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Investments in Unconsolidated Joint Ventures | 3 Months Ended
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Mar. 31, 2022
Equity Method Investments And Joint Ventures [Abstract] |
Investments in Unconsolidated Joint Ventures |
3. | Investments in Unconsolidated Joint Ventures
On February 24, 2022, a joint venture, in which we own a 9.2% interest, acquired a 26,000 square foot retail condominium at 1600 Broadway in Manhattan for $191,500,000. In connection with the acquisition, the joint venture obtained a 10-year, $98,000,000 interest-only loan that has a fixed rate of 3.45%. The property, which is located in the heart of Times Square, is 100% leased to Mars, Inc. for a 15-year term and serves as the New York flagship location for M&M’s World. We account for our investment in 1600 Broadway under the equity method of accounting from the date of acquisition. The following tables summarize our investments in unconsolidated joint ventures as of the dates thereof and the income or loss from these investments for the periods set forth below.
(Amounts in thousands) |  | Paramount |  |  | As of |
Our Share of Investments: |  | Ownership |  |  | March 31, 2022 |  |  | December 31, 2021 |
712 Fifth Avenue (1) |  | 50.0% |  |  | $ | - |  |  | $ | - |
Market Center |  | 67.0% |  |  |  | 193,462 |  |  |  | 185,344 |
55 Second Street (2) |  | 44.1% |  |  |  | 87,605 |  |  |  | 88,284 |
111 Sutter Street |  | 49.0% |  |  |  | 34,425 |  |  |  | 35,182 |
1600 Broadway (2)(3) |  | 9.2% |  |  |  | 9,753 |  |  |  | - |
60 Wall Street (2) |  | 5.0% |  |  |  | 19,253 |  |  |  | 19,230 |
One Steuart Lane (2) |  | 35.0% (4) |  |  |  | 75,159 |  |  |  | 76,428 |
Oder-Center, Germany (2) |  | 9.5% |  |  |  | 3,562 |  |  |  | 3,628 |
Investments in unconsolidated joint ventures |  |  | $ | 423,219 |  |  | $ | 408,096 |
(Amounts in thousands) | For the Three Months Ended March 31, |
Our Share of Net Income (Loss): | 2022 |  |  | 2021 |
712 Fifth Avenue (1) | $ | - |  |  | $ | - |
Market Center |  | (2,363 | ) |  |  | (4,130 | )
55 Second Street (2) |  | (679 | ) |  |  | (622 | )
111 Sutter Street |  | (778 | ) |  |  | (490 | )
1600 Broadway (2)(3) |  | (48 | ) |  |  | - |
60 Wall Street (2) |  | 12 |  |  |  | 17 |
One Steuart Lane (2) |  | (1,269 | ) |  |  | (93 | )
Oder-Center, Germany (2) |  | 12 |  |  |  | 2 |
Loss from unconsolidated joint ventures | $ | (5,113 | ) |  | $ | (5,316 | )
| (1) | At December 31, 2021, our basis in the joint venture that owns 712 Fifth Avenue was negative $14,329. Since we have no further obligation to fund additional capital to the joint venture, we no longer recognize our proportionate share of earnings from the joint venture. Instead, we recognize income only to the extent we receive cash distributions from the joint venture and recognize losses to the extent we make cash contributions to the joint venture. During the three months ended March 31, 2022, the joint venture had net losses of $1,166 of which our 50.0% share was $583. Accordingly, our basis in the joint venture, taking into account our share of losses, was negative $14,912 as of March 31, 2022. |
| (2) | As of March 31, 2022, the carrying amount of our investments in 55 Second Street, 1600 Broadway, 60 Wall Street, One Steuart Lane and Oder-Center is greater than our share of equity in these investments by $476, $722, $2,604, $720 and $4,536, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs. |
| (3) | Acquired on February 24, 2022. |
| (4) | Represents our consolidated Residential Development Fund’s (“RDF”) economic interest in One Steuart Lane, a for-sale residential condominium project. Our economic interest in One Steuart Lane (based on our 7.4% ownership interest in RDF) is 2.6%. |
The following tables provide the combined summarized financial information of our unconsolidated joint ventures as of the dates thereof and for the periods set forth below.
(Amounts in thousands) | As of |
Balance Sheets: | March 31, 2022 |  |  | December 31, 2021 |
Real estate, net | $ | 2,387,526 |  |  | $ | 2,246,152 |
Cash and cash equivalents and restricted cash |  | 224,149 |  |  |  | 216,910 |
Intangible assets, net |  | 85,553 |  |  |  | 58,590 |
For-sale residential condominium units (1) |  | 346,054 |  |  |  | 359,638 |
Other assets |  | 66,040 |  |  |  | 46,646 |
Total assets | $ | 3,109,322 |  |  | $ | 2,927,936 |
Notes and mortgages payable, net | $ | 1,870,635 |  |  | $ | 1,791,404 |
Intangible liabilities, net |  | 16,358 |  |  |  | 18,397 |
Other liabilities |  | 61,459 |  |  |  | 61,097 |
Total liabilities |  | 1,948,452 |  |  |  | 1,870,898 |
Equity |  | 1,160,870 |  |  |  | 1,057,038 |
Total liabilities and equity | $ | 3,109,322 |  |  | $ | 2,927,936 |
(Amounts in thousands) | For the Three Months Ended March 31, |
Income Statements: | 2022 |  |  | 2021 |
Revenues: |  |  |  |  |  |  |
Rental revenue | $ | 57,520 |  |  | $ | 56,528 |
Other income |  | 18,582 |  | (2) |  | 757 |
Total revenues |  | 76,102 |  |  |  | 57,285 |
Expenses: |  |  |  |  |  |  |
Operating |  | 42,508 |  | (2) |  | 25,110 |
Depreciation and amortization |  | 26,898 |  |  |  | 27,453 |
Total expenses |  | 69,406 |  |  |  | 52,563 |
Other income (expense): |  |  |  |  |  |  |
Interest and other loss |  | (42 | ) |  |  | (33 | )
Interest and debt expense |  | (17,598 | ) |  |  | (13,740 | )
Net loss before income taxes |  | (10,944 | ) |  |  | (9,051 | )
Income tax expense |  | (29 | ) |  |  | (16 | )
Net loss | $ | (10,973 | ) |  | $ | (9,067 | )
| (1) | Represents the cost of residential condominium units at One Steuart Lane that are available for sale. |
| (2) | Includes proceeds and cost of sales from the sale of residential condominium units at One Steuart Lane. |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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