nvestments in Partially Owned Entities

The Company has co-invested in various properties with unrelated third parties which are either consolidated or accounted for under the equity method of accounting (unconsolidated). The following tables and information summarize the Company’s investments in partially owned entities as of March 31, 2012 (amounts in thousands except for project and apartment unit amounts):



	Consolidated
	Development Projects (VIEs) (4)
	Held for and/or Under Development		Completed and Stabilized			Other			Total

Total projects (1)	—		2			19			21

Total apartment units (1)	—		441			3,475			3,916

Balance sheet information at 3/31/12 (at 100%):
ASSETS
Investment in real estate	$	162,547	$	114,595		$	450,120		$	727,262
Accumulated depreciation	—		(13,269		)	(148,177		)	(161,446		)
Investment in real estate, net	162,547		101,326			301,943			565,816
Cash and cash equivalents	2,448		1,243			11,515			15,206
Deposits – restricted	43,586		2,295			5			45,886
Escrow deposits – mortgage	—		70			—			70
Deferred financing costs, net	—		37			1,125			1,162
Other assets	5,766		115			147			6,028
Total assets	$	214,347	$	105,086		$	314,735		$	634,168

LIABILITIES AND EQUITY/CAPITAL
Mortgage notes payable	$	—	$	33,175		$	200,337		$	233,512
Accounts payable & accrued expenses	7		431			1,925			2,363
Accrued interest payable	—		104			782			886
Other liabilities	1,272		51			889			2,212
Security deposits	—		111			1,483			1,594
Total liabilities	1,279		33,872			205,416			240,567

Noncontrolling Interests – Partially Owned Properties	79,011		1,079			(6,175		)	73,915
Company equity/General and Limited Partners' Capital	134,057		70,135			115,494			319,686
Total equity/capital	213,068		71,214			109,319			393,601
Total liabilities and equity/capital	$	214,347	$	105,086		$	314,735		$	634,168

Debt – Secured (2):
Company/Operating Partnership Ownership (3)	$	—	$	33,175		$	159,068		$	192,243
Noncontrolling Ownership	—		—			41,269			41,269
Total (at 100%)	$	—	$	33,175		$	200,337		$	233,512



	Consolidated
	Development Projects (VIEs) (4)
	Held for and/or Under Development			Completed and Stabilized			Other			Total
Operating information for the quarter ended 3/31/12 (at 100%):
Operating revenue	$	—		$	2,349		$	15,045		$	17,394
Operating expenses	(18		)	375			4,871			5,228
Net operating income	18			1,974			10,174			12,166
Depreciation	—			1,042			3,872			4,914
General and administrative/other	4			2			13			19
Operating income	14			930			6,289			7,233
Interest and other income	1			1			—			2
Other expenses	(61		)	—			—			(61		)
Interest:
Expense incurred, net	—			(337		)	(2,346		)	(2,683		)
Amortization of deferred financing costs	—			(107		)	(54		)	(161		)
(Loss) income before income and other taxes	(46		)	487			3,889			4,330
Income and other tax (expense) benefit	(26		)	—			(21		)	(47		)
Net (loss) income	$	(72	)	$	487		$	3,868		$	4,283


(1)	Project and apartment unit counts exclude all uncompleted development projects until those projects are substantially completed.


(2)	All debt is non-recourse to the Company.


(3)	Represents the Company’s/Operating Partnership’s current economic ownership interest.


(4)	A development project with a noncontrolling interest balance of $76.7 million is not a VIE.

The Company is the controlling partner in various consolidated partnership properties and development properties having a noncontrolling interest book value of $73.9 million at March 31, 2012. The Company has identified certain development partnerships as VIEs as the Company provides substantially all of the capital for these ventures (other than third party mortgage debt, if any) despite the fact that each partner legally owns 50% of each venture. The Company is the primary beneficiary as it exerts the most significant power over the ventures, absorbs the majority of the expected losses and has the right to receive a majority of the expected residual returns. The assets net of liabilities of the Company’s VIEs are restricted in their use to the specific VIE to which they relate and are not available for general corporate use. The Company does not have any unconsolidated VIEs.

In December 2011, the Company and Toll Brothers (NYSE: TOL) jointly acquired a vacant land parcel at 400 Park Avenue South in New York City. The Company's and Toll Brothers' allocated portions of the purchase price were approximately $76.1 million and $57.9 million, respectively. The Company is the managing member and Toll Brothers does not have substantive kick-out or participating rights. Until the core and shell of the building is complete, the building and land will be owned jointly and are required to be consolidated on the Company's balance sheet (not a VIE). Thereafter, the Company will solely own and control the rental portion of the building (floors 2-22) and Toll Brothers will solely own and control the for sale portion of the building (floors 23-40). Once the core and shell are complete, the Toll Brothers' portion of the property will be deconsolidated from the Company's balance sheet. The acquisition was financed through contributions by the Company and Toll Brothers of approximately $102.5 million and $75.7 million, respectively, which included the land purchase noted above, restricted deposits and taxes and fees. As of March 31, 2012, the Company's and Toll Brothers' consolidated contributions to the joint venture were approximately $186.3 million, of which Toll Brothers' noncontrolling interest balance totaled $76.7 million.

The Company admitted an 80% institutional partner to two separate entities/transactions (one in December 2010 and the other in August 2011), each owning a developable land parcel, in exchange for $40.1 million in cash and retained a 20% equity interest in both of these entities. These land parcels are now unconsolidated. Total project costs are approximately $232.8 million and construction will be predominantly funded with two separate long-term, non-recourse secured loans from the partner. While the Company is the managing member of both of the joint ventures, is responsible for constructing both of the projects and has given certain construction cost overrun guarantees, all major decisions are made jointly, the large majority of funding is provided by the partner and the partner has significant involvement in and oversight of the ongoing projects, neither of which is a VIE. The Company's remaining funding obligations are currently estimated at $3.0 million.