Investments in Unconsolidated Joint Ventures

6 Months Ended

Jun. 30, 2020

Equity Method Investments And Joint Ventures [Abstract]

Investments in Unconsolidated Joint Ventures

5.	Investments in Unconsolidated Joint Ventures

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	June 30, 2020		December 31, 2019
712 Fifth Avenue ⁽¹⁾	50.0%	$	-	$	-
Market Center	67.0%		197,250		219,593
55 Second Street ⁽²⁾	44.1%		93,939		95,384
111 Sutter Street	49.0%		39,417		41,519
60 Wall Street ⁽²⁾	5.0%		19,148		19,777
One Steuart Lane ⁽²⁾	35.0% ⁽³⁾		67,986		69,536
Oder-Center, Germany ⁽²⁾	9.5%		3,443		3,371
Investments in unconsolidated joint ventures		$	421,183	$	449,180


(Amounts in thousands)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
Our Share of Net (Loss) Income:	2020			2019			2020			2019
712 Fifth Avenue ⁽¹⁾	$	229		$	917		$	229		$	917
Market Center⁽⁴⁾		(3,070	)		-			(5,924	)		-
55 Second Street ⁽²⁾⁽⁵⁾		(662	)		-			(1,346	)		-
111 Sutter Street ⁽⁶⁾		(919	)		(1,249	)		(1,529	)		(2,121	)
60 Wall Street ⁽²⁾		(9	)		(149	)		(91	)		(298	)
One Steuart Lane ⁽²⁾		(1,549	)		8			(1,550	)		(7	)
Oder-Center, Germany ⁽²⁾		25			17			35			26
Loss from unconsolidated joint ventures	$	(5,955	)	$	(456	)	$	(10,176	)	$	(1,483	)

⁽¹⁾

^{As of June 30, 2020, our basis in the partnership that owns 712 Fifth Avenue, was negative $20,956 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 June 30, 2020, the carrying amount of our investments in 55 Second Street, 60 Wall Street, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $493, $2,691, $970 and $4,593, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs. Basis differences allocated to depreciable assets are being amortized into “loss from unconsolidated joint ventures” over the estimated useful life of the related assets.}

⁽³⁾

^{Represents our consolidated Residential Development Fund’s economic interest in One Steuart Lane.}

⁽⁴⁾

^{Acquired on December 11, 2019.}

⁽⁵⁾

^{Acquired on August 21, 2019.}

⁽⁶⁾

^{Acquired on February 7, 2019.}

The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates and for the periods set forth below.

(Amounts in thousands)	As of
Balance Sheets:	June 30, 2020		December 31, 2019
Real estate, net	$	2,605,205	$	2,581,738
Cash and cash equivalents and restricted cash		99,300		75,071
Intangible assets, net		140,312		172,041
Other assets		38,594		36,218
Total assets	$	2,883,411	$	2,865,068

Notes and mortgages payable, net	$	1,706,229	$	1,648,403
Intangible liabilities, net		31,522		38,377
Other liabilities		91,771		65,759
Total liabilities		1,829,522		1,752,539
Equity		1,053,889		1,112,529
Total liabilities and equity	$	2,883,411	$	2,865,068

(Amounts in thousands)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
Income Statements:	2020			2019			2020			2019
Revenues:
Rental revenue	$	59,136		$	36,455		$	121,583		$	74,679
Fee and other income		777			393			1,524			491
Total revenues		59,913			36,848			123,107			75,170
Expenses:
Operating		29,642			15,274			55,582			29,677
Depreciation and amortization		29,099			15,082			59,281			29,207
Total expenses		58,741			30,356			114,863			58,884
Other income (expense):
Interest and other (loss) income, net		(29	)		201			48			299
Interest and debt expense		(14,305	)		(12,323	)		(30,214	)		(23,850	)
Net loss before income taxes		(13,162	)		(5,630	)		(21,922	)		(7,265	)
Income tax expense		(5	)		-			(44	)		(8	)
Net loss	$	(13,167	)	$	(5,630	)	$	(21,966	)	$	(7,273	)