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Investments in and Advances to Unconsolidated Affiliates | 6 Months Ended
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Jun. 30, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Investments in and Advances to Unconsolidated Affiliates | 4. Investments in and Advance s 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 |  | June 30, |  |  | December 31, |
Portfolio |  | Property |  | June 30, 2024 |  | 2024 |  |  | 2023 |
Core: |  | Renaissance Portfolio |  | 20% |  | $ | 30,203 |  |  | $ | 30,745 |
|  | Gotham Plaza |  | 49% |  |  | 30,616 |  |  |  | 30,772 |
|  | Georgetown Portfolio (a) |  | 50% |  |  | 4,211 |  |  |  | 4,230 |
|  | 1238 Wisconsin Avenue (a, b) |  | 80% |  |  | 19,169 |  |  |  | 19,719 |
|  | 840 N. Michigan Avenue (c) |  | 91.85% |  |  | 22,384 |  |  |  | 15,761 |
|  |  |  |  |  |  | 106,583 |  |  |  | 101,227 |
Investment Management: |  |  |  |  |  |  |  |  |  |
Fund IV: |  | Fund IV Other Portfolio |  | 90% |  |  | 5,510 |  |  |  | 5,221 |
|  | 650 Bald Hill Road |  | 90% |  |  | 9,767 |  |  |  | 9,486 |
|  | Paramus Plaza (d) |  | 50% |  |  | 4,133 |  |  |  | 70 |
|  |  |  |  |  |  | 19,410 |  |  |  | 14,777 |
Fund V: |  | Family Center at Riverdale (c) |  | 89.42% |  |  | 1,847 |  |  |  | 2,552 |
|  | Tri-City Plaza |  | 90% |  |  | 5,363 |  |  |  | 6,452 |
|  | Frederick County Acquisitions |  | 90% |  |  | 12,365 |  |  |  | 11,345 |
|  | Wood Ridge Plaza |  | 90% |  |  | 10,014 |  |  |  | 10,313 |
|  | La Frontera Village |  | 90% |  |  | 15,638 |  |  |  | 17,483 |
|  | Shoppes at South Hills |  | 90% |  |  | 10,426 |  |  |  | 11,707 |
|  | Mohawk Commons |  | 90% |  |  | 14,728 |  |  |  | 16,434 |
|  |  |  |  |  |  | 70,381 |  |  |  | 76,286 |
Other: |  | Shops at Grand |  | 5% |  |  | 2,441 |  |  |  | — |
Various: |  | Due from (to) Related Parties |  |  |  |  | 299 |  |  |  | 396 |
|  | Other (e) |  |  |  |  | 4,296 |  |  |  | 4,554 |
|  | Investments in and advances to unconsolidated affiliates |  |  |  | $ | 203,410 |  |  | $ | 197,240 |
Core: |  | Crossroads (f) |  | 49% |  | $ | 7,301 |  |  | $ | 7,982 |
|  | Distributions in excess of income from, and investments in, unconsolidated affiliates |  |  |  | $ | 7,301 |  |  | $ | 7,982 |
(a) Represents a variable interest entity (“VIE”) for which the Company is not the primary beneficia ry (Note 15). (b) Includes the amounts advanced against a $12.8 million construction commitment from the Company to the venture that holds its investm ent in 1238 Wisconsin. As of June 30, 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 $0.2 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) As of June 30, 2024, the investment balance relates to undistributed proceeds from the disposition of the property. These proceeds were distributed to Fund IV in July 2024. (e) Includes cost-method investments in Fifth Wall. (f) Distributions have exceeded the Company’s investment; however, the Company recognizes a liability balance as it may elect to contribute capital to the entity. During the six months ended June 30, 2024, the Company: • retained a 5% interest through an investment in a newly formed joint venture, Shops at Grand, which was fair valued at $2.4 million upon deconsolidation (Note 2); • through Fund IV, sold its investment in Paramus Plaza for $36.8 million and repaid the related $27.9 million mortgage loan. Fund IV recognized a gain of $4.1 million of which the Company’s proportionate share was $1.0 million; and • extended the maturity date on a property mortgage loan at Gotham Plaza to September 2, 2024, which had an outstanding balance of $17.1 million. Fees earned from and paid to Unconsolidated Affiliates The Company earned property management, construction, development, legal and leasing fees from its investments in unconsolidated affiliates totaling $0.3 million and $0.1 million for the three months ended June 30, 2024 and 2023, respectively, and $0.4 million and $0.2 for the six months ended June 30, 2024 and 2023, respectively, which are included in Other revenues in the Condensed Consolidated Statements of Operations. In addition, the Company’s unconsolidated joint ventures paid fees to affiliates of $1.1 million and $0.8 million for the three months ended June 30, 2024 and 2023, respectively, and $2.2 million and $1.6 million for the six months ended June 30, 2024 and 2023, respectively, 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 June 30, 2024 (in thousands):
|  | June 30, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
Combined and Condensed Balance Sheets |  |  |  |  |  |
Assets: |  |  |  |  |  |
Rental property, net |  | $ | 734,373 |  |  | $ | 723,411 |
Real estate under development |  |  | - |  |  |  | — |
Other assets |  |  | 128,786 |  |  |  | 125,699 |
Total assets |  | $ | 863,159 |  |  | $ | 849,110 |
Liabilities and partners’ equity: |  |  |  |  |  |
Mortgage notes payable |  | $ | 630,882 |  |  | $ | 662,552 |
Other liabilities |  |  | 89,409 |  |  |  | 100,270 |
Partners’ equity |  |  | 142,868 |  |  |  | 86,288 |
Total liabilities and partners’ equity |  | $ | 863,159 |  |  | $ | 849,110 |
Company's share of accumulated equity |  | $ | 136,176 |  |  | $ | 128,690 |
Basis differential |  |  | 51,336 |  |  |  | 51,824 |
Deferred fees, net of portion related to the Company's interest |  |  | 4,002 |  |  |  | 3,794 |
Amounts receivable/payable by the Company |  |  | 299 |  |  |  | 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 |  |  | 191,813 |  |  |  | 184,704 |
Investments carried at fair value or cost |  |  | 4,296 |  |  |  | 4,554 |
Company's share of distributions in excess of income from and investments in unconsolidated affiliates |  |  | 7,301 |  |  |  | 7,982 |
Investments in and advances to unconsolidated affiliates |  | $ | 203,410 |  |  | $ | 197,240 |
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Combined and Condensed Statements of Operations |  |  |  |  |  |  |  |  |  |  |  |
Total revenues |  | $ | 28,180 |  |  | $ | 28,667 |  |  | $ | 56,184 |  |  | $ | 56,885 |
Operating and other expenses |  |  | (10,149 | ) |  |  | (8,708 | ) |  |  | (20,135 | ) |  |  | (17,349 | )
Interest expense |  |  | (10,205 | ) |  |  | (9,901 | ) |  |  | (20,619 | ) |  |  | (19,134 | )
Depreciation and amortization |  |  | (10,129 | ) |  |  | (11,233 | ) |  |  | (21,795 | ) |  |  | (20,134 | )
Gain on extinguishment of debt |  |  | 853 |  |  |  | — |  |  |  | 2,011 |  |  |  | — |
Impairment of Investment |  |  | (288 | ) |  |  | — |  |  |  | (288 | ) |  |  | — |
Gain on disposition of property |  |  | 8,519 |  |  |  | — |  |  |  | 8,519 |  |  |  | — |
Net income (loss) attributable to unconsolidated affiliates |  | $ | 6,781 |  |  | $ | (1,175 | ) |  | $ | 3,877 |  |  | $ | 268 |
Company’s share of equity in net earnings (losses) of unconsolidated affiliates |  | $ | 4,724 |  |  | $ | (1,190 | ) |  | $ | 4,656 |  |  | $ | (914 | )
Basis differential amortization |  |  | (244 | ) |  |  | (247 | ) |  |  | (488 | ) |  |  | (494 | )
Company’s equity in earnings (losses) of unconsolidated affiliates |  | $ | 4,480 |  |  | $ | (1,437 | ) |  | $ | 4,168 |  |  | $ | (1,408 | )

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- Definition The entire disclosure for the information summarizing investments in and advances to majority-owned subsidiaries, other controlled companies, and other affiliates. It reflects specified information about ownership, financial results from, and financial position in such entities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column E)(Footnote 6)(b)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column E)(Footnote 6)(c)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column A)(Footnote 1)(b)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 + Details
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