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Investments in and Advances to Unconsolidated Affiliates (Tables)
 6 Months Ended
Jun. 30, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investments The Company’s investments in and advances to unconsolidated affiliates consist of the following (dollars in thousands):

 

 

 

 

 

Ownership Interest

 

June 30,

 

 

December 31,

 

Portfolio

 

Property

 

June 30, 2025

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Core:

 

Renaissance Portfolio (a)

 

68%

 

$

—

 

 

$

28,250

 

 

 

Gotham Plaza

 

49%

 

 

30,384

 

 

 

30,561

 

 

 

Georgetown Portfolio (b)

 

50%

 

 

3,831

 

 

 

4,214

 

 

 

1238 Wisconsin Avenue (b, c)

 

80%

 

 

18,365

 

 

 

19,048

 

 

 

840 N. Michigan Avenue (d, e)

 

94.35%

 

 

30,301

 

 

 

28,111

 

 

 

 

 

 

 

 

82,881

 

 

 

110,184

 

Investment Management:

 

 

 

 

 

 

 

 

 

 

Fund IV: (i)

 

Fund IV Other Portfolio (j)

 

90%

 

 

3,531

 

 

 

5,291

 

 

 

650 Bald Hill Road

 

90%

 

 

9,063

 

 

 

9,220

 

 

 

 

 

 

 

 

12,594

 

 

 

14,511

 

 

 

 

 

 

 

 

 

 

 

 

Fund V: (i)

 

Family Center at Riverdale (d)

 

89.42%

 

 

755

 

 

 

1,832

 

 

 

Tri-City Plaza

 

90%

 

 

6,252

 

 

 

6,914

 

 

 

Frederick County Acquisitions (f)

 

90%

 

 

4,919

 

 

 

4,375

 

 

 

Wood Ridge Plaza

 

90%

 

 

8,475

 

 

 

9,313

 

 

 

La Frontera Village

 

90%

 

 

11,693

 

 

 

13,389

 

 

 

Shoppes at South Hills

 

90%

 

 

9,193

 

 

 

10,139

 

 

 

Mohawk Commons

 

90%

 

 

9,938

 

 

 

12,350

 

 

 

 

 

 

 

 

51,225

 

 

 

58,312

 

 

 

 

 

 

 

 

 

 

 

 

Other:

 

Shops at Grand

 

5%

 

 

2,378

 

 

 

2,452

 

 

 

Walk at Highwoods Preserve

 

20%

 

 

1,997

 

 

 

2,279

 

 

 

LINQ Promenade

 

15%

 

 

16,208

 

 

 

16,508

 

 

 

 

 

 

 

 

20,583

 

 

 

21,239

 

 

 

 

 

 

 

 

 

 

 

 

Various:

 

Due from Related Parties

 

 

 

 

1,419

 

 

 

446

 

 

 

Other (g)

 

 

 

 

3,716

 

 

 

4,540

 

 

 

Investments in and advances to
unconsolidated affiliates

 

 

 

$

172,418

 

 

$

209,232

 

 

 

 

 

 

 

 

 

 

 

 

Core:

 

Crossroads (h)

 

49%

 

$

17,223

 

 

$

16,514

 

 

 

Distributions in excess of income from,
and investments in, unconsolidated affiliates

 

 

 

$

17,223

 

 

$

16,514

 

 

(a)
On January 23, 2025, the Company acquired an additional 48% economic ownership interest, and increased its existing 20% interest to 68%, in the Renaissance Portfolio primarily located in Washington D.C. Prior to the acquisition, the Company accounted for its 20% interest under the equity method of accounting. Due to the Company gaining a controlling financial interest as a result of this acquisition, the Company concluded that the entity is a variable interest entity (“VIE”) and that it is the primary beneficiary, and it should consolidate its investment within its Core Portfolio effective January 23, 2025. Accordingly, the Company recognized a loss on change in control of $9.6 million (Note 2).
(b)
Represents a VIE for which the Company is not the primary beneficiary (Note 15).
(c)
Includes the amounts advanced against a $12.8 million construction commitment from the Company to the venture that holds its investment in 1238 Wisconsin. As of June 30, 2025 and December 31, 2024 the related party note receivable had a principal balance of $12.8 million, net of a $0.1 million allowance for each period. The loan is secured by the venture members’ equity interest in the entity that owns the 1238 Wisconsin development property, bears interest at Prime + 1.0% (subject to a 4.5% floor), and matures on December 28, 2027. The Company recognized interest income of $0.1 million for each of the three and six months ended June 30, 2025 and 2024, respectively, related to this note receivable.
(d)
Represents a tenancy-in-common interest.
(e)
In February 2025, the Company acquired an additional 2.5% interest in the 840 North Michigan Avenue venture increasing its ownership interest from 91.85% to 94.35%. The note receivable from the 840 North Michigan Avenue venture partners had a balance of $1.5 million and $2.3 million as of June 30, 2025 and December 31, 2024 respectively and matures in July 2025 (Note 3).
(f)
On September 25, 2024 the venture which Fund V holds a 90% interest in sold a 300,000 square foot property in Frederick County, Maryland commonly referred to as Frederick Crossing. Fund V maintains its 90% interest in the venture which retains its interest in the remaining property of the Frederick County Acquisitions portfolio, commonly referred to as Frederick County Square.
(g)
Includes cost-method investment in Fifth Wall. The Company recorded an impairment charge of $0.4 million for the six months ended June 30, 2025, which is included in Realized and unrealized holding gains (losses) on investments and other in the Company’s Condensed Consolidated Statements of Operations.
(h)
Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may elect to contribute capital to the entity.
(i)
The Company owns 23.12% and 20.10% in Funds IV and V, respectively (Note 1). For the ventures within these funds, the ownership interest percentage represents the Fund’s ownership interest and not the Company’s proportionate share.
(j)
As of June 30, 2025, the investment balance relates to undistributed proceeds from the disposition of the Eden Square property. These proceeds were distributed to Fund IV in July 2025.
Schedule of Condensed Balance Sheet

The following Combined and Condensed Balance Sheets and Statements of Operations, in each period, summarized the financial information of the Company’s investments in unconsolidated affiliates that were held as of June 30, 2025 (in thousands):

 

 

June 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Combined and Condensed Balance Sheets

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

Rental property, net

 

$

913,705

 

 

$

1,016,229

 

Other assets

 

 

130,631

 

 

 

162,713

 

Total assets

 

$

1,044,336

 

 

$

1,178,942

 

Liabilities and partners’ equity:

 

 

 

 

 

 

Mortgage notes payable

 

$

633,687

 

 

$

815,045

 

Other liabilities

 

 

132,047

 

 

 

140,743

 

Partners’ equity

 

 

278,602

 

 

 

223,154

 

Total liabilities and partners’ equity

 

$

1,044,336

 

 

$

1,178,942

 

 

 

 

 

 

 

 

Company's share of accumulated equity

 

$

135,654

 

 

$

131,793

 

Basis differential

 

 

9,056

 

 

 

50,851

 

Deferred fees, net of portion related to the Company's interest

 

 

5,399

 

 

 

5,400

 

Amounts receivable/payable by the Company

 

 

1,419

 

 

 

446

 

Investments in and advances to unconsolidated affiliates, net of Company's
   share of distributions in excess of income from and investments in
   unconsolidated affiliates

 

 

151,528

 

 

 

188,490

 

Investments carried at cost

 

 

3,667

 

 

 

4,228

 

Company's share of distributions in excess of income from and
   investments in unconsolidated affiliates

 

 

17,223

 

 

 

16,514

 

Investments in and advances to unconsolidated affiliates

 

$

172,418

 

 

$

209,232

 

 
Schedule of Condensed Income Statement

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Combined and Condensed Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

29,016

 

 

$

28,180

 

 

$

61,142

 

 

$

56,184

 

Operating and other expenses

 

 

(10,981

)

 

 

(10,149

)

 

 

(23,230

)

 

 

(20,135

)

Interest expense

 

 

(10,713

)

 

 

(10,205

)

 

 

(22,163

)

 

 

(20,619

)

Depreciation and amortization

 

 

(13,622

)

 

 

(10,129

)

 

 

(26,474

)

 

 

(21,795

)

Gain on extinguishment of debt (a)

 

 

951

 

 

 

853

 

 

 

1,922

 

 

 

2,011

 

Impairment of Investment

 

 

—

 

 

 

(288

)

 

 

—

 

 

 

(288

)

(Loss) gain on disposition of properties (b)

 

 

(1,030

)

 

 

8,519

 

 

 

(1,030

)

 

 

8,519

 

Net (loss) income attributable to unconsolidated affiliates

 

$

(6,379

)

 

$

6,781

 

 

$

(9,833

)

 

$

3,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company’s share of equity in net (losses) earnings of unconsolidated affiliates

 

$

(4,093

)

 

$

4,724

 

 

$

(5,708

)

 

$

4,656

 

Basis differential amortization

 

 

(98

)

 

 

(244

)

 

 

(196

)

 

 

(488

)

Company’s equity in (losses) earnings of unconsolidated affiliates

 

$

(4,191

)

 

$

4,480

 

 

$

(5,904

)

 

$

4,168

 
(a)
Includes the gain on debt extinguishment related to the restructuring at 840 N. Michigan Avenue for the three and six months ended June 30, 2025 and 2024.
(b)
Includes the loss on the sale of Eden Square for the three and six months ended June 30, 2025. Includes the gain on the sale of Paramus Plaza for the three and six months ended June 30, 2024.