Investments in Unconsolidated Joint Ventures

9 Months Ended

Sep. 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	September 30, 2020		December 31, 2019
712 Fifth Avenue ⁽¹⁾	50.0%	$	-	$	-
Market Center	67.0%		195,419		219,593
55 Second Street ⁽²⁾	44.1%		93,225		95,384
111 Sutter Street	49.0%		38,550		41,519
60 Wall Street ⁽²⁾	5.0%		19,154		19,777
One Steuart Lane ⁽²⁾	35.0% ⁽³⁾		67,769		69,536
Oder-Center, Germany ⁽²⁾	9.5%		3,475		3,371
Investments in unconsolidated joint ventures		$	417,592	$	449,180


(Amounts in thousands)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Our Share of Net (Loss) Income:	2020			2019			2020			2019
712 Fifth Avenue ⁽¹⁾	$	229		$	373		$	458		$	1,290
Market Center⁽⁴⁾		(2,654	)		-			(8,578	)		-
55 Second Street ⁽²⁾⁽⁵⁾		(713	)		(336	)		(2,059	)		(336	)
111 Sutter Street ⁽⁶⁾		(884	)		(1,266	)		(2,413	)		(3,387	)
60 Wall Street ⁽²⁾		10			(138	)		(81	)		(436	)
One Steuart Lane ⁽²⁾		(223	)		1			(1,773	)		(6	)
Oder-Center, Germany ⁽²⁾		(33	)		34			2			60
Loss from unconsolidated joint ventures	$	(4,268	)	$	(1,332	)	$	(14,444	)	$	(2,815	)

⁽¹⁾

^{As of September 30, 2020, our basis in the partnership that owns 712 Fifth Avenue was negative $21,454 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, 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 $490, $2,677, $970 and $4,652, 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:	September 30, 2020		December 31, 2019
Real estate, net	$	2,638,584	$	2,581,738
Cash and cash equivalents and restricted cash		112,392		75,071
Intangible assets, net		124,754		172,041
Other assets		46,816		36,218
Total assets	$	2,922,546	$	2,865,068

Notes and mortgages payable, net	$	1,753,699	$	1,648,403
Intangible liabilities, net		29,106		38,377
Other liabilities		93,518		65,759
Total liabilities		1,876,323		1,752,539
Equity		1,046,223		1,112,529
Total liabilities and equity	$	2,922,546	$	2,865,068

(Amounts in thousands)	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
Income Statements:	2020			2019			2020			2019
Revenues:
Rental revenue	$	61,340		$	40,361		$	182,923		$	115,041
Fee and other income		625			827			2,149			1,317
Total revenues		61,965			41,188			185,072			116,358
Expenses:
Operating		26,381			17,670			81,963			47,347
Depreciation and amortization		29,700			17,252			88,981			46,459
Total expenses		56,081			34,922			170,944			93,806
Other income (expense):
Interest and other (loss) income, net		(45	)		179			3			478
Interest and debt expense		(14,030	)		(12,902	)		(44,244	)		(36,752	)
Net loss before income taxes		(8,191	)		(6,457	)		(30,113	)		(13,722	)
Income tax (expense) benefit		(1	)		2			(45	)		(6	)
Net loss	$	(8,192	)	$	(6,455	)	$	(30,158	)	$	(13,728	)