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Investments in and Advances to Unconsolidated Affiliates (Tables)

3 Months Ended

Mar. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

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, 2025	2025		2024

Core:	Renaissance Portfolio (a)	68%	$	—	$	28,250
	Gotham Plaza	49%		30,509		30,561
	Georgetown Portfolio (b)	50%		4,141		4,214
	1238 Wisconsin Avenue (b, c)	80%		18,822		19,048
	840 N. Michigan Avenue (d, e)	94.35%		29,748		28,111
				83,220		110,184
Investment Management:
Fund IV: (i)	Fund IV Other Portfolio	90%		5,175		5,291
	650 Bald Hill Road	90%		9,166		9,220
				14,341		14,511

Fund V: (i)	Family Center at Riverdale (d)	89.42%		1,031		1,832
	Tri-City Plaza	90%		6,381		6,914
	Frederick County Acquisitions (f)	90%		5,245		4,375
	Wood Ridge Plaza	90%		8,827		9,313
	La Frontera Village	90%		12,503		13,389
	Shoppes at South Hills	90%		9,656		10,139
	Mohawk Commons	90%		11,076		12,350
				54,719		58,312

Other:	Shops at Grand	5%		2,437		2,452
	Walk at Highwoods Preserve	20%		2,141		2,279
	LINQ Promenade	15%		16,383		16,508
				20,961		21,239

Various:	Due (to) from Related Parties			757		446
	Other (g)			3,971		4,540
	Investments in and advances to unconsolidated affiliates		$	177,969	$	209,232

Core:	Crossroads (h)	49%	$	16,878	$	16,514
	Distributions in excess of income from, and investments in, unconsolidated affiliates		$	16,878	$	16,514

(a)

On January 23, 2025, the Company acquired an additional 48% economic ownership interest, and increased its existing 20% interest to 68%, in the Renaissance Portfolio primarily located in Washington D.C. Prior to the acquisition, the Company accounted for its 20% interest under the equity method of accounting. Due to the Company gaining a controlling financial interest as a result of this acquisition, the Company determined that the entity is a variable interest entity (“VIE”) for which the Company is the primary beneficiary, and it should consolidate its investment within its Core Portfolio effective January 23, 2025. Accordingly, the Company recognized a loss on change in control of $9.6 million (Note 2).

(b)

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

(c)

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, 2025 and December 31, 2024 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 $0.1 million as of March 31, 2025 and December 31, 2024. 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, 2027. The Company recognized interest income of $0.1 million for each of the three months ended March 31, 2025 and 2024, respectively, related to this note receivable.

(d)

Represents a tenancy-in-common interest.

(e)

In February 2025, the Company acquired an additional 2.5% interest in the 840 North Michigan Avenue venture increasing its ownership interest from 91.85% to 94.35%. The note receivable from the 840 North Michigan Avenue venture partners had a balance of $1.4 million and $2.3 million as of March 31, 2025 and December 31, 2024, respectively and matures in July 2025 (Note 3).

(f)

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.

(g)

Includes cost-method investment in Fifth Wall. The Company recorded an impairment charge of $0.1 million for the three months ended March 31, 2025, which is included in Realized and unrealized holding gains (losses) on investments and other in the Company’s condensed consolidated Statements of Operations.

(h)

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

(i)

The Company owns 23.12% and 20.10% in Funds IV and V, respectively (Note 1). For the ventures within these funds, the ownership interest percentage represents the Fund’s ownership interest and not the Company’s proportionate share.

Schedule of Condensed Balance Sheet

The following Combined and Condensed Balance Sheets and Statements of Operations, in each period, summarized the financial information of the Company’s investments in unconsolidated affiliates that were held as of March 31, 2025 (in thousands):


	March 31,		December 31,
	2025		2024
Combined and Condensed Balance Sheets
Assets:
Rental property, net	$	940,652	$	1,016,229
Other assets		139,686		162,713
Total assets	$	1,080,338	$	1,178,942
Liabilities and partners’ equity:
Mortgage notes payable	$	658,288	$	815,045
Other liabilities		133,015		140,743
Partners’ equity		289,035		223,154
Total liabilities and partners’ equity	$	1,080,338	$	1,178,942

Company's share of accumulated equity	$	142,566	$	131,793
Basis differential		9,154		50,851
Deferred fees, net of portion related to the Company's interest		4,697		5,400
Amounts receivable/payable by the Company		757		446
Investments in and advances to unconsolidated affiliates, net of Company's share of distributions in excess of income from and investments in unconsolidated affiliates		157,174		188,490
Investments carried at cost		3,917		4,228
Company's share of distributions in excess of income from and investments in unconsolidated affiliates		16,878		16,514
Investments in and advances to unconsolidated affiliates	$	177,969	$	209,232

Schedule of Condensed Income Statement


	Three Months Ended March 31,
	2025			2024
Combined and Condensed Statements of Operations
Total revenues	$	32,126		$	28,004
Operating and other expenses		(12,249	)		(9,986	)
Interest expense		(11,450	)		(10,414	)
Depreciation and amortization		(12,852	)		(11,666	)
Gain on extinguishment of debt (a)		971			1,158
Net loss attributable to unconsolidated affiliates	$	(3,454	)	$	(2,904	)

Company’s share of equity in net (losses) earnings of unconsolidated affiliates	$	(1,615	)	$	(68	)
Basis differential amortization		(98	)		(244	)
Company’s equity in losses of unconsolidated affiliates	$	(1,713	)	$	(312	)

(a)

Includes the gain on debt extinguishment related to the restructuring at 840 N. Michigan Avenue for the three months ended March 31, 2025 and 2024.