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Investments in Unconsolidated Real Estate Ventures (Tables)
9 Months Ended
Sep. 30, 2022
Investments in Unconsolidated Real Estate Ventures  
Summary of unconsolidated investments

The following is a summary of our investments in unconsolidated real estate ventures:

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Effective

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Ownership

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Real Estate Venture Partners

    

Interest (1)

    

September 30, 2022

    

December 31, 2021

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(In thousands)

Prudential Global Investment Management

 

50.0%

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$

207,236

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$

208,421

Landmark Partners ("Landmark") (2)

 

18.0% - 49.0%

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8,835

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28,298

CBREI Venture (3)

 

5.0% - 10.0%

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17,074

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57,812

Canadian Pension Plan Investment Board ("CPPIB") (4)

 

55.0%

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—

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48,498

J.P. Morgan Global Alternatives ("J.P. Morgan") (5)

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50.0%

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62,441

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52,769

Berkshire Group (6)

 

50.0%

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50,963

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52,770

Brandywine Realty Trust

 

30.0%

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13,755

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13,693

Other

 

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542

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624

Total investments in unconsolidated real estate ventures (7)

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$

360,846

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$

462,885

(1)Reflects our effective ownership interests in the underlying real estate as of September 30, 2022. We have multiple investments with certain venture partners with varying ownership interests in the underlying real estate.
(2)In connection with the preparation and review of the third quarter 2022 financial statements, an impairment loss of $15.4 million associated with certain commercial and future development assets located in Washington, D.C. was included in "Income (loss) from unconsolidated real estate ventures, net" in our statements of operations for the three and nine months ended September 30, 2022.
(3)On August 1, 2022, we acquired the remaining 36.0% ownership interest in an unconsolidated real estate venture that owned Atlantic Plumbing, a multifamily asset.
(4)Our effective ownership interest reflects an investment in the real estate venture that owns 1101 17th Street for which we have a zero investment balance and discontinued applying the equity method of accounting.
(5)J.P. Morgan is the advisor for an institutional investor.
(6)On October 5, 2022, we acquired the remaining 50.0% ownership interest in 8001 Woodmont, a multifamily asset owned by the venture, for a purchase price of $115.0 million, including the assumption of the $51.9 million mortgage at our share. The asset is encumbered by a $103.8 million mortgage, which is consolidated in our balance sheet as of the date of acquisition.
(7)As of September 30, 2022 and December 31, 2021, our total investments in unconsolidated real estate ventures were greater than our share of the net book value of the underlying assets by $4.4 million and $18.6 million, resulting principally from capitalized interest and our zero investment balance in certain real estate ventures.

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The following is a summary of the debt of our unconsolidated real estate ventures:

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Weighted

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Average Effective

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Interest Rate (1)

    

September 30, 2022

    

December 31, 2021

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(In thousands)

Variable rate (2)

 

5.67%

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$

509,393

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$

785,369

Fixed rate (3)

 

4.57%

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163,810

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309,813

Mortgages payable (4)

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​

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673,203

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1,095,182

Unamortized deferred financing costs

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​

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(393)

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(5,239)

Mortgages payable, net (4) (5)

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$

672,810

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$

1,089,943

(1)Weighted average effective interest rate as of September 30, 2022.
(2)Includes variable rate mortgages with interest rate cap agreements.
(3)Includes variable rate mortgages with interest rates fixed by interest rate swap agreements.
(4)Excludes mortgages related to the unconsolidated real estate venture with Fortress.
(5)See Note 17 for additional information on guarantees of the debt of certain of our unconsolidated real estate ventures.

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September 30, 2022

    

December 31, 2021

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(In thousands)

Combined balance sheet information: (1)

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Real estate, net

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$

1,507,159

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$

2,116,290

Other assets, net

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215,099

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264,397

Total assets

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$

1,722,258

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$

2,380,687

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Mortgages payable, net

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$

672,810

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$

1,089,943

Other liabilities, net

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77,706

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118,752

Total liabilities

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750,516

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1,208,695

Total equity

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971,742

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1,171,992

Total liabilities and equity

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$

1,722,258

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$

2,380,687

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Three Months Ended September 30, 

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Nine Months Ended September 30, 

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2022

    

2021

X

2022

    

2021

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(In thousands)

Combined income statement information: (1)

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Total revenue

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$

40,881

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$

45,289

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$

125,135

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$

141,370

Operating income (loss) (2)

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(7,468)

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51,068

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77,066

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94,275

Net income (loss) (2)

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(15,034)

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42,261

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49,376

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69,091

(1)Excludes amounts related to the unconsolidated real estate venture with Fortress.
(2)Includes the gain on the sale of various assets totaling $77.4 million during the nine months ended September 30, 2022, and $47.4 million and $85.5 million during the three and nine months ended September 30, 2021. Includes an impairment loss of $16.1 million during the three and nine months ended September 30, 2022.
Summary of unconsolidated investments disposition activity

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Mortgages

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Proportionate

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Real Estate

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Gross

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Payable

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Share of

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Venture

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Ownership

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Sales

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Repaid by

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Aggregate

Date Disposed

    

Partner

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Assets

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Percentage

    

Price

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Venture

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Gain (1)

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(In thousands)

January 27, 2022

 

Landmark

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The Alaire, The Terano and
12511 Parklawn Drive

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1.8% - 18.0%

 

$

137,500

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$

79,829

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$

5,243

May 10, 2022

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Landmark

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Galvan

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1.8%

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152,500

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89,500

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​

407

June 1, 2022

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CPPIB

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1900 N Street

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55.0%

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265,000

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151,709

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529

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$

6,179

(1)Included in "Income (loss) from unconsolidated real estate ventures, net" in our statements of operations.