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Investments in Unconsolidated Real Estate Venture
 12 Months Ended
Dec. 31, 2024
Unconsolidated Real Estate Ventures [Abstract]  
Investments in Unconsolidated Real Estate Venture

4. Investment in Unconsolidated Real Estate Venture

The following is a summary of our investment in our unconsolidated real estate venture (dollars in thousands):

 

 

 

 

As of December 31,

 

Joint Venture

 

Ownership Interest

 

2024

 

 

2023

 

MedBase Venture

 

53.0%

 

$

316,521

 

 

$

284,544

 

On October 13, 2021, we formed the JV, with a global investor to fund the acquisition of a portfolio of ten properties that encompasses 1,214,165 leased square feet (the “VA Portfolio”). We own a 53.0% interest in the JV, subject to preferred allocations as provided in the JV agreement.

During the year ended December 31, 2024, the JV acquired VA – Jacksonville for a purchase price of $77.4 million. During the year ended December 31, 2023, the JV acquired VA – Corpus Christi for a purchase price of $34.5 million. As of December 31, 2024, all ten properties in the VA Portfolio had been acquired by the JV.

We provide asset management services to our unconsolidated real estate venture. We recognized asset management service revenue of $2.3 million, $2.1 million and $1.4 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The following is a summary of financial information for our unconsolidated real estate venture:

 

 

As of December 31,

 

Balance sheet information:

 

2024

 

 

2023

 

Real estate, net

 

$

501,938

 

 

$

449,956

 

Other assets, net (1)

 

 

105,808

 

 

 

97,190

 

   Total assets

 

$

607,746

 

 

$

547,146

 

 

 

 

 

 

 

 

Total liabilities (2)

 

$

11,142

 

 

$

10,854

 

Total equity

 

 

596,604

 

 

 

536,292

 

   Total liabilities and equity

 

$

607,746

 

 

$

547,146

 

 

 

 

 

 

 

 

Company’s share of equity

 

$

316,146

 

 

$

284,169

 

Basis differential (3)

 

 

375

 

 

 

375

 

Carrying value of the Company’s investment in the unconsolidated venture

 

$

316,521

 

 

$

284,544

 
(1)
At December 31, 2024 and 2023, this amount included right-of-use assets - finance leases totaling approximately $4.7 million and $4.8 million, respectively, representing a ground lease at VA – Lubbock.
(2)
At both December 31, 2024 and 2023, this amount included lease liabilities - finance leases totaling approximately $5.0 million representing a ground lease at VA – Lubbock.
(3)
This amount represents the aggregate difference between our historical cost basis and the basis reflected at the joint venture level.

 

 

For the year ended December 31,

 

Income statement information:

 

2024

 

 

2023

 

 

2022

 

Total revenue

 

$

45,517

 

 

$

40,693

 

 

$

25,898

 

Operating income

 

 

11,572

 

 

 

10,567

 

 

 

6,530

 

Net income

 

 

11,408

 

 

 

10,402

 

 

 

6,366

 

 

 

 

 

 

 

 

 

 

 

Company’s share of net income

 

$

6,051

 

 

$

5,498

 

 

$

3,374