Investments in Unconsolidated Real Estate Funds

9 Months Ended

Sep. 30, 2019

Real Estate Fund [Abstract]

Investments In Unconsolidated Real Estate Funds Text Block

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”), our Property Funds. On January 25, 2019, Fund VII and Fund VII-H sold their only remaining asset, 0 Bond Street, a 65,000 square foot creative office building in the NoHo submarket of Manhattan, for $130,500,000. 

We also manage Paramount Group Real Estate Fund VIII, LP (“Fund VIII”) and Paramount Group Real Estate Fund X, LP (“Fund X”), our Alternative Investment Funds, which invest in mortgage and mezzanine loans and preferred equity investments. As of September 30, 2019, Fund VIII has invested $615,897,000 of the $775,200,000 of capital committed and Fund X, which completed its initial closing in December 2018 with $172,000,000 of capital commitments, has invested $40,000,000. As of September 30, 2019, our ownership interest in Fund VIII and Fund X was approximately 1.3% and 8.7%, respectively.

At September 30, 2019 and December 31, 2018, our investments in the above mentioned unconsolidated real estate funds aggregated $11,582,000 and $10,352,000, respectively, and we recognized income of $206,000 and $271,000 for the three and nine months ended September 30, 2019, respectively, and losses of $188,000 and $268,000, for the three and nine months ended September 30, 2018, respectively.