XML 25 R13.htm IDEA: XBRL DOCUMENT
v3.24.3

Investments in Unconsolidated Real Estate Ventures | 9 Months Ended
--- | ---
Sep. 30, 2024
Investments in Unconsolidated Real Estate Ventures. |
Investments in Unconsolidated Real Estate Ventures | 4.Investments in Unconsolidated Real Estate Ventures The following is a summary of the composition of our investments in unconsolidated real estate ventures:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Effective | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Ownership | ​ | ​ | ​ | ​ | ​ | ​
Real Estate Venture |  | Interest (1) |  | September 30, 2024 |  | December 31, 2023
​ | ​ | ​ | ​ | (In thousands)
J.P. Morgan Global Alternatives ("J.P. Morgan") (2) | ​ | 50.0% | ​ | $ | 73,978 | ​ | $ | 72,742
4747 Bethesda Venture | ​ | 20.0% | ​ | ​ | 11,208 | ​ | ​ | 13,118
Brandywine Realty Trust |  | 30.0% | ​ |  | 13,781 | ​ |  | 13,681
Prudential Global Investment Management ("PGIM") (3) |  | 50.0% | ​ | ​ | 664 | ​ | ​ | 163,375
Landmark Partners (4) |  | 18.0% | ​ |  | 560 | ​ |  | 605
CBREI Venture (5) |  | 10.0% | ​ |  | 175 | ​ |  | 180
Other |  | ​ | ​ |  | 316 | ​ | ​ | 580
Total investments in unconsolidated real estate ventures (6) (7) | ​ | ​ | ​ | $ | 100,682 | ​ | $ | 264,281
(1) | Reflects our effective ownership interests as of September 30, 2024. We have multiple investments with certain venture partners in the underlying real estate.
(2) | J.P. Morgan is the advisor for an institutional investor.
(3) | In February 2024, the venture sold its interest in Central Place Tower for a gross sales price of $325.0 million.
(4) | Excludes the L'Enfant Plaza Assets for which we have a zero-investment balance and discontinued applying the equity method of accounting after September 30, 2022. In October 2024, the lender foreclosed on the mortgage loan secured by the L’Enfant Plaza Assets and took possession of the properties.
(5) | Excludes The Foundry for which we had a zero-investment balance and discontinued applying the equity method of accounting after September 30, 2023. In April 2024, the lender foreclosed on the mortgage loan secured by The Foundry and took possession of the property.
(6) | Excludes (i) 10.0% subordinated interest in one commercial building, (ii) the Fortress Assets, (iii) the L'Enfant Plaza Assets and (iv) The Foundry. See Note 1 for more information. Also, excludes our interest in an investment in the real estate venture that owns 1101 17th Street for which we have discontinued applying the equity method of accounting since June 30, 2018 because we received distributions in excess of our contributions and share of earnings, which reduced our investment to zero; further, we are not obligated to provide for losses, have not guaranteed its obligations or otherwise committed to provide financial support.
(7) | As of September 30, 2024 and December 31, 2023, our total investments in unconsolidated real estate ventures were greater than our share of the net book value of the underlying assets by $10.3 million and $8.7 million, resulting principally from our zero-investment balance in certain real estate ventures and capitalized interest.
We provide leasing, property management and other real estate services to our unconsolidated real estate ventures. We recognized revenue, including expense reimbursements, of $4.4 million and $13.0 million for the three and nine months ended September 30, 2024, and $5.4 million and $16.3 million for the three and nine months ended September 30, 2023, for such services. The following is a summary of disposition activity by our unconsolidated real estate ventures: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Proportionate
​ | ​ | Real Estate | ​ | ​ | ​ | ​ | ​ | Gross | ​ | Share of
​ | ​ | Venture | ​ | ​ | ​ | Ownership | ​ | Sales | ​ | Aggregate
Date Disposed |  | Partner | ​ | Assets | ​ | Percentage |  | Price | ​ | Gain (1)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (In thousands)
February 13, 2024 | ​ | PGIM | ​ | Central Place Tower | ​ | 50.0% | ​ | $ | 325,000 | ​ | $ | 480
(1) | Additionally, we recognized $1.4 million related to certain previously recorded contingent liabilities, which were relieved in connection with the sale and included in "Gain on the sale of real estate, net" in our statement of operations.
The following is a summary of the debt of our unconsolidated real estate ventures: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Weighted | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Average Effective | ​ | ​
​ |  | Interest Rate (1) |  | September 30, 2024 |  | December 31, 2023
​ | ​ | ​ | ​ | (In thousands)
Variable rate (2) |  | 5.73% | ​ | $ | 175,000 | ​ | $ | 175,000
Fixed rate (3) |  | 4.13% | ​ |  | 60,000 | ​ |  | 60,000
Mortgage loans (4) | ​ | ​ | ​ |  | 235,000 | ​ |  | 235,000
Unamortized deferred financing costs and premium / discount, net | ​ | ​ | ​ |  | (6,480) | ​ |  | (8,531)
Mortgage loans, net (4) (5) | ​ | ​ | ​ | $ | 228,520 | ​ | $ | 226,469
(1) | Weighted average effective interest rate as of September 30, 2024.
(2) | Includes variable rate mortgage loans with interest rate cap agreements.
(3) | Includes variable rate mortgage loans with interest rates fixed by interest rate swap agreements.
(4) | Excludes mortgage loans related to the Fortress Assets, the L'Enfant Plaza Assets and The Foundry. In April 2024, the lender foreclosed on the mortgage loan secured by The Foundry and took possession of the property. In October 2024, the lender foreclosed on the mortgage loan secured by the L’Enfant Plaza Assets and took possession of the properties.
(5) | See Note 17 for additional information on guarantees of the debt of certain of our unconsolidated real estate ventures.
The following is a summary of financial information for our unconsolidated real estate ventures:
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2024 |  | December 31, 2023
​ |  | (In thousands)
Combined balance sheet information: (1) | ​ | ​ | ​ | ​ | ​ | ​
Real estate, net | ​ | $ | 447,747 | ​ | $ | 729,791
Other assets, net | ​ |  | 64,955 | ​ |  | 137,771
Total assets | ​ | $ | 512,702 | ​ | $ | 867,562
​ | ​ | ​ | ​ | ​ | ​ | ​
Mortgage loans, net | ​ | $ | 228,520 | ​ | $ | 226,469
Other liabilities, net | ​ |  | 26,538 | ​ |  | 47,251
Total liabilities | ​ |  | 255,058 | ​ |  | 273,720
Total equity | ​ |  | 257,644 | ​ |  | 593,842
Total liabilities and equity | ​ | $ | 512,702 | ​ | $ | 867,562
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30,
​ |  | 2024 |  | 2023 | ​ | 2024 |  | 2023
​ |  | (In thousands)
Combined income statement information: (1) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total revenue | ​ | $ | 7,903 | ​ | $ | 23,570 | ​ | $ | 29,097 | ​ | $ | 68,555
Operating income (loss) (2) | ​ | ​ | 776 | ​ | ​ | (20,584) | ​ |  | 6,714 | ​ |  | (13,005)
Net loss (2) | ​ | ​ | (3,226) | ​ | ​ | (27,622) | ​ |  | (5,093) | ​ |  | (31,557)
(1) | Excludes amounts related to the Fortress Assets and the L'Enfant Plaza Assets. Excludes combined balance sheet information for both periods presented and combined income statement information for the three and nine months ended September 30, 2024 related to The Foundry as we discontinued applying the equity method of accounting after September 30, 2023.
(2) | Includes the gain on the sale of Central Place Tower of $894,000 for the nine months ended September 30, 2024. Includes the gain on the sale of Stonebridge at Potomac Town Center of $4.6 million for the three and nine months ended September 30, 2023. Includes an impairment loss of $30.1 million for the three and nine months ended September 30, 2023.

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