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Investments in and Advances to Unconsolidated Affiliates (Tables) | 9 Months Ended
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Sep. 30, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Schedule of Equity Method Investments | The Company’s investments in and advances to unconsolidated affiliates consist of the following (dollars in thousands):
|  |  |  | Ownership Interest |  | September 30, |  |  | December 31, |
Portfolio |  | Property |  | September 30, 2024 |  | 2024 |  |  | 2023 |
Core: |  | Renaissance Portfolio |  | 20% |  | $ | 29,121 |  |  | $ | 30,745 |
|  | Gotham Plaza |  | 49% |  |  | 30,605 |  |  |  | 30,772 |
|  | Georgetown Portfolio (a) |  | 50% |  |  | 4,201 |  |  |  | 4,230 |
|  | 1238 Wisconsin Avenue (a, b) |  | 80% |  |  | 19,020 |  |  |  | 19,719 |
|  | 840 N. Michigan Avenue (c) |  | 91.85% |  |  | 25,659 |  |  |  | 15,761 |
|  |  |  |  |  |  | 108,606 |  |  |  | 101,227 |
Investment Management: |  |  |  |  |  |  |  |  |  |
Fund IV: |  | Fund IV Other Portfolio |  | 90% |  |  | 5,435 |  |  |  | 5,221 |
|  | 650 Bald Hill Road |  | 90% |  |  | 9,234 |  |  |  | 9,486 |
|  | Paramus Plaza |  | 50% |  |  | — |  |  |  | 70 |
|  |  |  |  |  |  | 14,669 |  |  |  | 14,777 |
Fund V: |  | Family Center at Riverdale (c) |  | 89.42% |  |  | 1,163 |  |  |  | 2,552 |
|  | Tri-City Plaza |  | 90% |  |  | 4,747 |  |  |  | 6,452 |
|  | Frederick County Acquisitions (d) |  | 90% |  |  | 5,012 |  |  |  | 11,345 |
|  | Wood Ridge Plaza |  | 90% |  |  | 9,167 |  |  |  | 10,313 |
|  | La Frontera Village |  | 90% |  |  | 13,856 |  |  |  | 17,483 |
|  | Shoppes at South Hills |  | 90% |  |  | 10,355 |  |  |  | 11,707 |
|  | Mohawk Commons |  | 90% |  |  | 12,869 |  |  |  | 16,434 |
|  |  |  |  |  |  | 57,169 |  |  |  | 76,286 |
Other: |  | Shops at Grand |  | 5% |  |  | 2,449 |  |  |  | — |
Various: |  | Due (to) from Related Parties |  |  |  |  | 102 |  |  |  | 396 |
|  | Other (e) |  |  |  |  | 4,368 |  |  |  | 4,554 |
|  | Investments in and advances to unconsolidated affiliates |  |  |  | $ | 187,363 |  |  | $ | 197,240 |
Core: |  | Crossroads (f) |  | 49% |  | $ | 7,797 |  |  | $ | 7,982 |
|  | Distributions in excess of income from, and investments in, unconsolidated affiliates |  |  |  | $ | 7,797 |  |  | $ | 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 September 30, 2024 and December 31, 2023 the note receivable from a related party had a balance of $12.8 million, as of each period, net of an allowance for credit losses of $0.2 million and $0.1 million as of September 30, 2024 and December 31, 2023, respectively. 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) On September 25, 2024 the venture which Fund V holds a 90% interest in sold a 300,000 square foot property in Frederick County, Maryland commonly referred to as Frederick Crossing. Fund V maintains its 90% interest in the venture which retains its interest in the remaining property of the Frederick County Acquisitions portfolio, commonly referred to as Frederick County Square. (e) Includes cost-method investment 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 nine months ended September 30, 2024, the Company: • on May 16, 2024, sold a 95% interest in the Shops at Grand property for a total of $48.3 million and retained a 5% interest through an investment in a newly formed joint venture which had a fair value of $2.4 million upon deconsolidation (Note 2); • on June 28, 2024, through Fund IV, sold its investment in Paramus Plaza for $36.8 million and repaid the related $27.9 million mortgage loan. The venture recognized a gain of $8.5 million, of which Fund IV’s proportionate share was $4.1 million. The Company’s proportionate share was $1.0 million; • on September 25, 2024, through Fund V, sold its investment in Frederick Crossing for $47.2 million and repaid the related $23.2 million mortgage loan. The venture recognized a gain of $12.9 million, of which Fund V’s proportionate share was $11.6 million. The Company’s proportionate share was $2.3 million; and • on September 19, 2024, refinanced a $17.1 million property mortgage loan at Gotham Plaza with a new lender upon maturity. The new $28.0 million property mortgage loan bears interest at 5.9 % and matures in October 2034.
Schedule of Condensed Balance Sheet | 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 September 30, 2024 (in thousands):
|  | September 30, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
Combined and Condensed Balance Sheets |  |  |  |  |  |
Assets: |  |  |  |  |  |
Rental property, net |  | $ | 699,878 |  |  | $ | 723,411 |
Other assets |  |  | 124,846 |  |  |  | 125,699 |
Total assets |  | $ | 824,724 |  |  | $ | 849,110 |
Liabilities and partners’ equity: |  |  |  |  |  |
Mortgage notes payable |  | $ | 613,341 |  |  | $ | 662,552 |
Other liabilities |  |  | 94,608 |  |  |  | 100,270 |
Partners’ equity |  |  | 116,775 |  |  |  | 86,288 |
Total liabilities and partners’ equity |  | $ | 824,724 |  |  | $ | 849,110 |
Company's share of accumulated equity |  | $ | 119,790 |  |  | $ | 128,690 |
Basis differential |  |  | 51,092 |  |  |  | 51,824 |
Deferred fees, net of portion related to the Company's interest |  |  | 4,264 |  |  |  | 3,794 |
Amounts receivable/payable by the Company |  |  | 102 |  |  |  | 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 |  |  | 175,248 |  |  |  | 184,704 |
Investments carried at cost |  |  | 4,318 |  |  |  | 4,554 |
Company's share of distributions in excess of income from and investments in unconsolidated affiliates |  |  | 7,797 |  |  |  | 7,982 |
Investments in and advances to unconsolidated affiliates |  | $ | 187,363 |  |  | $ | 197,240 |
Schedule of Condensed Income Statement |
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Combined and Condensed Statements of Operations |  |  |  |  |  |  |  |  |  |  |  |
Total revenues |  | $ | 27,792 |  |  | $ | 24,490 |  |  | $ | 83,977 |  |  | $ | 81,375 |
Operating and other expenses |  |  | (9,488 | ) |  |  | (9,189 | ) |  |  | (29,624 | ) |  |  | (26,538 | )
Interest expense |  |  | (9,895 | ) |  |  | (10,742 | ) |  |  | (30,514 | ) |  |  | (29,877 | )
Depreciation and amortization |  |  | (10,266 | ) |  |  | (11,567 | ) |  |  | (32,062 | ) |  |  | (31,700 | )
Gain on extinguishment of debt |  |  | 952 |  |  |  | — |  |  |  | 2,963 |  |  |  | — |
Gain on disposition of properties |  |  | 12,849 |  |  |  | — |  |  |  | 21,368 |  |  |  | — |
Net income (loss) attributable to unconsolidated affiliates |  | $ | 11,944 |  |  | $ | (7,008 | ) |  | $ | 16,108 |  |  | $ | (6,740 | )
Company’s share of equity in net earnings (losses) of unconsolidated affiliates |  | $ | 12,028 |  |  | $ | (4,617 | ) |  | $ | 16,684 |  |  | $ | (5,531 | )
Basis differential amortization |  |  | (244 | ) |  |  | (248 | ) |  |  | (732 | ) |  |  | (742 | )
Company’s equity in earnings (losses) of unconsolidated affiliates |  | $ | 11,784 |  |  | $ | (4,865 | ) |  | $ | 15,952 |  |  | $ | (6,273 | )

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- Definition Tabular disclosure of condensed balance sheet, including, but not limited to, balance sheets of consolidated entities and consolidation eliminations. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name Regulation S-X (SX) -Number 210 -Section 12 -Subsection 04 -Paragraph a -Publisher SEC Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3 + Details
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- Definition Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 + Details
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