Investment in Unconsolidated Joint Ventures

9 Months Ended

Sep. 30, 2014

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Investment in Unconsolidated Joint Ventures

Comcast Innovation & Technology Center

On June 30, 2014, the Company entered into two joint ventures for the purpose of developing and owning the Comcast Innovation & Technology Center (the "Project") located on the 1800 block of Arch Street in Philadelphia, Pennsylvania as part of a trophy-class mixed-use development. The 59-story building will include 1.3 million square feet of rentable office space (the "Office") and a 220-room Four Seasons Hotel (the "Hotel").  Completion of the first phase of the Project is anticipated to be in the third quarter of 2017. Project costs for the development of the Project, exclusive of tenant-funded interior improvements, are anticipated to be approximately $921 million.  The Company's investment in the project is expected to be approximately $184 million with 20% ownership interests in both joint ventures. As of September 30, 2014, the Company's investment in these joint ventures was $17.4 million and is reflected in investments in and advances to unconsolidated joint ventures in the Company's consolidated balance sheet. During the three months ended September 30, 2014, the Company began development on the building and as of September 30, 2014, the total development in progress for the Project was $85.5 million.

The two joint ventures have engaged the Company as the developer of the Project pursuant to a Development Agreement by which the Company agrees, in consideration for a development fee, to be responsible for all aspects of the development of the Project and to guarantee the timely lien-free completion of construction of the Project and the payment, subject to certain exceptions, of any cost overruns incurred in the development of the Project. During the three and nine months ended September 30, 2014, the Company recognized $0.7 million in developer fees related to the project. These fees are included in other income in the Company's consolidated statement of comprehensive income.

Comcast Corporation has signed a 20-year lease for 982,275 square feet, or approximately 73.4% of the office space in the Office.  The Company will manage and lease the Office and Four Seasons Hotels Limited will manage the Hotel.

Liberty Venture I, LP

During the nine months ended September 30, 2014, Liberty Venture I, LP, an unconsolidated joint venture in which the Company holds a 25% interest, acquired three properties comprising 603,000 square feet from the Company for $32.2 million.