5.	Investments in Unconsolidated Joint Ventures

Prior to March 14, 2018, RDF, in which we have a 7.4% interest, owned 20.0% of One Steuart Lane (the “Property”). On March 14, 2018, RDF transferred its 20.0% interest to a new joint venture in which it owns a 75.0% interest. Separately on March 14, 2018, RDF acquired an additional 10.0% interest in the Property from its existing partner. Subsequent to these transactions RDF owns a 25.0% economic interest in the Property, comprised of the newly acquired 10.0% interest and an indirect 15.0% interest it owns through the joint venture. As a result of these transactions, RDF was required to consolidate its 75.0% interest in the joint venture that owns 20.0% of the Property, and reflect the 25.0% interest in this venture (5.0% economic interest in the Property) it does not own as noncontrolling interests. We continue to consolidate our 7.4% interest in RDF and reflect the 92.6% interest we do not own as noncontrolling interests. As of September 30, 2018, our economic interest in the Property was 1.85%.

The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below.


(Amounts in thousands)	Paramount	As of
Our Share of Investments:	Ownership	September 30, 2018			December 31, 2017
712 Fifth Avenue ⁽¹⁾	50.0%	$	-		$	-
60 Wall Street ⁽²⁾	5.0%		23,121			25,083
One Steuart Lane ⁽²⁾	25.0% ⁽³⁾		48,530	⁽⁴⁾		16,031
Oder-Center, Germany ⁽²⁾	9.5%		3,604			3,648
Investments in unconsolidated joint ventures		$	75,255		$	44,762

		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	2018			2017			2018			2017
712 Fifth Avenue ⁽¹⁾	50.0%	$	558		$	596		$	3,166		$	19,030
60 Wall Street ⁽²⁾	5.0%		(116	)		(45	)		(291	)		(81	)
One Steuart Lane ⁽²⁾	25.0% ⁽³⁾		-			100			(18	)		133
Oder-Center, Germany ⁽²⁾	9.5%		30			20			74			61
Income from unconsolidated joint ventures		$	472		$	671		$	2,931		$	19,143

⁽¹⁾

As of September 30, 2018, our basis in the partnership was negative $20,256 resulting from distributions made to us in excess of our share of earnings recognized. Accordingly, we no longer recognize our proportionate share of earnings from the venture because we have no further obligation to fund additional capital to the venture. Instead, we only recognize earnings to the extent we receive cash distributions from the venture.

⁽²⁾

As of September 30, 2018, the carrying amount of our investments in 60 Wall Street, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $2,866, $692 and $5,036, respectively.

⁽³⁾

Represents RDF’s economic interest in the Property.

⁽⁴⁾

Includes a $7,086 basis adjustment which was recorded upon the adoption of ASU 2017-05 on January 1, 2018.

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, 2018			December 31, 2017
Real estate, net	$	199,862		$	202,040
Other assets		61,283			58,034
Total assets	$	261,145		$	260,074

Notes and mortgages payable, net	$	296,440		$	296,132
Other liabilities		5,217			4,615
Total liabilities		301,657			300,747
Partners’ deficit		(40,512	)		(40,673	)
Total liabilities and partners’ deficit	$	261,145		$	260,074


(Amounts in thousands)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Income Statements:	2018			2017			2018			2017
Rental income	$	12,229		$	12,626		$	36,887		$	38,284
Tenant reimbursement income		1,227			1,338			3,817			3,855
Fee and other income		125			507			742			1,101
Total revenues		13,581			14,471			41,446			43,240
Operating expenses		6,250			6,197			18,560			18,265
Depreciation and amortization		2,864			3,067			8,788			9,062
Total expenses		9,114			9,264			27,348			27,327
Operating income		4,467			5,207			14,098			15,913
Interest and other income, net		146			68			416			140
Interest and debt expense		(2,701	)		(2,700	)		(8,020	)		(8,651	)
Unrealized gain on interest rate swaps		-			-			-			1,896
Net income	$	1,912		$	2,575		$	6,494		$	9,298