Recent Transactions (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Real Estate Properties [Line Items] |
|
| Schedule Of Properties Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentable |
|
|
|
|
Acquisition |
|
|
Property |
# of |
Square Feet/ |
|
|
Acquisition |
|
Date |
Property Address |
Location |
Type |
Bldgs. |
Apartment Units |
|
|
Cost |
|
02/06/19 |
99 Wood Avenue (a) |
Iselin, New Jersey |
Office |
1 |
271,988 |
|
$ |
61,858 |
|
04/01/19 |
Soho Lofts (a) |
Jersey City, New Jersey |
Multi-family |
1 |
377 |
|
|
264,578 |
|
09/26/19 |
Liberty Towers (b) |
Jersey City, New Jersey |
Multi-family |
1 |
648 |
|
|
410,483 |
|
|
|
|
|
|
|
|
|
|
|
Total Acquisitions |
|
|
|
3 |
|
|
$ |
736,919 |
|
|
|
(a) |
This acquisition was funded using funds available with the Company's qualified intermediary from prior property sales proceeds and through borrowing under the Company's unsecured revolving credit facility. |
(b) |
This acquisition was funded through borrowings under the Company's unsecured revolving credit facility and a new $232 million mortgage loan collateralized by the property. |
|
| Schedule Of Acquisition Cost Allocated To Net Assets Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99 Wood Avenue |
|
|
|
Soho Lofts Apartments |
|
|
|
Liberty Towers |
|
|
Total |
Land and leasehold interest |
|
$ |
9,261 |
|
|
$ |
27,601 |
|
|
$ |
66,670 |
|
$ |
103,532 |
Buildings and improvements and other assets |
|
|
45,576 |
|
|
|
231,663 |
|
|
|
330,935 |
|
|
608,174 |
Above market lease values |
|
|
431 |
(a) |
|
|
- |
|
|
|
56 |
(c) |
|
487 |
In-place lease values |
|
|
8,264 |
(a) |
|
|
5,480 |
(b) |
|
|
13,462 |
(c) |
|
27,206 |
|
|
|
63,532 |
|
|
|
264,744 |
|
|
|
411,123 |
|
|
739,399 |
Less: Below market lease values |
|
|
(1,674) |
(a) |
|
|
(166) |
(b) |
|
|
(640) |
(c) |
|
(2,480) |
Net assets recorded upon acquisition |
|
$ |
61,858 |
|
|
$ |
264,578 |
|
|
$ |
410,483 |
|
$ |
736,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Above market, in-place and below market lease values are being amortized over a weighted-average term of 4.3 years. |
(b) In-place and below market lease values are being amortized over a weighted-average term of 0.8 years. |
(c) Above market, in-place and below market lease values are being amortized over a weighted-average term of 0.5 years. |
|
| Schedule Of Properties Which Commenced Initial Operations |
2019
|
|
|
|
|
|
|
|
|
|
|
|
# of |
|
|
Total |
In Service |
|
|
Property |
Apartment Units/ |
|
|
Development |
Date |
Property |
Location |
Type |
Rooms |
|
|
Costs Incurred |
07/09/19 |
Autograph Collection By Marriott (Phase II) |
Weehawken, NJ |
Hotel |
208 |
|
$ |
105,477 |
Totals |
|
|
|
208 |
|
$ |
105,477 |
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# of |
|
|
Total |
|
In-Service |
|
|
Property |
Apartment Units/ |
|
|
Development |
|
Date |
Property |
Location |
Type |
Rooms |
|
|
Costs |
|
03/01/18 |
145 Front at City Square |
Worcester, MA |
Multi-Family |
365 |
|
$ |
97,483 |
(a) |
04/01/18 |
Signature Place at Morris Plains |
Morris Plains, NJ |
Multi-Family |
197 |
|
|
56,715 |
(b) |
05/01/18 |
Portside 5/6 |
East Boston, MA |
Multi-Family |
296 |
|
|
114,694 |
|
08/01/18 |
RiverHouse 11 at Port Imperial |
Weehawken, NJ |
Multi-Family |
295 |
|
|
130,369 |
|
12/13/18 |
Residence Inn By Marriott (Phase I) |
Weehawken, NJ |
Hotel |
164 |
|
|
58,723 |
|
Totals |
|
|
|
1,317 |
|
$ |
457,984 |
|
(a)Development costs as of December 31, 2018 included approximately $4.4 in land costs.
(b)Development costs as of December 31, 2018 included approximately $0.9 in land costs.
|
| Schedule Of Net Assets Recorded Upon Consolidation |
|
|
|
|
|
Marbella II |
Land and leasehold interests |
$ |
36,595 |
Buildings and improvements and other assets, net |
|
153,974 |
In-place lease values (a) |
|
4,611 |
Less: Below market lease values (a) |
|
(80) |
|
|
195,100 |
Less: Debt |
|
(117,000) |
Net assets |
|
78,100 |
Less: Noncontrolling interests |
|
(13,722) |
Net assets recorded upon consolidation |
$ |
64,378 |
|
|
|
(a) In-place and below market lease values are being amortized over a weighted-average term of 6.2 months. |
2018
On August 2, 2018, the Company, which held a 24.27 percent subordinated interest in the unconsolidated joint venture Marbella Tower Urban Renewal Associates LLC, a 412-unit multi-family operating property located in Jersey City, New Jersey, acquired its equity partner’s 50 percent interest for $65.6 million in cash. The property was subject to a mortgage loan that had a principal balance of $95 million. The cash portion of the acquisition was funded primarily through borrowings under the Company's unsecured revolving credit facility. Concurrently with the closing, the joint venture repaid the $95 million mortgage loan in full and obtained a new loan from a different lender, collateralized by the property in the amount of $131 million, which bears interest at 4.07 percent and matures in August 2026. The venture distributed $37.4 million of the loan proceeds, of which the Company’s share was $30.4 million. As a result of the acquisition, the Company increased its ownership of the property from a 24.27 percent subordinated interest to a 74.27 percent controlling interest. In accordance with ASC 810, Consolidation, the Company evaluated the acquisition and determined that the entity meets the criteria of a VIE. As such, the Company consolidated the asset upon acquisition and accordingly, remeasured its equity interests, as required by the FASB's consolidation guidance, at fair value (based upon the income approach using current rates and market cap rates and discount rates). As a result, the Company recorded a gain on change of control of interests of $14.2 million (a non-cash item) in the year ended December 31, 2019, when the Company accounted for the transaction as a VIE that is not a business in accordance with ASC 810-10-30-4. Additional non-cash items included in the acquisition were the Company’s carrying value of its interest in the joint venture of $14 million and the noncontrolling interest’s fair value of $29.8 million (non-cash allocation). See Note 9: Mortgages, Loans Payable and Other Obligations.
Net assets recorded upon consolidation were as follows (in thousands):
|
|
|
|
|
|
Land and leasehold interest |
$ |
48,820 |
Buildings and improvements and other assets, net |
|
162,958 |
In-place lease values (a) |
|
6,947 |
Less: Below market lease values (a) |
|
(108) |
|
|
218,617 |
Less: Debt |
|
(131,000) |
Net Assets |
|
87,617 |
Less: Noncontrolling interest (b) |
|
(22,812) |
Net assets recorded upon consolidation |
$ |
64,805 |
|
|
|
(a) In-place and below market lease values are being amortized over a weighted-average term of 9.3 months. |
(b) Noncontrolling interest balance reflects distribution of $7.0 million of loan proceeds at closing. |
|
| Schedule Of Real Estate Held For Sale/Discontinued Operations/Dispositions |
The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other assets held |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
|
|
|
Portfolio (a) |
|
|
Held for Sale |
|
|
Total |
Land |
|
$ |
147,590 |
|
$ |
87,663 |
|
$ |
235,253 |
Building & Other |
|
|
1,263,738 |
|
|
54,392 |
|
|
1,318,130 |
Less: Accumulated depreciation |
|
|
(401,212) |
|
|
(11,573) |
|
|
(412,785) |
Less: Cumulative unrealized losses on property held for sale |
|
|
(137,876) |
|
|
(36,225) |
|
|
(174,101) |
Real estate held for sale, net |
|
$ |
872,240 |
|
$ |
94,257 |
|
$ |
966,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other assets held |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
Other assets and liabilities |
|
|
Portfolio |
|
|
Held for Sale |
|
|
Total |
Unbilled rents receivable, net (b) |
|
$ |
30,188 |
|
$ |
1,956 |
|
$ |
32,144 |
Deferred charges, net (b) |
|
|
32,900 |
|
|
1,432 |
|
|
34,332 |
Total intangibles, net (b) |
|
|
33,095 |
|
|
- |
|
|
33,095 |
Total deferred charges & other assets, net |
|
|
68,684 |
|
|
1,730 |
|
|
70,414 |
Mortgages & loans payable, net (b) |
|
|
123,650 |
|
|
- |
|
|
123,650 |
Total below market liability (b) |
|
|
8,833 |
|
|
- |
|
|
8,833 |
Accounts payable, accrued exp & other liability |
|
|
21,025 |
|
|
1,792 |
|
|
22,817 |
Unearned rents/deferred rental income (b) |
|
|
2,952 |
|
|
- |
|
|
2,952 |
|
|
|
|
|
|
|
|
|
|
(a) Classified as discontinued operations at December 31, 2019 for all periods presented. See Note 7: Discontinued Operations. |
(b) Expected to be removed with the completion of the sales. |
The Company disposed of the following rental properties during the year ended December 31, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
Gains |
|
|
|
|
|
|
Rentable |
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
|
(losses)/ |
|
Disposition |
|
|
# of |
|
Square |
|
Property |
|
Sales |
|
|
Carrying |
|
|
Unrealized |
|
Unrealized |
|
Date |
Property/Address |
Location |
Bldgs. |
|
Feet/Units |
|
Type |
|
Proceeds |
|
|
Value |
|
|
Losses, net |
|
Losses, net |
|
01/11/19 |
721 Route 202-206 South (a) |
Bridgewater, New Jersey |
1 |
|
192,741 |
|
Office |
$ |
5,651 |
|
$ |
5,410 |
|
$ |
241 |
$ |
- |
|
01/16/19 |
Park Square Apartments (b) |
Rahway, New Jersey |
1 |
|
159 |
units |
Multi-family |
|
34,045 |
|
|
34,032 |
|
|
13 |
|
- |
|
01/22/19 |
2115 Linwood Avenue |
Fort Lee, New Jersey |
1 |
|
68,000 |
|
Office |
|
15,197 |
|
|
7,433 |
|
|
7,764 |
|
- |
|
02/27/19 |
201 Littleton Road (c) |
Morris Plains, New Jersey |
1 |
|
88,369 |
|
Office |
|
4,842 |
|
|
4,937 |
|
|
(95) |
|
- |
|
03/13/19 |
320 & 321 University Avenue |
Newark, New Jersey |
2 |
|
147,406 |
|
Office |
|
25,552 |
|
|
18,456 |
|
|
7,096 |
|
- |
|
03/29/19 |
Flex portfolio (d) |
New York and Connecticut |
56 |
|
3,148,512 |
|
Office/Flex |
|
470,348 |
|
|
214,758 |
|
|
255,590 |
|
- |
|
06/18/19 |
650 From Road (e) |
Paramus, New Jersey |
1 |
|
348,510 |
|
Office |
|
37,801 |
|
|
40,046 |
|
|
(2,245) |
|
- |
|
10/18/19 |
3600 Route 66 (h) |
Neptune, New Jersey |
1 |
|
180,000 |
|
Office |
|
25,237 |
|
|
17,246 |
|
|
- |
|
7,991 |
|
10/23/19 |
Chase & Alterra Portfolio (f) |
Revere and Malden, Massachusetts |
3 |
|
1,386 |
units |
Multi-family |
|
406,817 |
|
|
293,030 |
|
|
113,787 |
|
- |
|
12/06/19 |
5 Wood Hollow Road (g) (h) |
Parsippany, New Jersey |
1 |
|
317,040 |
|
Office |
|
26,937 |
|
|
33,226 |
|
|
- |
|
(6,289) |
(i) |
Sub-total |
|
|
68 |
|
4,490,578 |
|
|
|
1,052,427 |
|
|
668,574 |
|
|
382,151 |
|
1,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on real estate held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
(36,225) |
|
(137,876) |
(i) |
Totals |
|
|
68 |
|
4,490,578 |
|
|
$ |
1,052,427 |
|
$ |
668,574 |
|
$ |
345,926 |
$ |
(136,174) |
|
|
|
|
|
(a) |
The Company recorded a valuation allowance of $9.3 million on this property during the year ended December 31, 2018. |
(b) |
The Company recorded a valuation allowance of $6.3 million on this property during the year ended December 31, 2018. |
(c) |
The Company recorded a valuation allowance of $3.6 million on this property during the year ended December 31, 2018. |
(d) |
As part of the consideration from the buyer, who sis a noncontrolling interest unitholder of the Operating Partnership, 301,638 Common Units were redeemed by the Company at fair market value of $6.6 million as purchase consideration received for two of the properties disposed of in this transaction, which was a non-cash portion of this sales transaction. The Company used the net cash received at closing to repay approximately $119.9 million of borrowings under the unsecured revolving credit facility and to repay $90 million of its $350 million unsecured term loan. The Company also utilized $217.4 million of these proceeds on April 1, 2019 to acquire a 377-unit multi-family property located in Jersey City, New Jersey. |
(e) |
The Company recorded a valuation allowance of $0.9 million on this property during the year ended December 31, 2018. |
(f) |
Proceeds from the sale, which were net of $235.8 million of in-place mortgages assumed by the buyer, were used primarily to repay outstanding borrowings under the Company's revolving credit facility that were drawn to fund a portion of the Company's purchase of Liberty Towers. The assumed mortgages were a non-cash portion of this sales transaction. |
(g) |
The net sale proceeds were held by a qualified intermediary, which is noncash and recorded in deferred charges, goodwill and other assets as of December 31, 2019. See Note 5: Deferred Charges, Goodwill and Other Assets, Net – to the Financial Statements. The Company recorded an impairment charge of $5.8 million at June 30, 2019 before the property was identified as held for sale on September 30, 2019. |
(h) |
These pertain to properties classified as discontinued operations. (See Note 7: Discontinued Operations – to the Financial Statements) |
(i) |
These include impairments recorded on three properties before they were classified as discontinued operations. |
The Company disposed of the following developable land holdings during the year ended December 31, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
|
|
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
Disposition |
|
|
|
|
|
Sales |
|
|
Carrying |
|
|
Unrealized |
Date |
Property Address |
Location |
|
|
|
Proceeds |
|
|
Value |
|
|
Losses, net |
04/30/19 |
Overlook Ridge |
Revere, Massachusetts |
|
|
$ |
685 |
|
$ |
415 |
|
$ |
270 |
09/20/19 |
Overlook Ridge |
Revere, Massachusetts |
|
|
|
1,135 |
|
|
839 |
|
|
296 |
11/08/19 |
150 Monument Street |
Bala Cynwd, Pennsylvania |
(a) |
|
|
8,374 |
|
|
7,874 |
|
|
500 |
12/19/19 |
51 Washington Street |
Conshohocken, Pennsylvania |
(b) |
|
|
8,189 |
|
|
8,732 |
|
$ |
(543) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
$ |
18,383 |
|
$ |
17,860 |
|
$ |
523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Company recorded a land impairment charge of $10.9 million on this land parcel during the year ended December 31, 2018. |
(b) The Company recorded a land impairment charge of $13.6 million on this land parcel during the year ended December 31, 2018. The Company recorded |
additional land impairment charges of $2.7 million on this land parcel during the year ended December 31, 2019 prior to its disposition. |
2018
The Company identified as held for sale six office properties, totaling approximately 845,000 square feet, and a 159 unit multi-family rental property as of December 31, 2018. The properties are located in Fort Lee, Newark, Paramus, Bridgewater, Morris Plains and Rahway, New Jersey. The total estimated sales proceeds, net of selling costs, from the sales which were all completed in 2019, were
approximately $123.1 million. The Company determined that the carrying value of four of the properties was not expected to be recovered from estimated net sales proceeds and accordingly recognized an unrealized loss allowance of $20.1 million for the year ended December 31, 2018.
The following table summarizes the real estate held for sale, net, as of December 31, 2018 (dollars in thousands):
|
|
|
|
|
December 31, |
|
|
2018 |
Land |
$ |
24,376 |
Building and improvements |
|
159,857 |
Less: Accumulated depreciation |
|
(55,250) |
Less: Cumulative unrealized losses on property held for sale |
|
(20,135) |
Real estate held for sale, net |
$ |
108,848 |
The Company disposed of the following office properties during the year ended December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
|
|
|
|
Rentable |
|
|
Net |
|
|
|
Net |
|
|
(losses)/ |
Disposition |
|
|
# of |
|
Square |
|
|
Sales |
|
|
|
Carrying |
|
|
Unrealized |
Date |
Property/Address |
Location |
Bldgs. |
|
Feet |
|
|
Proceeds |
|
|
|
Value |
|
|
Losses, net |
02/15/18 |
35 Waterview Boulevard (a) |
Parsippany, New Jersey |
1 |
|
172,498 |
|
$ |
25,994 |
|
|
$ |
25,739 |
|
$ |
255 |
03/05/18 |
Hamilton portfolio (b) |
Hamilton, New Jersey |
6 |
|
239,262 |
|
|
17,546 |
|
|
|
17,501 |
|
|
45 |
03/07/18 |
Wall portfolio first closing |
Wall, New Jersey |
5 |
|
179,601 |
|
|
14,053 |
|
|
|
10,526 |
|
|
3,527 |
03/22/18 |
700 Horizon Drive |
Hamilton, New Jersey |
1 |
|
120,000 |
|
|
33,020 |
|
|
|
16,053 |
|
|
16,967 |
03/23/18 |
Wall portfolio second closing |
Wall, New Jersey |
3 |
|
217,822 |
|
|
30,209 |
|
|
|
12,961 |
|
|
17,248 |
03/28/18 |
75 Livingston Avenue |
Roseland, New Jersey |
1 |
|
94,221 |
|
|
7,983 |
|
|
|
5,609 |
|
|
2,374 |
03/28/18 |
20 Waterview Boulevard (c) |
Parsippany, New Jersey |
1 |
|
225,550 |
|
|
12,475 |
|
|
|
11,795 |
|
|
680 |
03/30/18 |
Westchester Financial Center (d) |
White Plains, New York |
2 |
|
489,000 |
|
|
81,769 |
|
|
|
64,679 |
|
|
17,090 |
06/27/18 |
65 Jackson Drive |
Cranford, New Jersey |
0 |
|
- |
|
|
1,510 |
(e) |
|
|
- |
|
|
1,510 |
08/02/18 |
600 Horizon Drive |
Hamilton, New Jersey |
1 |
|
95,000 |
|
|
15,127 |
|
|
|
6,191 |
|
|
8,936 |
09/05/18 |
1 & 3 Barker Avenue |
White Plains, New York |
2 |
|
133,300 |
|
|
15,140 |
|
|
|
13,543 |
|
|
1,597 |
11/15/18 |
120 Passaic Street (f) |
Rochelle Park, New Jersey |
1 |
|
52,000 |
|
|
2,667 |
|
|
|
2,568 |
|
|
99 |
12/31/18 |
Elmsford Distribution Center |
Elmsford, New York |
6 |
|
387,400 |
|
|
66,557 |
|
|
|
17,314 |
|
|
49,243 |
Sub-total |
|
|
30 |
|
2,405,654 |
|
|
324,050 |
|
|
|
204,479 |
|
|
119,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on real estate held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
(20,135) |
Totals |
|
|
30 |
|
2,405,654 |
|
$ |
324,050 |
|
|
$ |
204,479 |
|
$ |
99,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Company recorded a valuation allowance of $0.7 million on this property during the year ended December 31, 2017. |
(b) The Company recorded a valuation allowance of $0.6 million on these properties during the year ended December 31, 2017. The disposition additionally included two land properties. |
(c) The Company recorded a valuation allowance of $11 million on this property during the year ended December 31, 2017. Prior to closing, the Company provided short term financing through a note receivable |
to an affiliate of the buyers of $2.8 million. The note was paid off in the second quarter of 2018. |
(d) Prior to closing, the Company provided financing through a note receivable to an affiliate of the buyers of $4.0 million. The note was paid off in October 2018. |
(e) Represents the receipt by the Company in the second quarter 2018 of variable contingent sales consideration, net of costs, of $1.5 million subsequent to disposition of the property sold in January 2017. |
(f) The net sale proceeds were held by a qualified intermediary, which is noncash and recorded in deferred charges, goodwill and other assets as of December 31, 2018. See Note 5: Deferred Charges, |
Goodwill and Other Assets, Net). |
The Company disposed of the following developable land holdings during the year ended December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net |
|
|
Net |
|
|
Gain on |
Disposition |
|
|
|
|
|
Sales |
|
|
Carrying |
|
|
Disposition of |
Date |
Property Address |
Location |
|
|
|
Proceeds |
|
|
Value |
|
|
Developable Land |
12/31/18 |
One Lake Street |
Upper Saddle River, New Jersey |
(a) |
|
$ |
46,036 |
|
$ |
15,097 |
|
$ |
30,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
$ |
46,036 |
|
$ |
15,097 |
|
$ |
30,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The net sale proceeds were held by a qualified intermediary, which is noncash and recorded in deferred charges, goodwill and other assets as of December 31, 2018. See Note 5: Deferred |
Charges, Goodwill and Other Assets, Net. The net carrying value includes $3 million of development costs funded at the closing. |
|
| Mack-Cali Realty LP [Member] |
|
| Real Estate Properties [Line Items] |
|
| Schedule Of Properties Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentable |
|
|
|
|
Acquisition |
|
|
Property |
# of |
Square Feet/ |
|
|
Acquisition |
|
Date |
Property Address |
Location |
Type |
Bldgs. |
Apartment Units |
|
|
Cost |
|
02/06/19 |
99 Wood Avenue (a) |
Iselin, New Jersey |
Office |
1 |
271,988 |
|
$ |
61,858 |
|
04/01/19 |
Soho Lofts (a) |
Jersey City, New Jersey |
Multi-family |
1 |
377 |
|
|
264,578 |
|
09/26/19 |
Liberty Towers (b) |
Jersey City, New Jersey |
Multi-family |
1 |
648 |
|
|
410,483 |
|
|
|
|
|
|
|
|
|
|
|
Total Acquisitions |
|
|
|
3 |
|
|
$ |
736,919 |
|
|
|
(a) |
This acquisition was funded using funds available with the Company's qualified intermediary from prior property sales proceeds and through borrowing under the Company's unsecured revolving credit facility. |
(b) |
This acquisition was funded through borrowings under the Company's unsecured revolving credit facility and a new $232 million mortgage loan collateralized by the property. |
|
| Schedule Of Acquisition Cost Allocated To Net Assets Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99 Wood Avenue |
|
|
|
Soho Lofts Apartments |
|
|
|
Liberty Towers |
|
|
Total |
Land and leasehold interest |
|
$ |
9,261 |
|
|
$ |
27,601 |
|
|
$ |
66,670 |
|
$ |
103,532 |
Buildings and improvements and other assets |
|
|
45,576 |
|
|
|
231,663 |
|
|
|
330,935 |
|
|
608,174 |
Above market lease values |
|
|
431 |
(a) |
|
|
- |
|
|
|
56 |
(c) |
|
487 |
In-place lease values |
|
|
8,264 |
(a) |
|
|
5,480 |
(b) |
|
|
13,462 |
(c) |
|
27,206 |
|
|
|
63,532 |
|
|
|
264,744 |
|
|
|
411,123 |
|
|
739,399 |
Less: Below market lease values |
|
|
(1,674) |
(a) |
|
|
(166) |
(b) |
|
|
(640) |
(c) |
|
(2,480) |
Net assets recorded upon acquisition |
|
$ |
61,858 |
|
|
$ |
264,578 |
|
|
$ |
410,483 |
|
$ |
736,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Above market, in-place and below market lease values are being amortized over a weighted-average term of 4.3 years. |
(b) In-place and below market lease values are being amortized over a weighted-average term of 0.8 years. |
(c) Above market, in-place and below market lease values are being amortized over a weighted-average term of 0.5 years. |
|
| Schedule Of Properties Which Commenced Initial Operations |
2019
|
|
|
|
|
|
|
|
|
|
|
|
# of |
|
|
Total |
In Service |
|
|
Property |
Apartment Units/ |
|
|
Development |
Date |
Property |
Location |
Type |
Rooms |
|
|
Costs Incurred |
07/09/19 |
Autograph Collection By Marriott (Phase II) |
Weehawken, NJ |
Hotel |
208 |
|
$ |
105,477 |
Totals |
|
|
|
208 |
|
$ |
105,477 |
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# of |
|
|
Total |
|
In-Service |
|
|
Property |
Apartment Units/ |
|
|
Development |
|
Date |
Property |
Location |
Type |
Rooms |
|
|
Costs |
|
03/01/18 |
145 Front at City Square |
Worcester, MA |
Multi-Family |
365 |
|
$ |
97,483 |
(a) |
04/01/18 |
Signature Place at Morris Plains |
Morris Plains, NJ |
Multi-Family |
197 |
|
|
56,715 |
(b) |
05/01/18 |
Portside 5/6 |
East Boston, MA |
Multi-Family |
296 |
|
|
114,694 |
|
08/01/18 |
RiverHouse 11 at Port Imperial |
Weehawken, NJ |
Multi-Family |
295 |
|
|
130,369 |
|
12/13/18 |
Residence Inn By Marriott (Phase I) |
Weehawken, NJ |
Hotel |
164 |
|
|
58,723 |
|
Totals |
|
|
|
1,317 |
|
$ |
457,984 |
|
(a)Development costs as of December 31, 2018 included approximately $4.4 in land costs.
(b)Development costs as of December 31, 2018 included approximately $0.9 in land costs.
|
| Schedule Of Net Assets Recorded Upon Consolidation |
|
|
|
|
|
Marbella II |
Land and leasehold interests |
$ |
36,595 |
Buildings and improvements and other assets, net |
|
153,974 |
In-place lease values (a) |
|
4,611 |
Less: Below market lease values (a) |
|
(80) |
|
|
195,100 |
Less: Debt |
|
(117,000) |
Net assets |
|
78,100 |
Less: Noncontrolling interests |
|
(13,722) |
Net assets recorded upon consolidation |
$ |
64,378 |
|
|
|
(a) In-place and below market lease values are being amortized over a weighted-average term of 6.2 months. |
2018
On August 2, 2018, the Company, which held a 24.27 percent subordinated interest in the unconsolidated joint venture Marbella Tower Urban Renewal Associates LLC, a 412-unit multi-family operating property located in Jersey City, New Jersey, acquired its equity partner’s 50 percent interest for $65.6 million in cash. The property was subject to a mortgage loan that had a principal balance of $95 million. The cash portion of the acquisition was funded primarily through borrowings under the Company's unsecured revolving credit facility. Concurrently with the closing, the joint venture repaid the $95 million mortgage loan in full and obtained a new loan from a different lender, collateralized by the property in the amount of $131 million, which bears interest at 4.07 percent and matures in August 2026. The venture distributed $37.4 million of the loan proceeds, of which the Company’s share was $30.4 million. As a result of the acquisition, the Company increased its ownership of the property from a 24.27 percent subordinated interest to a 74.27 percent controlling interest. In accordance with ASC 810, Consolidation, the Company evaluated the acquisition and determined that the entity meets the criteria of a VIE. As such, the Company consolidated the asset upon acquisition and accordingly, remeasured its equity interests, as required by the FASB's consolidation guidance, at fair value (based upon the income approach using current rates and market cap rates and discount rates). As a result, the Company recorded a gain on change of control of interests of $14.2 million (a non-cash item) in the year ended December 31, 2019, when the Company accounted for the transaction as a VIE that is not a business in accordance with ASC 810-10-30-4. Additional non-cash items included in the acquisition were the Company’s carrying value of its interest in the joint venture of $14 million and the noncontrolling interest’s fair value of $29.8 million (non-cash allocation). See Note 9: Mortgages, Loans Payable and Other Obligations.
Net assets recorded upon consolidation were as follows (in thousands):
|
|
|
|
|
|
Land and leasehold interest |
$ |
48,820 |
Buildings and improvements and other assets, net |
|
162,958 |
In-place lease values (a) |
|
6,947 |
Less: Below market lease values (a) |
|
(108) |
|
|
218,617 |
Less: Debt |
|
(131,000) |
Net Assets |
|
87,617 |
Less: Noncontrolling interest (b) |
|
(22,812) |
Net assets recorded upon consolidation |
$ |
64,805 |
|
|
|
(a) In-place and below market lease values are being amortized over a weighted-average term of 9.3 months. |
(b) Noncontrolling interest balance reflects distribution of $7.0 million of loan proceeds at closing. |
|
| Schedule Of Real Estate Held For Sale/Discontinued Operations/Dispositions |
The following table summarizes the real estate held for sale, net, and other assets and liabilities (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other assets held |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
|
|
|
Portfolio (a) |
|
|
Held for Sale |
|
|
Total |
Land |
|
$ |
147,590 |
|
$ |
87,663 |
|
$ |
235,253 |
Building & Other |
|
|
1,263,738 |
|
|
54,392 |
|
|
1,318,130 |
Less: Accumulated depreciation |
|
|
(401,212) |
|
|
(11,573) |
|
|
(412,785) |
Less: Cumulative unrealized losses on property held for sale |
|
|
(137,876) |
|
|
(36,225) |
|
|
(174,101) |
Real estate held for sale, net |
|
$ |
872,240 |
|
$ |
94,257 |
|
$ |
966,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Suburban |
|
|
Other assets held |
|
|
|
|
|
|
Office |
|
|
Assets |
|
|
|
Other assets and liabilities |
|
|
Portfolio |
|
|
Held for Sale |
|
|
Total |
Unbilled rents receivable, net (b) |
|
$ |
30,188 |
|
$ |
1,956 |
|
$ |
32,144 |
Deferred charges, net (b) |
|
|
32,900 |
|
|
1,432 |
|
|
34,332 |
Total intangibles, net (b) |
|
|
33,095 |
|
|
- |
|
|
33,095 |
Total deferred charges & other assets, net |
|
|
68,684 |
|
|
1,730 |
|
|
70,414 |
Mortgages & loans payable, net (b) |
|
|
123,650 |
|
|
- |
|
|
123,650 |
Total below market liability (b) |
|
|
8,833 |
|
|
- |
|
|
8,833 |
Accounts payable, accrued exp & other liability |
|
|
21,025 |
|
|
1,792 |
|
|
22,817 |
Unearned rents/deferred rental income (b) |
|
|
2,952 |
|
|
- |
|
|
2,952 |
|
|
|
|
|
|
|
|
|
|
(a) Classified as discontinued operations at December 31, 2019 for all periods presented. See Note 7: Discontinued Operations. |
(b) Expected to be removed with the completion of the sales. |
The Company disposed of the following rental properties during the year ended December 31, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
Gains |
|
|
|
|
|
|
Rentable |
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
|
(losses)/ |
|
Disposition |
|
|
# of |
|
Square |
|
Property |
|
Sales |
|
|
Carrying |
|
|
Unrealized |
|
Unrealized |
|
Date |
Property/Address |
Location |
Bldgs. |
|
Feet/Units |
|
Type |
|
Proceeds |
|
|
Value |
|
|
Losses, net |
|
Losses, net |
|
01/11/19 |
721 Route 202-206 South (a) |
Bridgewater, New Jersey |
1 |
|
192,741 |
|
Office |
$ |
5,651 |
|
$ |
5,410 |
|
$ |
241 |
$ |
- |
|
01/16/19 |
Park Square Apartments (b) |
Rahway, New Jersey |
1 |
|
159 |
units |
Multi-family |
|
34,045 |
|
|
34,032 |
|
|
13 |
|
- |
|
01/22/19 |
2115 Linwood Avenue |
Fort Lee, New Jersey |
1 |
|
68,000 |
|
Office |
|
15,197 |
|
|
7,433 |
|
|
7,764 |
|
- |
|
02/27/19 |
201 Littleton Road (c) |
Morris Plains, New Jersey |
1 |
|
88,369 |
|
Office |
|
4,842 |
|
|
4,937 |
|
|
(95) |
|
- |
|
03/13/19 |
320 & 321 University Avenue |
Newark, New Jersey |
2 |
|
147,406 |
|
Office |
|
25,552 |
|
|
18,456 |
|
|
7,096 |
|
- |
|
03/29/19 |
Flex portfolio (d) |
New York and Connecticut |
56 |
|
3,148,512 |
|
Office/Flex |
|
470,348 |
|
|
214,758 |
|
|
255,590 |
|
- |
|
06/18/19 |
650 From Road (e) |
Paramus, New Jersey |
1 |
|
348,510 |
|
Office |
|
37,801 |
|
|
40,046 |
|
|
(2,245) |
|
- |
|
10/18/19 |
3600 Route 66 (h) |
Neptune, New Jersey |
1 |
|
180,000 |
|
Office |
|
25,237 |
|
|
17,246 |
|
|
- |
|
7,991 |
|
10/23/19 |
Chase & Alterra Portfolio (f) |
Revere and Malden, Massachusetts |
3 |
|
1,386 |
units |
Multi-family |
|
406,817 |
|
|
293,030 |
|
|
113,787 |
|
- |
|
12/06/19 |
5 Wood Hollow Road (g) (h) |
Parsippany, New Jersey |
1 |
|
317,040 |
|
Office |
|
26,937 |
|
|
33,226 |
|
|
- |
|
(6,289) |
(i) |
Sub-total |
|
|
68 |
|
4,490,578 |
|
|
|
1,052,427 |
|
|
668,574 |
|
|
382,151 |
|
1,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on real estate held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
(36,225) |
|
(137,876) |
(i) |
Totals |
|
|
68 |
|
4,490,578 |
|
|
$ |
1,052,427 |
|
$ |
668,574 |
|
$ |
345,926 |
$ |
(136,174) |
|
|
|
|
|
(a) |
The Company recorded a valuation allowance of $9.3 million on this property during the year ended December 31, 2018. |
(b) |
The Company recorded a valuation allowance of $6.3 million on this property during the year ended December 31, 2018. |
(c) |
The Company recorded a valuation allowance of $3.6 million on this property during the year ended December 31, 2018. |
(d) |
As part of the consideration from the buyer, who sis a noncontrolling interest unitholder of the Operating Partnership, 301,638 Common Units were redeemed by the Company at fair market value of $6.6 million as purchase consideration received for two of the properties disposed of in this transaction, which was a non-cash portion of this sales transaction. The Company used the net cash received at closing to repay approximately $119.9 million of borrowings under the unsecured revolving credit facility and to repay $90 million of its $350 million unsecured term loan. The Company also utilized $217.4 million of these proceeds on April 1, 2019 to acquire a 377-unit multi-family property located in Jersey City, New Jersey. |
(e) |
The Company recorded a valuation allowance of $0.9 million on this property during the year ended December 31, 2018. |
(f) |
Proceeds from the sale, which were net of $235.8 million of in-place mortgages assumed by the buyer, were used primarily to repay outstanding borrowings under the Company's revolving credit facility that were drawn to fund a portion of the Company's purchase of Liberty Towers. The assumed mortgages were a non-cash portion of this sales transaction. |
(g) |
The net sale proceeds were held by a qualified intermediary, which is noncash and recorded in deferred charges, goodwill and other assets as of December 31, 2019. See Note 5: Deferred Charges, Goodwill and Other Assets, Net – to the Financial Statements. The Company recorded an impairment charge of $5.8 million at June 30, 2019 before the property was identified as held for sale on September 30, 2019. |
(h) |
These pertain to properties classified as discontinued operations. (See Note 7: Discontinued Operations – to the Financial Statements) |
(i) |
These include impairments recorded on three properties before they were classified as discontinued operations. |
The Company disposed of the following developable land holdings during the year ended December 31, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
|
|
|
|
|
Net |
|
|
Net |
|
|
(losses)/ |
Disposition |
|
|
|
|
|
Sales |
|
|
Carrying |
|
|
Unrealized |
Date |
Property Address |
Location |
|
|
|
Proceeds |
|
|
Value |
|
|
Losses, net |
04/30/19 |
Overlook Ridge |
Revere, Massachusetts |
|
|
$ |
685 |
|
$ |
415 |
|
$ |
270 |
09/20/19 |
Overlook Ridge |
Revere, Massachusetts |
|
|
|
1,135 |
|
|
839 |
|
|
296 |
11/08/19 |
150 Monument Street |
Bala Cynwd, Pennsylvania |
(a) |
|
|
8,374 |
|
|
7,874 |
|
|
500 |
12/19/19 |
51 Washington Street |
Conshohocken, Pennsylvania |
(b) |
|
|
8,189 |
|
|
8,732 |
|
$ |
(543) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
$ |
18,383 |
|
$ |
17,860 |
|
$ |
523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Company recorded a land impairment charge of $10.9 million on this land parcel during the year ended December 31, 2018. |
(b) The Company recorded a land impairment charge of $13.6 million on this land parcel during the year ended December 31, 2018. The Company recorded |
additional land impairment charges of $2.7 million on this land parcel during the year ended December 31, 2019 prior to its disposition. |
2018
The Company identified as held for sale six office properties, totaling approximately 845,000 square feet, and a 159 unit multi-family rental property as of December 31, 2018. The properties are located in Fort Lee, Newark, Paramus, Bridgewater, Morris Plains and Rahway, New Jersey. The total estimated sales proceeds, net of selling costs, from the sales which were all completed in 2019, were
approximately $123.1 million. The Company determined that the carrying value of four of the properties was not expected to be recovered from estimated net sales proceeds and accordingly recognized an unrealized loss allowance of $20.1 million for the year ended December 31, 2018.
The following table summarizes the real estate held for sale, net, as of December 31, 2018 (dollars in thousands):
|
|
|
|
|
December 31, |
|
|
2018 |
Land |
$ |
24,376 |
Building and improvements |
|
159,857 |
Less: Accumulated depreciation |
|
(55,250) |
Less: Cumulative unrealized losses on property held for sale |
|
(20,135) |
Real estate held for sale, net |
$ |
108,848 |
The Company disposed of the following office properties during the year ended December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains |
|
|
|
|
|
Rentable |
|
|
Net |
|
|
|
Net |
|
|
(losses)/ |
Disposition |
|
|
# of |
|
Square |
|
|
Sales |
|
|
|
Carrying |
|
|
Unrealized |
Date |
Property/Address |
Location |
Bldgs. |
|
Feet |
|
|
Proceeds |
|
|
|
Value |
|
|
Losses, net |
02/15/18 |
35 Waterview Boulevard (a) |
Parsippany, New Jersey |
1 |
|
172,498 |
|
$ |
25,994 |
|
|
$ |
25,739 |
|
$ |
255 |
03/05/18 |
Hamilton portfolio (b) |
Hamilton, New Jersey |
6 |
|
239,262 |
|
|
17,546 |
|
|
|
17,501 |
|
|
45 |
03/07/18 |
Wall portfolio first closing |
Wall, New Jersey |
5 |
|
179,601 |
|
|
14,053 |
|
|
|
10,526 |
|
|
3,527 |
03/22/18 |
700 Horizon Drive |
Hamilton, New Jersey |
1 |
|
120,000 |
|
|
33,020 |
|
|
|
16,053 |
|
|
16,967 |
03/23/18 |
Wall portfolio second closing |
Wall, New Jersey |
3 |
|
217,822 |
|
|
30,209 |
|
|
|
12,961 |
|
|
17,248 |
03/28/18 |
75 Livingston Avenue |
Roseland, New Jersey |
1 |
|
94,221 |
|
|
7,983 |
|
|
|
5,609 |
|
|
2,374 |
03/28/18 |
20 Waterview Boulevard (c) |
Parsippany, New Jersey |
1 |
|
225,550 |
|
|
12,475 |
|
|
|
11,795 |
|
|
680 |
03/30/18 |
Westchester Financial Center (d) |
White Plains, New York |
2 |
|
489,000 |
|
|
81,769 |
|
|
|
64,679 |
|
|
17,090 |
06/27/18 |
65 Jackson Drive |
Cranford, New Jersey |
0 |
|
- |
|
|
1,510 |
(e) |
|
|
- |
|
|
1,510 |
08/02/18 |
600 Horizon Drive |
Hamilton, New Jersey |
1 |
|
95,000 |
|
|
15,127 |
|
|
|
6,191 |
|
|
8,936 |
09/05/18 |
1 & 3 Barker Avenue |
White Plains, New York |
2 |
|
133,300 |
|
|
15,140 |
|
|
|
13,543 |
|
|
1,597 |
11/15/18 |
120 Passaic Street (f) |
Rochelle Park, New Jersey |
1 |
|
52,000 |
|
|
2,667 |
|
|
|
2,568 |
|
|
99 |
12/31/18 |
Elmsford Distribution Center |
Elmsford, New York |
6 |
|
387,400 |
|
|
66,557 |
|
|
|
17,314 |
|
|
49,243 |
Sub-total |
|
|
30 |
|
2,405,654 |
|
|
324,050 |
|
|
|
204,479 |
|
|
119,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized losses on real estate held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
(20,135) |
Totals |
|
|
30 |
|
2,405,654 |
|
$ |
324,050 |
|
|
$ |
204,479 |
|
$ |
99,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Company recorded a valuation allowance of $0.7 million on this property during the year ended December 31, 2017. |
(b) The Company recorded a valuation allowance of $0.6 million on these properties during the year ended December 31, 2017. The disposition additionally included two land properties. |
(c) The Company recorded a valuation allowance of $11 million on this property during the year ended December 31, 2017. Prior to closing, the Company provided short term financing through a note receivable |
to an affiliate of the buyers of $2.8 million. The note was paid off in the second quarter of 2018. |
(d) Prior to closing, the Company provided financing through a note receivable to an affiliate of the buyers of $4.0 million. The note was paid off in October 2018. |
(e) Represents the receipt by the Company in the second quarter 2018 of variable contingent sales consideration, net of costs, of $1.5 million subsequent to disposition of the property sold in January 2017. |
(f) The net sale proceeds were held by a qualified intermediary, which is noncash and recorded in deferred charges, goodwill and other assets as of December 31, 2018. See Note 5: Deferred Charges, |
Goodwill and Other Assets, Net). |
The Company disposed of the following developable land holdings during the year ended December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net |
|
|
Net |
|
|
Gain on |
Disposition |
|
|
|
|
|
Sales |
|
|
Carrying |
|
|
Disposition of |
Date |
Property Address |
Location |
|
|
|
Proceeds |
|
|
Value |
|
|
Developable Land |
12/31/18 |
One Lake Street |
Upper Saddle River, New Jersey |
(a) |
|
$ |
46,036 |
|
$ |
15,097 |
|
$ |
30,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
|
|
|
$ |
46,036 |
|
$ |
15,097 |
|
$ |
30,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The net sale proceeds were held by a qualified intermediary, which is noncash and recorded in deferred charges, goodwill and other assets as of December 31, 2018. See Note 5: Deferred |
Charges, Goodwill and Other Assets, Net. The net carrying value includes $3 million of development costs funded at the closing. |
|