Investments in and Advances to Unconsolidated Real Estate Ventures

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investments in and Advances to Unconsolidated Real Estate Ventures

Investments in Unconsolidated Real Estate Ventures

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



Real Estate Venture Partners	Ownership Interest ⁽¹⁾	June 30, 2019		December 31, 2018
		(In thousands)
CPPIB	55.0% - 59.9%	$	99,154	$	97,521
Landmark	1.8% - 49.0%	80,363		84,320
CBREI Venture	5.0% - 64.0%	70,609		73,776
Berkshire Group	50.0%	45,619		43,937
Brandywine	30.0%	13,989		13,777
CIM Group and Pacific Life Insurance Company	16.7%	9,729		9,339
Other		293		208
Total investments in unconsolidated real estate ventures		$	319,756	$	322,878

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⁽¹⁾	Ownership interests as of June 30, 2019. We have multiple investments with certain venture partners with varying ownership interests.

As of June 30, 2019 and December 31, 2018, we have a zero investment balance in the real estate venture that owns 1101 17th Street and suspended the equity method of accounting as of June 30, 2018. We will recognize as income any future distributions from the venture until our share of unrecorded earnings and contributions exceed the cumulative excess distributions previously recognized in income. During the six months ended June 30, 2019, we recognized income of $6.4 million related to distributions from this venture, which is included in "Income from unconsolidated real estate ventures, net" in our statement of operations. During the three and six months ended June 30, 2018, we recognized the $5.4 million of negative investment balance as income within "Income from unconsolidated real estate ventures, net" in our statements of operations as a result of the venture refinancing a mortgage loan payable collateralized by the property and eliminating certain principal guaranty provisions that had been included in the prior loan.

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



	Weighted Average Effective Interest Rate ⁽¹⁾	June 30, 2019			December 31, 2018
		(In thousands)
Variable rate ⁽²⁾	4.86%	$	622,332		$	461,704
Fixed rate ⁽³⁾	3.95%	535,209			665,662
Unconsolidated real estate ventures - mortgages payable		1,157,541			1,127,366
Unamortized deferred financing costs		(1,945		)	(1,998		)
Unconsolidated real estate ventures - mortgages payable, net ⁽⁴⁾		$	1,155,596		$	1,125,368

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⁽¹⁾	Weighted average effective interest rate as of June 30, 2019.


⁽²⁾	Includes variable rate mortgages payable with interest rate cap agreements.


⁽³⁾	Includes variable rate mortgages payable with interest rates fixed by interest rate swap agreements.


⁽⁴⁾	See Note 15 for additional information on guarantees of the debt of certain of our unconsolidated real estate ventures.

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



	June 30, 2019		December 31, 2018
Combined balance sheet information:	(In thousands)
Real estate, net	$	2,086,486	$	2,050,985
Other assets, net ⁽¹⁾	196,752		169,264
Total assets	$	2,283,238	$	2,220,249

Borrowings, net	$	1,155,596	$	1,125,368
Other liabilities, net ⁽¹⁾	147,263		94,845
Total liabilities	1,302,859		1,220,213
Total equity	980,379		1,000,036
Total liabilities and equity	$	2,283,238	$	2,220,249

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⁽¹⁾	On January 1, 2019, our unconsolidated real estate ventures adopted Topic 842, which required the ventures to record operating right-of-use assets totaling $52.4 million and related lease liabilities totaling $44.1 million.



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Combined income statement information:	(In thousands)
Total revenue	$	74,796		$	87,518		$	134,787		$	160,691
Operating income	10,542			12,484			10,109			16,858
Net loss	(1,460		)	(514		)	(16,687		)	(5,189		)