v3.26.1
Investments in Unconsolidated Joint Ventures
 6 Months Ended
Jun. 30, 2026
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Joint Ventures Investments in Unconsolidated Joint Ventures
We have investments in several real estate joint ventures with various third-party partners. As of June 30, 2026, investments with positive carrying values totaled $2.8 billion and are included in "Investments in unconsolidated joint ventures" on our consolidated balance sheets. As of June 30, 2026, two joint venture investments had negative carrying values totaling $206.9 million, which are included in "Other liabilities" on our consolidated balance sheets. For one of these joint ventures, we have reached the maximum negative carrying value based on related tenant obligations. Beginning in the second quarter of 2026, this negative carrying value will be reduced and recognized through earnings over the term of those tenant obligations.
As of June 30, 2026, we have two unconsolidated joint ventures that are VIEs with a carrying value of $125.8 million. Our maximum loss is limited to the amount of our equity investment in these VIEs. As of December 31, 2025, there were no unconsolidated joint ventures that were VIEs. See the "Principles of Consolidation" section of Note 2, "Significant Accounting Policies."
As we have the ability to exercise significant influence over, but do not control, the joint ventures listed below, we account for them under the equity method of accounting.
The table below provides general information on each of our joint ventures as of June 30, 2026:
Property
Economic
Interest (1)
Unaudited Approximate Square Feet
919 Third Avenue51.00%1,454,000 
280 Park Avenue50.00%1,219,158 
1552 Broadway 50.00%57,718 
650 Fifth Avenue (2) (3)
50.00%69,214 
11 Madison Avenue60.00%2,314,000 
One Vanderbilt Avenue55.01%1,657,198 
Worldwide Plaza (2)
25.05%2,048,725 
1515 Broadway56.87%1,750,000 
2 Herald Square (2)
95.00%369,000 
115 Spring Street (2)
51.00%5,218 
15 Beekman20.00%221,884 
One Madison Avenue (4)
25.50%1,048,700 
220 East 42nd Street51.00%1,135,000 
450 Park Avenue (5)
25.10%337,000 
245 Park Avenue50.10%1,782,793 
625 Madison Avenue (6)
50.00%563,000 
100 Park Avenue50.80%834,000 
346 Madison Avenue51.00%275,138 
(1)Economic interest represents the Company's interests in the joint venture as of June 30, 2026. Changes in economic interests within the current year are disclosed in the notes below.
(2)Included in the Company's alternative strategy portfolio.
(3)The joint venture owns a long-term leasehold interest in the retail space at 650 Fifth Avenue.
(4)In 2021, the Company admitted an additional partner with the partner's indirect ownership in the joint venture totaling 25.0%. The transaction did not meet sale accounting under ASC Topic 860, Transfers and Servicing ("ASC 860") and, as a result, was treated as a secured borrowing for accounting purposes and is included in "Other liabilities" on our consolidated balance sheets at June 30, 2026 and December 31, 2025.
(5)The Company's 25.1% economic interest is net of a 25.0% economic interest held by a third party. The third-party's economic interest is held in a joint venture that we consolidate as a 50.1% ownership interest. The third party's 25.0% economic interest is recognized in "Noncontrolling interests in other partnerships" on our consolidated balance sheet. A separate third-party owns the remaining 49.9% economic interest in the property.
(6)In connection with the sale of the fee ownership in the property, which closed in May 2024, the Company, together with its joint venture partner, originated a $235.4 million preferred equity investment in the property with a mandatory redemption date of December 2026. In July 2025, the Company sold 50.0% of the joint venture entity that originated the preferred equity investment for $104.9 million. In conjunction with this transaction, the Company also acquired the remaining interest in the joint venture for $23.7 million and sold 50.0% of that interest for $10.9 million. In October 2025, the Company sold its interest in the joint venture to the Fund. The sale did not meet sale accounting under ASC 860 and, as a result, the investment in the joint venture is still presented within "Investments in unconsolidated joint ventures" on our consolidated balance sheet. The investment has a balance of $133.5 million, net of unamortized discounts and loan loss reserves, with an aggregate weighted average current yield of 16.83% as of June 30, 2026.
Disposition of Joint Venture Interests or Properties
We did not dispose of any investments in unconsolidated joint ventures during the six months ended June 30, 2026.
Acquisition of Joint Venture Interests or Properties
We did not acquire any investments in unconsolidated joint ventures during the six months ended June 30, 2026.
Joint Venture Mortgages and Other Loans Payable
We generally finance our joint ventures with non-recourse debt. In certain cases, we may provide guarantees or master leases, which terminate upon the satisfaction of specified circumstances or repayment of the underlying loans. The mortgage notes and other loans payable collateralized by the respective joint venture properties and assignment of leases as of June 30, 2026 and December 31, 2025, respectively, are as follows (dollars in thousands):
Principal OutstandingPrincipal Outstanding
EconomicCurrent MaturityFinal Maturity InterestJune 30, 2026December 31, 2025
Property
Interest (1)
Date
Date (2)
Rate (3)
GrossSLG ShareGrossSLG Share
Fixed Rate Debt:
650 Fifth Avenue ⁽⁵⁾50.00 %July 2026 ⁽⁶⁾July 20265.45%$65,000 $32,500 $65,000 $32,500 
115 Spring Street ⁽⁵⁾51.00 %September 2026September 20265.50%66,551 33,941 65,550 33,431 
280 Park Avenue50.00 %September 2026September 20285.84%1,075,000 537,500 1,075,000 537,500 
1515 Broadway56.87 %March 2027March 20283.93%672,225 382,288 718,949 408,859 
919 Third Avenue51.00 %April 2027April 20286.15%500,000 255,000 500,000 255,000 
245 Park Avenue50.10 %June 2027June 20274.30%1,768,000 885,768 1,768,000 885,768 
Worldwide Plaza ⁽⁵⁾25.05 %November 2027November 20273.98%1,200,000 300,600 1,200,000 300,600 
220 East 42nd Street51.00 %December 2027December 20276.77%496,412 253,170 496,412 253,170 
100 Park Avenue50.80 %January 2028January 20295.73%382,872 194,499 382,872 194,499 
15 Beekman20.00 %January 2028January 20284.83%117,000 23,400 120,000 24,000 
11 Madison Avenue60.00 %October 2030October 20305.62%1,400,000 840,000 1,400,000 840,000 
One Madison Avenue25.50 %April 2031April 20315.81%1,650,000 420,750 — — 
One Vanderbilt Avenue55.01 %July 2031July 20312.95%3,000,000 1,650,300 3,000,000 1,650,300 
Total fixed rate debt$12,393,060 $5,809,716 $10,791,783 $5,415,627 
Floating Rate Debt:
650 Fifth Avenue ⁽⁵⁾50.00 %July 2026 ⁽⁶⁾July 2026S+2.25%$210,000 $105,000 $210,000 $105,000 
450 Park Avenue25.10 %June 2027June 2027S+2.10%290,435 72,899 290,435 72,899 
One Madison Avenue— — 1,163,814 296,772 
11 West 34th Street ⁽⁴⁾— — 23,000 6,900 
Total floating rate debt$500,435 $177,899 $1,687,249 $481,571 
Total joint venture mortgages and other loans payable$12,893,495 $5,987,615 $12,479,032 $5,897,198 
Deferred financing costs, net(104,433)(50,118)(100,882)(50,476)
Total joint venture mortgages and other loans payable, net$12,789,062 $5,937,497 $12,378,150 $5,846,722 
(1)Economic interest represents the Company's interests in the joint venture as of June 30, 2026. Changes in ownership or economic interests, if any, within the current year are disclosed in the notes to the investment in unconsolidated joint ventures table above.
(2)Reflects exercise of all available extension options. The ability to exercise extension options may be subject to certain conditions, including the operating performance of the property.
(3)Interest rates as of June 30, 2026, taking into account interest rate hedges at the joint venture. Corporate interest rate hedges are not taken into consideration. Floating rate debt is presented with the stated spread over Term or Alternative SOFR ("S").
(4)In April 2026, the lender foreclosed on the property. As a result, the joint venture no longer owns the property.
(5)Included in the Company's alternative strategy portfolio.
(6)The Company is in discussions with the lender on resolution of the past maturity.
We receive fees for providing management, leasing, construction supervision and asset management services to certain of our joint ventures. We recognized $3.3 million and $7.6 million from these services, net of our ownership share of the joint ventures, for the three and six months ended June 30, 2026, respectively. We recognized $2.9 million and $5.5 million from these services, net of our ownership share of the joint ventures, for the three and six months ended June 30, 2025, respectively. In addition, we have the ability to earn incentive fees based on the ultimate financial performance of certain of the joint venture properties.
The combined balance sheets for the unconsolidated joint ventures, at June 30, 2026 and December 31, 2025 are as follows (in thousands):
June 30, 2026December 31, 2025
Assets (1)
Commercial real estate property, net$15,604,483 $15,434,243 
Cash and restricted cash764,498 647,413 
Tenant and other receivables, related party receivables, and deferred rents receivable841,058 771,123 
Debt and preferred equity investments, net282,729 262,506 
Right-of-use assets816,347 824,088 
Other assets1,569,311 1,685,360 
Total assets$19,878,426 $19,624,733 
Liabilities and equity (1)
Mortgages and other loans payable, net$12,789,062 $12,378,150 
Deferred revenue781,877 852,035 
Lease liabilities906,563 908,988 
Other liabilities458,576 484,801 
Equity4,942,348 5,000,759 
Total liabilities and equity$19,878,426 $19,624,733 
Company's investments in unconsolidated joint ventures$2,849,912 $2,624,755 
(1)At June 30, 2026, $442.5 million of net unamortized basis differences between the amount at which our investments are carried and our share of equity in net assets of the underlying property will be amortized through equity in net income (loss) from unconsolidated joint ventures over the remaining life of the underlying items having given rise to the differences.
The combined statements of operations for the unconsolidated joint ventures, from acquisition date through the three and six months ended June 30, 2026 and 2025, are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Total revenues$422,088 $382,176 $832,466 $754,102 
Operating expenses72,588 63,197 148,424 131,212 
Real estate taxes75,349 71,658 152,104 143,162 
Operating lease rent2,995 5,942 5,990 12,523 
Loan loss and other investment reserves, net of recoveries— 1,438 — 1,438 
Interest expense, net of interest income143,013 130,336 282,911 259,232 
Amortization of deferred financing costs7,518 5,878 16,009 11,897 
Depreciation and amortization138,185 125,535 270,797 246,840 
Total expenses439,648 403,984 876,235 806,304 
Loss on early extinguishment of debt— — (9,497)— 
Net loss$(17,560)$(21,808)$(53,266)$(52,202)
Company's equity in net income (loss) from unconsolidated joint ventures$14,948 $(22,775)$(5,832)$(21,605)