Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | New York REIT Liquidating LLC | |
Entity Central Index Key | 0001474464 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,791,769 | |
Entity Address, State or Province | MA | |
Entity Interactive Data Current | Yes |
Consolidated Statements of Net
Consolidated Statements of Net Assets - Liquidation Value [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Investment in unconsolidated joint venture | $ 268,102 | $ 265,516 |
Cash and cash equivalents | 8,391 | 7,650 |
Restricted cash held in escrow | 92,233 | 92,302 |
Accounts receivable | 60 | 60 |
Total Assets | 368,786 | 365,528 |
Liabilities | ||
Liability for estimated costs in excess of estimated receipts during liquidation | 2,627 | 2,348 |
Accounts payable, accrued expenses and other liabilities | 434 | 389 |
Total Liabilities | 3,061 | 2,737 |
Commitments and Contingencies | ||
Net assets in liquidation | $ 365,725 | $ 362,791 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Net Assets - Liquidation Value [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net assets in liquidation, beginning of period | $ 362,791 | $ 372,556 |
Changes in net assets in liquidation: | ||
Changes in liquidation value of investment in unconsolidated joint venture | 5,574 | 748 |
Remeasurement of assets and liabilities | (961) | (616) |
Net changes in liquidation value | 4,613 | 132 |
Liquidating distributions to unitholders | (1,679) | (11,923) |
Changes in net assets in liquidation | 2,934 | (11,791) |
Net assets in liquidation, end of period | $ 365,725 | $ 360,765 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1 — Organization New York REIT Liquidating LLC (the “Company”) was formed on November 7, 2018 and is the successor entity to New York REIT, Inc., (the “Predecessor”). The Predecessor was incorporated on October 6, 2009 as a Maryland corporation that qualified as a real estate investment trust for U.S. federal income tax purposes (“REIT”) beginning with its taxable year ended December 31, 2010. On April 15, 2014, the Predecessor listed its common stock on the New York Stock Exchange (“NYSE”) under the symbol “NYRT” (the “Listing”). The sole purpose of the Company is to wind up the Company’s affairs and the liquidation of the Company’s assets with no objective to continue or to engage in the conduct of a trade or business, except as necessary for the orderly liquidation of the Company’s assets. Substantially all of the Predecessor’s business was conducted through its operating partnership, New York Recovery Operating Partnership, L.P., a Delaware limited partnership (the “OP”). On August 22, 2016, the Predecessor’s Board of Directors (the “Board”) approved a plan of liquidation to sell in an orderly manner all or substantially all of the assets of the Predecessor and its OP and to liquidate and dissolve the Predecessor and the OP (the “Liquidation Plan”), subject to stockholder approval (see Note 2). The Liquidation Plan was approved at a special meeting of stockholders on January 3, 2017. All of the assets held by the OP have been sold and the OP was dissolved prior to the conversion on November 7, 2018. As of March 31, 2020, the Company’s only significant assets are a 50.1% equity interest in WWP Holdings LLC (“WWP”) , , know n Worldwide Plaza, the property owned by The Company has no employees. Since March 8, 2017, all advisory duties are administered by Winthrop REIT Advisors, LLC (the “Winthrop Advisor”). |
Liquidation Plan
Liquidation Plan | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidation Plan | Note 2 – Liquidation Plan The Liquidation Plan provides for an orderly sale of the Company’s assets, payment of the Company’s liabilities and other obligations and the winding down of operations and dissolution of the Company. The Predecessor was not, and the Company is not, permitted to make any new investments except to make protective acquisitions or advances with respect to its existing assets. The Company is permitted to satisfy any existing contractual obligations and fund required tenant improvements and capital expenditures at its real estate property owned by the joint venture in which the Company owns an interest (See Note 6). The Liquidation Plan enables the Company to sell any and all of its assets without further approval of the unitholders and provides that liquidating distributions be made to the unitholders as determined by the Company’s board of managers (the “Board of Managers”). In order to comply with applicable laws, the Predecessor converted into a limited liability company. The conversion of the Predecessor to a limited liability company was approved by the stockholders on September 7, 2018 and became effective on November 7, 2018. In October 2018, the Predecessor announced the withdrawal of its common stock (“Common Shares”) from listing on the NYSE in connection with the conversion. November 2, 2018 was the last day Common Shares were traded on the NYSE and the stock transfer books were closed as of 4:00 p.m. (Eastern Time) on such date. At the effective time of the conversion, each outstanding Common Share was converted into one unit of common membership interest in the LLC (a “Unit”), and holders of Common Shares automatically received one Unit (which Unit was in book entry form) for each Common Share held by such stockholder. Holders of Units should note that unlike Common Shares, which, in addition to being listed on the NYSE, were freely transferable, Units are not listed for trading and generally are not transferable except by will, intestate succession or operation of law. Therefore, the recipients of Units will not have the ability to realize any value from these interests except from distributions made by the Company, the timing of which will be solely in the discretion of the Board of Managers. On October 26, 2018, the Board designated Randolph C. Read, P. Sue Perrotty, Craig T. Bouchard, Howard Goldberg and Joe C. McKinney, representing all the previous members of the Board, to serve as the initial members of the Board of Managers. The Company is The business of the Company is the same as the business of the Predecessor immediately preceding the conversion, which, consistent with the Liquidation Plan, consists of the continued ownership of the Predecessor’s interest in Worldwide Plaza, the only remaining property-related asset. Under its operating agreement, the business and affairs of the Company will be managed by or under the direction of its Board of Managers, and the sole purpose is winding up the affairs of the Company and the liquidation of its remaining asset. The Company will remain in existence until the earlier of (i) the distribution of all its assets pursuant to liquidation or (ii) four years from the effective time of the conversion. The term may be extended to such later date as the Board of Managers determines is reasonably necessary to fulfill the purposes of the Company. The dissolution process and the amount and timing of future distributions to unitholders involves risks and uncertainties. Accordingly, it is not possible to predict the timing or aggregate amount which will be ultimately distributed to unitholders and no assurance can be given that the distributions will equal or exceed the estimate of net assets presented in the Consolidated Statement of Net Assets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3 — Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. Liquidation Basis of Accounting As a result of the approval of the Liquidation Plan by the stockholders, the Company adopted the liquidation basis of accounting as of January 1, 2017 and for the periods subsequent to December 31, 2016 in accordance with GAAP. Accordingly, on January 1, 2017, the carrying value of the Company’s assets were adjusted to their liquidation value, which represented the estimated amount of cash that the Company expected to collect on disposal of assets as it carried out its liquidation activities under the Liquidation Plan. All properties have been sold except for the remaining interest in Worldwide Plaza. For purposes of liquidation accounting, the Company’s estimate of net asset Liabilities are carried at their contractual amounts due as adjusted for the timing and other assumptions related to the liquidation process. The Company accrues costs and revenues that it expects to incur and earn as it carries out its liquidation activities through the end of the projected liquidation period to the extent it has a reasonable basis for estimation. Estimated costs expected to be incurred through the end of the liquidation period include corporate overhead costs associated with satisfying known and contingent liabilities and other costs associated with the winding down and dissolution of the Company. Revenues are based on current interest rate assumptions. These amounts are classified as a net liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statement of Net Assets. Actual costs and revenues may differ from amounts reflected in the consolidated financial statements due to the inherent uncertainty in estimating future events. These differences may be material. See Note 4 for further discussion. Actual costs incurred but unpaid as of March 31, 2020 and December 31, 2019 are included in accounts payable, accrued expenses and other liabilities on the Consolidated Statement of Net Assets. As a result of the change to the liquidation basis of accounting, the Company no longer presents a Consolidated Balance Sheet, a Consolidated Statement of Operations and Comprehensive Income (Loss), a Consolidated Statement of Changes in Equity or a Consolidated Statement of Cash Flows. Use of Estimates Certain of the Company’s accounting estimates are particularly important for an understanding of the Company’s financial position and results of operations and require the application of significant judgment by management. As a result, these estimates are subject to a degree of uncertainty. The Company is required to estimate all costs and revenue it expects to incur and earn through the end of liquidation including the estimated amount of cash it expects to collect on the disposal of its assets and the estimated costs to dispose of its assets. All of the estimates and evaluations are susceptible to change and actual results could differ materially from the estimates and evaluations. Revenue Recognition Under the liquidation basis of accounting, the Company accrues all revenue that it expects to earn through the end of liquidation to the extent it has a reasonable basis for estimation. The Company has no revenues other than interest income. These amounts are classified within liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statements of Net Assets. Investment in Unconsolidated Joint Venture The Company accounts for its investment in unconsolidated joint venture under the equity method of accounting because the Company exercises significant influence over but does not control the entity and is not considered to be the primary beneficiary. The investment in unconsolidated joint venture is recorded at its liquidation value, or net realizable value, which is comprised of an estimate of the expected sale proceeds upon disposition plus the estimated net cash flow from the venture during the liquidation period. The Company evaluates the net realizable value of its unconsolidated joint venture at each reporting period. Any changes in net realizable value will be reflected as a change in the Company’s net assets in liquidation. The liquidation value of the Company’s remaining investment in Worldwide Plaza as of March 31, 2020 and December 31, 2019 is based on estimated cash flow projections utilizing appropriate discount and capitalization rates as well as available market information. Restricted Cash At March 31, 2020 and December 31 , 2019, rest ricted Recent Accounting Pronouncements There are no new accounting pronouncements that are applicable or relevant to the Company under the liquidation basis of accounting. |
Liability for Estimated Costs i
Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation | Note 4 — Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation The liquidation basis of accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the plan of liquidation. The Company currently estimates that it will have costs in excess of estimated receipts during the liquidation. These amounts can vary significantly due to, among other things, the timing and estimates for operating expenses, interest earned on reserves and the costs associated with the winding down of operations. These costs are estimated and are anticipated to be paid out over the liquidation period. At March 31, 2020 and December 31, 2019, the Company had accrued the following net expenses expected to be incurred during liquidation (in thousands): March 31, 2020 December 31, 2019 General and administrative expenses $ (2,627 ) $ (2,348 ) Liability for estimated costs in excess of estimated receipts during liquidation $ (2,627 ) $ (2,348 ) The change in the liability for estimated costs in excess of estimated receipts during liquidation for the three months ended March 31, 2020 and 2019 are as follows (in thousands): January 1, 2020 Net Change Remeasurement March 31, 2020 Liabilities: General and administrative expenses $ (2,348 ) $ 682 $ (961 ) $ (2,627 ) Total liability for estimated costs in excess of estimated receipts during liquidation $ (2,348 ) $ 682 $ (961 ) $ (2,627 ) January 1, 2019 Net Change Remeasurement March 31, 2019 Liabilities: General and administrative expenses (3,208 ) 586 (616 ) (3,238 ) Total liability for estimated costs in excess of estimated receipts during liquidation $ (3,208 ) $ 586 $ (616 ) $ (3,238 ) (1) Represents changes in cash, restricted cash, accounts receivable, accounts payable and accrued expenses as a result of the Company’s operating activities for the three months ended March 31, 2020 and 2019. |
Net Assets in Liquidation
Net Assets in Liquidation | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Net Assets in Liquidation | Note 5 — Net Assets in Liquidation Net assets in liquidation increased by $2.9 million during the three months ended March 31, 2020 primarily due to a net increase of $5.6 million in the estimated liquidation value of the Company’s investment in Worldwide Plaza related to the estimated distributions from working capital and property operations. The increase was offset by a liquidating distribution to unitholders of $1.7 million and $1.0 million decrease due to a remeasurement of estimated costs. Net assets in liquidation decreased by $11.8 million during the three months ended March 31, 20 19 The net assets in liquidation at March 31, 2020, presented on an undiscounted basis include the Company’s proportionate share in Worldwide Plaza’s net assets which include a property value at $1.725 billion based on estimated cash flow projections utilizing appropriate discount and capitalization rates as well as available market information. There were 16,791,769 Units outstanding at March 31, 2020. The net assets in liquidation as of March 31, 2020, if sold at their net asset value, would result in liquidating distributions of approximately $21.78 per unit. On May 6, 2020, the Board of Managers declared a cash liquidating distribution of $0.10 per Unit payable on May 19, 2020 to unitholders of record on May 12, 2020, reducing the estimate of future liquidating distributions to $21.68 per unit. The net assets in liquidation as of March 31, 2020 of $365.7 million, if sold at their net asset value, plus the cumulative liquidating distribution to unitholders of $1.006 b of the Company’s remaining investment, the performance of the underlying asset and any changes in the underlying assumptions of the projected cash flows. |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Venture | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Joint Venture | Note 6 — Investment in Unconsolidated Joint Venture On October 30, 2013, the Predecessor purchased a On June 1, 2017, the Predecessor acquired an additional 49.9% equity interest in Worldwide Plaza on exercise of the Predecessor’s option to purchase for a contract purchase price of $276.7 million, based on the option price of the property of approximately $1.4 billion less $875.0 million of debt on the property. The Predecessor’s joint venture partner exercised its right to retain 1.2% of the aggregate membership interests in Worldwide Plaza. Following the exercise of the option, the Company owned a total equity interest of 98.8% in Worldwide Plaza. On October 18, 2017, the Predecessor sold a 48.7% interest in Worldwide Plaza to a joint venture managed by SL Green Realty Corp. and RXR Realty LLC based on an estimated underlying property value of $1.725 billion. In conjunction with the equity sale, there was a concurrent $1.2 billion refinancing of the existing Worldwide Plaza debt. The Predecessor received cash at closing of approximately $446.5 million from the sale and excess proceeds from the financing, net of closing costs which included $108.3 million of defeasance and prepayment costs. The new debt on Worldwide Plaza bears interest at a blended rate of approximately 3.98% per annum, requires monthly payments of interest only and matures in November 2027. The Company has set aside $90.7 million of the proceeds in a separate account to fund future capital improvements to Worldwide Plaza. Following the sale of its interest, the Company now holds a 50.1% interest in Worldwide Plaza. The Company has determined that this investment is an investment in a variable interest entity (VIE). The Company has determined that it is not the primary beneficiary of this VIE since the Company does not have the power to direct the activities that most significantly impact the VIE’s economic performance. The Company accounts for this investment using the equity method of accounting. The lease with one of the tenants at the Worldwide Plaza property contains a right of first offer in the event that Worldwide Plaza sells 100% of the property. The right requires Worldwide Plaza to offer the tenant the option to purchase 100% of the Worldwide Plaza property, at the price, and on other material terms, proposed by Worldwide Plaza to third parties. If, after a 45-day re-offer The following table lists the tenants whose annualized cash rent represented greater than 10% of total annualized cash rent for the three months ended March 31, 2020 and 2019, including annualized cash rent related to the Company’s unconsolidated joint venture: March 31, Property Portfolio Tenant 2020 2019 Worldwide Plaza Cravath, Swaine & Moore, LLP 48.4 % 46.4 % Worldwide Plaza Nomura Holdings America, Inc. 30.7 % 32.6 % The termination, delinquency or non-renewal The amounts reflected in the following tables are based on the financial information of Worldwide Plaza. Under liquidation accounting, equity investments are carried at net realizable value. The condensed balance sheets as of March 31, 2020 and December 31, 2019 for Worldwide Plaza are as follows: (In thousands) March 31, December 31, Real estate assets, at cost $ 829,890 $ 829,168 Less accumulated depreciation and amortization (243,423 ) (239,120 ) Total real estate assets, net 586,467 590,048 Cash and cash equivalents 56,650 45,477 Other assets 138,553 151,445 Total assets $ 781,670 $ 786,970 Debt $ 1,242,570 $ 1,238,794 Other liabilities 156,519 153,331 Total liabilities 1,399,089 1,392,125 Deficit (617,419 ) (605,155 ) Total liabilities and deficit $ 781,670 $ 786,970 The condensed statements of operations for the three months ended March 31, 2020 and 2019 for Worldwide Plaza are as follows: March 31, (In thousands) 2020 2019 Rental income $ 35,443 $ 35,877 Operating expenses: Operating expenses 17,056 15,378 Depreciation and amortization 5,048 7,543 Total operating expenses 22,104 22,921 Operating income 13,339 12,956 Interest expense (19,197 ) (18,596 ) Net loss $ (5,858 ) $ (5,640 ) |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Common Stock | Note 7 — Common Stock The Company had 16,791,769 Units outstanding as of March 31, 2020 and December 31, 2019. The Company expects to make periodic liquidating distributions out of cash flow distributions received from Worldwide Plaza and proceeds from the ultimate sale of the Company’s interest in Worldwide Plaza, subject to satisfying its liabilities and obligations, in lieu of regular monthly dividends. Through March 31, 2020, the Company paid aggregate liquidating distributions equal to $59.91 per share/unit. On March 16, 2020, the Company paid a cash liquidating distribution of $0.10 per unit. On May 6, 2020, the Company declared a cash liquidating distribution of $0.10 per unit payable to unitholders of record as of May 12 unitholders |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 — Commitments and Contingencies Litigation and Regulatory Matters In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no legal or regulatory proceedings pending or known to be contemplated against the Company from which the Company expects to incur a material loss. Environmental Matters In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company, through its joint venture, maintains environmental insurance for its properties that provides coverage for potential environmental liabilities, subject to the policy’s coverage conditions and limitations. The Company has not been notified by any governmental authority of any non-compliance, |
Related Party Transactions and
Related Party Transactions and Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Arrangements | Note 9 — Related Party Transactions and Arrangements Winthrop Advisor and its Affiliates The activities of the Liquidating LLC are administered by the Winthrop Advisor pursuant to the terms of an advisory agreement, as amended, (the “Advisory Agreement”) between the Company and the Winthrop Advisor. The original term of the Advisory Agreement ended on November 7, 2018, the effective date of the conversion of the Company to a liquidating entity (the “Liquidation Date”). Since no notice of termination of the Advisory Agreement was received by either party, the Advisory Agreement automatically renewed for a one-month one-month one-month Beginning on March 1, 2017, and continuing through the Liquidation Date, the Company paid Winthrop Advisor an asset management fee equal to 0.325% per annum of the cost of assets (as defined in the Advisory Agreement) up to $3.0 billion and 0.25% per annum of the cost of assets in excess of $3.0 billion. In determining the Cost of Assets (as defined in the Advisory Agreement) for purposes of calculating the management fee payable to the Winthrop Advisor, the cost of the Viceroy Hotel was, for each month from and after April 2018, deemed to equal its then-current book value. Beginning with the fiscal quarter ending September 30, 2018 and ending on the Liquidation Date, the Company paid Winthrop Advisor a supplemental fee of $25,000 per quarter (prorated for any partial quarter) in addition to the base management fee. Following the Liquidation Date, the Company pays to the Winthrop Advisor a monthly fee of $100,000 and a supplemental fee of $50,000 per quarter (prorated for any partial quarter) for any period that the principal executive and financial officers of the Company are required to certify the financial and other information contained in the Company’ s quarterly and annual reports pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended. In connection with the adoption of liquidation accounting, the Company accrues costs it expects to incur through the end of liquidation. As of March 31, 2020 and the In connection with the payment of (i) any distributions of money or other property by the Company to its stockholders or unitholders during the term of the Advisory Agreement and (ii) any other amounts paid to the Company’s stockholders or unitholders on account of their shares of common stock or membership interests in the Company in connection with a merger or other change in control transaction pursuant to an agreement with the Company entered into after March 8, 2017 (such distributions and payments, the “Hurdle Payments”), in excess of $110.00 per share (the “Hurdle Amount”), when taken together with all other Hurdle Payments, the Company will pay an incentive fee to Winthrop Advisor in an amount equal to 10.0% of such excess (the “Incentive Fee”). The Hurdle Amount will be increased on an annualized basis by an amount equal to the product of (a) the Treasury Rate plus 200 basis points and (b) the Hurdle Amount minus all previous Hurdle Payments. Based on the current estimated undiscounted net assets in liquidation, the Winthrop Advisor would not be entitled to receive any such incentive fee. The Company paid the Winthrop Advisor $350,000 for each of the three month periods ended March 31, 2020 and 2019. |
Economic Dependency
Economic Dependency | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Economic Dependency | Note 10 — Economic Dependency Under various agreements, the Company has engaged Winthrop Advisor, its affiliates and entities under common control with Winthrop Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset disposition decisions, as well as other administrative responsibilities for the Company including accounting services, transaction management and investor relations. As a result of these relationships, the Company is dependent upon Winthrop Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 — Subsequent Events The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q The recent outbreak of the novel coronavirus (“COVID-19”) COVID-19. COVID-19 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated in consolidation. |
Liquidation Basis of Accounting | Liquidation Basis of Accounting As a result of the approval of the Liquidation Plan by the stockholders, the Company adopted the liquidation basis of accounting as of January 1, 2017 and for the periods subsequent to December 31, 2016 in accordance with GAAP. Accordingly, on January 1, 2017, the carrying value of the Company’s assets were adjusted to their liquidation value, which represented the estimated amount of cash that the Company expected to collect on disposal of assets as it carried out its liquidation activities under the Liquidation Plan. All properties have been sold except for the remaining interest in Worldwide Plaza. For purposes of liquidation accounting, the Company’s estimate of net asset Liabilities are carried at their contractual amounts due as adjusted for the timing and other assumptions related to the liquidation process. The Company accrues costs and revenues that it expects to incur and earn as it carries out its liquidation activities through the end of the projected liquidation period to the extent it has a reasonable basis for estimation. Estimated costs expected to be incurred through the end of the liquidation period include corporate overhead costs associated with satisfying known and contingent liabilities and other costs associated with the winding down and dissolution of the Company. Revenues are based on current interest rate assumptions. These amounts are classified as a net liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statement of Net Assets. Actual costs and revenues may differ from amounts reflected in the consolidated financial statements due to the inherent uncertainty in estimating future events. These differences may be material. See Note 4 for further discussion. Actual costs incurred but unpaid as of March 31, 2020 and December 31, 2019 are included in accounts payable, accrued expenses and other liabilities on the Consolidated Statement of Net Assets. As a result of the change to the liquidation basis of accounting, the Company no longer presents a Consolidated Balance Sheet, a Consolidated Statement of Operations and Comprehensive Income (Loss), a Consolidated Statement of Changes in Equity or a Consolidated Statement of Cash Flows. |
Use of Estimates | Use of Estimates Certain of the Company’s accounting estimates are particularly important for an understanding of the Company’s financial position and results of operations and require the application of significant judgment by management. As a result, these estimates are subject to a degree of uncertainty. The Company is required to estimate all costs and revenue it expects to incur and earn through the end of liquidation including the estimated amount of cash it expects to collect on the disposal of its assets and the estimated costs to dispose of its assets. All of the estimates and evaluations are susceptible to change and actual results could differ materially from the estimates and evaluations. |
Revenue Recognition | Revenue Recognition Under the liquidation basis of accounting, the Company accrues all revenue that it expects to earn through the end of liquidation to the extent it has a reasonable basis for estimation. The Company has no revenues other than interest income. These amounts are classified within liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statements of Net Assets. |
Investment in Unconsolidated Joint Venture | Investment in Unconsolidated Joint Venture The Company accounts for its investment in unconsolidated joint venture under the equity method of accounting because the Company exercises significant influence over but does not control the entity and is not considered to be the primary beneficiary. The investment in unconsolidated joint venture is recorded at its liquidation value, or net realizable value, which is comprised of an estimate of the expected sale proceeds upon disposition plus the estimated net cash flow from the venture during the liquidation period. The Company evaluates the net realizable value of its unconsolidated joint venture at each reporting period. Any changes in net realizable value will be reflected as a change in the Company’s net assets in liquidation. The liquidation value of the Company’s remaining investment in Worldwide Plaza as of March 31, 2020 and December 31, 2019 is based on estimated cash flow projections utilizing appropriate discount and capitalization rates as well as available market information. |
Restricted Cash | Restricted Cash At March 31, 2020 and December 31 , 2019, rest ricted |
Recent Accounting Pronouncement | Recent Accounting Pronouncements There are no new accounting pronouncements that are applicable or relevant to the Company under the liquidation basis of accounting. |
Liability for Estimated Costs_2
Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Summary of Accrued Revenues and Expenses Expected to Earned or Incurred During Liquidation | At March 31, 2020 and December 31, 2019, the Company had accrued the following net expenses expected to be incurred during liquidation (in thousands): March 31, 2020 December 31, 2019 General and administrative expenses $ (2,627 ) $ (2,348 ) Liability for estimated costs in excess of estimated receipts during liquidation $ (2,627 ) $ (2,348 ) |
Schedule of Changes in Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation | The change in the liability for estimated costs in excess of estimated receipts during liquidation for the three months ended March 31, 2020 and 2019 are as follows (in thousands): January 1, 2020 Net Change Remeasurement March 31, 2020 Liabilities: General and administrative expenses $ (2,348 ) $ 682 $ (961 ) $ (2,627 ) Total liability for estimated costs in excess of estimated receipts during liquidation $ (2,348 ) $ 682 $ (961 ) $ (2,627 ) January 1, 2019 Net Change Remeasurement March 31, 2019 Liabilities: General and administrative expenses (3,208 ) 586 (616 ) (3,238 ) Total liability for estimated costs in excess of estimated receipts during liquidation $ (3,208 ) $ 586 $ (616 ) $ (3,238 ) (1) Represents changes in cash, restricted cash, accounts receivable, accounts payable and accrued expenses as a result of the Company’s operating activities for the three months ended March 31, 2020 and 2019. |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Venture (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of annualized rental income by major tenants | The following table lists the tenants whose annualized cash rent represented greater than 10% of total annualized cash rent for the three months ended March 31, 2020 and 2019, including annualized cash rent related to the Company’s unconsolidated joint venture: March 31, Property Portfolio Tenant 2020 2019 Worldwide Plaza Cravath, Swaine & Moore, LLP 48.4 % 46.4 % Worldwide Plaza Nomura Holdings America, Inc. 30.7 % 32.6 % |
Condensed Balance Sheet | The condensed balance sheets as of March 31, 2020 and December 31, 2019 for Worldwide Plaza are as follows: (In thousands) March 31, December 31, Real estate assets, at cost $ 829,890 $ 829,168 Less accumulated depreciation and amortization (243,423 ) (239,120 ) Total real estate assets, net 586,467 590,048 Cash and cash equivalents 56,650 45,477 Other assets 138,553 151,445 Total assets $ 781,670 $ 786,970 Debt $ 1,242,570 $ 1,238,794 Other liabilities 156,519 153,331 Total liabilities 1,399,089 1,392,125 Deficit (617,419 ) (605,155 ) Total liabilities and deficit $ 781,670 $ 786,970 |
Condensed Income Statement | The condensed statements of operations for the three months ended March 31, 2020 and 2019 for Worldwide Plaza are as follows: March 31, (In thousands) 2020 2019 Rental income $ 35,443 $ 35,877 Operating expenses: Operating expenses 17,056 15,378 Depreciation and amortization 5,048 7,543 Total operating expenses 22,104 22,921 Operating income 13,339 12,956 Interest expense (19,197 ) (18,596 ) Net loss $ (5,858 ) $ (5,640 ) |
Organization - Additional Infor
Organization - Additional Information (Detail) - WWP Holdings Llc [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)ft²Investment | |
Organization [Line Items] | |
Number of investments | Investment | 1 |
Liquidation Value [Member] | |
Organization [Line Items] | |
Area of investments | ft² | 2 |
Occupancy percentage | 97.40% |
Ownership percentage | 50.10% |
Cash reserve utilized for improvements | $ | $ 90.7 |
Liquidation Value [Member] | Supplier Concentration Risk [Member] | Composition of Real Estate Portfolio [Member] | Office Building [Member] | |
Organization [Line Items] | |
Concentration risk percent | 88.00% |
Liquidation Value [Member] | Supplier Concentration Risk [Member] | Composition of Real Estate Portfolio [Member] | Retail Site [Member] | |
Organization [Line Items] | |
Concentration risk percent | 5.00% |
Liquidation Value [Member] | Supplier Concentration Risk [Member] | Composition of Real Estate Portfolio [Member] | Parking Garage [Member] | |
Organization [Line Items] | |
Concentration risk percent | 7.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - Liquidation Value [Member] - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Worldwide Plaza [Member] | Capital Improvement Reserve [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Restricted cash | $ 90.7 | $ 90.7 |
Escrow [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Restricted cash | $ 1.4 | $ 1.4 |
Liability for Estimated Costs_3
Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation - Summary of Accrued Revenues and Expenses Expected to Earned or Incurred During Liquidation (Detail) - Liquidation Value [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Liquidation Basis Of Accounting [Line Items] | ||
General and administrative expenses | $ (2,627) | $ (2,348) |
Liability for estimated costs in excess of estimated receipts during liquidation | $ (2,627) | $ (2,348) |
Liability for Estimated Costs_4
Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation - Schedule of Changes in Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation (Detail) - Liquidation Value [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Business Acquisition [Line Items] | |||
Liability for estimated costs in excess of estimated receipts during liquidation, beginning balance | $ (2,348) | $ (3,208) | |
Net Change in Working Capital | [1] | 682 | 586 |
Remeasurement of assets and liabilities | (961) | (616) | |
Liability for estimated costs in excess of estimated receipts during liquidation, ending balance | (2,627) | (3,238) | |
Liability [Member] | General And Administrative Expenses [Member] | |||
Business Acquisition [Line Items] | |||
Total liability for estimated costs, beginning balance | (2,348) | (3,208) | |
Net Change in Working Capital | [1] | 682 | 586 |
Remeasurement of assets and liabilities | (961) | (616) | |
Total liability for estimated costs, ending balance | $ (2,627) | $ (3,238) | |
[1] | Represents changes in cash, restricted cash, accounts receivable, accounts payable and accrued expenses as a result of the Company’s operating activities for the three months ended March 31, 2020 and 2019. |
Net Assets in Liquidation - Add
Net Assets in Liquidation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | May 12, 2020 | May 06, 2020 | Mar. 30, 2020 | Mar. 16, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Liquidating distributions per common share | $ 0.10 | |||||||
Estimated future liquidating distributions per common share | $ 21.68 | |||||||
Liquidating distribution declared date | May 6, 2020 | |||||||
Remeasurement [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Net increase (decrease) in liquidation value | $ 600 | |||||||
Worldwide Plaza [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Net increase (decrease) in liquidation value | (700) | |||||||
Liquidation Value [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Liquidation value of property | $ 1,725,000 | |||||||
Increase (decrease) in net assets subject to liquidation | 2,900 | (11,800) | ||||||
Net increase (decrease) in liquidation value | $ (4,613) | (132) | ||||||
Liquidating distributions per common share | $ 0.10 | $ 21.78 | ||||||
Net assets in liquidation | $ 365,725 | 360,765 | $ 362,791 | $ 372,556 | ||||
Liquidating distributions to unit holders | $ 1,006,000 | $ 11,900 | ||||||
Liquidating distributions per unit | 81.69 | |||||||
Liquidation Value [Member] | Subsequent Event [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Liquidating distributions per common share | $ 0.10 | |||||||
Liquidation Value [Member] | Viceroy Management Agreement [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Net increase (decrease) in liquidation value | $ 1,700 | |||||||
Liquidation Value [Member] | Remeasurement [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Net increase (decrease) in liquidation value | 1,000 | |||||||
Liquidation Value [Member] | Worldwide Plaza [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Net increase (decrease) in liquidation value | $ 5,600 | |||||||
Common Stock [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Common stock, shares outstanding | 16,791,769 | 16,791,769 | ||||||
Common Stock [Member] | Liquidation Value [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Common stock, shares outstanding | 16,791,769 | |||||||
Stock Units [Member] | Liquidation Value [Member] | ||||||||
Net Assets In Liquidation [Line Items] | ||||||||
Liquidating distributions per unit | 59.91 |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Venture - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 18, 2017 | Jun. 01, 2017 | Mar. 31, 2020 | Dec. 31, 2019 | Oct. 30, 2013 |
SL Green Realty Corp. and RXR Realty LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 48.70% | ||||
Worldwide Plaza [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50.10% | 48.90% | |||
Aggregate cost | $ 276,700 | $ 220,100 | |||
Agreed upon value | 1,300,000 | ||||
Notes payable | $ 1,242,570 | $ 1,238,794 | $ 875,000 | ||
Additional acquire percentage | 49.90% | ||||
Purchase obligation | $ 1,400,000 | ||||
Mortgage notes payable | $ 875,000 | ||||
Joint venture partner's right to maintain minimum ownership percentage | 1.20% | ||||
Debt refinance amount | $ 1,200,000 | ||||
Cash received from sale and excess proceeds from financing | 446,500 | ||||
Defeasance and prepayment costs | 108,300 | ||||
Reserved amount | $ 90,700 | ||||
Debt blended rate | 3.98% | ||||
Maturity date | 2027-11 | ||||
Property selling percentage | 100.00% | ||||
Option to purchase percentage of property | 100.00% | ||||
Property purchase option period | 45 days | ||||
Re-offer property selling percentage | 92.50% | ||||
Worldwide Plaza [Member] | SL Green Realty Corp. and RXR Realty LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liquidation value of property | $ 1,725,000 | ||||
Liquidation Value [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liquidation value of property | $ 1,725,000 | ||||
Liquidation Value [Member] | Worldwide Plaza [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 98.80% |
Investment in Unconsolidated _4
Investment in Unconsolidated Joint Venture (Detail) - Liquidation Value [Member] - Worldwide Plaza [Member] | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cravath, Swaine & Moore LLP [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage of total annualized rental income | 48.40% | 46.40% |
Nomura Holdings America, Inc [Member] | ||
Revenue, Major Customer [Line Items] | ||
Percentage of total annualized rental income | 30.70% | 32.60% |
Investment in Unconsolidated _5
Investment in Unconsolidated Joint Venture - Consolidated Balance Sheet (Detail 1) - Worldwide Plaza [Member] - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Oct. 30, 2013 |
Schedule of Equity Method Investments [Line Items] | |||
Real estate assets, at cost | $ 829,890 | $ 829,168 | |
Less accumulated depreciation and amortization | (243,423) | (239,120) | |
Total real estate assets, net | 586,467 | 590,048 | |
Cash and cash equivalents | 56,650 | 45,477 | |
Other assets | 138,553 | 151,445 | |
Total Assets | 781,670 | 786,970 | |
Debt | 1,242,570 | 1,238,794 | $ 875,000 |
Other liabilities | 156,519 | 153,331 | |
Total Liabilities | 1,399,089 | 1,392,125 | |
Deficit | (617,419) | (605,155) | |
Total liabilities and deficit | $ 781,670 | $ 786,970 |
Investment in Unconsolidated _6
Investment in Unconsolidated Joint Venture - Condensed Income Statement (Detail 2) - Worldwide Plaza [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Rental income | $ 35,443 | $ 35,877 |
Operating expenses: | ||
Operating expenses | 17,056 | 15,378 |
Depreciation and amortization | 5,048 | 7,543 |
Total operating expenses | 22,104 | 22,921 |
Operating income | 13,339 | 12,956 |
Interest expense | (19,197) | (18,596) |
Net loss | $ (5,858) | $ (5,640) |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - $ / shares | May 06, 2020 | Mar. 16, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Member] | ||||
Class of Stock [Line Items] | ||||
Liquidating distributions per common share | $ 0.10 | |||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock shares outstanding | 16,791,769 | 16,791,769 | ||
Liquidation Value [Member] | ||||
Class of Stock [Line Items] | ||||
Aggregate liquidating distributions per share | $ 59.91 | |||
Liquidating distributions per common share | $ 0.10 | $ 21.78 | ||
Liquidation Value [Member] | Subsequent Event [Member] | ||||
Class of Stock [Line Items] | ||||
Liquidating distributions per common share | $ 0.10 | |||
Liquidation Value [Member] | Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock shares outstanding | 16,791,769 |
Related Party Transactions an_2
Related Party Transactions and Arrangements - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Mar. 01, 2017 | |
Winthrop Advisor and its Affiliates [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | $ 350,000 | $ 350,000 | ||||
Liquidation Value [Member] | Advisor [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of assets maximum | $ 3,000,000,000 | |||||
Liquidation Value [Member] | Advisor [Member] | Post Liquidation Date Agreement Monthly Supplemental Fee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | 100,000 | |||||
Liquidation Value [Member] | Advisor [Member] | Post Liquidation Date Agreement Quarterly Supplemental Fee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | $ 50,000 | |||||
Liquidation Value [Member] | Advisor [Member] | Pre Liquidation Date Agreement Quarterly Supplemental Fee [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Fees paid to related parties | $ 25,000 | |||||
Liquidation Value [Member] | Service Provider and Affiliates [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Asset management fees as a percentage of benchmark | 0.325% | |||||
Cost of assets maximum | $ 3,000,000,000 | |||||
Asset management fees earned above | 0.25% | |||||
Incentive fee, percentage of excess of hurdle amount | 10.00% | |||||
Hurdle amount (in dollars per share) | $ 110 | |||||
Liquidation Value [Member] | Winthrop Advisor and its Affiliates [Member] | Asset Management Fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Asset management fees | $ 1,400,000 |