XML 29 R12.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Investments in Unconsolidated Joint Ventures | 6 Months Ended
--- | ---
Jun. 30, 2016
Investments In Unconsolidated Joint Ventures [Abstract] |
Investments In Unconsolidated Joint Ventures | 4. Investments in Unconsolidated Joint Ventures The investments in unconsolidated joint ventures consist of the following at June 30, 2016 and December 31, 2015:
|  |  |  | Nominal % Ownership |  |  | Carrying Value of Investment (1) |
Entity |  | Properties |  |  |  | June 30, 2016 |  | December 31, 2015 |
|  |  |  |  |  |  | (in thousands) |
Square 407 Limited Partnership |  | Market Square North |  | 50.0 | % |  |  | $ | (9,005 | ) |  | $ | (9,951 | ) |
The Metropolitan Square Associates LLC |  | Metropolitan Square |  | 51.0 | % |  |  | 9,401 |  |  | 9,179 |  |
BP/CRF 901 New York Avenue LLC |  | 901 New York Avenue |  | 25.0 | % | (2) |  | (11,280 | ) |  | (11,958 | ) |
WP Project Developer LLC |  | Wisconsin Place Land and Infrastructure |  | 33.3 | % | (3) |  | 42,533 |  |  | 43,524 |  |
Annapolis Junction NFM, LLC |  | Annapolis Junction |  | 50.0 | % | (4) |  | 21,424 |  |  | 29,009 |  |
540 Madison Venture LLC |  | 540 Madison Avenue |  | 60.0 | % |  |  | 68,729 |  |  | 68,983 |  |
500 North Capitol LLC |  | 500 North Capitol Street, NW |  | 30.0 | % |  |  | (3,644 | ) |  | (3,292 | ) |
501 K Street LLC |  | 1001 6th Street |  | 50.0 | % | (5) |  | 42,544 |  |  | 42,584 |  |
Podium Developer LLC |  | The Hub on Causeway |  | 50.0 | % |  |  | 27,858 |  |  | 18,508 |  |
1265 Main Office JV LLC |  | 1265 Main Street |  | 50.0 | % |  |  | 21,616 |  |  | 11,916 |  |
BNY Tower Holdings LLC (6) |  | Dock72 at the Brooklyn Navy Yard |  | 50.0 | % |  |  | 18,513 |  |  | 11,521 |  |
|  |  |  |  |  |  | $ | 228,689 |  |  | $ | 210,023 |  |
_______________
(1) | Investments with deficit balances aggregating approximately $23.9 million and $25.2 million at June 30, 2016 and December 31, 2015, respectively, have been reflected within Other Liabilities on the Company’s Consolidated Balance Sheets.
(2) | The Company’s economic ownership has increased based on the achievement of certain return thresholds.
(3) | The Company’s wholly-owned entity that owns the office component of the project also owns a 33.3% interest in the entity owning the land, parking garage and infrastructure of the project.
(4) | The joint venture owns four in-service buildings and two undeveloped land parcels.
(5) | Under the joint venture agreement for this land parcel, the partner will be entitled to up to two additional payments from the venture based on increases in total entitled square footage of the project above 520,000 square feet and achieving certain project returns at stabilization.
(6) | The entity is a VIE (See Note 2).
Certain of the Company’s unconsolidated joint venture agreements include provisions whereby, at certain specified times, each partner has the right to initiate a purchase or sale of its interest in the joint ventures at an agreed upon fair value. Under these provisions, the Company is not compelled to purchase the interest of its outside joint venture partners. The combined summarized balance sheets of the Company’s unconsolidated joint ventures are as follows:
| June 30, 2016 |  | December 31, 2015
| (in thousands)
ASSETS |  |  |
Real estate and development in process, net | $ | 1,124,267 |  |  | $ | 1,072,412 |
Other assets | 237,196 |  |  | 252,285 |
Total assets | $ | 1,361,463 |  |  | $ | 1,324,697 |
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY |  |  |
Mortgage and notes payable, net | $ | 827,987 |  |  | $ | 830,125 |
Other liabilities | 47,685 |  |  | 44,549 |
Members’/Partners’ equity | 485,791 |  |  | 450,023 |
Total liabilities and members’/partners’ equity | $ | 1,361,463 |  |  | $ | 1,324,697 |
Company’s share of equity | $ | 255,362 |  |  | $ | 237,070 |
Basis differentials (1) | (26,673 | ) |  | (27,047 | )
Carrying value of the Company’s investments in unconsolidated joint ventures (2) | $ | 228,689 |  |  | $ | 210,023 |
_______________
(1) | This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from impairment of investments and upon the transfer of assets that were previously owned by the Company into a joint venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the joint venture level.
(2) | Investments with deficit balances aggregating approximately $23.9 million and $25.2 million at June 30, 2016 and December 31, 2015, respectively, have been reflected within Other Liabilities on the Company’s Consolidated Balance Sheets.
The combined summarized statements of operations of the Company’s unconsolidated joint ventures are as follows:
| Three months ended June 30, |  | Six months ended June 30, |
| 2016 |  | 2015 |  | 2016 |  | 2015 |
| (in thousands) |
Total revenue (1) | $ | 38,368 |  |  | $ | 39,152 |  |  | $ | 76,037 |  |  | $ | 78,684 |  |
Expenses |  |  |  |  |  |  |  |
Operating | 16,359 |  |  | 15,824 |  |  | 33,026 |  |  | 32,099 |  |
Depreciation and amortization | 9,204 |  |  | 8,951 |  |  | 18,268 |  |  | 18,022 |  |
Total expenses | 25,563 |  |  | 24,775 |  |  | 51,294 |  |  | 50,121 |  |
Operating income | 12,805 |  |  | 14,377 |  |  | 24,743 |  |  | 28,563 |  |
Other expense |  |  |  |  |  |  |  |
Interest expense | 8,383 |  |  | 7,986 |  |  | 16,772 |  |  | 15,966 |  |
Net income | $ | 4,422 |  |  | $ | 6,391 |  |  | $ | 7,971 |  |  | $ | 12,597 |  |
Company’s share of net income | $ | 2,052 |  |  | $ | 2,902 |  |  | $ | 3,651 |  |  | $ | 17,544 |  | (2)
Basis differential | 182 |  |  | 176 |  |  | 374 |  |  | 368 |  |
Income from unconsolidated joint ventures | $ | 2,234 |  |  | $ | 3,078 |  |  | $ | 4,025 |  |  | $ | 17,912 |  |
_______________
(1) | Includes straight-line rent adjustments of approximately $3.6 million and $0.3 million for the three months ended June 30, 2016 and 2015, respectively, and approximately $5.8 million and $2.0 million for the six months ended June 30, 2016 and 2015, respectively.
(2) | During the six months ended June 30, 2015, the Company received a distribution of approximately $24.5 million, which was generated from the excess loan proceeds from the refinancing of 901 New York Avenue’s mortgage loan to a new 10-year mortgage loan totaling $225.0 million. The Company’s allocation of income and distributions for the six months ended June 30, 2015 was not proportionate to its nominal ownership interest as a result of the achievement of specified investment return thresholds, as provided for in the joint venture agreement.
On April 4, 2016, a joint venture in which the Company has a 50% interest extended the loan collateralized by its Annapolis Junction Building Seven property. At the time of the extension, the outstanding balance of the loan totaled approximately $21.5 million and was scheduled to mature on April 4, 2016. The extended loan has a total commitment amount of $22.0 million, bears interest at a variable rate equal to LIBOR plus 1.65% per annum and matures on April 4, 2017, with one, one-year extension option, subject to certain conditions. Annapolis Junction Building Seven is a Class A office property with approximately 127,000 net rentable square feet located in Annapolis, Maryland. On April 11, 2016, a joint venture in which the Company has a 50% interest received a Notice of Event of Default from the lender for the loan collateralized by its Annapolis Junction Building One property. The Event of Default relates to the loan to value ratio not being in compliance with the loan agreement. The joint venture is currently in discussions with the lender regarding the Event of Default, although there can be no assurance as to the outcome of those discussions. The estimated fair value of the Company’s investment in the unconsolidated joint venture exceeds its carrying value. The loan has an outstanding balance of approximately $39.9 million, is non-recourse to the Company, bears interest at a variable rate equal to LIBOR plus 1.75% per annum and has a stated maturity date of March 31, 2018, with one, three-year extension option, subject to certain conditions. Annapolis Junction Building One is a Class A office property with approximately 118,000 net rentable square feet located in Annapolis, Maryland.

X
- Definition Investments In Unconsolidated Joint Ventures [Abstract] + References No definition available. + Details
Name: | bxp_InvestmentsInUnconsolidatedJointVenturesAbstract
Namespace Prefix: | bxp_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32847-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32787-111569 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration