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Investments in Unconsolidated Joint Ventures
 3 Months Ended
Mar. 31, 2025
Equity Method Investments and 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, 2025 and December 31, 2024:
 Carrying Value of Investment (1)
EntityPropertiesNominal % OwnershipMarch 31, 2025December 31,
2024
(in thousands)
Square 407 Limited PartnershipMarket Square North50.00 %$(23,756)$(11,924)
WP Project Developer LLCWisconsin Place Land and Infrastructure33.33 %(2)29,668 29,775 
500 North Capitol Venture LLC500 North Capitol Street, NW30.00 %(11,952)(11,696)
501 K Street LLC1001 6th Street50.00 %45,903 45,903 
Podium Developer LLCThe Hub on Causeway - Podium50.00 %41,153 42,310 
Residential Tower Developer LLCHub50House50.00 %40,492 42,493 
Hotel Tower Developer LLCThe Hub on Causeway - Hotel Air Rights50.00 %14,464 14,271 
Office Tower Developer LLC100 Causeway Street50.00 %55,821 55,810 
1265 Main Office JV LLC1265 Main Street50.00 %3,461 3,476 
BNY Tower Holdings LLCDock 72 50.00 %(3)(12,477)(9,889)
CA-Colorado Center, LLCColorado Center50.00 %68,235 65,000 
7750 Wisconsin Avenue LLC 7750 Wisconsin Avenue 50.00 %48,183 48,423 
BP-M 3HB Venture LLC3 Hudson Boulevard25.00 %111,865 112,771 
Platform 16 Holdings LPPlatform 1655.00 %57,775 56,265 
Gateway Portfolio Holdings LLCGateway Commons50.00 %272,872 272,000 
Rosecrans-Sepulveda Partners 4, LLCBeach Cities Media Campus50.00 %27,060 27,051 
Safeco Plaza REIT LLCSafeco Plaza33.67 %(4)132 — 
360 PAS Holdco LLC360 Park Avenue South71.11 %(5)79,883 74,592 
PR II/BXP Reston Gateway LLCSkymark - Reston Next Residential20.00 %14,691 14,844 
751 Gateway Holdings LLC751 Gateway 49.00 %121,058 99,701 
200 Fifth Avenue JV LLC200 Fifth Avenue26.69 %67,165 70,673 
ABXP Worldgate Investments LLC13100 and 13150 Worldgate Drive50.00 %18,487 18,225 
CAB 290 Coles Venture LLC290 Coles Street - Common Equity19.46 %(6)19,364 N/A
CAB 290 Coles Holdco LLC290 Coles Street - Preferred Equity— %(6)(7)— N/A
$1,089,547 $1,060,074 
 _______________
(1)Investments with deficit balances aggregating approximately $48.2 million and $33.5 million at March 31, 2025 and December 31, 2024, respectively, are included within Other Liabilities in the Company’s Consolidated Balance Sheets.
(2)The Company’s wholly-owned subsidiary that owns Wisconsin Place Office also owns a 33.33% interest in the joint venture entity that owns the land, parking garage and infrastructure of the project.
(3)This property includes net equity balances from the amenity joint venture.
(4)The Company’s ownership includes (1) a 33.0% direct interest in the joint venture, and (2) an additional 1.0% interest in each of the two entities through which each partner owns its interest in the joint venture.
(5)The Company’s ownership includes (1) a 35.79% direct interest in the joint venture, (2) an additional 35.02% indirect ownership in the joint venture, and (3) an additional 1.0% interest in the entity through which the partner owns its interest in the joint venture.
(6)This entity is a VIE (See Note 2).
(7)The Company agreed to fund up to $65.0 million of the required capital through its preferred equity investment. The Company’s preferred equity investment is expected to earn a 13.0% internal rate of return (“IRR”) and is to be redeemed, in full, upon the earlier of two years after stabilization of the property or March 5, 2030.
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 venture. Under certain of the Company’s joint venture agreements, if certain return thresholds are achieved, one or more partners could 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, 2025December 31, 2024
 (in thousands)
ASSETS
Real estate and development in process, net (1)$5,820,435 $5,748,198 
Other assets (2)700,641 703,096 
Total assets$6,521,076 $6,451,294 
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY
Mortgage and notes payable, net$3,213,566 $3,206,723 
Other liabilities (3)251,826 292,125 
Members’/Partners’ equity3,055,684 2,952,446 
Total liabilities and members’/partners’ equity$6,521,076 $6,451,294 
Company’s share of equity$1,371,939 $1,344,543 
Basis differentials (4)(282,392)(284,469)
Carrying value of the Company’s investments in unconsolidated joint ventures (5)$1,089,547 $1,060,074 
_______________
(1)At March 31, 2025 and December 31, 2024, this amount included right of use assets - operating leases totaling approximately $18.7 million and $19.0 million, respectively.
(2)At March 31, 2025 and December 31, 2024, this amount included sales-type lease receivable, net totaling approximately $14.2 million and $14.1 million, respectively.
(3)At March 31, 2025 and December 31, 2024, this amount included lease liabilities - operating leases totaling approximately $30.5 million.
(4)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. During the year ended December 31, 2024, the Company recognized an other-than-temporary impairment loss on its investments in Colorado Center, Gateway Commons and Safeco Plaza of approximately $168.4 million, $126.1 million, and $46.8 million, respectively. 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 include:
March 31, 2025December 31, 2024
Property(in thousands)
Colorado Center$128,562 $127,632 
200 Fifth Avenue48,017 49,656 
Gateway Commons(73,693)(74,500)
Safeco Plaza(74,822)(75,576)
Dock 72(91,159)(92,054)
360 Park Avenue South(112,372)(113,265)
Platform 16(142,683)(142,698)
These basis differentials (excluding land) will be amortized over the remaining lives of the related assets and liabilities. An additional $35.8 million and $36.3 million of other basis differentials are not included above at March 31, 2025 and December 31, 2024, respectively.
(5)Investments with deficit balances aggregating approximately $48.2 million and $33.5 million at March 31, 2025 and December 31, 2024, 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,
 20252024
 (in thousands)
Total revenue (1)$130,687 $130,392 
Expenses
Operating53,729 49,194 
Transaction costs170 2 
Depreciation and amortization42,379 39,424 
Total expenses96,278 88,620 
Other income (expense)
Loss from early extinguishment of debt(62)— 
Interest expense(44,432)(43,563)
Unrealized gain (loss) on derivative instruments(8,325)10,112 
Net income (loss)$(18,410)$8,321 
Company’s share of net income (loss)$(5,796)$2,960 
Gain on sale / consolidation— 21,696 
Basis differential (2)3,657 (5,470)
Income (loss) from unconsolidated joint ventures$(2,139)$19,186 
_______________ 
(1)Includes straight-line rent adjustments of approximately $3.4 million and $7.7 million for the three months ended March 31, 2025 and 2024, respectively.
(2)Includes depreciation and amortization of approximately $(1.4) million and $2.9 million for the three months ended March 31, 2025 and 2024, respectively. Includes unrealized gain (loss) on derivative instruments of approximately $(2.2) million and $2.7 million for the three months ended March 31, 2025 and 2024, respectively.
On February 27, 2025, a joint venture in which the Company has a 50% ownership interest, entered into a $252.0 million mortgage loan secured by 7750 Wisconsin Avenue in Bethesda, Maryland. The loan is scheduled to mature on March 1, 2035, bears interest at a fixed rate of 5.49% per annum, and requires monthly principal and interest payments. The proceeds from the loan were used to repay the existing $252.0 million construction loan collateralized by the property. The repayment resulted in the joint venture recognizing a loss from early extinguishment of debt of approximately $0.1 million related to unamortized finance costs during the three months ended March 31, 2025. 7750 Wisconsin Avenue is an office property with approximately 736,000 net rentable square feet.
On March 5, 2025, the Company acquired a 19.46% interest in a joint venture that is developing 290 Coles Street located in Jersey City, New Jersey for a gross purchase price of approximately $20.0 million. Additionally, the Company agreed to fund up to $65.0 million of the required capital through a preferred equity investment. The Company’s preferred equity investment is expected to earn a 13.0% IRR and is to be redeemed, in full, upon the earlier of two years after stabilization of the property or March 5, 2030. On March 5, 2025, the joint venture entered into a $225.0 million construction loan, which will fund construction costs after the funding of all common and preferred equity investments required by the construction loan agreement. The loan bears interest at a variable rate equal to Term SOFR plus 2.50% per annum and is scheduled to mature on March 5, 2029 with an additional one-year extension option, subject to certain conditions. When completed, 290 Coles Street is expected to be a 670-unit residential property with retail space aggregating approximately 560,000 net rentable square feet.