6.	Investments in Unconsolidated Real Estate Funds

We are the general partner and investment manager of Paramount Group Real Estate Fund VII, LP (“Fund VII”) and its parallel fund, Paramount Group Real Estate Fund VII-H, LP (“Fund VII-H”). As of September 30, 2018, Fund VII and Fund VII-H own 100% of Zero Bond Street. We also manage Paramount Group Real Estate Fund VIII, LP (“Fund VIII”), our Alternative Investment Fund, which invests in mortgage and mezzanine loans and preferred equity investments.

The following tables summarize our investments in these unconsolidated real estate funds as of the dates thereof and the income or loss recognized for the periods set forth below.

	As of
(Amounts in thousands)	September 30, 2018		December 31, 2017
Our Share of Investments:
Property funds	$	2,059	$	2,429
Alternative investment fund		6,948		4,824
Investments in unconsolidated real estate funds	$	9,007	$	7,253

	For the Three Months Ended						For the Nine Months Ended
(Amounts in thousands)	September 30,						September 30,
Our Share of Net Income (Loss):	2018			2017			2018			2017
Net investment income	$	82		$	104		$	207		$	228
Net realized loss		-			(839	)		-			(665	)
Net unrealized (loss) gain		(270	)		202			(475	)		(26	)
Carried interest		-			(3,397	)		-			(5,590	)
Loss from unconsolidated real estate funds	$	(188	)	$	(3,930	)	$	(268	)	$	(6,053	)

The following tables provide summarized financial information for Fund VII as of the dates and for the periods set forth below.

	As of
(Amounts in thousands)	September 30, 2018		December 31, 2017
Balance Sheets:
Real estate investments	$	28,109	$	32,943
Cash and cash equivalents		144		138
Total assets	$	28,253	$	33,081

Other liabilities	$	1,171	$	1,058
Total liabilities		1,171		1,058
Equity		27,082		32,023
Total liabilities and equity	$	28,253	$	33,081

	For the Three Months Ended September 30,							For the Nine Months Ended September 30,
(Amounts in thousands)	2018				2017			2018			2017
Income Statements:
Investment income		$	4		$	479		$	9		$	1,441
Investment expenses			43			120			163			1,156
Net investment (loss) income			(39	)		359			(154	)		285
Net realized losses			-			(3,809	)		-			(3,875	)
Net unrealized losses			(3,880	)		(4,871	)		(6,897	)		(9,192	)
Loss from real estate fund investments		$	(3,919	)	$	(8,321	)	$	(7,051	)	$	(12,782	)