Real Estate Fund Investments (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Property Funds Ownership Interests in These Funds and Funds Ownership Interest in Underlying Properties

The following is a summary of the property funds, our ownership interests in these funds and the funds’ ownership interest in the underlying properties as of December 31, 2017 and 2016.

		As of December 31,
		2017			2016
	Paramount	0 Bond Street			60 Wall Street ⁽¹⁾			One Market Plaza ⁽²⁾			50 Beale Street ⁽³⁾			0 Bond Street
	Ownership	0 Bond Street			60 Wall Street ⁽¹⁾			One Market Plaza ⁽²⁾			50 Beale Street ⁽³⁾			0 Bond Street
Fund II	10.0%		-			46.3	%		-			-			-
Fund III	3.1%		-			16.0	%		2.0	%		-			-
Fund VII/VII-H	7.2%		100.0	%		-			-			42.8	%		100.0	%
Total Property Funds			100.0	%		62.3	%		2.0	%		42.8	%		100.0	%
Other Investors			-			37.7	%		98.0	%		57.2	%		-
Total			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

⁽¹⁾

On January 24, 2017, Fund II and Fund III, together with the other investors sold their interest in 60 Wall Street to a newly formed joint venture, in which we have a 5.0% ownership interest. Accordingly, beginning on January 24, 2017, we account for our investment in 60 Wall Street under the equity method. See Note 5, Investments in Unconsolidated Joint Ventures.

⁽²⁾	On December 13, 2017, Fund III sold its 2.0% interest in One Market Plaza to a third party investor.

⁽³⁾	On July 17, 2017, Fund VII and Fund VII-H completed the sale of their 42.8% interest in 50 Beale to us and a new joint venture, in which we have a 36.6% ownership interest. See Note 3, Acquisitions.

Summary of Investment in Property Funds and an Alternative Investment Fund and Income or Loss from Fund Investments

The following tables summarize our investments in these unconsolidated real estate funds as of December 31, 2017 and 2016, and income or loss recognized from these investments for the years ended December 31, 2017 and 2016.

	As of December 31,
(Amounts in thousands)	2017		2016
Our Share of Investments:
Property funds	$	2,429	$	22,811
Alternative investment fund		4,824		5,362
Investments in unconsolidated real estate funds	$	7,253	$	28,173


	For the Year Ended December 31,
(Amounts in thousands)	2017			2016
Our Share of Net Loss:
Net investment income (loss)	$	236		$	(324	)
Net realized loss		(126	)		-
Net unrealized loss		(663	)		(1,706	)
Carried interest		(5,590	)		1,532
Loss from unconsolidated real estate funds ⁽¹⁾	$	(6,143	)	$	(498	)

⁽¹⁾

Excludes asset management and other fee income from real estate funds, which is included as a component of “fee and other income” on our consolidated statements of income for the years ended December 31, 2017 and 2016.

Summarized Financial Information of Investments in Unconsolidated Real Estate Funds

The following tables provide the summarized financial information of our unconsolidated real estate funds as of the dates and for the periods set forth below.


(Amounts in thousands)	As of December 31,
Balance Sheets:	2017		2016
Real estate investments	$	405,931	$	639,609
Cash and cash equivalents		5,076		7,608
Other assets		74		152
Total assets	$	411,081	$	647,369

Other liabilities	$	1,308	$	1,931
Total liabilities		1,308		1,931
Equity		409,773		645,438
Total liabilities and equity	$	411,081	$	647,369

(Amounts in thousands)	For the Year Ended December 31,
Income Statements:	2017			2016
Investment income	$	29,013		$	20,484
Investment expenses		7,086			7,466
Net investment income		21,927			13,018
Net realized losses		(72,134	)		-
Previously recorded unrealized losses		35,682			-
Net unrealized (losses) gains		(6,266	)		14,275
(Loss) income from real estate fund investments	$	(20,791	)	$	27,293

Summary of Consolidated Real Estate Funds

The following table sets forth the details of income from these funds, including our share thereof.

	For the
	Year Ended
(Amounts in thousands)	December 31, 2015
Net investment income	$	12,274
Net realized gains		13,884
Previously recorded unrealized gains on exited investments		(6,584	)
Net unrealized gains		18,401
Income from real estate fund investments ⁽¹⁾		37,975
Less: noncontrolling interests in consolidated real estate funds ⁽²⁾		(24,896	)
Income from real estate fund investments attributable to Paramount Group, Inc.	$	13,079

⁽¹⁾

Represents income from our real estate funds that were consolidated during 2015, including Fund II, Fund III, Fund VII, Fund VII-H, Fund VIII, Paramount Group Real Estate Special Situations Fund L.P., Paramount Group Real Estate Special Situations Fund-A L.P. and Paramount Group Real Estate Special Situations Fund-H L.P.

⁽²⁾

Includes $5,481 of asset management fee income that was reflected as a reduction of the amounts attributable to noncontrolling interests for the year ended December 31, 2015.