Investments

12 Months Ended

Dec. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investments

Investments

Newmark has a 27% ownership in Real Estate LP, a joint venture with Cantor in which Newmark has the ability to exert significant influence over the operating and financial policies. Accordingly, Newmark accounts for this investment under the equity method of accounting. Newmark recognized equity (loss) income of $(11.6) million, $7.3 million and $2.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. These amounts were included in "Other income, net" on the consolidated statements of operations. Newmark received distributions of $0.1 million and $8.6 million for the years ended December 31, 2020 and 2019, respectively. The carrying value of these investments were $88.3 million and $100.0 million for the years ended December 31, 2020 and 2019, respectively, included in “Other assets” on the accompanying consolidated balance sheets.

Investments Carried Under Measurement Alternatives

Newmark has acquired investments in entities for which it does not have the ability to exert significant influence over operating and financial policies.

For the years ended December 31, 2020, 2019 and 2018, Newmark recorded realized (losses) gains related to these investments of $(84.2) million, $12.6 million and $17.9 million, respectively. The $84.2 million loss primarily relates to the write-off of Newmark's $50.0 million investment in Knotel Inc. (“Knotel”) during the fourth quarter of 2020 (see Note 32 — “Subsequent Events” for additional information). The changes in value are included as a part of “Other income (loss), net” on the accompanying consolidated statements of operations. The carrying value of these investments were $9.9 million and $94.1 million and are included in “Other assets” on the accompanying consolidated balance sheets as of December 31, 2020 and 2019, respectively.