(Amounts in thousands, except square feet)	Paramount		Dividend		Initial	As of
Preferred Equity Investment	Ownership		Rate		Maturity	September 30, 2017			December 31, 2016
470 Vanderbilt Avenue ⁽¹⁾		24.4%		10.3%	Feb-2019	$	35,763		$	35,613
2 Herald Square⁽²⁾		24.4%		10.3%	Apr-2017		19,588			19,438
							55,351			55,051
Less: valuation allowance ⁽²⁾							(19,588	)		-
Preferred equity investments, net						$	35,763		$	55,051

⁽¹⁾

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

⁽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 investment had a dividend rate of 10.3%, of which 7.0% was paid in cash and the remainder accreted to the balance of the investment. The preferred equity investment had two one-year extension options.