Investments in Unconsolidated Real Estate Ventures (Tables)

3 Months Ended

Mar. 31, 2025

Investments in Unconsolidated Real Estate Ventures.

Schedule of unconsolidated investments

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

	Effective
	Ownership
Real Estate Venture	Interest (1)	March 31, 2025		December 31, 2024
		(In thousands)
J.P. Morgan Global Alternatives ("J.P. Morgan") (2)	50.0%	$	74,205	$	74,188
4747 Bethesda Venture	20.0%		10,265		10,813
Brandywine Realty Trust	30.0%		7,037		6,954
Other			1,274		1,699
Total investments in unconsolidated real estate ventures (3) (4)		$	92,781	$	93,654

(1) Reflects our effective ownership interests as of March 31, 2025. We have multiple investments with certain venture partners in the underlying real estate.

(2) J.P. Morgan is the advisor for an institutional investor.

(3) Excludes 10.0% subordinated interest in one commercial building and the Fortress Assets. See Note 1 for more information. Also, excludes our interest in an investment in the real estate venture that owns 1101 17th Street for which we have discontinued applying the equity method of accounting since June 30, 2018 because we received distributions in excess of our contributions and share of earnings, which reduced our investment to zero; further, we are not obligated to provide for losses, have not guaranteed its obligations or otherwise committed to provide financial support.

(4) As of March 31, 2025 and December 31, 2024, our total investments in unconsolidated real estate ventures were greater than our share of the net book value of the underlying assets by $10.8 million and $10.6 million, resulting principally from our zero-investment balance in certain real estate ventures and capitalized interest.

	Weighted
	Average Effective
	Interest Rate (1)	March 31, 2025		December 31, 2024
		(In thousands)
Variable rate (2)	5.67%	$	175,000	$	175,000
Fixed rate (3)	4.13%		60,000		60,000
Mortgage loans			235,000		235,000
Unamortized deferred financing costs and premium / discount, net			(5,111)		(5,795)
Mortgage loans, net (4)		$	229,889	$	229,205

(1) Weighted average effective interest rate as of March 31, 2025.

(2) Includes variable rate mortgage loans with interest rate cap agreements.

(3) Includes variable rate mortgage loans with interest rates fixed by interest rate swap agreements.

(4) See Note 17 for additional information on guarantees of the debt of certain of our unconsolidated real estate ventures.

	March 31, 2025		December 31, 2024
	(In thousands)
Combined balance sheet information: (1)
Real estate, net	$	422,452	$	424,170
Other assets, net		62,800		64,478
Total assets	$	485,252	$	488,648
Mortgage loans, net	$	229,889	$	229,205
Other liabilities, net		26,832		27,019
Total liabilities		256,721		256,224
Total equity		228,531		232,424
Total liabilities and equity	$	485,252	$	488,648

	Three Months Ended March 31,
	2025		2024
	(In thousands)
Combined income statement information: (1)
Total revenue	$	8,312	$	13,282
Operating income (2)		1,363		4,524
Net income (loss) (2)		(2,427)		644

(1) Excludes amounts related to the Fortress Assets. Excludes combined balance sheet information and combined income statement information for all the periods presented related to The Foundry and the L'Enfant Plaza assets as we discontinued applying the equity method of accounting after September 30, 2023 and September 30, 2022. In April 2024, the lender foreclosed on the mortgage loan secured by The Foundry and took possession of the property. In October 2024, the lender foreclosed on the mortgage loan secured by the L’Enfant Plaza assets and took possession of the properties.

(2) Includes the gain on the sale of Central Place Tower of $894,000 for the three months ended March 31, 2024.