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Investments in Unconsolidated Joint Ventures | 6 Months Ended
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Jun. 30, 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 June 30, 2025 and December 31, 2024:
|  |  |  |  |  | Carrying Value of Investment (1)
Entity |  | Properties |  | Nominal % Ownership |  | June 30, 2025 |  | December 31, 2024
|  |  |  |  |  | (in thousands)
Square 407 Limited Partnership |  | Market Square North |  | 50.00 | % |  | $ | (23,685) |  |  | $ | (11,924) |
WP Project Developer LLC |  | Wisconsin Place Land and Infrastructure |  | 33.33 | % | (2) | 29,534 |  |  | 29,775 |
500 North Capitol Venture LLC |  | 500 North Capitol Street, NW |  | 30.00 | % |  | (12,486) |  |  | (11,696) |
501 K Street LLC |  | 1001 6th Street |  | 50.00 | % |  | 45,837 |  |  | 45,903 |
Podium Developer LLC |  | The Hub on Causeway - Podium |  | 50.00 | % |  | 40,492 |  |  | 42,310 |
Residential Tower Developer LLC |  | Hub50House |  | 50.00 | % |  | 39,498 |  |  | 42,493 |
Hotel Tower Developer LLC |  | The Hub on Causeway - Hotel Air Rights |  | 50.00 | % |  | 14,662 |  |  | 14,271 |
Office Tower Developer LLC |  | 100 Causeway Street |  | 50.00 | % |  | 55,852 |  |  | 55,810 |
1265 Main Office JV LLC |  | 1265 Main Street |  | 50.00 | % |  | 3,340 |  |  | 3,476 |
BNY Tower Holdings LLC |  | Dock 72 |  | 50.00 | % | (3) | (11,961) |  |  | (9,889) |
CA-Colorado Center, LLC |  | Colorado Center |  | 50.00 | % |  | 70,222 |  |  | 65,000 |
7750 Wisconsin Avenue LLC |  | 7750 Wisconsin Avenue |  | 50.00 | % |  | 48,072 |  |  | 48,423 |
BP-M 3HB Venture LLC |  | 3 Hudson Boulevard |  | 25.00 | % |  | 111,471 |  |  | 112,771 |
Platform 16 Holdings LP |  | Platform 16 |  | 55.00 | % |  | 57,805 |  |  | 56,265 |
Gateway Portfolio Holdings LLC |  | Gateway Commons |  | 50.00 | % |  | 271,454 |  |  | 272,000 |
Rosecrans-Sepulveda Partners 4, LLC |  | Beach Cities Media Campus |  | 50.00 | % |  | 27,068 |  |  | 27,051 |
Safeco Plaza REIT LLC |  | Safeco Plaza |  | 33.67 | % | (4) | 43 |  |  | — |
360 PAS Holdco LLC |  | 360 Park Avenue South |  | 71.11 | % | (5) | 89,769 |  |  | 74,592 |
PR II/BXP Reston Gateway LLC |  | Skymark - Reston Next Residential |  | 20.00 | % |  | 14,900 |  |  | 14,844 |
751 Gateway Holdings LLC |  | 751 Gateway |  | 49.00 | % |  | 119,634 |  |  | 99,701 |
200 Fifth Avenue JV LLC |  | 200 Fifth Avenue |  | 26.69 | % |  | 74,446 |  |  | 70,673 |
ABXP Worldgate Investments LLC |  | 13100 and 13150 Worldgate Drive |  | 50.00 | % |  | 19,632 |  |  | 18,225 |
CAB 290 Coles Venture LLC |  | 290 Coles Street - Common Equity |  | 19.46 | % | (6) | 19,625 |  |  | N/A
CAB 290 Coles Holdco LLC |  | 290 Coles Street - Preferred Equity |  | — | % | (6)(7) | 1,615 |  |  | N/A
17 Hartwell Avenue JV LLC |  | 17 Hartwell Avenue |  | 20.00 | % | (6) | 6,065 |  |  | N/A
|  |  |  |  |  | $ | 1,112,904 |  |  | $ | 1,060,074 |
_______________ (1)Investments with deficit balances aggregating approximately $48.1 million and $33.5 million at June 30, 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 will 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 receive an additional promoted interest or payments. The combined summarized balance sheets of the Company’s unconsolidated joint ventures are as follows:
| June 30, 2025 |  | December 31, 2024
| (in thousands)
ASSETS |  |  |
Real estate and development in process, net (1) | $ | 5,838,787 |  |  | $ | 5,748,198 |
Other assets (2) | 726,052 |  |  | 703,096 |
Total assets | $ | 6,564,839 |  |  | $ | 6,451,294 |
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY |  |  |
Mortgage and notes payable, net | $ | 3,214,062 |  |  | $ | 3,206,723 |
Other liabilities (3) | 244,381 |  |  | 292,125 |
Members’/Partners’ equity | 3,106,396 |  |  | 2,952,446 |
Total liabilities and members’/partners’ equity | $ | 6,564,839 |  |  | $ | 6,451,294 |
Company’s share of equity | $ | 1,388,350 |  |  | $ | 1,344,543 |
Basis differentials (4) | (275,446) |  |  | (284,469) |
Carrying value of the Company’s investments in unconsolidated joint ventures (5) | $ | 1,112,904 |  |  | $ | 1,060,074 |
_______________ (1)At June 30, 2025 and December 31, 2024, this amount included right of use assets - operating leases totaling approximately $18.4 million and $19.0 million, respectively. (2)At June 30, 2025 and December 31, 2024, this amount included sales-type lease receivable, net totaling approximately $14.3 million and $14.1 million, respectively. (3)At June 30, 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:
| June 30, 2025 |  | December 31, 2024
Property | (in thousands)
Colorado Center | $ | 129,524 |  |  | $ | 127,632 |
200 Fifth Avenue | 49,459 |  |  | 49,656 |
Gateway Commons | (72,366) |  |  | (74,500) |
Safeco Plaza | (74,043) |  |  | (75,576) |
Dock 72 | (90,263) |  |  | (92,054) |
360 Park Avenue South | (111,530) |  |  | (113,265) |
Platform 16 | (142,676) |  |  | (142,698) |
Other basis differentials | 36,449 |  |  | 36,336 |
Total basis differentials | (275,446) |  |  | (284,469) |
These basis differentials (excluding land) will be amortized over the remaining lives of the related assets and liabilities. (5)Investments with deficit balances aggregating approximately $48.1 million and $33.5 million at June 30, 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 June 30, |  | Six months ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
| (in thousands)
Total revenue (1) | $ | 125,432 |  |  | $ | 120,152 |  |  | $ | 256,119 |  |  | $ | 250,546 |  |  |
Expenses |  |  |  |  |  |  |  |  |
Operating | 55,190 |  |  | 46,453 |  |  | 108,919 |  |  | 95,649 |  |  |
Transaction costs | 1 |  |  | 5 |  |  | 171 |  |  | 8 |  |  |
Depreciation and amortization | 44,152 |  |  | 38,396 |  |  | 86,531 |  |  | 77,819 |  |  |
Total expenses | 99,343 |  |  | 84,854 |  |  | 195,621 |  |  | 173,476 |  |  |
Other income (expense) |  |  |  |  |  |  |  |  |
Loss from early extinguishment of debt | — |  |  | — |  |  | (62) |  |  | — |  |  |
Interest expense | (45,103) |  |  | (43,299) |  |  | (89,535) |  |  | (86,862) |  |  |
Unrealized gain (loss) on derivative instruments | (4,904) |  |  | 848 |  |  | (13,229) |  |  | 10,960 |  |  |
Net income (loss) | $ | (23,918) |  |  | $ | (7,153) |  |  | $ | (42,328) |  |  | $ | 1,168 |  |  |
Company’s share of net income (loss) | $ | (7,690) |  |  | $ | (2,744) |  |  | $ | (13,486) |  |  | $ | 214 |  |  |
Gain on sale / consolidation | — |  |  | — |  |  | — |  |  | 21,696 |  |  |
Basis differential (2) | 4,366 |  |  | (3,055) |  |  | 8,023 |  |  | (8,523) |  |  |
Income (loss) from unconsolidated joint ventures | $ | (3,324) |  |  | $ | (5,799) |  |  | $ | (5,463) |  |  | $ | 13,387 |  |  |
_______________ (1)Includes straight-line rent adjustments of approximately $4.5 million and $6.2 million for the three months ended June 30, 2025 and 2024, respectively, and approximately $7.9 million and $13.8 million for the six months ended June 30, 2025 and 2024, respectively. (2)Includes depreciation and amortization of approximately $(3.0) million and $3.0 million for the three months ended June 30, 2025 and 2024, respectively, and approximately $(4.4) million and $5.9 million for the six months ended June 30, 2025 and 2024, respectively. Includes unrealized gain (loss) on derivative instruments of approximately $(1.3) million and $0.2 million for the three months ended June 30, 2025 and 2024, respectively, and approximately $(3.5) million and $2.9 million for the six months ended June 30, 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 six months ended June 30, 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 will 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. As of June 30, 2025, the Company has funded approximately $1.6 million of the required capital through the preferred equity investment. 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. On June 27, 2025, the Company entered into a joint venture to redevelop, own, and operate 17 Hartwell Avenue in Lexington, Massachusetts. The third party partner contributed approximately $23.0 million of cash, which was used by the joint venture to purchase the land at 17 Hartwell Avenue from the Company for approximately $21.8 million in cash. The Company contributed development costs of approximately $5.6 million for its 20% ownership interest in the joint venture. Additionally, on June 27, 2025, the joint venture entered into a $98.7 million construction loan. The loan bears interest at a fixed rate of 6.75% per annum and is scheduled to mature on July 10, 2030. When completed, 17 Hartwell Avenue is expected to be a 312-unit residential property with garage and retail space (See Note 3).

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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/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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