v3.25.2
Investments in Unconsolidated Joint Ventures
 6 Months Ended
Jun. 30, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Investments In Unconsolidated Joint Ventures
5. Investments in Unconsolidated Joint Ventures
The investments in unconsolidated joint ventures consist of the following at June 30, 2025 and December 31, 2024:
 Carrying Value of Investment (1)
EntityPropertiesNominal % OwnershipJune 30, 2025December 31,
2024
(in thousands)
Square 407 Limited PartnershipMarket Square North50.00 %$(23,685)$(11,924)
WP Project Developer LLCWisconsin Place Land and Infrastructure33.33 %(2)29,534 29,775 
500 North Capitol Venture LLC500 North Capitol Street, NW30.00 %(12,486)(11,696)
501 K Street LLC1001 6th Street50.00 %45,837 45,903 
Podium Developer LLCThe Hub on Causeway - Podium50.00 %40,492 42,310 
Residential Tower Developer LLCHub50House50.00 %39,498 42,493 
Hotel Tower Developer LLCThe Hub on Causeway - Hotel Air Rights50.00 %14,662 14,271 
Office Tower Developer LLC100 Causeway Street50.00 %55,852 55,810 
1265 Main Office JV LLC1265 Main Street50.00 %3,340 3,476 
BNY Tower Holdings LLCDock 72 50.00 %(3)(11,961)(9,889)
CA-Colorado Center, LLCColorado Center50.00 %70,222 65,000 
7750 Wisconsin Avenue LLC 7750 Wisconsin Avenue 50.00 %48,072 48,423 
BP-M 3HB Venture LLC3 Hudson Boulevard25.00 %111,471 112,771 
Platform 16 Holdings LPPlatform 1655.00 %57,805 56,265 
Gateway Portfolio Holdings LLCGateway Commons50.00 %271,454 272,000 
Rosecrans-Sepulveda Partners 4, LLCBeach Cities Media Campus50.00 %27,068 27,051 
Safeco Plaza REIT LLCSafeco Plaza33.67 %(4)43 — 
360 PAS Holdco LLC360 Park Avenue South71.11 %(5)89,769 74,592 
PR II/BXP Reston Gateway LLCSkymark - Reston Next Residential20.00 %14,900 14,844 
751 Gateway Holdings LLC751 Gateway 49.00 %119,634 99,701 
200 Fifth Avenue JV LLC200 Fifth Avenue26.69 %74,446 70,673 
ABXP Worldgate Investments LLC13100 and 13150 Worldgate Drive50.00 %19,632 18,225 
CAB 290 Coles Venture LLC290 Coles Street - Common Equity19.46 %(6)19,625 N/A
CAB 290 Coles Holdco LLC290 Coles Street - Preferred Equity— %(6)(7)1,615 N/A
17 Hartwell Avenue JV LLC 17 Hartwell Avenue20.00 %(6)6,065 N/A
$1,112,904 $1,060,074 
 _______________
(1)Investments with deficit balances aggregating approximately $48.1 million and $33.5 million at June 30, 2025 and December 31, 2024, respectively, are included within Other Liabilities in the Company’s Consolidated Balance Sheets.
(2)The Company’s wholly-owned subsidiary that owns Wisconsin Place Office also owns a 33.33% interest in the joint venture entity that owns the land, parking garage and infrastructure of the project.
(3)This property includes net equity balances from the amenity joint venture.
(4)The Company’s ownership includes (1) a 33.0% direct interest in the joint venture, and (2) an additional 1.0% interest in each of the two entities through which each partner owns its interest in the joint venture.
(5)The Company’s ownership includes (1) a 35.79% direct interest in the joint venture, (2) an additional 35.02% indirect ownership in the joint venture, and (3) an additional 1.0% interest in the entity through which the partner owns its interest in the joint venture.
(6)This entity is a VIE (See Note 2).
(7)The Company agreed to fund up to $65.0 million of the required capital through its preferred equity investment. The Company’s preferred equity investment will earn a 13.0% internal rate of return (“IRR”) and is to be redeemed, in full, upon the earlier of two years after stabilization of the property or March 5, 2030.
Certain of the Company’s unconsolidated joint venture agreements include provisions whereby, at certain specified times, each partner has the right to initiate a purchase or sale of its interest in the joint venture. Under certain of the Company’s joint venture agreements, if certain return thresholds are achieved, one or more partners could be entitled to receive an additional promoted interest or payments.
The combined summarized balance sheets of the Company’s unconsolidated joint ventures are as follows: 
June 30, 2025December 31, 2024
 (in thousands)
ASSETS
Real estate and development in process, net (1)$5,838,787 $5,748,198 
Other assets (2)726,052 703,096 
Total assets$6,564,839 $6,451,294 
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY
Mortgage and notes payable, net$3,214,062 $3,206,723 
Other liabilities (3)244,381 292,125 
Members’/Partners’ equity3,106,396 2,952,446 
Total liabilities and members’/partners’ equity$6,564,839 $6,451,294 
Company’s share of equity$1,388,350 $1,344,543 
Basis differentials (4)(275,446)(284,469)
Carrying value of the Company’s investments in unconsolidated joint ventures (5)$1,112,904 $1,060,074 
_______________
(1)At June 30, 2025 and December 31, 2024, this amount included right of use assets - operating leases totaling approximately $18.4 million and $19.0 million, respectively.
(2)At June 30, 2025 and December 31, 2024, this amount included sales-type lease receivable, net totaling approximately $14.3 million and $14.1 million, respectively.
(3)At June 30, 2025 and December 31, 2024, this amount included lease liabilities - operating leases totaling approximately $30.5 million.
(4)This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials result from impairments of investments, acquisitions through joint ventures with no change in control and upon the transfer of assets that were previously owned by the Company into a joint venture. During the year ended December 31, 2024, the Company recognized an other-than-temporary impairment loss on its investments in Colorado Center, Gateway Commons and Safeco Plaza of approximately $168.4 million, $126.1 million, and $46.8 million, respectively. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the joint venture level. The Company’s basis differences include:
June 30, 2025December 31, 2024
Property(in thousands)
Colorado Center$129,524 $127,632 
200 Fifth Avenue49,459 49,656 
Gateway Commons(72,366)(74,500)
Safeco Plaza(74,043)(75,576)
Dock 72(90,263)(92,054)
360 Park Avenue South(111,530)(113,265)
Platform 16(142,676)(142,698)
Other basis differentials36,449 36,336 
Total basis differentials (275,446)(284,469)
These basis differentials (excluding land) will be amortized over the remaining lives of the related assets and liabilities.
(5)Investments with deficit balances aggregating approximately $48.1 million and $33.5 million at June 30, 2025 and December 31, 2024, respectively, are reflected within Other Liabilities in the Company’s Consolidated Balance Sheets.
The combined summarized statements of operations of the Company’s unconsolidated joint ventures are as follows: 
 Three months ended June 30,Six months ended June 30,
 2025202420252024
 (in thousands)
Total revenue (1)$125,432 $120,152 $256,119 $250,546 
Expenses
Operating55,190 46,453 108,919 95,649 
Transaction costs1 5 171 8 
Depreciation and amortization44,152 38,396 86,531 77,819 
Total expenses99,343 84,854 195,621 173,476 
Other income (expense)
Loss from early extinguishment of debt— — (62)— 
Interest expense(45,103)(43,299)(89,535)(86,862)
Unrealized gain (loss) on derivative instruments(4,904)848 (13,229)10,960 
Net income (loss)$(23,918)$(7,153)$(42,328)$1,168 
Company’s share of net income (loss)$(7,690)$(2,744)$(13,486)$214 
Gain on sale / consolidation— — — 21,696 
Basis differential (2)4,366 (3,055)8,023 (8,523)
Income (loss) from unconsolidated joint ventures$(3,324)$(5,799)$(5,463)$13,387 
_______________ 
(1)Includes straight-line rent adjustments of approximately $4.5 million and $6.2 million for the three months ended June 30, 2025 and 2024, respectively, and approximately $7.9 million and $13.8 million for the six months ended June 30, 2025 and 2024, respectively.
(2)Includes depreciation and amortization of approximately $(3.0) million and $3.0 million for the three months ended June 30, 2025 and 2024, respectively, and approximately $(4.4) million and $5.9 million for the six months ended June 30, 2025 and 2024, respectively. Includes unrealized gain (loss) on derivative instruments of approximately $(1.3) million and $0.2 million for the three months ended June 30, 2025 and 2024, respectively, and approximately $(3.5) million and $2.9 million for the six months ended June 30, 2025 and 2024, respectively.
On February 27, 2025, a joint venture in which the Company has a 50% ownership interest, entered into a $252.0 million mortgage loan secured by 7750 Wisconsin Avenue in Bethesda, Maryland. The loan is scheduled to mature on March 1, 2035, bears interest at a fixed rate of 5.49% per annum, and requires monthly principal and interest payments. The proceeds from the loan were used to repay the existing $252.0 million construction loan collateralized by the property. The repayment resulted in the joint venture recognizing a loss from early extinguishment of debt of approximately $0.1 million related to unamortized finance costs during the six months ended June 30, 2025. 7750 Wisconsin Avenue is an office property with approximately 736,000 net rentable square feet.
On March 5, 2025, the Company acquired a 19.46% interest in a joint venture that is developing 290 Coles Street located in Jersey City, New Jersey for a gross purchase price of approximately $20.0 million. Additionally, the Company agreed to fund up to $65.0 million of the required capital through a preferred equity investment. The Company’s preferred equity investment will earn a 13.0% IRR and is to be redeemed, in full, upon the earlier of two years after stabilization of the property or March 5, 2030. As of June 30, 2025, the Company has funded approximately $1.6 million of the required capital through the preferred equity investment. On March 5, 2025, the joint venture entered into a $225.0 million construction loan, which will fund construction costs after the funding of all common and preferred equity investments required by the construction loan agreement. The loan bears interest at a variable rate equal to Term SOFR plus 2.50% per annum and is scheduled to mature on March 5, 2029 with an additional one-year extension option, subject to certain conditions. When completed, 290 Coles Street is expected to be a 670-unit residential property with retail space aggregating approximately 560,000 net rentable square feet.
On June 27, 2025, the Company entered into a joint venture to redevelop, own, and operate 17 Hartwell Avenue in Lexington, Massachusetts. The third party partner contributed approximately $23.0 million of cash, which was used by the joint venture to purchase the land at 17 Hartwell Avenue from the Company for approximately $21.8 million in cash. The Company contributed development costs of approximately $5.6 million for its 20% ownership interest in the joint venture. Additionally, on June 27, 2025, the joint venture entered into a $98.7 million construction loan. The loan bears interest at a fixed rate of 6.75% per annum and is scheduled to mature on July 10, 2030. When completed, 17 Hartwell Avenue is expected to be a 312-unit residential property with garage and retail space (See Note 3).