XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Investments in Unconsolidated Joint Ventures | 12 Months Ended
--- | ---
Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Joint Ventures | 5. Investments in Unconsolidated Joint Ventures On March 29, 2024, the joint venture that owns 60 Wall Street, in which we have a 5.0% ownership interest, modified the existing $575,000,000 non-recourse mortgage loan and extended the maturity to May 2029. In connection with the modification, the loan was split into (i) a $316,250,000 A-Note that bears interest at Term Secured Overnight Financing Rate (“SOFR”) plus 245 basis points, of which 4.0% is current pay and the remaining is accrued, and (ii) a $258,750,000 B-Note that accrues interest at 12.0%. The joint venture is redeveloping the property and all amounts funded by the joint venture will be senior to the B-Note and all accrued interest. On April 30, 2024, the joint venture that owns 111 Sutter Street, in which we have a 49.0% ownership interest, modified the existing $164,775,000 non-recourse mortgage loan to extend the maturity date to December 2025. The loan bears interest at a rate of SOFR plus 215 basis points and all interest shortfalls will continue to accrue to the principal balance of the loan. In August 2024, the joint venture that owns Market Center, in which we have a 67.0% ownership interest, ceased making debt service payments on the non-recourse mortgage loan due to insufficient property cash flows. In January 2025, the joint venture defaulted on the $416,544,000 mortgage loan, as it was not repaid at maturity. The joint venture is currently working with the lenders to sell the property. 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 December 31, |
Our Share of Investments: |  | Ownership |  | 2024 |  |  | 2023 |
712 Fifth Avenue (1) |  | 50.0% |  | $ | - |  |  | $ | - |
Market Center (1) |  | 67.0% |  |  | - |  |  |  | - |
55 Second Street (1) |  | 44.1% |  |  | - |  |  |  | 30,322 |
111 Sutter Street (1) |  | 49.0% |  |  | - |  |  |  | - |
1600 Broadway (2) |  | 9.2% |  |  | 8,161 |  |  |  | 8,646 |
60 Wall Street (3) |  | 5.0% |  |  | 1,212 |  |  |  | - |
One Steuart Lane (2) |  | 35.0% (4) |  |  | 76,579 |  |  |  | 89,949 |
Oder-Center, Germany |  | 9.5% |  |  | - |  |  |  | 3,322 |
Investments in unconsolidated joint ventures |  | $ | 85,952 |  |  | $ | 132,239 |
(Amounts in thousands) | For the Year Ended December 31, |  |
Our Share of Net (Loss) Income: | 2024 |  |  | 2023 |  |  | 2022 |  |
712 Fifth Avenue (1) | $ | - |  |  | $ | - |  |  | $ | - |  |
Market Center (1) |  | - |  |  |  | (161,514 | ) | (5) |  | (10,405 | ) |
55 Second Street (1) |  | (30,221 | ) | (6) |  | (55,018 | ) | (6) |  | (2,943 | ) |
111 Sutter Street (1) |  | - |  |  |  | - |  |  |  | (35,190 | ) | (7)
1600 Broadway (2) |  | 1 |  |  |  | - |  |  |  | (9 | ) |
60 Wall Street (3) |  | (1,525 | ) |  |  | (25,001 | ) |  |  | (89 | ) |
One Steuart Lane (2) |  | (11,577 | ) | (8) |  | (28,727 | ) | (8) |  | (4,696 | ) |
Oder-Center, Germany |  | (4,037 | ) | (9) |  | (38 | ) |  |  | 81 |  |
Loss from unconsolidated joint ventures | $ | (47,359 | ) |  | $ | (270,298 | ) |  | $ | (53,251 | ) |
(1) As of December 31, 2024, our basis in the joint ventures that own 712 Fifth Avenue, Market Center, 55 Second Street and 111 Sutter Street were negative. Since we have no further obligation to fund additional capital to these joint ventures, we have discontinued the equity method of accounting, and accordingly, we no longer recognize our proportionate share of earnings. Instead, we recognize income only to the extent we receive cash distributions from the joint ventures and recognize losses to the extent we make cash contributions to the joint ventures. (2) As of December 31, 2024, the carrying amount of our investments in 1600 Broadway and One Steuart Lane was greater than our share of equity in these investments by $299 and $511, respectively, and primarily represents the unamortized portion of our capitalized acquisition costs. (3) In the second quarter of 2023, the joint venture recognized a $455,893 real estate impairment loss. Accordingly, we recognized a $24,734 impairment loss on our investment in 60 Wall Street. This impairment, together with our share of operating losses recognized in that quarter, reduced our investment balance below zero as of June 30, 2023. As a result, in the second quarter of 2023, we discontinued the equity method of accounting. In the first quarter of 2024, the non-recourse mortgage loan was modified and the joint venture committed to fund the development costs related to the project. As a result, in the first quarter of 2024, we resumed the equity method of accounting and recognized all previously deferred losses. (4) Represents RDF’s 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%. (5) In the fourth quarter of 2023, the joint venture that owns Market Center recognized a $341,872 real estate impairment loss, of which our 67.0% share was $229,054. Given that our share of the real estate impairment loss together with our share of operating and other losses recognized in the fourth quarter brought the basis of our investment in the joint venture below zero, in accordance with GAAP, we were limited to recognizing $148,906 of the real estate impairment loss during the year ended December 31, 2023. (6) In the fourth quarter of 2023, the joint venture that owns 55 Second Street recognized a $119,279 real estate impairment loss, of which our share was $52,590. In the fourth quarter of 2024, the joint venture also recognized an additional $87,160 real estate impairment loss, of which our share was $38,429. Given that our share of the real estate impairment loss together with our share of operating and other losses recognized in the year brought the basis of our investment in the joint venture below zero, in accordance with GAAP, we were limited to recognizing $29,818 of the real estate impairment loss during the year ended December 31, 2024. (7) In the fourth quarter of 2022, the joint venture that owns 111 Sutter Street recognized a $64,663 real estate impairment loss, of which our share was $31,685. (8) In the third quarter of 2023, One Steuart Lane recognized $68,407 of impairment losses related to residential condominium units, of which RDF’s share was $23,942. In the fourth quarter of 2024, One Steuart Lane also recognized an additional $32,366 of impairment losses related to residential condominium units, of which RDF’s share was $11,328. (9) In the fourth quarter of 2024, we recorded an impairment loss on our investment in Oder-Center, Germany of $3,915. 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 December 31, |
Balance Sheets: | 2024 |  |  | 2023 |
Real estate, net | $ | 1,567,771 |  |  | $ | 1,528,595 |
Cash and cash equivalents and restricted cash |  | 154,669 |  |  |  | 167,355 |
Intangible assets, net |  | 42,672 |  |  |  | 52,164 |
For-sale residential condominium units (1) |  | 195,113 |  |  |  | 246,824 |
Deferred rent receivable |  | 42,128 |  |  |  | 35,448 |
Other assets |  | 26,813 |  |  |  | 48,731 |
Total assets | $ | 2,029,166 |  |  | $ | 2,079,117 |
Notes and mortgages payable, net | $ | 1,783,587 |  |  | $ | 1,744,706 |
Accounts payable and accrued expenses |  | 59,860 |  |  |  | 92,770 |
Intangible liabilities, net |  | 2,480 |  |  |  | 5,026 |
Other liabilities |  | 73,129 |  |  |  | 5,692 |
Total liabilities |  | 1,919,056 |  |  |  | 1,848,194 |
Equity |  | 110,110 |  |  |  | 230,923 |
Total liabilities and equity | $ | 2,029,166 |  |  | $ | 2,079,117 |
(Amounts in thousands) | For the Year Ended December 31, |  |
Income Statements: | 2024 |  |  | 2023 |  |  | 2022 |  |
Revenues: |  |  |  |  |  |  |  |  |
Rental revenue | $ | 138,390 |  |  | $ | 155,549 |  |  | $ | 194,031 |  |
Other income (2) |  | 34,782 |  |  |  | 11,234 |  |  |  | 65,850 |  |
Total revenues |  | 173,172 |  |  |  | 166,783 |  |  |  | 259,881 |  |
Expenses: |  |  |  |  |  |  |  |  |
Operating (2) |  | 138,121 |  | (3) |  | 169,826 |  | (3) |  | 152,313 |  |
Depreciation and amortization |  | 46,522 |  |  |  | 67,727 |  |  |  | 85,949 |  |
Total expenses |  | 184,643 |  |  |  | 237,553 |  |  |  | 238,262 |  |
Other income (expense): |  |  |  |  |  |  |  |  |
Interest and other income, net |  | 6,187 |  |  |  | 3,035 |  |  |  | 991 |  |
Interest and debt expense |  | (62,234 | ) |  |  | (73,485 | ) |  |  | (62,173 | ) |
Gain on settlement of interest rate swap |  | 2,498 |  |  |  | - |  |  |  | - |  |
Real estate impairment loss |  | (87,160 | ) | (4) |  | (917,044 | ) | (5) |  | (64,663 | ) | (6)
Loss before income taxes |  | (152,180 | ) |  |  | (1,058,264 | ) |  |  | (104,226 | ) |
Income tax expense |  | (26 | ) |  |  | (32 | ) |  |  | (60 | ) |
Net loss | $ | (152,206 | ) |  | $ | (1,058,296 | ) |  | $ | (104,286 | ) |
(1) Represents 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. (3) Includes impairment losses related to condominium units at One Steuart Lane of $32,366 and $68,407 in the years ended December 31, 2024 and 2023, respectively, of which RDF’s share was $11,328 and $23,942, respectively. See note 8 on page 84. (4) Represents real estate impairment losses related to 55 Second Street of which our share was $29,818. See note 6 on page 84. (5) Represents real estate impairment losses related to 60 Wall Street, Market Center and 55 Second Street of which our share was $24,734, $148,906 and $52,590, respectively. See notes 3, 5, and 6 on page 84. (6) Represents a real estate impairment loss on 111 Sutter Street, of which our share was $31,685. See note 7 on page 84.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration