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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 6 Months Ended
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Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract] |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 4. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES As of June 30, 2023, the Company held ownership interests in twelve unconsolidated real estate ventures, with a net aggregate investment balance of $589.2 million, which includes a negative investment balance in one unconsolidated real estate venture of $41.3 million, reflected within “Other liabilities” on the consolidated balance sheets. As of June 30, 2023, five of the real estate ventures owned properties that contained an aggregate of approximately 9.1 million net rentable square feet of office space; two real estate ventures owned 1.4 acres of land held for development; four real estate ventures owned 7.5 acres of land in active development; one real estate venture owned a mixed used tower comprised of 250 apartment units and 0.2 million net rentable square feet of office/retail space. The Company accounts for its interests in the unconsolidated real estate ventures, which range from 15% to 78%, using the equity method. Certain of the unconsolidated real estate ventures are subject to specified priority allocations of distributable cash. The Company earned management fees from the unconsolidated real estate ventures of $2.1 million for both the three months ended June 30, 2023 and 2022, and $4.2 million and $4.0 million for the six months ended June 30, 2023 and 2022, respectively. The Company earned leasing commissions from the unconsolidated real estate ventures of $0.8 million for both the three months ended June 30, 2023 and 2022, and $1.5 million and $1.1 million for the six months ended June 30, 2023 and 2022, respectively The Company had outstanding accounts receivable balances from the unconsolidated real estate ventures of $3.1 million and $2.9 million for both June 30, 2023 and December 31, 2022, respectively. The amounts reflected in the following tables (except for the Company’s share of equity in income) are based on the financial information of the individual unconsolidated real estate ventures. he following is a summary of the financial position of the unconsolidated real estate ventures in which the Company held interests as of June 30, 2023 and December 31, 2022 (in thousands):
| June 30, 2023 |  | December 31, 2022 |
Net property | $ | 2,262,891 |  |  | $ | 2,117,226 |  |
Other assets | 540,399 |  |  | 506,213 |  |
Other liabilities | 448,432 |  |  | 446,101 |  |
Debt, net | 1,335,323 |  |  | 1,198,213 |  |
Equity (a) | 1,019,535 |  |  | 979,125 |  |
(a)This amount does not include the effect of the basis difference between the Company’s historical cost basis and the basis recorded at the real estate venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from the impairment of investments, purchases of third-party interests in existing real estate ventures and upon the transfer of assets that were previously owned by the Company into a real estate venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the real estate venture level. The following is a summary of results of operations of the unconsolidated real estate ventures in which the Company held interests during the three and six-month periods ended June 30, 2023 and 2022 (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Revenue | $ | 59,067 |  |  | $ | 64,957 |  |  | $ | 116,953 |  |  | $ | 118,173 |
Operating expenses | (30,039) |  |  | (31,671) |  |  | (58,890) |  |  | (60,263) |
Interest expense, net | (18,287) |  |  | (11,663) |  |  | (34,178) |  |  | (19,132) |
Depreciation and amortization | (24,827) |  |  | (27,927) |  |  | (49,001) |  |  | (49,210) |
Net loss | $ | (14,086) |  |  | $ | (6,304) |  |  | $ | (25,116) |  |  | $ | (10,432) |
Ownership interest % | Various |  | Various |  | Various |  | Various
Company's share of net loss | $ | (7,528) |  |  | $ | (4,822) |  |  | $ | (13,652) |  |  | $ | (9,439) |
Basis adjustments and other | (70) |  |  | (159) |  |  | (113) |  |  | (105) |
Equity in loss of unconsolidated real estate ventures | $ | (7,598) |  |  | $ | (4,981) |  |  | $ | (13,765) |  |  | $ | (9,544) |
Commerce Square Venture The properties held by the Commerce Square Venture were encumbered by secured mortgage loans that were set to mature on April 5, 2023. The lender provided the venture with an extension of the maturity date of these loans until June 5, 2023. On June 2, 2023, the loans were refinanced through a new $220.0 million secured mortgage loan facility. The new loan bears an all-in fixed interest rate of 7.79% per annum and matures in June 2028. In connection with the refinancing, the Company contributed $46.5 million to the venture in exchange for an additional 8% equity interest in the venture. MAP Venture The MAP Venture owns 58 office properties that contain an aggregate of 3,924,783 square feet located in the Pennsylvania Suburbs, New Jersey/Delaware, Metropolitan Washington, D.C. and Richmond, Virginia (the “MAP Venture”). The MAP Venture leases the land parcels under the 58 office properties through a ground lease that extends through February 2115. The properties held by the MAP Venture are encumbered by a mortgage on the MAP Venture's leasehold interest in the buildings ("MAP Collateral") and the assignment of the related rents and leases and is nonrecourse to the Company. At June 30 2023, the mortgage balance is $181.0 million, and has a maturity date of August 1, 2023. On July 26, 2023, the lender provided the MAP Venture with an extension until October 1, 2023. The Company and its partner are actively working to recapitalize the MAP Venture and the mortgage debt prior to maturity, but there can be no assurances that the debt will be satisfied or additional extension options will be provided by the existing lender. At June 30, 2023, the Company's negative investment balance was $41.3 million. The Company has no obligation to fund additional equity to the MAP Venture.

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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 -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 2: 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 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 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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