Investments in and Advances to Unconsolidated Affiliates

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investments in and Advances to Unconsolidated Affiliates

4. Investments in and Advances to Unconsolidated Affiliates

The Company accounts for its investments in and advances to unconsolidated affiliates primarily under the equity method of accounting. The Company’s investments in and advances to unconsolidated affiliates consist of the following (dollars in thousands):


		Ownership Interest	March 31,		December 31,
Portfolio	Property	March 31, 2024	2024		2023

Core:	Renaissance Portfolio	20%	$	30,552	$	30,745
	Gotham Plaza	49%		30,650		30,772
	Georgetown Portfolio (a)	50%		4,235		4,230
	1238 Wisconsin Avenue (a, b)	80%		19,346		19,719
	840 N. Michigan Avenue (c)	91.85%		18,964		15,761
				103,747		101,227

Fund IV:	Fund IV Other Portfolio	90%		4,924		5,221
	650 Bald Hill Road	90%		9,438		9,486
	Paramus Plaza	50%		—		70
				14,362		14,777

Fund V:	Family Center at Riverdale (c)	89.42%		2,260		2,552
	Tri-City Plaza	90%		6,094		6,452
	Frederick County Acquisitions	90%		12,560		11,345
	Wood Ridge Plaza	90%		10,475		10,313
	La Frontera Village	90%		16,574		17,483
	Shoppes at South Hills	90%		10,684		11,707
	Mohawk Commons	90%		15,669		16,434
				74,316		76,286

Various:	Due from (to) Related Parties			1,764		396
	Other (d)			4,513		4,554
	Investments in and advances to unconsolidated affiliates		$	198,702	$	197,240

Core:	Crossroads (e)	49%	$	7,680	$	7,982

Fund IV:	Paramus Plaza (e)	50%		178		—
	Distributions in excess of income from, and investments in, unconsolidated affiliates		$	7,858	$	7,982

(a)

Represents a variable interest entity (“VIE”) for which the Company is not the primary beneficiary (Note 15).

(b)

Includes the amounts advanced against a $12.8 million construction commitment from the Company to the venture that holds its investment in 1238 Wisconsin. As of March 31, 2024 and December 31, 2023 the note receivable from a related party had a balance of $12.8 million, net of an allowance for credit losses of $0.1 million, as of each period. The loan is collateralized by the venture members' equity interest in the entity that holds the 1238 Wisconsin development property, bears interest at Prime + 1.0% subject to a 4.5% floor and matures on December 28, 2024.

(c)

Represents a tenancy-in-common interest.

(d)

Includes cost-method investments in Fifth Wall.

(e)

Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may elect to contribute capital to the entity.

Fees from Unconsolidated Affiliates

The Company earned property management, construction, development, legal and leasing fees from its investments in unconsolidated affiliates totaling $0.1 million for each of the three months ended March 31, 2024 and 2023, which are included in Other revenues in the Condensed Consolidated Statements of Operations.

In addition, the Company's joint ventures paid third party fees of $1.1 million and $0.6 million for the three months ended March 31, 2024 and 2023, for leasing commissions, development, management, construction and overhead fees.

Summarized Financial Information of Unconsolidated Affiliates

The following combined and condensed balance sheets and statements of operations, in each period, summarize the financial information of the Company’s investments in unconsolidated affiliates that were held as of March 31, 2024, and accordingly exclude the results of any investments disposed of or consolidated prior to that date (in thousands):


	March 31,		December 31,
	2024		2023
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	720,004	$	723,411
Other assets		116,100		125,699
Total assets	$	836,104	$	849,110
Liabilities and partners’ equity:
Mortgage notes payable	$	659,692	$	662,552
Other liabilities		90,189		100,270
Partners’ equity		86,223		86,288
Total liabilities and partners’ equity	$	836,104	$	849,110

Company's share of accumulated equity	$	129,231	$	128,690
Basis differential		51,580		51,824
Deferred fees, net of portion related to the Company's interest		3,756		3,794
Amounts receivable/payable by the Company		1,764		396
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates		186,331		184,704
Investments carried at fair value or cost		4,513		4,554
Company's share of distributions in excess of income from and investments in unconsolidated affiliates		7,858		7,982
Investments in and advances to unconsolidated affiliates	$	198,702	$	197,240


	Three Months Ended March 31,
	2024			2023
Combined and Condensed Statements of Operations
Total revenues	$	28,004		$	28,218
Operating and other expenses		(9,986	)		(8,632	)
Interest expense		(10,414	)		(9,233	)
Depreciation and amortization		(11,666	)		(8,901	)
Gain on extinguishment of debt		1,158			—
Net (loss) gain attributable to unconsolidated affiliates	$	(2,904	)	$	1,452

Company’s share of equity in net (losses) earnings of unconsolidated affiliates	$	(68	)	$	276
Basis differential amortization		(244	)		(247	)
Company’s equity in (losses) earnings of unconsolidated affiliates	$	(312	)	$	29