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Investments in Unconsolidated Joint Ventures | 3 Months Ended
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Mar. 31, 2021
Investments In Unconsolidated Joint Ventures [Abstract] |
Investments In Unconsolidated Joint Ventures | 5. Investments in Unconsolidated Joint Ventures The investments in unconsolidated joint ventures consist of the following at March 31, 2021 and December 31, 2020:
|  |  |  |  |  | Carrying Value of Investment (1)
Entity |  | Properties |  | Nominal % Ownership |  | March 31, 2021 |  | December 31, 2020
|  |  |  |  |  | (in thousands)
Square 407 Limited Partnership |  | Market Square North |  | 50.0 | % |  | $ | (3,293) |  |  | $ | (3,766) |
BP/CRF Metropolitan Square LLC |  | Metropolitan Square |  | 20.0 | % |  | (12,971) |  |  | (13,584) |
901 New York, LLC |  | 901 New York Avenue |  | 25.0 | % | (2) | (12,198) |  |  | (12,264) |
WP Project Developer LLC |  | Wisconsin Place Land and Infrastructure |  | 33.3 | % | (3) | 34,887 |  |  | 35,297 |
Annapolis Junction NFM LLC |  | Annapolis Junction |  | 50.0 | % | (4) | — |  |  | 13,463 |
540 Madison Venture LLC |  | 540 Madison Avenue |  | 60.0 | % | (5) | — |  |  | 122 |
500 North Capitol Venture LLC |  | 500 North Capitol Street, NW |  | 30.0 | % |  | (7,187) |  |  | (6,945) |
501 K Street LLC |  | 1001 6th Street |  | 50.0 | % | (6) | 42,607 |  |  | 42,499 |
Podium Developer LLC |  | The Hub on Causeway - Podium |  | 50.0 | % |  | 48,398 |  |  | 48,818 |
Residential Tower Developer LLC |  | Hub50House |  | 50.0 | % |  | 49,520 |  |  | 50,943 |
Hotel Tower Developer LLC |  | The Hub on Causeway - Hotel Air Rights |  | 50.0 | % |  | 11,032 |  |  | 10,754 |
Office Tower Developer LLC |  | 100 Causeway Street |  | 50.0 | % |  | 56,458 |  |  | 56,312 |
1265 Main Office JV LLC |  | 1265 Main Street |  | 50.0 | % |  | 3,899 |  |  | 3,787 |
BNY Tower Holdings LLC |  | Dock 72 |  | 50.0 | % |  | 27,936 |  |  | 29,536 |
BNYTA Amenity Operator LLC |  | Dock 72 |  | 50.0 | % |  | 1,672 |  |  | 1,846 |
CA-Colorado Center Limited Partnership |  | Colorado Center |  | 50.0 | % |  | 229,094 |  |  | 227,671 |
7750 Wisconsin Avenue LLC |  | 7750 Wisconsin Avenue |  | 50.0 | % |  | 58,697 |  |  | 58,112 |
BP-M 3HB Venture LLC |  | 3 Hudson Boulevard |  | 25.0 | % |  | 115,869 |  |  | 113,774 |
SMBP Venture LP |  | Santa Monica Business Park |  | 55.0 | % |  | 159,545 |  |  | 145,761 |
Platform 16 Holdings LP |  | Platform 16 |  | 55.0 | % | (7) | 108,358 |  |  | 108,393 |
Gateway Portfolio Holdings LLC |  | Gateway Commons |  | 50.0 | % | (8) | 332,591 |  |  | 336,206 |
Rosecrans-Sepulveda Partners 4, LLC |  | Beach Cities Media Campus |  | 50.0 | % |  | 27,162 |  |  | 27,184 |
|  |  |  |  |  | $ | 1,272,076 |  |  | $ | 1,273,919 |
_______________ (1)Investments with deficit balances aggregating approximately $35.6 million and $36.6 million at March 31, 2021 and December 31, 2020, respectively, are included within Other Liabilities in the Company’s Consolidated Balance Sheets. (2)The Company’s economic ownership has increased based on the achievement of certain return thresholds. At March 31, 2021 and December 31, 2020, the Company’s economic ownership was approximately 50%. (3)The Company’s wholly-owned subsidiary that owns Wisconsin Place Office also owns a 33.3% interest in the joint venture entity that owns the land, parking garage and infrastructure of the project. (4)On March 30, 2021, the Company sold its interest in the joint venture to the partner. See below for additional details. (5)T he property was sold on June 27, 2019. As of December 31, 2020, the investment consisted of undistributed cash. All remaining cash has been distributed as of March 31, 2021. (6)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. (7)This entity is a VIE (See Note 2). (8)As a result of the partner’s deferred contribution, the Company owned an approximately 54% and 55% interest in the joint venture at March 31, 2021 and December 31, 2020, respectively. Future development projects will be owned 49% by the Company and 51% by its partner. 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. With limited exceptions under these provisions, the Company is not compelled to purchase the interest of its outside joint venture partners. Under certain of the Company’s joint venture agreements, if certain return thresholds are achieved, the partners or the Company will be entitled to an additional promoted interest or payments. The combined summarized balance sheets of the Company’s unconsolidated joint ventures are as follows:
| March 31, 2021 |  | December 31, 2020
| (in thousands)
ASSETS |  |  |
Real estate and development in process, net (1) | $ | 4,711,593 |  |  | $ | 4,708,571 |
Other assets | 505,554 |  |  | 531,071 |
Total assets | $ | 5,217,147 |  |  | $ | 5,239,642 |
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY |  |  |
Mortgage and notes payable, net | $ | 2,662,616 |  |  | $ | 2,637,911 |
Other liabilities (2) | 599,354 |  |  | 650,433 |
Members’/Partners’ equity | 1,955,177 |  |  | 1,951,298 |
Total liabilities and members’/partners’ equity | $ | 5,217,147 |  |  | $ | 5,239,642 |
Company’s share of equity | $ | 933,739 |  |  | $ | 936,087 |
Basis differentials (3) | 338,337 |  |  | 337,832 |
Carrying value of the Company’s investments in unconsolidated joint ventures (4) | $ | 1,272,076 |  |  | $ | 1,273,919 |
_______________ (1)At March 31, 2021 and December 31, 2020, this amount included right of use assets - finance leases totaling approximately $248.9 million and $248.9 million, respectively, and right of use assets - operating leases totaling approximately $22.2 million and $22.5 million, respectively. (2)At March 31, 2021 and December 31, 2020, this amount included lease liabilities - finance leases totaling approximately $387.9 million and $388.7 million, respectively, and lease liabilities - operating leases totaling approximately $29.2 million and $29.0 million, respectively. (3)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 result from impairments of investments, acquisitions through joint ventures with no change in control 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. The Company’s basis differences are as follows:
| March 31, 2021 |  | December 31, 2020
| (in thousands)
Property |  |  |
Colorado Center | $ | 306,903 |  |  | $ | 307,328 |
Gateway Commons | 50,682 |  |  | 51,875 |
Dock 72 | (51,708) |  |  | (52,243) |
These basis differentials (excluding land) will be amortized over the remaining lives of the related assets and liabilities. (4)Investments with deficit balances aggregating approximately $35.6 million and $36.6 million at March 31, 2021 and December 31, 2020, respectively, are reflected within Other Liabilities in 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 March 31, |  |
| 2021 |  | 2020 |  |  |  |  |  |
| (in thousands)
Total revenue (1) | $ | 87,266 |  |  | $ | 93,203 |  |  |  |  |  |  |
Expenses |  |  |  |  |  |  |  |  |
Operating | 37,134 |  |  | 35,401 |  |  |  |  |  |  |
Transaction costs | 7 |  |  | — |  |  |  |  |  |  |
Depreciation and amortization | 34,103 |  |  | 32,035 |  |  |  |  |  |  |
Total expenses | 71,244 |  |  | 67,436 |  |  |  |  |  |  |
Other income (expense) |  |  |  |  |  |  |  |  |
Interest expense | (25,556) |  |  | (22,583) |  |  |  |  |  |  |
Net income (loss) | $ | (9,534) |  |  | $ | 3,184 |  |  |  |  |  |  |
Company’s share of net income (loss) | $ | (3,640) |  |  | $ | 1,252 |  |  |  |  |  |  |
Gain on sale of investment (2) | 10,257 |  |  | — |  |  |  |  |  |  |
Basis differential (3) | (1,392) |  |  | (1,621) |  |  |  |  |  |  |
Income (loss) from unconsolidated joint ventures | $ | 5,225 |  |  | $ | (369) |  |  |  |  |  |  |
_______________ (1)Includes straight-line rent adjustments of approximately $1.1 million and $9.7 million for the three months ended March 31, 2021 and 2020, respectively. For the three months ended March 31, 2021, write-offs of accounts receivable and accrued rent balances totaled approximately $0.3 million. (2)During the three months ended March 31, 2021, the Company completed the sale of its 50% ownership interest in Annapolis Junction NFM LLC. The Company recognized a gain on sale of investment of approximately $10.3 million. (3)Includes straight-line rent adjustments of approximately $0.5 million and $0.5 million for the three months ended March 31, 2021 and 2020, respectively. Also includes net above-/below-market rent adjustments of approximately $0.1 million and $0.3 million for the three months ended March 31, 2021 and 2020, respectively. On February 25, 2021, a joint venture in which the Company has a 54% interest, commenced the development of 751 Gateway, a speculative laboratory building located in South San Francisco, California, that is expected to be approximately 229,000 net rentable square feet upon completion. 751 Gateway is the first phase of a multi-phase development plan at Gateway Commons. Upon the formation of the joint venture in 2020, the Company had an approximately 55% ownership interest in the joint venture as a result of the partner’s deferred contribution and the partner is obligated to fund all required capital until such time as the Company owns a 50% interest. On March 31, 2021, the Company had a 54% interest in the joint venture. The Company will own a 49% interest in any development project, including 751 Gateway. On March 30, 2021, the Company completed the sale of its 50% ownership interest in Annapolis Junction NFM LLC (the “Annapolis Junction Joint Venture”) to the joint venture partner for a gross sales price of $65.9 million. Net cash proceeds to the Company totaled approximately $17.6 million after repayment of the Company's share of debt totaling approximately $15.1 million and the deferment of a $0.2 million payment due from the purchaser. The Company recognized a gain on sale of investment totaling approximatel y $10.3 million, w hich is included in Income (Loss) from Unconsolidated Joint Ventures in the accompanying Consolidated Statements of Operations. In addition to net cash proceeds from the sale, the Company will be distributed approximately $5.8 million of available cash subsequent to March 31, 2021. Annapolis Junction Buildings Six and Seven are Class A office properties totaling approximately 247,000 net rentable square feet. With the sale of the Company’s ownership interest in the Annapolis Junction Joint Venture, the Company no longer has any assets in Annapolis, Maryland.

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- Definition Investments In Unconsolidated Joint Ventures [Abstract] + References No definition available. + Details
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- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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