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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 9 Months Ended
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Sep. 30, 2025
Equity Method Investments and Joint Ventures [Abstract] |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 4. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES As of September 30, 2025, the Company held ownership interests in nine unconsolidated real estate ventures, with a net aggregate investment balance of $594.2 million. As of September 30, 2025, four of the real estate ventures owned properties (directly or through leasehold interests) that contained an aggregate of approximately 4.1 million net rentable square feet of office space; one of the real estate ventures directly owns one property with 341 rentable residential units; one of the real estate ventures directly owns a mixed use building featuring 0.2 million square feet of office space and 326 rentable residential units; two of the real estate ventures owned 1.4 acres of land held for development; and one of the real estate ventures owned land in active development. The Company accounts for its interests in the unconsolidated real estate ventures, which range, as of September 30, 2025, from 20% to 85%, using the equity method accounting. Certain of the unconsolidated real estate ventures are subject to specified priority allocations of distributable cash, including cash from operations and cash from capital events, such as sales of properties. The Company earned management fees from the unconsolidated real estate ventures of $1.2 million and $2.2 million for the three months ended September 30, 2025 and 2024, respectively, and $3.8 million and $5.9 million for the nine months ended September 30, 2025 and 2024, respectively. The Company earned leasing commissions from the unconsolidated real estate ventures of $0.8 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively, and $2.9 million and $1.7 million for the nine months ended September 30, 2025 and 2024, respectively. The Company had outstanding accounts receivable balances from the unconsolidated real estate ventures of $5.9 million and $5.0 million as of September 30, 2025 and December 31, 2024, 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. The following is a summary of the financial position of the unconsolidated real estate ventures in which the Company held interests as of September 30, 2025 and December 31, 2024 (in thousands):
| September 30, 2025 |  | December 31, 2024 |
Net property | $ | 1,653,934 |  |  | $ | 1,641,085 |  |
Other assets | 246,037 |  |  | 238,406 |  |
Other liabilities | 100,813 |  |  | 107,801 |  |
Debt, net | 760,249 |  |  | 752,325 |  |
Equity (a) | 1,038,909 |  |  | 1,019,365 |  |
(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 nine-month periods ended September 30, 2025 and 2024 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 (a) |  | 2024
Revenue | $ | 36,980 |  |  | $ | 33,058 |  |  | $ | 118,262 |  |  | $ | 122,951 |
Operating expenses | (18,222) |  |  | (13,680) |  |  | (51,179) |  |  | (63,985) |
Interest expense, net | (15,722) |  |  | (12,030) |  |  | (45,417) |  |  | (44,980) |
Depreciation and amortization | (17,216) |  |  | (14,518) |  |  | (49,486) |  |  | (54,499) |
Loss on property disposition | — |  |  | 490 |  |  | (474) |  |  | — |
Provision for impairment | — |  |  | (116,543) |  |  | — |  |  | (116,543) |
Net loss | $ | (14,180) |  |  | $ | (123,223) |  |  | $ | (28,294) |  |  | $ | (157,056) |
Ownership interest % | Various |  | Various |  | Various |  | Various
Company's share of net loss | $ | (18,281) |  |  | $ | (119,111) |  |  | $ | (43,821) |  |  | $ | (146,992) |
Other-than-temporary impairment | — |  |  | (6,833) |  |  | — |  |  | (6,833) |
Basis adjustments and other | 98 |  |  | 82 |  |  | 295 |  |  | (132) |
Equity in loss of unconsolidated real estate ventures | $ | (18,183) |  |  | $ | (125,862) |  |  | $ | (43,526) |  |  | $ | (153,957) |
(a)Excludes amounts related to the Herndon Innovation Center Metro Portfolio Venture, LLC and the New MAP Venture as the Company discontinued applying the equity method of accounting. The Company discontinued applying the equity method of accounting on the Herndon Innovation Center Metro Portfolio Venture, LLC after March 31, 2024 and had no further investments in Herndon Innovation Center as of December 31, 2024. As of June 30, 2024, the Company's investment in the New MAP Venture was zero. 3025 JFK Venture On October 22, 2025, the Company acquired all of its partner's preferred equity interest in the 3025 JFK Boulevard Venture ("3025 JFK"), located in Philadelphia, Pennsylvania for $70.5 million. As a result of the acquisition of the preferred equity interest, 3025 JFK is a wholly owned asset that will be consolidated in our fourth quarter results, and the Company assumed the existing $178.0 million secured construction loan that matures in July 2026.

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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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