Transactions with Related Parties

12 Months Ended

Dec. 31, 2024

Transactions with Related Parties

Transactions with Related Parties

22.          Transactions with Related Parties

Our third-party real estate services business provides fee-based real estate services to third parties, including the JBG Legacy Funds. In connection with the contribution to us of certain assets formerly owned by the JBG Legacy Funds as part of the Formation Transaction, the general partner and managing member interests in the JBG Legacy Funds that were held by certain former JBG executives (and who became members of our management team and/or Board of Trustees) were not transferred to us and remain under the control of these individuals. In addition, certain members of our senior management team and Board of Trustees have ownership interests in the JBG Legacy Funds, and own carried interests in each fund and in certain of our real estate ventures that entitle them to receive cash payments if the fund or real estate venture achieves certain return thresholds.

During 2024, we combined our impact investing activities, including management of the Washington Housing Initiative ("WHI") Impact Pool, with the newly formed LEO Impact Capital, our impact investment management platform. The WHI Impact Pool completed fundraising in 2020 with capital commitments totaling $114.4 million, which included a commitment from us of $11.2 million. As of December 31, 2024, our remaining commitment was $2.9 million.

The third-party real estate services revenue, including expense reimbursements, from the JBG Legacy Funds and the WHI Impact Pool and its affiliates was $13.0 million, $21.3 million and $20.0 million for each of the three years in the period ended December 31, 2024. As of December 31, 2024 and 2023, we had receivables from the JBG Legacy Funds and the WHI Impact Pool and its affiliates totaling $2.1 million and $3.5 million for such services.

Commencing in March 2023, in connection with the sale of an 80.0% interest in 4747 Bethesda Avenue in 2023, we leased our corporate offices from an unconsolidated real estate venture and incurred $5.4 million and $5.0 million of rent expense for the years ended December 31, 2024 and 2023, which was included in "General and administrative expense" in our consolidated statements of operations.

We rented our former corporate offices from an unconsolidated real estate venture and made payments totaling $922,000 for the year ended December 31, 2022.

We have agreements with Building Maintenance Services ("BMS"), an entity in which we have a minor preferred interest, to supervise cleaning, engineering and security services at our properties. We paid BMS $9.5 million, $9.3 million and $10.7 million for each of the three years in the period ended December 31, 2024, which was included in "Property operating expenses" in our consolidated statements of operations.