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Investments in Unconsolidated Joint Ventures | 9 Months Ended
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Sep. 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 September 30, 2025 and December 31, 2024:
|  |  |  |  |  | Carrying Value of Investment (1)
Entity |  | Properties |  | Nominal % Ownership |  | September 30, 2025 |  | December 31, 2024
|  |  |  |  |  | (in thousands)
Square 407 Limited Partnership |  | Market Square North |  | 50.00 | % |  | $ | (23,691) |  |  | $ | (11,924) |
WP Project Developer LLC |  | Wisconsin Place Land and Infrastructure |  | 33.33 | % | (2) | 29,209 |  |  | 29,775 |
500 North Capitol Venture LLC |  | 500 North Capitol Street, NW |  | 30.00 | % |  | (12,435) |  |  | (11,696) |
501 K Street LLC |  | 1001 6th Street |  | 50.00 | % |  | 45,772 |  |  | 45,903 |
Podium Venture LLC |  | The Hub on Causeway - Podium |  | 50.00 | % | (3) | 55,231 |  |  | 42,310 |
Residential Tower Developer LLC |  | Hub50House |  | 50.00 | % |  | 33,654 |  |  | 42,493 |
Hotel Tower Developer LLC |  | The Hub on Causeway - Hotel Air Rights |  | 50.00 | % |  | 11,849 |  |  | 14,271 |
Office Venture LLC |  | 100 Causeway Street |  | 50.00 | % | (3) | 48,833 |  |  | 55,810 |
1265 Main Office JV LLC |  | 1265 Main Street |  | 50.00 | % |  | 3,217 |  |  | 3,476 |
BNY Tower Holdings LLC |  | Dock 72 |  | 50.00 | % | (4) | (14,326) |  |  | (9,889) |
CA-Colorado Center, LLC |  | Colorado Center |  | 50.00 | % |  | 69,015 |  |  | 65,000 |
7750 Wisconsin Avenue LLC |  | 7750 Wisconsin Avenue |  | 50.00 | % |  | 47,363 |  |  | 48,423 |
BP-M 3HB Venture LLC |  | 3 Hudson Boulevard |  | 25.00 | % |  | 110,581 |  |  | 112,771 |
Platform 16 Holdings LP |  | Platform 16 |  | 55.00 | % |  | 58,076 |  |  | 56,265 |
Gateway Portfolio Holdings LLC |  | Gateway Commons |  | 50.00 | % | (5) | 125,090 |  |  | 272,000 |
Rosecrans-Sepulveda Partners 4, LLC |  | Beach Cities Media Campus |  | 50.00 | % | (6) | 98 |  |  | 27,051 |
Safeco Plaza REIT LLC |  | Safeco Plaza |  | 33.67 | % | (7) | 121 |  |  | — |
360 PAS Holdco LLC |  | 360 Park Avenue South |  | 71.11 | % | (8) | 93,988 |  |  | 74,592 |
PR II/BXP Reston Gateway LLC |  | Skymark - Reston Next Residential |  | 20.00 | % |  | 14,702 |  |  | 14,844 |
751 Gateway Holdings LLC |  | 751 Gateway |  | 49.00 | % |  | 118,509 |  |  | 99,701 |
200 Fifth Avenue JV LLC |  | 200 Fifth Avenue |  | 26.69 | % |  | 75,376 |  |  | 70,673 |
ABXP Worldgate Investments LLC |  | 13100 and 13150 Worldgate Drive |  | 50.00 | % |  | 19,855 |  |  | 18,225 |
CAB 290 Coles Venture LLC |  | 290 Coles Street - Common Equity |  | 19.46 | % | (9) | 19,813 |  |  | N/A
CAB 290 Coles Holdco LLC |  | 290 Coles Street - Preferred Equity |  | — | % | (9)(10) | 12,014 |  |  | N/A
17 Hartwell Avenue JV LLC |  | 17 Hartwell Avenue |  | 20.00 | % | (9) | 7,398 |  |  | N/A
|  |  |  |  |  | $ | 949,312 |  |  | $ | 1,060,074 |
_______________ (1)Investments with deficit balances aggregating approximately $50.5 million and $33.5 million at September 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)In conjunction with the execution of the mortgage loan signed on September 30, 2025 (described below), Podium Venture LLC and Office Venture LLC were created for structuring purposes and did not change any of the partner rights previously held by the partners of Podium Developer LLC or Office Tower Developer LLC, respectively. (4)This investment includes net equity balances from the amenity joint venture. (5)During the three months ended September 30, 2025, the Company recognized an other-than-temporary impairment loss on its investment. (6)On September 17, 2025, the joint venture completed the sale of Beach Cities Media Campus, a land parcel, located in El Segundo, California. (7)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. (8)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. (9)This entity is a VIE (See Note 2). (10)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 and accrue 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:
| September 30, 2025 |  | December 31, 2024
| (in thousands)
ASSETS |  |  |
Real estate and development in process, net (1) | $ | 5,781,519 |  |  | $ | 5,748,198 |
Other assets (2) | 708,615 |  |  | 703,096 |
Total assets | $ | 6,490,134 |  |  | $ | 6,451,294 |
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY |  |  |
Mortgage and notes payable, net | $ | 3,186,295 |  |  | $ | 3,206,723 |
Other liabilities (3) | 252,689 |  |  | 292,125 |
Members’/Partners’ equity | 3,051,150 |  |  | 2,952,446 |
Total liabilities and members’/partners’ equity | $ | 6,490,134 |  |  | $ | 6,451,294 |
Company’s share of equity | $ | 1,365,565 |  |  | $ | 1,344,543 |
Basis differentials (4) | (416,253) |  |  | (284,469) |
Carrying value of the Company’s investments in unconsolidated joint ventures (5) | $ | 949,312 |  |  | $ | 1,060,074 |
_______________ (1)At September 30, 2025 and December 31, 2024, this amount included right of use assets - operating leases totaling approximately $18.1 million and $19.0 million, respectively. (2)At September 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 September 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 thee months ended September 30, 2025, the Company recognized an other-than-temporary impairment loss on its investment in Gateway Commons of approximately $145.1 million. 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:
| September 30, 2025 |  | December 31, 2024
Property | (in thousands)
Colorado Center | $ | 130,440 |  |  | $ | 127,632 |
200 Fifth Avenue | 48,864 |  |  | 49,656 |
Gateway Commons | (216,170) |  |  | (74,500) |
Safeco Plaza | (73,275) |  |  | (75,576) |
Dock 72 | (89,347) |  |  | (92,054) |
360 Park Avenue South | (111,025) |  |  | (113,265) |
Platform 16 | (142,666) |  |  | (142,698) |
Other basis differentials | 36,926 |  |  | 36,336 |
Total basis differentials | $ | (416,253) |  |  | $ | (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 $50.5 million and $33.5 million at September 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 September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
| (in thousands)
Total revenue (1) | $ | 128,190 |  |  | $ | 128,435 |  |  | $ | 384,309 |  |  | $ | 378,981 |  |  |
Expenses |  |  |  |  |  |  |  |  |
Operating | 56,578 |  |  | 53,280 |  |  | 165,497 |  |  | 148,929 |  |  |
Transaction costs | 2 |  |  | 53 |  |  | 173 |  |  | 61 |  |  |
Depreciation and amortization | 45,409 |  |  | 41,082 |  |  | 131,940 |  |  | 118,901 |  |  |
Total expenses | 101,989 |  |  | 94,415 |  |  | 297,610 |  |  | 267,891 |  |  |
Other income (expense) |  |  |  |  |  |  |  |  |
Loss from early extinguishment of debt | — |  |  | — |  |  | (62) |  |  | — |  |  |
Interest expense | (47,202) |  |  | (45,244) |  |  | (136,738) |  |  | (132,106) |  |  |
Unrealized loss on derivative instruments | (1,403) |  |  | (19,172) |  |  | (14,632) |  |  | (8,212) |  |  |
Gain on sale of real estate (2) | 4,762 |  |  | — |  |  | 4,762 |  |  | — |  |  |
Net loss | $ | (17,642) |  |  | $ | (30,396) |  |  | $ | (59,971) |  |  | $ | (29,228) |  |  |
Company’s share of net loss (2) | $ | (6,613) |  |  | $ | (9,319) |  |  | $ | (20,099) |  |  | $ | (9,105) |  |  |
Gain on sale / consolidation (3) | — |  |  | — |  |  | — |  |  | 21,696 |  |  |
Impairment loss on investment (4) | (145,133) |  |  | — |  |  | (145,133) |  |  | — |  |  |
Basis differential (2)(5) | 3,417 |  |  | 2,308 |  |  | 11,440 |  |  | (6,215) |  |  |
Income (loss) from unconsolidated joint ventures | $ | (148,329) |  |  | $ | (7,011) |  |  | $ | (153,792) |  |  | $ | 6,376 |  |  |
_______________ (1)Includes straight-line rent adjustments of approximately $3.7 million and $2.6 million for the three months ended September 30, 2025 and 2024, respectively, and approximately $12.4 million and $16.5 million for the nine months ended September 30, 2025 and 2024, respectively. (2)During the three and nine months ended September 30, 2025, the joint venture recorded a gain on sale of real estate related to the Beach Cities Media Campus. As a result of the historical basis difference, the Company recognized a gain on sale of real estate totaling approximately $2.2 million, which consists of its share of the gain on sale reported by the joint venture as well as an adjustment for a basis differential. (3)During the nine months ended September 30, 2024, the Company acquired its joint venture partner’s 50% economic interest in 901 New York Avenue. (4)During the three and nine months ended September 30, 2025, the Company recognized an other-than-temporary impairment loss on its investment in Gateway Commons of approximately $145.1 million. (5)Includes depreciation and amortization of approximately $(3.1) million and $3.9 million for the three months ended September 30, 2025 and 2024, respectively, and approximately $(7.4) million and $6.8 million for the nine months ended September 30, 2025 and 2024, respectively. Includes unrealized losses on derivative instruments of approximately $0.4 million and $5.1 million for the three months ended September 30, 2025 and 2024, respectively, and approximately $3.9 million and $4.9 million for the nine months ended September 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 nine months ended September 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% ownership 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 September 30, 2025, the Company has funded approximately $11.9 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). On August 7, 2025, a joint venture in which the Company has a 71.11% ownership interest completed and fully placed in-service 360 Park Avenue South, a 20-story office building with ground floor retail located in New York City, New York, aggregating approximately 450,000 net rentable square feet. On August 20, 2025, two joint ventures in which the Company has a 50% ownership interest, each extended the maturity dates of their respective construction loans which were secured by the 100 Causeway Street and Hub on Causeway - Podium properties, to October 20, 2025 and October 23, 2025, respectively. Subsequently, on September 30, 2025, they entered into a new $465.0 million mortgage loan secured by the two properties. The new loan is scheduled to mature on April 9, 2031, bears interest at a weighted average fixed rate of 5.733% per annum, and requires monthly interest only payments. The proceeds from the new loan and available cash were used to repay the existing $490.0 million construction loans secured by the properties. 100 Causeway Street and Hub on Causeway - Podium are office properties with approximately 634,000 and 383,000 net rentable square feet, respectively, located in Boston, Massachusetts. On September 17, 2025, a joint venture in which the Company has a 50% ownership interest, completed the sale of Beach Cities Media Campus, a land parcel located in El Segundo, California, for a gross sale price of approximately $56.0 million. Net cash proceeds totaled approximately $53.1 million, of which BXP received approximately $26.6 million. The joint venture recognized a gain on sale of real estate totaling approximately $4.8 million of which the Company’s share was approximately $2.2 million. Impairment The Company’s investments in unconsolidated joint ventures are reviewed for indicators of impairment on a quarterly basis and the Company records impairment charges when events or circumstances indicate that a decline in the fair values below the carrying amounts has occurred and such decline is other-than-temporary. During the three months ended September 30, 2025, the Company evaluated key indicators related to certain investments in unconsolidated joint ventures, including strategic initiatives outlined in the Company’s September 8, 2025 Investor Day which include the sale of non-strategic assets, changes in cash flows, declining market conditions and leasing activities, continued actual and projected operating deficits and receipts and considerations of third-party joint venture property appraisals. Such evaluation of key impairment indicators resulted in the Company determining that the decline in value for the joint venture that owns Gateway Commons was other-than-temporary and therefore, the Company recorded an impairment charge of approximately $145.1 million during the three and nine months ended September 30, 2025. The Company determined the fair value of the investment was categorized within Level 3 of the fair value hierarchy as it utilized significant unobservable inputs in its assessment including broker opinions of value and discounted cash flows. The Company’s exit capitalization and discount rate ranges used to estimate fair value in its discounted cash flows models were 6.5% -7.5% and 10.0% - 11.0%, respectively.

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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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