Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES (Tables)

v3.22.4
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES (Tables)
 12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Unconsolidated Joint Ventures
The following is a summary of the Company's unconsolidated joint ventures as of December 31, 2022 and 2021 (dollars in thousands):
  Number of Company's  Carrying Value Property Debt
As of December 31, 2022
Entity / Property Name Apartment Units
or Rentable SF		 Effective
Ownership % (a)		 December 31,
2022		 December 31,
2021		  Balance Maturity
Date		   Interest
Rate
Multifamily
Metropolitan and Lofts at 40 Park (b) (c) 189 units 25.00  % $ 1,747  $ 2,547  $ 60,767  (d)   (d)
RiverTrace at Port Imperial 316 units 22.50  % 5,114  6,077  82,000  11/10/26   3.21  %
PI North - Riverwalk C (e) 360 units 40.00  % 23,234  27,401  135,000  12/22/24 SOFR+ 1.2  %
Riverpark at Harrison 141 units 45.00  % —  —  30,192  07/01/35   3.19  %
Station House 378 units 50.00  % 32,372  33,004  91,432  07/01/33   4.82  %
Urby at Harborside (f) 762 units 85.00  % 61,594  66,418  188,522  08/01/29   5.197  %
PI North - Land (b) (g) 829 potential units 20.00  % 1,678  1,678  —  —   — 
Liberty Landing (h) — —  50.00  % —  300  —  —   — 
Office
12 Vreeland Road (i) 139,750 sf 50.00  % —  —  —  —   — 
Offices at Crystal Lake (j) 106,345 sf 31.25  % —  —  —  —   — 
Other
Hyatt Regency Hotel Jersey City (k) 351 rooms 50.00  % —  —  —  —   — 
Other (l) 419  347  —  —   — 
Totals: $ 126,158  $ 137,772  $ 587,913 
(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 also owns a 25 percent interest in a 50,973 square feet retail building ("Shops at 40 Park") and a 50 percent interest in a 59-unit, five story multifamily rental property ("Lofts at 40 Park").
(d)Property debt balance consists of: (i) an interest only loan, collateralized by the Metropolitan at 40 Park, with a balance of $36,500, bears interest at LIBOR +2.85 percent, matures in October 2023; (ii) an amortizable loan, collateralized by the Shops at 40 Park, with a balance of $6,067, bears interest at LIBOR +1.50 percent and matures in October 2022. The loan was extended on October 11, 2022, for three months and matured in January 2023 with a fixed rate of 5.125%. On January 10, 2023, the loan was modified bearing interest at SOFR +2% and matures in January 2025; (iii) an interest only loan, collateralized by the Lofts at 40 Park, with a balance of $18,200, which bears interest at LIBOR +1.50 percent and matures in January 2023. On January 10, 2023, the loan was extended for three months and matures on April 1, 2023.
(e)On December 22, 2021, the venture paid off the $108.3 million construction loan and simultaneously obtained a new $135 million mortgage loan, collateralized by the property and received its share of net loan proceeds of $9.2 million. The property commenced operations in second quarter 2021.
(f)The Company owns an 85 percent interest with shared control over major decisions such as, approval of budgets, property financings and leasing guidelines. The Company has guaranteed $22 million of the principal outstanding debt. On February 1, 2023, the lender has released the guarantor of all obligations under the Guaranty Agreement.
(g)The Company owns a 20 percent residual interest in undeveloped land parcels: parcels 6 and I that can accommodate the development of 829 apartment units.
(h)Pursuant to a notice letter to its joint venture partner dated January 6, 2022, the Company intends to not proceed with the acquisition and development of Liberty Landing.
(i)On April 29, 2021, the Company sold its interest in the joint venture for a gross sales price of approximately $2 million. See Note 3: Recent Transactions - Unconsolidated Joint Venture
(j)On September 1, 2021, the Company sold its interest in the joint venture for a gross sales price of approximately $1.9 million. See Note 3: Recent Transactions - Unconsolidated Joint Venture
(k)On November 30, 2022, the Company sold its interest in the joint venture for a venture gross sales price of approximately $117.0 million. See Note 3: Recent Transactions - Unconsolidated Joint Venture.
(l)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.
Schedule of Company's Equity In Earnings (Loss) Of Unconsolidated Joint Ventures
The following is a summary of the Company’s equity in earnings (loss) of unconsolidated joint ventures for the years ended December 31, 2022, 2021 and 2020 (dollars in thousands):
  Year Ended December 31,
Entity / Property Name 2022 2021 2020
Multifamily
Metropolitan and Lofts at 40 Park $ (674) $ (801) $ (1,010)
RiverTrace at Port Imperial 356  92  111 
Crystal House (a) —  —  (924)
PI North - Riverwalk C (b) (212) (506) (368)
Riverpark at Harrison (c) 234  (1,153) (273)
Station House (722) (1,647) (1,650)
Urby at Harborside 2,374  (580) 1,095 
PI North - Land (205) (250) — 
Liberty Landing (d) 36  (40) (5)
Office
12 Vreeland Road (e) —  2  (2,035)
Offices at Crystal Lake (f) —  (113) 224 
Other
Riverwalk Retail (g) —  —  (10)
Hyatt Regency Hotel Jersey City (h) —  —  625 
Other 13  745  388 
Company's equity in earnings (loss) of unconsolidated joint ventures (i) $ 1,200  $ (4,251) $ (3,832)
(a)    On December 31, 2020, the Crystal House Apartment Investors LLC, an unconsolidated joint venture property sold its sole apartment property. The Company realized its share of the gain on the property sale from the unconsolidated joint venture of $35.1 million.
(b)    The property commenced operations in second quarter 2021.
(c)    In September 2021, the joint venture agreed to settle certain obligations regarding a previously owned development project, of which the Company’s share of the expense for such settlement was $0.9 million, which was recorded in equity in earnings for this venture in the year ended December 31, 2021.
(d)    Pursuant to a notice letter to its joint venture partner dated January 6, 2022, the Company intends to not proceed with the acquisition and development of Liberty Landing.
(e)    On April 29, 2021, the Company sold its interest in the joint venture and realized no gain or loss on the sale.
(f)    On September 1, 2021, the Company sold its interest in this unconsolidated joint venture to its venture partner for $1.9 million, and realized a loss on the sale of approximately $1.9 million.
(g)    On March 12, 2020, the Company acquired the remaining 80 percent interest from its equity partner and consolidated the asset.
(h)    On November 30, 2022, the Company sold its interest in the joint venture and realized a gain on the sale of approximately $7.7 million.
(i)    Amounts are net of amortization of basis differences of $154, $138 and $143 for the year ended December 31, 2022, 2021 and 2020, respectively.
Schedule of Equity Method Investment, Summarized Financial Information, Balance Sheet
The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of December 31, 2022 and 2021 (dollars in thousands):

December 31,
2022		 December 31,
2021
Assets:
Rental Property, net $ 745,210  $ 787,787 
Other assets 39,241  72,955 
Total assets $ 784,451  $ 860,742 
Liabilities and partners'/members' capital:
Mortgages and loans payable $ 587,913  $ 692,448 
Other liabilities 15,545  36,732 
Partners'/members' capital 180,993  131,562 
Total liabilities and partners'/members' capital $ 784,451  $ 860,742 
Schedule of Equity Method Investment, Summarized Financial Information, Income Statement
The following is a summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests during the years ended December 31, 2022, 2021 and 2020 (dollars in thousands):

Year Ended December 31,
2022 2021 2020
Total revenues $ 140,637  $ 173,169  $ 275,246 
Operating and other expenses (81,914) (131,709) (224,195)
Depreciation and amortization (25,412) (25,095) (34,587)
Interest expense (29,777) (27,145) (29,420)
Net income (loss) $ 3,534  $ (10,780) $ (12,956)