v3.25.4

Investments in Unconsolidated Real Estate Ventures | 12 Months Ended
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Dec. 31, 2025
Investments in Unconsolidated Real Estate Ventures. |
Investments in Unconsolidated Real Estate Ventures | 5. Investments in Unconsolidated Real Estate Ventures The following table summarizes the composition of our investments in unconsolidated real estate ventures:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ ​ ​ | Effective | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Ownership | ​ | December 31,
Real Estate Venture | ​ ​ ​ | Interest (1) | ​ ​ ​ | 2025 | ​ ​ ​ | 2024
​ | ​ | ​ | ​ | (In thousands)
J.P. Morgan Global Alternatives ("J.P. Morgan") (2) | ​ | 50.0% | ​ | $ | 71,550 | ​ | $ | 74,188
Dulles View Venture | ​ | 60.0% | ​ | ​ | 18,536 | ​ | ​ | —
4747 Bethesda Venture (3) | ​ | 20.0% | ​ | ​ | 8,085 | ​ | ​ | 10,813
Brandywine Realty Trust |  | 30.0% | ​ |  | 6,968 | ​ |  | 6,954
Other |  | ​ | ​ |  | 572 | ​ | ​ | 1,699
Total investments in unconsolidated real estate ventures (4) (5) | ​ | ​ | ​ | $ | 105,711 | ​ | $ | 93,654
(1) | Reflects our effective ownership interests as of December 31, 2025. 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 March 2023, we sold an 80.0% interest in 4747 Bethesda Avenue to 4747 Bethesda Venture for a gross sales price of $196.0 million, representing a gross valuation of $245.0 million. In connection with the transaction, the real estate venture assumed the related $175.0 million mortgage loan.
(4) | Excludes our 10.0% subordinated interest in one commercial building and the Fortress Assets. See Note 1 for more information. Also, as of December 31, 2024, excluded our interest in an investment in the real estate venture that owned 1101 17th Street for which we had discontinued applying the equity method of accounting in 2018 as we had received cumulative distributions in excess of our cumulative contributions and share of earnings, which reduced our investment to zero; further, we were not obligated to provide for losses, had not guaranteed its obligations or otherwise committed to provide financial support. In September 2025, we acquired the remaining 45.0% interest in the unconsolidated real estate venture that owned 1101 17th Street, which was consolidated as of the date of acquisition. See Note 3 for additional information.
(5) | As of December 31, 2025 and 2024, our total investments in unconsolidated real estate ventures were greater than our share of the net book value of the underlying assets by $2.0 million and $10.6 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 $10.9 million, $16.3 million and $21.7 million for each of the three years in the period ended December 31, 2025. The following table summarizes disposition activity by our unconsolidated real estate ventures: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Mortgage | ​ | Proportionate
​ | ​ | ​ | ​ | ​ | ​ | Gross | ​ | Loans | ​ | Share of
​ | ​ | ​ | ​ | Ownership | ​ | Sales | ​ | Repaid by | ​ | Aggregate
Date Disposed | ​ ​ ​ | Assets | ​ | Percentage | ​ ​ ​ | Price | ​ | Venture | ​ | Gain (Loss) (1)
​ | ​ | ​ | ​ | ​ | ​ | (Dollars in thousands)
Year Ended December 31, 2025 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
November 25, 2025 | ​ | Development Parcel | ​ | 2.5% | ​ | $ | 13,000 | ​ | $ | — | ​ | $ | 93
​ | ​ | Other (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 1,500
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 1,593
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year Ended December 31, 2024 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
February 13, 2024 | ​ | Central Place Tower (3) | ​ | 50.0% | ​ | $ | 325,000 | ​ | $ | — | ​ | $ | 480
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Year Ended December 31, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
August 24, 2023 | ​ | Stonebridge at Potomac Town Center | ​ | 10.0% | ​ | $ | 172,500 | ​ | $ | 79,600 | ​ | $ | 641
November 14, 2023 | ​ | Rosslyn Gateway | ​ | 18.0% | ​ | ​ | 52,000 | ​ | ​ | 44,844 | ​ | ​ | (230)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 411
(1) | Included in "Loss from unconsolidated real estate ventures, net" in our consolidated statements of operations.
(2) | Related to a prior year disposition.
(3) | We also recognized $3.8 million related to certain previously recorded contingent liabilities, which were relieved in connection with the sale of Central Place Tower and included in "Gain (loss) on the sale of real estate, net" in our consolidated statement of operations for the year ended December 31, 2024.
Dulles View Venture In December 2025, we acquired Dulles View, a 354,378 square-foot asset comprising two commercial buildings in Herndon, Virginia, through a real estate venture, for $31.5 million of which our 60.0% share was $18.9 million. The following table summarizes the debt of our unconsolidated real estate ventures:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Weighted | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Average Effective | ​ | December 31,
​ | ​ ​ ​ | Interest Rate (1) | ​ ​ ​ | 2025 | ​ ​ ​ | 2024
​ | ​ | ​ | ​ | (In thousands)
Variable rate (2) |  | 5.04% | ​ | $ | 175,000 | ​ | $ | 175,000
Fixed rate (3) |  | — | ​ |  | — | ​ |  | 60,000
Mortgage loans | ​ | ​ | ​ |  | 175,000 | ​ |  | 235,000
Unamortized deferred financing costs and premium / discount, net | ​ | ​ | ​ |  | (3,084) | ​ |  | (5,795)
Mortgage loans, net (4) | ​ | ​ | ​ | $ | 171,916 | ​ | $ | 229,205
(1) | Weighted average effective interest rate as of December 31, 2025.
(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. The $60.0 million mortgage loan outstanding as of December 31, 2024 was assumed as part of our acquisition of the remaining 45.0% interest in the unconsolidated real estate venture that owned 1101 17th Street. See Note 3 for additional information.
(4) | Excludes mortgage loans related to the Fortress Assets. See Note 21 for additional information on guarantees of the debt of our unconsolidated real estate ventures.
The following tables summarize the financial information for our unconsolidated real estate ventures:
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31,
​ | ​ ​ ​ | 2025 | ​ ​ ​ | 2024
​ |  | (In thousands)
Combined balance sheet information: (1) | ​ | ​ | ​ | ​ | ​ | ​
Real estate, net | ​ | $ | 374,760 | ​ | $ | 424,170
Other assets, net | ​ |  | 56,566 | ​ |  | 64,478
Total assets | ​ | $ | 431,326 | ​ | $ | 488,648
​ | ​ | ​ | ​ | ​ | ​ | ​
Mortgage loans, net | ​ | $ | 171,916 | ​ | $ | 229,205
Other liabilities, net | ​ |  | 22,303 | ​ |  | 27,019
Total liabilities | ​ |  | 194,219 | ​ |  | 256,224
Total equity | ​ |  | 237,107 | ​ |  | 232,424
Total liabilities and equity | ​ | $ | 431,326 | ​ | $ | 488,648
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ | ​ ​ ​ | 2025 | ​ ​ ​ | 2024 | ​ ​ ​ | 2023
​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Combined income statement information: (1) (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total revenue | ​ | $ | 30,615 | ​ | $ | 37,219 | ​ | $ | 85,280
Operating income (loss) (3) (4) | ​ |  | (9,006) | ​ |  | (14,195) | ​ |  | (62,668)
Net loss (3) (4) | ​ |  | (24,033) | ​ |  | (30,041) | ​ |  | (85,551)
(1) | Excludes amounts related to one commercial building in which we have a 10.0% subordinated interest and the Fortress Assets.
(2) | Excludes amounts related to the L'Enfant Plaza assets as we discontinued applying the equity method of accounting in 2022. In October 2024, the lender foreclosed on the mortgage loan secured by the L’Enfant Plaza assets and took possession of the properties. Excludes combined income statement information for 2024 and the fourth quarter of 2023 related to The Foundry as we discontinued applying the equity method of accounting in 2023. In April 2024, the lender foreclosed on the mortgage loan secured by The Foundry and took possession of the property.
(3) | Includes the gain from the sale of various assets totaling $2.8 million, $894,000 and $3.0 million for each of the three years in the period ended December 31, 2025.
(4) | Includes impairment losses of $15.2 million, $22.5 million and $80.7 million for each of the three years in the period ended December 31, 2025. Our portion of impairment losses totaling $3.2 million, $6.7 million and $28.6 million were included in "Loss from unconsolidated real estate ventures, net" in our consolidated statements of operations for each of the three years in the period ended December 31, 2025.

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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/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
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