,783
Total liabilities		301,816			254,773
Equity ⁽¹⁾		(41,023	)		(6,440	)
Total liabilities and equity	$	260,793		$	248,333

⁽¹⁾

As of September 30, 2017, the carrying amount of our investment is greater than our share of the equity by $20,512. This basis difference resulted from distributions in excess of the equity in net earnings of the property.


(Amounts in thousands)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Income Statements:	2017			2016			2017			2016
Rental income	$	12,626		$	12,107		$	38,284		$	37,501
Tenant reimbursement income		1,338			1,342			3,855			3,351
Fee and other income		507			418			1,101			1,613
Total revenues		14,471			13,867			43,240			42,465
Operating expenses		6,197			6,081			18,265			17,073
Depreciation and amortization		3,067			3,193			9,062			9,244
Total expenses		9,264			9,274			27,327			26,317
Operating income		5,207			4,593			15,913			16,148
Interest and other income, net		68			16			140			49
Interest and debt expense		(2,700	)		(2,787	)		(8,651	)		(8,287	)
Unrealized gain on interest rate swaps		-			1,722			1,896			2,556
Net income	$	2,575		$	3,544		$	9,298		$	10,466