Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES

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INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES
 3 Months Ended
Mar. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES
As of March 31, 2024, the Company had an aggregate investment of approximately $119 million in its equity method joint ventures. The Company formed these ventures with unaffiliated third parties, or acquired interests in them, to develop or manage properties, or to acquire land in anticipation of possible development of rental properties. As of March 31, 2024, the unconsolidated joint ventures owned: six multifamily properties totaling 2,087 apartment units, a retail property aggregating approximately 51,000 square feet and interests and/or rights to developable land parcels able to accommodate up to 829 apartment units. The Company’s unconsolidated interests range from 20 percent to 85 percent subject to specified priority allocations in certain of the joint ventures.
The amounts reflected in the following tables (except for the Company’s share of equity in earnings) are based on the historical financial information of the individual joint ventures. The Company does not record losses of the joint ventures in excess of its investment balances unless the Company is liable for the obligations of the joint venture or is otherwise committed to provide financial support to the joint venture. The outside basis portion of the Company’s investments in joint ventures is amortized over the anticipated useful lives of the underlying ventures’ tangible and intangible assets acquired and liabilities assumed.
The debt of the Company’s unconsolidated joint ventures generally is non-recourse to the Company, except for customary exceptions pertaining to such matters as intentional misuse of funds, environmental conditions, and material misrepresentations.
The Company performed management, leasing, development and other services for the properties owned by the unconsolidated joint ventures, related parties to the Company, and recognized $0.8 million and $0.9 million for such services in the three months ended March 31, 2024 and 2023, respectively. The Company had $0.4 million and $0.7 million in accounts receivable due from its unconsolidated joint ventures as of March 31, 2024 and December 31, 2023, respectively.
As of March 31, 2024, the Company does not have any investments in unconsolidated joint ventures that are considered VIEs.
The following is a summary of the Company's unconsolidated joint ventures as of March 31, 2024 and December 31, 2023 (dollars in thousands):
Property Debt
Entity / Property Name Number of
Apartment Units		 Company's
Effective
Ownership % (a)		 Carrying Value As of March 31, 2024 Interest
Rate
March 31,
2024		 December 31,
2023		 Balance Maturity
Date
Multifamily
Metropolitan and Lofts at 40 Park (b) (c) 130 units (c) $ 1,552  $ 908  $ 40,167  (d) (d)
RiverTrace at Port Imperial 316 units 22.50  % 4,306  4,506  82,000  11/10/26   3.21  %
The Capstone at Port Imperial 360 units 40.00  % 22,518  21,361  135,000  12/22/24 SOFR+ 1.20  %
Riverpark at Harrison 141 units 45.00  % —  —  30,192  07/01/35 3.19  %
Station House 378 units 50.00  % 31,985  32,022  88,927  07/01/33 4.82  %
Urby at Harborside (e) 762 units 85.00  % 56,372  57,060  185,017  08/01/29 5.20  %
PI North - Land (b) (f) 829 potential units 20.00  % 1,678  1,678  —  —  —
Other (g) 419  419  —  —  —
Totals: $ 118,830  $ 117,954  $ 561,303 
(a)Company's effective ownership % represents the Company's entitlement to residual distributions after payments of priority returns, where applicable.
(b)The Company's ownership interests in this venture are subordinate to its partner's preferred capital balance and the Company is not expected to meaningfully participate in the venture's cash flows in the near term.
(c)Through the joint venture, the Company owns a 25 percent interest in a 130-unit multifamily rental property ("The Metropolitan at 40 Park") and also owns a 25 percent interest in a 50,973 square feet retail building ("Shops at 40 Park"). In January 2024, the joint venture sold the 59-unit, five story multifamily rental property ("Lofts at 40 Park") for $30.3 million and the Company recorded a gain on the sale for its interest of approximately $7.1 million during the three months ended March 31, 2024
(d)Property debt balance as of March 31, 2024 consists of: (i) an interest only loan, collateralized by the Metropolitan at 40 Park, with a balance of $34.1 million, bears interest at SOFR +2.85%, matures on October 10, 2024; and (ii) an interest only loan, collateralized by the Shops at 40 Park, with a balance of $6.1 million, bears interest at SOFR +2.00% and matures on January 9, 2025. Proceeds from the sale of Lofts at 40 Park were used to repay an interest-only loan with a balance of $17.2 million in January 2024.
(e)The Company owns an 85 percent interest with shared control over major decisions such as, approval of budgets, property financings and leasing guidelines.
(f)The Company owns a 20 percent residual interest in undeveloped land parcels: parcel 6 and parcel I that can accommodate the development of 829 apartment units.
(g)The Company owns other interests in various unconsolidated joint ventures, including interests in assets previously owned and interest in ventures whose businesses are related to its core operations. These ventures are not expected to significantly impact the Company's operations in the near term.
The following is a summary of the Company’s equity in earnings (loss) of unconsolidated joint ventures for the three months ended March 31, 2024 and 2023, respectively (dollars in thousands):
Three Months Ended
March 31,
Entity / Property Name 2024 2023
Multifamily
Metropolitan and Lofts at 40 Park (a) $ (427) $ (282)
RiverTrace at Port Imperial 159  137 
Capstone at Port Imperial 49  (187)
Riverpark at Harrison 68  337 
Station House (38) (97)
Urby at Harborside 503  66 
PI North - Land (60) (40)
Liberty Landing —  (2)
Company's equity in earnings of unconsolidated joint ventures (b) $ 254  $ (68)
(a)In January 2024, the joint venture sold the Lofts at 40 Park multifamily rental property for $30.3 million and the Company recorded a gain on the sale for its interest of approximately $7.1 million during the three months ended March 31, 2024.
(b)Amounts are net of amortization of basis differences of $154 thousand for each of the three months ended March 31, 2024 and 2023.