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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings As of September 30, 2021, the Company and the Operating Partnership were not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against us or our portfolio which if adversely determined could have a material adverse impact on us. In September 2021, the Company acquired the fee position in 1591-1597 Broadway. A third party has asserted ownership rights to the fee, which the Company is contesting. See Note 3, "Property Acquisitions." On October 31, 2021, HNA, through an affiliated entity, filed for Chapter 11 bankruptcy protection on account of its investment in 245 Park Avenue, together with another asset in Chicago. The Company will be contesting the filing, on the basis that the filing was done in bad faith and in violation of HNA's agreements with the Company. See Note 5, "Debt and Preferred Equity Investments." Environmental Matters Our management believes that the properties are in compliance in all material respects with applicable federal, state and local ordinances and regulations regarding environmental issues. Management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position, results of operations or cash flows. Management is unaware of any instances in which it would incur significant environmental cost if any of our properties were sold. Lease Arrangements We are a tenant under leases for certain properties, including ground leases. These leases have expirations from 2022 to 2119, or 2043 to 2119 as fully extended. Certain leases offer extension options which we assess against relevant economic factors to determine whether we are reasonably certain of exercising or not exercising the option. Lease payments associated with renewal periods that we are reasonably certain will be exercised, if any, are included in the measurement of the corresponding lease liability and right of use asset. Certain of our leases are subject to rent resets, generally based on a percentage of the then fair market value, a fixed amount, or a percentage of the preceding rent at specified future dates. Rent resets will be recognized in the periods in which they are incurred. The table below summarizes our current lease arrangements as of September 30, 2021:
Property (1) |  | Year of Current Expiration |  | Year of Final Expiration (2)
1185 Avenue of the Americas |  | 2043 |  | 2043
SL Green Headquarters at One Vanderbilt (3) |  | 2043 |  | 2048
625 Madison Avenue |  | 2022 |  | 2054
420 Lexington Avenue |  | 2050 |  | 2080
885 Third Avenue |  | 2080 |  | 2080
711 Third Avenue (4) |  | 2033 |  | 2083
1080 Amsterdam Avenue (5) |  | 2111 |  | 2111
15 Beekman (6)(7) |  | 2119 |  | 2119
(1)All leases are classified as operating leases unless otherwise specified. (2)Reflects exercise of all available extension options. (3)In March 2021, the Company commenced its lease for its corporate headquarters at One Vanderbilt. See note 10, "Related Party Transactions." (4)The Company owns 50% of the fee interest. (5)A portion of the lease is classified as a financing lease. (6)The Company has an option to purchase the ground lease for a fixed price on a specific date. The lease is classified as a financing lease. (7)In August 2020, the Company entered into a long-term sublease with an unconsolidated joint venture as part of the capitalization of the 15 Beekman development project. See Note 6, "Investments in Unconsolidated Joint Ventures." The following is a schedule of future minimum lease payments as evaluated in accordance with ASC 842 for our financing leases and operating leases with initial terms in excess of one year as of September 30, 2021 (in thousands):
| Financing leases |  | Operating leases
Remaining 2021 | $ | 871 |  |  | $ | 7,324 |
2022 | 3,522 |  |  | 29,386 |
2023 | 3,570 |  |  | 29,502 |
2024 | 3,641 |  |  | 30,545 |
2025 | 3,810 |  |  | 30,772 |
2026 | 3,858 |  |  | 30,911 |
Thereafter | 256,692 |  |  | 631,532 |
Total minimum lease payments | $ | 275,964 |  |  | $ | 789,972 |
Amount representing interest | (150,796) |  |  | — |
Amount discounted using incremental borrowing rate | — |  |  | (352,615) |
Lease liabilities | $ | 125,168 |  |  | $ | 437,357 |
The following table provides lease cost information for the Company's operating leases for the three and nine months ended September 30, 2021 and 2020 (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Operating Lease Costs |  | 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease costs before capitalized operating lease costs |  | $ | 7,567 |  |  | $ | 7,751 |  |  | $ | 22,702 |  |  | $ | 24,486 |
Operating lease costs capitalized |  | (1,010) |  |  | (778) |  |  | (2,699) |  |  | (2,315) |
Operating lease costs, net (1) |  | $ | 6,557 |  |  | $ | 6,973 |  |  | $ | 20,003 |  |  | $ | 22,171 |
(1)This amount is included in operating lease rent in our consolidated statements of operations. The following table provides lease cost information for the Company's financing leases for the three and nine months ended September 30, 2021 and 2020 (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Financing Lease Costs |  | 2021 |  | 2020 |  | 2021 |  | 2020
Interest on financing leases before capitalized interest |  | $ | 1,229 |  |  | $ | 2,198 |  |  | $ | 4,215 |  |  | $ | 6,010 |
Interest on financing leases capitalized |  | — |  |  | (588) |  |  | — |  |  | (2,378) |
Interest on financing leases, net (1) |  | 1,229 |  |  | 1,610 |  |  | 4,215 |  |  | 3,632 |
Amortization of right-of-use assets (2) |  | 180 |  |  | 304 |  |  | 540 |  |  | 914 |
Financing lease costs, net |  | $ | 1,409 |  |  | $ | 1,914 |  |  | $ | 4,755 |  |  | $ | 4,546 |
(1)These amounts are included in interest expense, net of interest income in our consolidated statements of operations. (2)These amounts are included in depreciation and amortization in our consolidated statements of operations. As of September 30, 2021, the weighted-average discount rate used to calculate the lease liabilities was 4.59%. As of September 30, 2021, the weighted-average remaining lease term was 28 years, inclusive of purchase options expected to be exercised.

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