Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Jun. 30, 2013 | Mar. 21, 2014 | Mar. 21, 2014 | |
Common Class A [Member] | Common Class B [Member] | |||
Entity Registrant Name | 'Empire State Realty Trust, Inc. | ' | ' | ' |
Entity Central Index Key | '0001541401 | ' | ' | ' |
Document Type | '10-K | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | ' | 94,650,559 | 1,122,130 |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' | ' |
Entity Voluntary Filers | 'No | ' | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' | ' |
Entity Public Float | ' | $0 | ' | ' |
Condensed_Balance_Sheets
Condensed Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commercial real estate properties, at cost: | ' | ' |
Land | $187,566 | ' |
Development costs | 6,459 | ' |
Building and improvements | 1,455,398 | ' |
Commercial real estate properties, at cost, gross | 1,649,423 | ' |
Less: accumulated depreciation | -295,351 | ' |
Commercial real estate properties, net | 1,354,072 | ' |
Cash and cash equivalents | 60,743 | ' |
Restricted cash | 55,621 | ' |
Tenant and other receivables, net of allowance of $499 and $188 in 2013 and 2012, respectively | 24,817 | ' |
Deferred rent receivables, net of allowance of $216 and $735 in 2013 and 2012, respectively | 62,689 | ' |
Investment in non-controlled entities | 0 | 76,879 |
Prepaid expenses and other assets | 35,407 | ' |
Due from affiliated companies | 0 | ' |
Deferred costs, net | 78,938 | ' |
Acquired below market ground lease, net | 62,312 | ' |
Acquired lease intangibles, net | 249,983 | ' |
Goodwill | 491,479 | ' |
Total assets | 2,476,061 | ' |
Liabilities: | ' | ' |
Mortgage notes payable | 883,112 | ' |
Term loan and credit facility | 325,000 | ' |
Unsecured loan and notes payablebrelated parties | 0 | ' |
Accounts payable and accrued expenses | 81,908 | 42,674 |
Acquired below market leases, net | 129,882 | 0 |
Deferred revenue and other liabilities | 21,568 | ' |
Tenantsb security deposits | 31,406 | ' |
Total liabilities | 1,472,876 | ' |
Empire State Realty Trust, Inc. stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value per share, 50,000 shares authorized, none issued or outstanding | 0 | ' |
Additional paid-in capital | 316,558 | ' |
Retained earnings | 67,644 | ' |
Total Empire State Realty Trust, Inc.'s stockholders' equity | 385,158 | ' |
Non-controlling interests in operating partnership | 618,027 | ' |
Ownersb deficit | 0 | ' |
Total equity | 1,003,185 | ' |
Total liabilities and equity | 2,476,061 | ' |
Common Class A [Member] | ' | ' |
Empire State Realty Trust, Inc. stockholders' equity: | ' | ' |
Common stock | 945 | ' |
Common Class B [Member] | ' | ' |
Empire State Realty Trust, Inc. stockholders' equity: | ' | ' |
Common stock | 11 | ' |
Total equity | 11 | ' |
Predecessor [Member] | ' | ' |
Commercial real estate properties, at cost: | ' | ' |
Land | ' | 102,475 |
Development costs | ' | 16,039 |
Building and improvements | ' | 820,816 |
Commercial real estate properties, at cost, gross | ' | 939,330 |
Less: accumulated depreciation | ' | -257,091 |
Commercial real estate properties, net | ' | 682,239 |
Cash and cash equivalents | ' | 51,499 |
Restricted cash | ' | 32,268 |
Tenant and other receivables, net of allowance of $499 and $188 in 2013 and 2012, respectively | ' | 8,701 |
Deferred rent receivables, net of allowance of $216 and $735 in 2013 and 2012, respectively | ' | 49,827 |
Investment in non-controlled entities | ' | 76,879 |
Prepaid expenses and other assets | ' | 12,501 |
Due from affiliated companies | ' | 46,413 |
Deferred costs, net | ' | 92,226 |
Acquired below market ground lease, net | ' | 0 |
Acquired lease intangibles, net | ' | 0 |
Goodwill | ' | 0 |
Total assets | ' | 1,052,553 |
Liabilities: | ' | ' |
Mortgage notes payable | ' | 978,150 |
Term loan and credit facility | ' | 0 |
Unsecured loan and notes payablebrelated parties | ' | 18,339 |
Accounts payable and accrued expenses | ' | 42,674 |
Deferred revenue and other liabilities | ' | 7,390 |
Tenantsb security deposits | ' | 16,859 |
Total liabilities | ' | 1,063,412 |
Empire State Realty Trust, Inc. stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value per share, 50,000 shares authorized, none issued or outstanding | ' | 0 |
Additional paid-in capital | ' | 0 |
Retained earnings | ' | 0 |
Total Empire State Realty Trust, Inc.'s stockholders' equity | ' | 0 |
Non-controlling interests in operating partnership | ' | 0 |
Ownersb deficit | ' | -10,859 |
Total equity | 0 | -10,859 |
Total liabilities and equity | ' | 1,052,553 |
Predecessor [Member] | Common Class A [Member] | ' | ' |
Empire State Realty Trust, Inc. stockholders' equity: | ' | ' |
Common stock | ' | 0 |
Predecessor [Member] | Common Class B [Member] | ' | ' |
Empire State Realty Trust, Inc. stockholders' equity: | ' | ' |
Common stock | ' | $0 |
Condensed_Balance_Sheets_Conde
Condensed Balance Sheets Condensed Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | Common Class A [Member] | Common Class B [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | |
Common Class A [Member] | Common Class B [Member] | |||||
Tenant and other receivables allowance | $499 | ' | ' | $188 | ' | ' |
Deferred rent receivables allowance | $216 | ' | ' | $735 | ' | ' |
Common stock, par value | ' | $0.01 | $0.01 | ' | $0.01 | $0.01 |
Common stock, shares authorized | ' | 400,000 | 50,000 | ' | 400,000 | 50,000 |
Common stock, shares issued | ' | 94,484 | 1,122 | ' | 0 | 0 |
Common stock, shares outstanding | ' | 94,484 | 1,122 | ' | 0 | 0 |
Preferred stock, par value | $0.01 | ' | ' | $0.01 | ' | ' |
Preferred stock, shares authorized | 50,000 | ' | ' | 50,000 | ' | ' |
Preferred stock, shares issued | 0 | ' | ' | 0 | ' | ' |
Preferred stock, shares outstanding | 0 | ' | ' | 0 | ' | ' |
Condensed_Statements_of_Operat
Condensed Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Oct. 06, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' | ' |
Rental revenue | $79,987 | ' | ' | ' |
Tenant expense reimbursement | 15,836 | ' | ' | ' |
Observatory revenue | 23,735 | ' | ' | ' |
Construction revenue | 5,265 | ' | ' | ' |
Third-party management and other fees | 550 | ' | ' | ' |
Other revenue and fees | 2,210 | ' | ' | ' |
Total revenues | 127,583 | ' | 260,294 | 294,788 |
Operating expenses: | ' | ' | ' | ' |
Property operating expenses | 34,453 | ' | ' | ' |
Marketing, general, and administrative expenses | 15,254 | ' | ' | ' |
Observatory expenses | 5,687 | ' | ' | ' |
Construction expenses | 5,468 | ' | ' | ' |
Real estate taxes | 17,191 | ' | ' | ' |
Formation transaction expenses | 0 | ' | ' | ' |
Depreciation and amortization | 27,375 | ' | ' | ' |
Total operating expenses | 105,428 | ' | ' | ' |
Operating income | 22,155 | ' | ' | ' |
Other income (expense): | ' | ' | ' | ' |
Equity in net income of non-controlled entities | 0 | 14,875 | 14,348 | 3,893 |
Interest expense | -13,147 | ' | ' | ' |
Settlement expense | 0 | ' | ' | ' |
Acquisition expenses | -138,140 | ' | ' | ' |
Gain on consolidation of non-controlled entities | 322,563 | ' | ' | ' |
Net income (loss) | 193,431 | ' | 48,643 | 57,397 |
Net loss (income) attributable to the predecessor | 0 | ' | ' | ' |
Net income attributable to non-controlling interests | -118,186 | ' | ' | ' |
Net income attributable to Empire State Realty Trust, Inc. | 75,245 | ' | ' | ' |
Total weighted average shares: | ' | ' | ' | ' |
Basic (in shares) | 95,574 | ' | ' | ' |
Diluted (in shares) | 95,611 | ' | ' | ' |
Net income per share attributable to Empire State Realty Trust, Inc.: | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $0.79 | ' | ' | ' |
Diluted earnings per share (in dollars per share) | $0.79 | ' | ' | ' |
Predecessor [Member] | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' |
Rental revenue | ' | 148,690 | 196,187 | 198,494 |
Tenant expense reimbursement | ' | 21,272 | 29,483 | 31,063 |
Observatory revenue | ' | 0 | 0 | 0 |
Construction revenue | ' | 18,636 | 18,902 | 47,560 |
Third-party management and other fees | ' | 5,067 | 5,103 | 5,626 |
Other revenue and fees | ' | 12,407 | 10,619 | 12,045 |
Total revenues | ' | 206,072 | 260,294 | 294,788 |
Operating expenses: | ' | ' | ' | ' |
Property operating expenses | ' | 41,297 | 55,707 | 57,102 |
Marketing, general, and administrative expenses | ' | 23,600 | 20,963 | 15,688 |
Observatory expenses | ' | 0 | 0 | 0 |
Construction expenses | ' | 19,821 | 19,592 | 46,230 |
Real estate taxes | ' | 24,331 | 30,406 | 29,160 |
Formation transaction expenses | ' | 4,507 | 2,247 | 2,845 |
Depreciation and amortization | ' | 38,963 | 42,690 | 35,513 |
Total operating expenses | ' | 152,519 | 171,605 | 186,538 |
Operating income | ' | 53,553 | 88,689 | 108,250 |
Other income (expense): | ' | ' | ' | ' |
Equity in net income of non-controlled entities | ' | 14,875 | 14,348 | 3,893 |
Interest expense | ' | -50,660 | -54,394 | -54,746 |
Settlement expense | ' | -55,000 | 0 | 0 |
Acquisition expenses | ' | 0 | 0 | 0 |
Gain on consolidation of non-controlled entities | ' | 0 | 0 | 0 |
Net income (loss) | ' | -37,232 | 48,643 | 57,397 |
Net loss (income) attributable to the predecessor | ' | 37,232 | -48,643 | -57,397 |
Net income attributable to non-controlling interests | ' | 0 | 0 | 0 |
Net income attributable to Empire State Realty Trust, Inc. | ' | $0 | $0 | $0 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stocholders' Equity and Owners' Deficit (USD $) | Total | Common Class A [Member] | Common Class B [Member] | Total Stockholders' Equity [Member] | Total Stockholders' Equity [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | Common Class A [Member] | Common Class A [Member] | Common Class B [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Common Class A [Member] | Common Class B [Member] | |
USD ($) | USD ($) | USD ($) | |||||||||||
Owners' Deficit, Beginning balance at Dec. 31, 2010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($11,565,000) | ' | ' |
Increase (Decrease) in Partners' Capital [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 57,397,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,397,000 | ' | ' |
Contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,153,000 | ' | ' |
Distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -46,691,000 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 57,397,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,397,000 | ' | ' |
Owners' Deficit, Ending balance at Dec. 31, 2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,294,000 | ' | ' |
Increase (Decrease) in Partners' Capital [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 48,643,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,643,000 | ' | ' |
Contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,107,000 | ' | ' |
Distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -62,903,000 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 48,643,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,643,000 | ' | ' |
Ending balance at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10,859,000 | ' | ' |
Owners' Deficit, Ending balance at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10,859,000 | ' | ' |
Ending balance (in shares) at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -37,232,000 | ' | ' |
Contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,223,000 | ' | ' |
Deemed contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000,000 | ' | ' |
Distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -155,112,000 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -37,232,000 | ' | ' |
Owners' Deficit, Ending balance at Oct. 06, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -139,980,000 | ' | ' |
Increase (Decrease) in Partners' Capital [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 193,431,000 | ' | ' | 75,245,000 | ' | ' | ' | ' | 75,245,000 | 118,186,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of Common Stock (in shares) | ' | ' | ' | ' | ' | 82,225,000 | ' | ' | ' | ' | ' | ' | ' |
Issuance of Class A Common Stock, net of costs | ' | 960,568,000 | ' | ' | 960,568,000 | 822,000 | ' | 959,746,000 | ' | ' | ' | ' | ' |
Issuance of Class A Common Stock, Class B Common Stock, and non-controlling interests related to the formation transactions (in shares) | ' | ' | ' | ' | ' | 12,106,000 | 1,122,000 | ' | ' | ' | ' | ' | ' |
Issuance of Class A Common Stock, Class B Common Stock, and non-controlling interests related to the formation transactions | 738,950,000 | ' | ' | 132,000 | ' | 121,000 | 11,000 | ' | ' | 738,818,000 | ' | ' | ' |
Payments in cash to certain holders that are non-accredited investors or who elected to receive cash for their equity interests in the formation transactions | -733,262,000 | ' | ' | ' | ' | ' | ' | ' | ' | -733,262,000 | ' | ' | ' |
Equity allocation for the equity consideration paid to continuing investors in the formation transactions | ' | ' | ' | -643,559,000 | ' | ' | ' | -643,559,000 | ' | 503,579,000 | 139,980,000 | ' | ' |
Net income | 193,431,000 | ' | ' | 75,245,000 | ' | ' | ' | ' | 75,245,000 | 118,186,000 | ' | ' | ' |
Equity compensation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LTIP units | 2,621,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,621,000 | ' | ' | ' |
Restricted stock (in shares) | ' | ' | ' | ' | ' | 153,000 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock | 373,000 | ' | ' | 373,000 | ' | 2,000 | ' | 371,000 | ' | ' | ' | ' | ' |
Dividends and distributions | -19,516,000 | ' | ' | -7,601,000 | ' | ' | ' | ' | -7,601,000 | -11,915,000 | ' | ' | ' |
Ending balance at Dec. 31, 2013 | 1,003,185,000 | ' | 11,000 | 385,158,000 | ' | 945,000 | ' | 316,558,000 | 67,644,000 | 618,027,000 | 0 | ' | ' |
Owners' Deficit, Ending balance at Dec. 31, 2013 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance (in shares) at Dec. 31, 2013 | ' | 94,484,000 | 1,122,000 | ' | ' | 94,484,000 | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Oct. 06, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows From Operating Activities | ' | ' | ' | ' |
Net income (loss) | $193,431 | ' | $48,643 | $57,397 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ' | ' | ' | ' |
Depreciation and amortization | 27,375 | ' | ' | ' |
Amortization of deferred finance costs and debt premiums | 152 | ' | 4,900 | 3,200 |
Amortization of acquired above and below-market leases, net | -1,911 | ' | 0 | 0 |
Amortization of acquired below-market ground lease | 426 | ' | ' | ' |
Straight-lining of rental revenue | -8,932 | ' | ' | ' |
Bad debts (recoveries) | 149 | ' | ' | ' |
Equity based compensation | 2,994 | ' | ' | ' |
Gain on consolidation of non-controlled entities | -322,563 | ' | ' | ' |
Equity in net income of non-controlled entities | 0 | -14,875 | -14,348 | -3,893 |
Distributions of cumulative earnings of non-controlled entities | 0 | ' | 10,095 | ' |
Deemed contribution for settlement expense | 0 | ' | ' | ' |
Increase (decrease) in cash flows due to changes in operating assets and liabilities (excluding the effect of acquisitions): | ' | ' | ' | ' |
Restricted cash | 7,196 | ' | ' | ' |
Tenant and other receivables | -7,590 | ' | ' | ' |
Deferred leasing costs | -8,916 | ' | ' | ' |
Due to/from affiliated companies, net | 2,368 | ' | ' | ' |
Prepaid expenses and other assets | -15,120 | ' | ' | ' |
Accounts payable and accrued expenses | 9,140 | ' | ' | ' |
Accrued interest payable | 260 | ' | ' | ' |
Deferred revenue and other liabilities | -10,386 | ' | ' | ' |
Net cash provided by (used in) operating activities | -131,927 | ' | ' | ' |
Cash Flows From Investing Activities | ' | ' | ' | ' |
Cash paid in the formation transactions to acquire the non-controlled properties, net of cash received | -563,529 | ' | ' | ' |
Decrease (increase) in restricted cash for investing activities | -344 | ' | ' | ' |
Development costs | 0 | ' | ' | ' |
Increase in due from affiliates for advances for leasehold interests and improvements | 0 | ' | ' | ' |
Additions to building and improvements and building leasehold interests | -56,434 | ' | ' | ' |
Net cash used in investing activities | -620,307 | ' | ' | ' |
Cash Flows From Financing Activities | ' | ' | ' | ' |
Proceeds from mortgage notes payable | 0 | ' | ' | ' |
Repayment of mortgage notes payable | -313,240 | ' | ' | ' |
Proceeds from unsecured loan payable | 0 | ' | ' | ' |
Repayment of unsecured notes payable | -7,350 | ' | ' | ' |
Proceeds from term loan and credit facility | 335,000 | ' | ' | ' |
Repayments of term loan and credit facility | -10,000 | ' | ' | ' |
Deferred financing costs | -15,381 | ' | ' | ' |
Net proceeds from the sale of common stock | 992,887 | ' | ' | ' |
Deferred offering costs | 0 | ' | ' | ' |
Contributions from owners | 0 | ' | ' | ' |
Cash paid for equity interests in the formation transactions | -143,236 | ' | ' | ' |
Distributions to Predecessor owners | -123,147 | ' | ' | ' |
Dividends paid to common stockholders | -7,601 | ' | ' | ' |
Distributions paid to noncontrolling interests in the operating partnership | -11,915 | ' | ' | ' |
Net cash provided by (used in) financing activities | 696,017 | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | -56,217 | ' | ' | ' |
Cash and cash equivalentsbbeginning of period | 116,960 | ' | ' | ' |
Cash and cash equivalentsbend of period | 60,743 | 116,960 | ' | ' |
Supplemental disclosures of cash flow information: | ' | ' | ' | ' |
Cash paid for interest | 12,648 | ' | ' | ' |
Cash paid for income taxes | 329 | ' | ' | ' |
Non-cash investing and financing activities: | ' | ' | ' | ' |
Commercial real estate properties included in accounts payable and accrued expenses | 15,584 | ' | ' | ' |
Issuance of Class A Common Stock, Class B Common Stock, and operating partnership units in connection with the acquisition of real estate properties | 457,493 | ' | ' | ' |
Debt assumed with the acquisition of real estate properties | 136,226 | ' | ' | ' |
Reduction of equity for deferred offering costs | 32,319 | ' | ' | ' |
Acquisition of working capital, net of cash | 6,061 | ' | ' | ' |
Due to affiliates settled in Class A Common Stock, Class B Common Stock, or operating partnership units | 4,299 | ' | ' | ' |
Accrued distributions to Predecessor owners | 0 | ' | ' | ' |
Distribution of real property to owners prior to the formation transactions | 0 | ' | ' | ' |
Distribution of unsecured loan and note payable - related party to owners prior to the formation transactions | 0 | ' | ' | ' |
Predecessor [Member] | ' | ' | ' | ' |
Cash Flows From Operating Activities | ' | ' | ' | ' |
Net income (loss) | ' | -37,232 | 48,643 | 57,397 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ' | ' | ' | ' |
Depreciation and amortization | ' | 38,963 | 42,690 | 35,513 |
Amortization of deferred finance costs and debt premiums | ' | 11,512 | 4,881 | 3,247 |
Amortization of acquired above and below-market leases, net | ' | 0 | 0 | 0 |
Amortization of acquired below-market ground lease | ' | 0 | 0 | 0 |
Straight-lining of rental revenue | ' | -3,383 | -2,568 | -3,116 |
Bad debts (recoveries) | ' | -597 | 498 | 1,226 |
Equity based compensation | ' | 0 | 0 | 0 |
Gain on consolidation of non-controlled entities | ' | 0 | 0 | 0 |
Equity in net income of non-controlled entities | ' | -14,875 | -14,348 | -3,893 |
Distributions of cumulative earnings of non-controlled entities | ' | 3,391 | 10,095 | 13,011 |
Deemed contribution for settlement expense | ' | 55,000 | 0 | 0 |
Increase (decrease) in cash flows due to changes in operating assets and liabilities (excluding the effect of acquisitions): | ' | ' | ' | ' |
Restricted cash | ' | -633 | 4,392 | 4,202 |
Tenant and other receivables | ' | -80 | 4,484 | -6,057 |
Deferred leasing costs | ' | -9,771 | -14,654 | -15,026 |
Due to/from affiliated companies, net | ' | 26,901 | 7,472 | -37,074 |
Prepaid expenses and other assets | ' | 3,084 | -1,154 | 485 |
Accounts payable and accrued expenses | ' | 326 | 1,893 | -265 |
Accrued interest payable | ' | -149 | 520 | -305 |
Deferred revenue and other liabilities | ' | 924 | 1,509 | -1,663 |
Net cash provided by (used in) operating activities | ' | 73,381 | 94,353 | 47,682 |
Cash Flows From Investing Activities | ' | ' | ' | ' |
Cash paid in the formation transactions to acquire the non-controlled properties, net of cash received | ' | 0 | 0 | 0 |
Decrease (increase) in restricted cash for investing activities | ' | -500 | -5,561 | 55 |
Development costs | ' | 179 | -189 | -49 |
Increase in due from affiliates for advances for leasehold interests and improvements | ' | 0 | -15,061 | 0 |
Additions to building and improvements and building leasehold interests | ' | -56,129 | -87,470 | -60,533 |
Net cash used in investing activities | ' | -56,450 | -108,281 | -60,527 |
Cash Flows From Financing Activities | ' | ' | ' | ' |
Proceeds from mortgage notes payable | ' | 102,947 | 69,000 | 170,540 |
Repayment of mortgage notes payable | ' | -20,049 | -12,212 | -102,354 |
Proceeds from unsecured loan payable | ' | 3,750 | 51 | 5,600 |
Repayment of unsecured notes payable | ' | 0 | 0 | -3,200 |
Proceeds from term loan and credit facility | ' | 0 | 0 | 0 |
Repayments of term loan and credit facility | ' | 0 | 0 | 0 |
Deferred financing costs | ' | -3,482 | -4,339 | -7,438 |
Net proceeds from the sale of common stock | ' | 0 | 0 | 0 |
Deferred offering costs | ' | -6,595 | -12,593 | -7,480 |
Contributions from owners | ' | 3,924 | 2,107 | 2,153 |
Cash paid for equity interests in the formation transactions | ' | 0 | 0 | 0 |
Distributions to Predecessor owners | ' | -31,965 | -62,903 | -46,691 |
Dividends paid to common stockholders | ' | 0 | 0 | 0 |
Distributions paid to noncontrolling interests in the operating partnership | ' | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | ' | 48,530 | -20,889 | 11,130 |
Net increase (decrease) in cash and cash equivalents | ' | 65,461 | -34,817 | -1,715 |
Cash and cash equivalentsbbeginning of period | ' | 51,499 | 86,316 | 88,031 |
Cash and cash equivalentsbend of period | ' | 116,960 | 51,499 | 86,316 |
Supplemental disclosures of cash flow information: | ' | ' | ' | ' |
Cash paid for interest | ' | 38,380 | 48,993 | 51,776 |
Cash paid for income taxes | ' | 0 | 0 | 0 |
Non-cash investing and financing activities: | ' | ' | ' | ' |
Commercial real estate properties included in accounts payable and accrued expenses | ' | 1,812 | 1,926 | 518 |
Issuance of Class A Common Stock, Class B Common Stock, and operating partnership units in connection with the acquisition of real estate properties | ' | 0 | 0 | 0 |
Debt assumed with the acquisition of real estate properties | ' | 0 | 0 | 0 |
Reduction of equity for deferred offering costs | ' | 0 | 0 | 0 |
Acquisition of working capital, net of cash | ' | 0 | 0 | 0 |
Due to affiliates settled in Class A Common Stock, Class B Common Stock, or operating partnership units | ' | 0 | 0 | 0 |
Accrued distributions to Predecessor owners | ' | 123,147 | 0 | 0 |
Distribution of real property to owners prior to the formation transactions | ' | 16,345 | 0 | 0 |
Distribution of unsecured loan and note payable - related party to owners prior to the formation transactions | ' | $14,739 | $0 | $0 |
Description_of_Business_and_Or
Description of Business and Organization | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Description of Business and Organization | ' | |
Description of Business and Organization | ||
As used in these consolidated and combined financial statements, unless the context otherwise requires, “we,” “us,” "our," the "company,” and "ESRT" mean the predecessor (as defined below) for the periods presented and Empire State Realty Trust, Inc. and its consolidated subsidiaries upon the consummation of its initial public offering of Class A common stock and the formation transactions defined below. | ||
We are a self-administered and self-managed real estate investment trust, or REIT, that owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area. | ||
As of December 31, 2013, our total portfolio contained 8.4 million rentable square feet of office and retail space. We owned 12 office properties (including one long-term ground leasehold interest) encompassing approximately 7.7 million rentable square feet of office space. Seven of these properties are located in the midtown Manhattan market and encompass in the aggregate approximately 5.9 million rentable square feet of office space, including the Empire State Building. Our Manhattan office properties also contain an aggregate of 418,377 rentable square feet of premier retail space on their ground floor and/or lower levels. Our remaining five office properties are located in Fairfield County, Connecticut and Westchester County, New York, encompassing in the aggregate approximately 1.8 million rentable square feet. The majority of square footage for these five properties is located in densely populated metropolitan communities with immediate access to mass transportation. Additionally, we have entitled land at the Stamford Transportation Center in Stamford, Connecticut, adjacent to one of our office properties, that will support the development of an approximately 380,000 rentable square foot office building and garage, which we refer to herein as Metro Tower. As of December 31, 2013, our portfolio also included four standalone retail properties located in Manhattan and two standalone retail properties located in the city center of Westport, Connecticut, encompassing 204,175 rentable square feet in the aggregate. | ||
We were organized as a Maryland corporation on July 29, 2011. We did not have any assets other than cash and did not have any meaningful operating activity until the consummation of the initial public offering of our Class A common stock (the "Offering") and the related acquisition of our predecessor and certain non-controlled entities controlled by our predecessor on October 7, 2013. | ||
In connection with the Offering, on October 7, 2013, the following transactions were completed: | ||
• | We issued a total of approximately 82.2 million shares of our Class A common stock at $13.00 per share. | |
• | We acquired, through a series of formation transactions (as more fully described below), certain assets of our predecessor and certain other entities. In exchange for such assets, the prior investors in such assets that were accredited investors were issued a total of approximately 12.1 million shares of Class A common stock, approximately 1.1 million shares of Class B common stock, and approximately 149.0 million common units of limited partnership interests in our operating partnership, with an aggregate value of approximately $2.1 billion, and non-accredited prior investors and prior investors who elected to receive cash for their equity interests were paid a total of approximately $733.3 million in cash from the net proceeds of the Offering for an aggregate consideration of approximately $2.8 billion. | |
• | We entered into a $800.0 million secured revolving and term credit facility with an accordion feature to increase the availability to $1.25 billion under certain circumstances. | |
Our operations commenced upon completion of the Offering and related formation transactions on October 7, 2013. Empire State Realty OP, L.P. (the "operating partnership") holds substantially all of our assets and conducts substantially all of our business. As of December 31, 2013, we owned approximately 38.9% of the aggregate operating partnership units in our operating partnership. We, as the sole general partner of our operating partnership, have responsibility and discretion in the management and control of our operating partnership, and the limited partners of our operating partnership, in such capacity, have no authority to transact business for, or participate in the management activities of our operating partnership. Accordingly, our operating partnership has been consolidated by us. We intend to elect to be taxed as a REIT and operate in a manner that we believe allows us to qualify as a REIT for federal income tax purposes commencing with our taxable year ended December 31, 2013. | ||
We formed and acquired two entities that have elected to be treated as taxable REIT subsidiaries, or TRSs, and are owned by our operating partnership. The TRSs, through several wholly-owned limited liability companies, conduct third-party services businesses, which include the Empire State Building Observatory, cleaning services, cafeteria, restaurant and fitness center, property management and leasing, construction, and property maintenance. | ||
We entered into a series of formation transactions (the “formation transactions”), pursuant to which we acquired, substantially currently with the completion of the Offering through a series of contributions and merger transactions, our portfolio of real estate assets that comprise our portfolio, the ownership interests in the certain management entities of our predecessor and one development parcel. Our operating partnership used the net proceeds of the Offering to pay cash to certain holders of interests in the existing entities (as defined herein) that were non-accredited investors or who elected to receive cash for their equity interests in certain of such entities; pay fees associated with our secured revolving and term credit facility; pay fees in connection with the assumption of indebtedness; pay expenses incurred in connection with the Offering and the formation transactions; repay a loan that was made to one of the existing entities by certain investors in such entity; and for general working capital purposes and to fund potential future acquisitions. On September 28, 2012, a Stipulation of Settlement resolving the original class actions was entered into. The terms of the settlement include, amongst other things, a payment of $55.0 million, with a minimum of 80% in cash and a maximum of 20% in freely-tradable shares of common stock and/or operating partnership units. As the payment is to be fully made by the principal owners of certain predecessor entities, $55.0 million was recorded as settlement expense in our predecessor's statement of operations, with a corresponding $55.0 million capital contribution to our predecessor at that time. | ||
For all periods prior to the completion of the Offering and formation transactions, our predecessor results of operations contain unconsolidated results for certain non-controlled entities (as defined below) that owned interests in the Empire State Building, 1350 Broadway, 1333 Broadway, and 501 Seventh Avenue, which were accounted for by our predecessor under the equity method of accounting and make up a significant portion of our company subsequent to the completion of the Offering and formation transactions. Our financial condition as of December 31, 2012 and results of operations for the years ended December 31, 2011 and 2012 and for the period January 1, 2013 to October 6, 2013 reflect the financial condition and results of operations of our predecessor. Our financial condition as of December 31, 2013 and results of operations for the period October 7, 2013 to December 31, 2013 reflect the financial condition and results of operations of our predecessor consolidated with the non-controlling interests in those four properties we acquired at the time of the Offering and formation transactions. | ||
The Predecessor | ||
Our predecessor is not a legal entity but rather a combination of (i) controlling interests in (a) 16 office and retail properties, (b) one development parcel, and (c) certain management companies, which were owned by certain entities that Anthony E. Malkin and Peter L. Malkin, as sponsors, owned interests in and controlled, which we collectively refer to as the controlled entities, and (ii) non-controlling interests in four office properties (which include two of the 16 properties set forth in (i) above), held through entities which we collectively refer to as the non-controlled entities, and are presented as uncombined entities in our combined financial statements. Specifically, the term “our predecessor” means (i) Malkin Holdings LLC, a New York limited liability company that acted as the supervisor of, and performed various asset management services and routine administration with respect to, certain of the existing entities, which we refer to as “the supervisor;” (ii) the limited liability companies or limited partnerships that previously (a) owned, directly or indirectly and either through a fee interest or a long-term leasehold in the underlying land, and/or (b) operated, directly or indirectly and through a fee interest, an operating lease, an operating sublease or an operating sub-sublease, the 18 office and retail properties (which include non-controlling interests in four office properties for which Malkin Holdings LLC acted as the supervisor but that are not consolidated into our predecessor for accounting purposes) and entitled land that will support the development of an approximately 380,000 rentable square foot office building and garage that we own after the formation transactions, which we refer to as the “existing entities;” (iii) Malkin Properties, L.L.C., a New York limited liability company that served as the manager and leasing agent for certain of the existing entities in Manhattan, which we refer to as “Malkin Properties;” (iv) Malkin Properties of New York, L.L.C., a New York limited liability company that served as the manager and leasing agent for certain of the existing entities in Westchester County, New York, which we refer to as “Malkin Properties NY;” (v) Malkin Properties of Connecticut, Inc., a Connecticut corporation that served as the manager and leasing agent for certain of the existing entities in the State of Connecticut, which we refer to as “Malkin Properties CT;” and (vi) Malkin Construction Corp., a Connecticut corporation that is a general contractor and provided services to certain of the existing entities and third parties (including certain tenants at the properties in our portfolio), which we refer to as “Malkin Construction.” The term “the predecessor’s management companies” refers to the supervisor, Malkin Properties, Malkin Properties NY, Malkin Properties CT and Malkin Construction, collectively. Our predecessor accounted for its investment in the non-controlled entities under the equity method of accounting. | ||
Controlled Entities: | ||
Properties that the sponsors owned interests in and controlled, and whose operations were 100% consolidated into the financial statements of our predecessor include: | ||
Office: | ||
One Grand Central Place, New York, New York | ||
250 West 57th Street, New York, New York | ||
1359 Broadway, New York, New York | ||
First Stamford Place, Stamford, Connecticut | ||
Metro Center, Stamford, Connecticut | ||
383 Main Avenue, Norwalk, Connecticut | ||
500 Mamaroneck Avenue, Harrison, New York | ||
10 Bank Street, White Plains, New York | ||
Fee ownership position of 350 Fifth Avenue (Empire State Building), New York, New York | ||
Fee ownership position of 501 Seventh Avenue, New York, New York | ||
Retail: | ||
10 Union Square, New York, New York | ||
1010 Third Avenue, New York, New York | ||
77 West 55th Street, New York, New York | ||
1542 Third Avenue, New York, New York | ||
69-97 Main Street, Westport, Connecticut | ||
103-107 Main Street, Westport, Connecticut | ||
Land Parcels: | ||
We own entitled land at the Stamford Transportation Center in Stamford, Connecticut, adjacent to one of our office properties that will support the development of an approximately 380,000 rentable square foot office building and garage. | ||
The acquisition of interests in our predecessor were recorded at historical cost at the time of the formation transactions. | ||
Non-Controlled Entities: | ||
Properties in which the sponsors owned and controlled non-controlling interests and whose operations are reflected in our predecessor’s combined financial statements as an equity interest include: | ||
Office: | ||
Master operating lease position of 350 Fifth Avenue, New York, New York—Empire State Building Company L.L.C. | ||
Master operating lease position of 1350 Broadway, New York, New York—1350 Broadway Associates L.L.C. (long term ground lease) | ||
1333 Broadway, New York, New York—1333 Broadway Associates L.L.C. | ||
Master operating lease position of 501 Seventh Avenue, New York, New York—501 Seventh Avenue Associates L.L.C. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
Summary of Significant Accounting Policies | ||
Basis of Presentation and Principles of Consolidation and Combination | ||
The accompanying consolidated and combined financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission (the "SEC") represent our assets and liabilities and operating results. The consolidated and combined financial statements include our accounts and our wholly-owned subsidiaries as well as our operating partnership and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. For purposes of comparison, certain items shown in the 2012 consolidated and combined financial statements have been reclassified to conform to the presentation used for 2013. | ||
Our predecessor's combined financial statements include all the accounts and operations of our predecessor. The real estate entities included in the accompanying combined financial statements have been combined on the basis that, for the periods presented, such entities were under common control, common management and common ownership of the Sponsors. Equity interests in the combining entities that were not controlled by the sponsors are shown as investments in non-controlled entities. We acquired these interests as a result of the formation transactions. | ||
Our predecessor consolidated variable interest entities, or VIEs, in which it was considered a primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. | ||
Included in commercial real estate properties on our predecessor's combined balance sheet as of December 31, 2012 are approximately $0.4 million related to our combined VIEs. Included in mortgages and other loans payable on our combined balance sheets as of December 31, 2012 are approximately $0.6 million, related to our combined VIEs. We had no VIEs as of December 31, 2013. | ||
We will assess the accounting treatment for each investment we may have in the future. This assessment will include a review of each entity’s organizational agreement to determine which party has what rights and whether those rights are protective or participating. For all VIEs, we will review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance and benefit. In situations where we or our partner could approve, among other things, the annual budget, the entity’s tax return before filing, and leases that cover more than a nominal amount of space relative to the total rentable space at each property, we would not consolidate the investment as we consider these to be substantive participation rights that result in shared power of the activities that would most significantly impact the performance and benefit of such joint venture investment. Such agreements could also contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the investment and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan. | ||
A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Non-controlling interests are required to be presented as a separate component of equity in the combined balance sheets and in the combined statements of operations by requiring earnings and other comprehensive income to be attributed to controlling and non-controlling interests. As the financial statements of our predecessor have been prepared on a combined basis, there is no non-controlling interest for our predecessor for the periods presented. | ||
Accounting Estimates | ||
The preparation of the consolidated and combined financial statements in accordance with GAAP requires management to use estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Significant items subject to such estimates and assumptions include allocation of the purchase price of acquired real estate properties among tangible and intangible assets, determination of the useful life of real estate properties and other long-lived assets, valuation and impairment analysis of combined and uncombined commercial real estate properties and other long-lived assets, estimate of percentage of completion on construction contracts, valuation of the allowance for doubtful accounts, and valuation of equity based compensation. These estimates are prepared using management’s best judgment, after considering past, current, and expected events and economic conditions. Actual results could differ from those estimates. | ||
Revenue Recognition | ||
Rental Revenue | ||
Rental revenue includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease which includes the effects of rent steps and rent abatements under the leases. We commence rental revenue recognition when the tenant takes possession of the leased space or controls the physical use of the leased space and the leased space is substantially ready for its intended use. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations. We account for all of our leases as operating leases. Deferred rent receivables, including free rental periods and leasing arrangements allowing for increased base rent payments are accounted for in a manner that provides an even amount of fixed lease revenues over the respective non-cancellable lease terms. Differences between rental income recognized and amounts due under the respective lease agreements are recognized as an increase or decrease to deferred rents receivable. | ||
The timing of rental revenue recognition is impacted by the ownership of tenant improvements and allowances. When we are the owner of the tenant improvements, revenue recognition commences after both the improvements are completed and the tenant takes possession or control of the space. In contrast, if we determine that the tenant allowances we are funding are lease incentives, then we commence revenue recognition when possession or control of the space is turned over to the tenant. Tenant improvement ownership is determined based on various factors including, but not limited to, whether the lease stipulates how and on what a tenant improvement allowance may be spent, whether the tenant or landlord retains legal title to the improvements at the end of the lease term, whether the tenant improvements are unique to the tenant or general-purpose in nature, and whether the tenant improvements are expected to have any residual value at the end of the lease. | ||
In addition to base rent, our tenants also generally will pay their pro rata share of increases in real estate taxes and operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters’ wage rate in effect during a base year or increases in the Consumer Price Index over the index value in effect during a base year. | ||
We will recognize rental revenue of acquired in-place above- and below-market leases at their fair values over the terms of the respective leases, including, for below-market leases, fixed option renewal periods, if any. | ||
Lease cancellation fees are recognized when the fees are determinable, tenant vacancy has occurred, collectability is reasonably assured, we have no continuing obligation to provide services to such former tenants and the payment is not subject to any conditions that must be met or waived. Total lease cancellation fees for the years ended December 31, 2013, 2012, and 2011 were $1.6 million, $3.9 million, and $0.7 million, respectively. Such fees are included in other income and fees in our consolidated and combined statements of operations. | ||
Observatory Revenue | ||
Revenue from the sale of Observatory tickets are recognized upon admission or ticket expirations. Deferred income related to unused and unexpired tickets as of December 31, 2013 was $3.7 million. | ||
Construction Revenue | ||
Revenues from construction contracts are recognized under the percentage-of completion method. Under this method, progress towards completion is recognized according to the ratio of incurred costs to estimated total costs. This method is used because management considers the “cost-to-cost” method the most appropriate in the circumstances. | ||
Contract costs include all direct material, direct labor and other direct costs and an allocation of certain overhead related to contract performance. General and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions and estimated profitability, including those arising from settlements, may result in revisions to costs and income and are recognized in the period in which the revisions are determined. | ||
Gains on Sale of Real Estate | ||
We record a gain on sale of real estate when title is conveyed to the buyer and we have no substantial economic involvement with the property. If the sales criteria for the full accrual method are not met, we defer some or all of the gain recognition and accounts for the continued operations of the property by applying the finance, leasing, profit sharing, deposit, installment or cost recovery methods, as appropriate, until the sales criteria are met. | ||
Gains from sales of depreciated properties are included in discontinued operations and the net proceeds from the sale of these properties are classified in the investing activities section of the combined statements of cash flows. During the periods presented, we did not sell any properties. | ||
Third-Party Management, Leasing and Other Fees | ||
We earn revenue arising from contractual agreements with affiliated entities of the sponsors that are not presented as controlled entities. This revenue is recognized as the related services are performed under the respective agreements in place. | ||
Advertising and Marketing Costs | ||
Advertising and marketing costs are expensed as incurred. The expense for the years ended December 31, 2013, 2012, and 2011 was $4.2 million, $1.3 million, and $1.6 million, respectively, and is included within operating expenses in our consolidated and combined statements of operations. | ||
Offering Costs and Formation Transaction Expenses | ||
In connection with the Offering and formation transactions, we incurred incremental accounting fees, legal fees and other professional fees. Approximately $33.5 million was previously deferred and recorded as a reduction of proceeds of the Offering. Certain costs associated with the Offering and formation transactions not directly attributable to the solicitation of consents of investors in the existing entities and the Offering, but rather related to structuring the formation transactions, are expensed as incurred. | ||
Real Estate Properties and Related Intangible Assets | ||
Land and buildings and improvements are recorded at cost less accumulated depreciation and amortization. The recorded cost includes cost of acquisitions, development and construction and tenant allowances and improvements. Expenditures for ordinary repairs and maintenance are charged to operations as incurred. Significant replacements and betterments which improve or extend the life of the asset are capitalized. Tenant improvements which improve or extend the life of the asset are capitalized. If a tenant vacates its space prior to the contractual termination of its lease, the unamortized balance of any tenant improvements are written off if they are replaced or have no future value. For developed properties, direct and indirect costs that clearly relate to projects under development are capitalized. Costs include construction costs, professional services such as architectural and legal costs, travel expenses, capitalized interest and direct payroll and other acquisition costs. We begin capitalization when the project is probable. Capitalization of interest ceases when the property is ready for its intended use, which is generally near the date that a certificate of occupancy is obtained. | ||
Depreciation and amortization are computed using the straight-line method for financial reporting purposes. Buildings and improvements are depreciated over the shorter of 39 years, the useful life, or the remaining term of any leasehold interest. Tenant improvement costs, which are included in building and improvements in the consolidated balance sheets, are depreciated over the shorter of (i) the related remaining lease term or (ii) the life of the improvement. Corporate equipment, which is included in “Other assets,” is depreciated over three to seven years. | ||
Acquisitions of properties are accounted for utilizing the acquisition method and accordingly the purchase cost is allocated to tangible and intangible assets and liabilities based on their fair values. The fair value of tangible assets acquired is determined by valuing the property as if it were vacant, applying methods similar to those used by independent appraisers of income-producing property. The resulting value is then allocated to land, buildings and improvements, and tenant improvements based on our determination of the fair value of these assets. The assumptions used in the allocation of fair values to assets acquired are based on our best estimates at the time of evaluation. | ||
Fair value is assigned to above-market and below-market leases based on the difference between (a) the contractual amounts to be paid by the tenant based on the existing lease and (b) our estimate of current market lease rates for the corresponding in-place leases, over the remaining terms of the in-place leases. Capitalized above-market lease amounts are amortized as a decrease to rental revenue over the remaining terms of the respective leases. Capitalized below-market lease amounts are amortized as an increase to rental revenue over the remaining terms of the respective leases. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. | ||
The aggregate value of other acquired intangible assets consists of acquired ground leases and acquired in-place leases and tenant relationships. The fair value allocated to acquired in-place leases consists of a variety of components including, but not necessarily limited to: (a) the value associated with avoiding the cost of originating the acquired in-place leases (i.e. the market cost to execute a lease, including leasing commissions and legal fees, if any); (b) the value associated with lost revenue related to tenant reimbursable operating costs estimated to be incurred during the assumed lease-up period (i.e. real estate taxes, insurance and other operating expenses); (c) the value associated with lost rental revenue from existing leases during the assumed lease-up period; and (d) the value associated with any other inducements to secure a tenant lease. | ||
Regarding certain of our 2013 property acquisitions (see Note 3), the fair value asset and liability allocations are preliminary and may be adjusted as final information becomes available. | ||
We assess the potential for impairment of our long-lived assets, including real estate properties, annually or whenever events occur or a change in circumstances indicate that the recorded value might not be fully recoverable. We determine whether impairment in value has occurred by comparing the estimated future undiscounted cash flows expected from the use and eventual disposition of the asset to its carrying value. If the undiscounted cash flows do not exceed the carrying value, the real estate is adjusted to fair value and an impairment loss is recognized. Assets held for sale are recorded at the lower of cost or fair value less costs to sell. We do not believe that the value of any of our properties and intangible assets were impaired during the years ended December 31, 2013, 2012 and 2011. | ||
All operations and gains and losses associated with sales of real estate property or assets classified as held for sale are reclassified and presented as discontinued operations. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions and short-term liquid investments with original maturities of three months or less when purchased. The majority of our cash and cash equivalents are held at major commercial banks which may at times exceed the Federal Deposit Insurance Corporation limit. To date, we have not experienced any losses on our invested cash. | ||
Restricted Cash | ||
Restricted cash consists of amounts held by lenders and/or escrow agents to provide for future real estate tax expenditures and insurance expenditures, tenant vacancy related costs, debt service obligations and amounts held for tenants in accordance with lease agreements such as security deposits, as well as amounts held by our third-party property managers. | ||
Allowance for Doubtful Accounts | ||
We maintain an allowance against tenant and other receivables and deferred rents receivables for future potential tenant credit losses. The credit assessment is based on the estimated accrued rental revenue that is recoverable over the term of the respective lease. The computation of this allowance is based on the tenants’ payment history and current credit status, as well as certain industry or geographic specific credit considerations. If our estimate of collectability differs from the cash received, then the timing and amount of our reported revenue could be impacted. Bad debt expense is included in operating expenses on our consolidated and combined statements of operations and includes the impact of changes in the allowance for doubtful accounts on our consolidated and combined balance sheets. | ||
Deferred Lease Costs | ||
Deferred lease costs consist of fees and direct costs incurred to initiate and renew leases, are amortized on a straight-line basis over the related lease term and the expense is included in depreciation and amortization in our combined statements of operations. Upon the early termination of a lease, unamortized deferred leasing costs are charged to expense. | ||
Deferred Financing Costs | ||
Fees and costs incurred to obtain long-term financing have been deferred and are being amortized as a component of interest expense in our combined statements of operations over the life of the respective mortgage on the straight-line method which approximates the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking debt, which do not close, are expensed in the period in which it is determined that the financing will not close. | ||
Equity Method Investments | ||
We account for our investments under the equity method of accounting where we do not have control but have the ability to exercise significant influence. Under this method, our investments are recorded at cost, and the investment accounts are adjusted for our share of the entities’ income or loss and for distributions and contributions. Equity income (loss) is allocated based on the portion of the ownership interest that is controlled by us. The agreements may designate different percentage allocations among investors for profits and losses; however, our recognition of the entity’s income or loss generally follows the entity’s distribution priorities, which may change upon the achievement of certain investment return thresholds. | ||
To the extent that we contributed assets to an entity, our investment in the entity is recorded at cost basis in the assets that were contributed to the entity. Upon contributing assets to an entity, we make a judgment as to whether the economic substance of the transaction is a sale. If so, gain or loss is recognized on the portion of the asset to which the other partners in the entity obtain an interest. | ||
To the extent that the carrying amount of these investments on our combined balance sheets is different than the basis reflected at the entity level, the basis difference would be amortized over the life of the related asset and included in our share of equity in net income of the entity. | ||
On a periodic basis, we assess whether there are any indicators that the carrying value of our investments in entities may be impaired on an other than temporary basis. An investment is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment on an other than temporary basis. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying value of the investment over the fair value of the investment. None of our predecessor's investments are other than temporarily impaired. | ||
Our predecessor recognized incentive income in the form of overage fees from certain uncombined entities (which include non-controlled and other properties not included in our predecessor) as income to the extent it has been earned and not subject to a clawback feature. | ||
If our predecessor's share of distributions and net losses exceeds our investments for certain of the equity method investments and if our predecessor remained liable for future obligations of the entity or was otherwise committed to provide future additional financial support, the investment balances would have been presented in the accompanying combined balance sheets as liabilities. The effects of material intercompany transactions with these equity method investments are eliminated. None of the entity debt is recourse to us. | ||
As of December 31, 2013, we had no equity method investments. | ||
Goodwill | ||
Goodwill is tested annually for impairment and is tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount, including goodwill, exceeds the reporting unit’s fair value and the implied fair value of goodwill is less than the carrying amount of that goodwill. Non-amortizing intangible assets, such as trade names and trademarks, are subject to an annual impairment test based on fair value and amortizing intangible assets are tested whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. | ||
Fair Value | ||
Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Financial Accounting Standards Board ("FASB") guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | ||
We use the following methods and assumptions in estimating fair value disclosures for financial instruments. | ||
For cash and cash equivalents, restricted cash, tenant and other receivables, due from affiliated companies, prepaid expenses and other assets, accrued interest payable, due to or from affiliate companies, deferred revenue, tenant security deposits, accounts payable and accrued expenses in our consolidated and combined balance sheets approximate their fair value due to the short term maturity of these instruments. | ||
The fair value of our mortgage notes payable, unsecured loans and notes payable-related parties, and term loan and credit facility, which are determined using Level 3 inputs, are estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made to us. | ||
The methodologies used for valuing financial instruments have been categorized into three broad levels as follows: | ||
Level 1 - Quoted prices in active markets for identical instruments. | ||
Level 2 - Valuations based principally on other observable market parameters, including: | ||
• | Quoted prices in active markets for similar instruments; | |
• | Quoted prices in less active or inactive markets for identical or similar instruments; | |
• | Other observable inputs (such as risk free interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates); and | |
• | Market corroborated inputs (derived principally from or corroborated by observable market data). | |
Level 3 - Valuations based significantly on unobservable inputs, including: | ||
• | Valuations based on third-party indications (broker quotes or counterparty quotes) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 3 valuations; and | |
• | Valuations based on internal models with significant unobservable inputs. | |
These levels form a hierarchy. We follow this hierarchy for our financial instruments measured or disclosed at fair value on a recurring and nonrecurring basis and other required fair value disclosures. The classifications are based on the lowest level of input that is significant to the fair value measurement. | ||
Income Taxes | ||
We intend to elect to be taxed as a REIT under sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with the taxable year ended December 31, 2013. REITs are subject to a number of organizational and operational requirements, including a requirement that 90% of ordinary “REIT taxable income” (as determined without regard to the dividends paid deduction or net capital gains) be distributed. As a REIT, we will generally not be subject to U.S. federal income tax to the extent that we meet the organizational and operational requirements and our distributions equal or exceed REIT taxable income. For all periods subsequent to the effective date of our REIT election, we have met the organizational and operational requirements and distributions have exceeded net taxable income. Accordingly, no provision has been made for federal and state income taxes. | ||
We have elected to treat ESRT Observatory TRS, L.L.C., our subsidiary which holds our observatory operations, and ESRT Holdings TRS, L.L.C., our subsidiary that holds our third party management, construction, cafeteria, health club and cleaning operations, as taxable REIT subsidiaries. Taxable REIT subsidiaries may participate in non-real estate activities and/or perform non-customary services for tenants and their operations are generally subject to regular corporate income taxes. Our taxable REIT subsidiaries accounts for its income taxes in accordance with GAAP, which includes an estimate of the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. The calculation of the taxable REIT subsidiaries' tax provisions may require interpreting tax laws and regulations and could result in the use of judgments or estimates which could cause its recorded tax liability to differ from the actual amount due. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The taxable REIT subsidiaries periodically assess the realizability of deferred tax assets and the adequacy of deferred tax liabilities, including the results of local, state, or federal statutory tax audits or estimates and judgments used. | ||
We apply provisions for measuring and recognizing tax benefits associated with uncertain tax positions. Penalties and interest, if incurred, would be recorded as a component of income tax expense. As of December 31, 2013 and 2012, we do not have a liability for uncertain tax positions. As of December 31, 2013, the tax years ended December 31, 2010 through December 31, 2013 remain open for an audit by the Internal Revenue Service and state authorities. We have not received a notice of audit from the Internal Revenue Service and state authorities for any of the open tax years. | ||
During the periods presented, the entities included in our predecessor's combined financial statements are treated as partnerships or S corporations for U.S. federal and state income tax purposes and, accordingly, are not subject to entity-level tax. Rather, each entity’s taxable income or loss is allocated to its owners. Therefore, no provision or liability for U.S. federal or state income taxes has been included in the accompanying combined financial statements. | ||
Two of the limited liability companies in our Predecessor had non-real estate income subject to New York City unincorporated business tax (“NYCUBT”). In 2013, 2012, and 2011, one of these entities generated a loss for NYCUBT purposes while the other entity generated income. No provision or liability for U.S. federal, state, or local income taxes has been included in our Predecessor's combined financial statements as current year taxable income as referred to above is fully offset by a NYCUBT net operating loss carry forward from previous years. | ||
As a result of the consolidation and concurrent liquidation of the entities that had previously been subject to the NYCUBT, the NYCUBT net operating loss carryforward of $13.4 million at October 6, 2013 can no longer be used. | ||
Share-Based Compensation | ||
Share-based compensation is measured at the fair value of the award on the date of grant and recognized as an expense on a straight-line basis over the vesting period. The determination of fair value of these awards is subjective and involves significant estimates and assumptions including expected volatility of our stock, expected dividend yield, expected term, and assumptions of whether these awards will achieve parity with other operating partnership units or achieve performance thresholds. We believe that the assumptions and estimates utilized are appropriate based on the information available to management at the time of grant. | ||
Per Share Data | ||
Basic and diluted earnings per share are computed based upon the weighted average number of shares outstanding during the respective period. | ||
Segment Reporting | ||
We have identified two reportable segments: (1) Real Estate and (2) Observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, repositioning and disposition of our real estate assets. Our observatory segment operates the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and different marketing strategies. We account for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. We include our construction operation in "Other" and it includes all activities related to providing construction services to tenants and to other entities within and outside our company. | ||
Recently Issued or Adopted Accounting Standards | ||
In February 2013, the FASB issued Accounting Standards Update 2013-02, Reporting of Amounts Reclassified Out of Accumulated Comprehensive Income (“ASU 2013-02”), which requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if GAAP requires the amount being reclassified to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income within the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about the reclassified amounts. Our adoption of ASU 2013-02 on January 1, 2013 did not have a significant impact on our consolidated and combined financial statements or disclosures. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Acquisitions | ' | |||||||
Acquisitions | ||||||||
On October 7, 2013, as discussed in Note 1, through the Offering and formation transactions we acquired the assets and liabilities of the four entities in which our predecessor held non-controlling interests. The contribution or acquisition of assets in these entities was accounted for as an acquisition under the acquisition method of accounting and recognized at the estimated fair value of acquired assets and assumed liabilities on the date of such contribution or acquisition. Prior to the acquisition, our predecessor had a 23.75%, 50.0%, 50.0%, and 20.469% non-controlling interest in Empire State Building Company, L.L.C., 1333 Broadway Associates, L.L.C., 1350 Broadway Associates, L.L.C., and 501 Seventh Avenue Associates, L.L.C., respectively. | ||||||||
Upon acquisition, we remeasured the assets and liabilities we acquired from the non-controlled entities at fair value and recorded gains of $214.3 million, which are classified as gain on consolidation of non-controlled entities in the accompanying statement of operations. This gain was calculated based on the difference between the total consideration value of our predecessor’s ownership interests of $302.7 million compared to our predecessor’s historical cost interests of $88.4 million. We determined that the fair values of the assets acquired from and assumed liabilities for 1333 Broadway Associates, L.L.C. and 1350 Broadway Associates, L.L.C. were greater than the consideration granted and we recorded gains of $41.0 million and $32.1 million, respectively, which were classified as gain on consolidation of non-controlled entities in the accompanying statement of operations. There are operating leases between one of our predecessor entities and Empire State Building Company, L.L.C. and 501 Seventh Avenue Associates, L.L.C. Based upon current market rates for similar arrangements, we determined that the current market rent would be less than the pre-existing contractual rent existing at the time of the Offering and formation transactions under the operating leases. Accordingly, upon elimination of the leasehold position and the related liability for the above-market leases, we recorded gains of $35.2 million, which are classified as gain on consolidation of non-controlled entities in the accompanying statement of operations. | ||||||||
The purchase price is allocated between net tangible and intangible assets based on their estimated fair values as determined by management using information available at the time the acquisition closed. The remaining weighted-average amortization period as of December 31, 2013, is 5.6 years, 4.7 years and 5.2 years for in-place leases and deferred leasing costs, above-market leases and below-market leases, respectively. | ||||||||
The following table is an allocation of the purchase price for the assets and liabilities acquired in the formation transactions (amounts in thousands). The fair value asset and liability allocations are preliminary and may be adjusted as final information becomes available. | ||||||||
Consideration paid: | ||||||||
Cash and issuance of Class A Common Stock, Class B Common Stock, and OP units | $ | 1,047,487 | ||||||
Debt assumed | 124,354 | |||||||
Total consideration paid | $ | 1,171,841 | ||||||
Net assets acquired: | ||||||||
Land | $ | 91,435 | ||||||
Building and improvements | 516,344 | |||||||
Acquired below-market ground lease | 62,738 | |||||||
Acquired above-market leases | 72,123 | |||||||
Acquired in place lease value and deferred leasing costs | 186,415 | |||||||
Goodwill | 491,479 | |||||||
Other assets, net of other liabilities | 6,061 | |||||||
Mortgage notes payable | (136,226 | ) | ||||||
Acquired below-market leases | (134,651 | ) | ||||||
Total net assets acquired | $ | 1,155,718 | ||||||
Gain on the elimination of leasehold positions | $ | 35,147 | ||||||
Fair values of the assets acquired and assumed liabilities were greater than the consideration granted: | ||||||||
1333 Broadway Associates L.L.C. | 40,962 | |||||||
1350 Broadway Associates L.L.C. | 32,122 | |||||||
Total | $ | 108,231 | ||||||
We acquired Empire State Building Company, L.L.C. and 501 Seventh Avenue Associates, L.L.C. for an amount in excess of their net tangible and identified intangible assets and liabilities and as a result we recorded goodwill related to the transaction (see also Note 5). Goodwill was allocated $227.5 million to the observatory operations of the Empire State Building, $250.8 million to Empire State Building Company, L.L.C., and $13.2 million to 501 Seventh Avenue Associates, L.L.C. | ||||||||
We have included the results of operations for each of these acquired entities in our consolidated statements of operations from October 7, 2013, the date of acquisition. For the period October 7, 2013 through December 31, 2013, the acquired entities contributed $77.0 million to total revenue, $48.5 million to operating expenses, $28.5 million to operating income, and $27.6 million to net income. | ||||||||
The following summary of selected unaudited pro forma results of operations presents information as if the acquisitions, and the gain on consolidation of non-controlled entities of $322.6 million, had occurred on January 1, 2012. The unaudited pro forma information is provided for informational purposes only and is not indicative of results that would have occurred or which may occur in the future (amounts in thousands, expect per share amount): | ||||||||
For the year ended December 31, | ||||||||
2013 | 2012 | |||||||
Total revenues | $ | 563,878 | $ | 549,707 | ||||
Net income | 18,992 | 311,434 | ||||||
Net income attributable to Empire State Realty Trust, Inc. | 21,871 | — | ||||||
Net income attributable to Empire State Realty Trust, Inc. per share - basic and diluted | $ | 0.23 | $ | — | ||||
Investments_in_Noncontrolled_E
Investments in Non-controlled Entities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||||||
Investments in Non-controlled Entities | ' | |||||||||||||||||||
Investments in Non-controlled Entities | ||||||||||||||||||||
On October 7, 2013, as part of the Offering and formation transactions, we acquired the assets and liabilities held by the four non-controlled entities (see discussion in Note 3). The investments in non-controlled entities consisted of the following at December 31, 2012: | ||||||||||||||||||||
Entity | Property | Nominal % Ownership | ||||||||||||||||||
Empire State Building Company, L.L.C. | 350 Fifth Ave, New York, NY | 23.75 | % | |||||||||||||||||
1333 Broadway Associates, L.L.C. | 1333 Broadway, New York, NY | 50 | % | |||||||||||||||||
1350 Broadway Associates, L.L.C. | 1350 Broadway, New York, NY | 50 | % | |||||||||||||||||
501 Seventh Avenue Associates, L.L.C. | 501 Seventh Ave, New York, NY | 20.469 | % | |||||||||||||||||
Empire State Building Company, L.L.C. was the operating lessee of the property at 350 Fifth Avenue. The land and fee owner, Empire State Building Associates L.L.C., was a predecessor controlled entity whose operations are included in our predecessor's combined financial statements. | ||||||||||||||||||||
1333 Broadway Associates, L.L.C. owned the fee and leasehold positions at the same address. | ||||||||||||||||||||
1350 Broadway Associates, L.L.C. was the operating lessee of the property at the same address. | ||||||||||||||||||||
501 Seventh Avenue Associates L.L.C. was the operating lessee of the property at the same address. The fee owner, Seventh Avenue Building Associates L.L.C., was a predecessor controlled entity whose operations are included in our predecessor's combined financial statements. | ||||||||||||||||||||
Our predecessor's share of income from these entities may have exceeded nominal ownership percentages based on the achievement of certain income thresholds as set forth in the relevant partnership agreements. | ||||||||||||||||||||
The following table reflects the activity in our investments in non-controlled entities for the years ended December 31, 2013 and 2012 (amounts in thousands): | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Balance at beginning of year | $ | 76,879 | $ | 72,626 | ||||||||||||||||
Equity in net income | 14,875 | 14,348 | ||||||||||||||||||
Distributions | (3,391 | ) | (10,095 | ) | ||||||||||||||||
Consolidation of non-controlled entities | (88,363 | ) | — | |||||||||||||||||
Balance at end of period | $ | — | $ | 76,879 | ||||||||||||||||
The following reflects summarized financial information of the non-controlled entities at December 31, 2012 (amounts in thousands): | ||||||||||||||||||||
Balance Sheets | Empire | 1333 | 1350 | 501 | Total | |||||||||||||||
State | Broadway | Broadway | Seventh | |||||||||||||||||
Building | Associates | Associates | Avenue | |||||||||||||||||
Co. | Associates | |||||||||||||||||||
Real estate, net | $ | 195,304 | $ | 38,212 | $ | 40,317 | $ | 16,891 | $ | 290,724 | ||||||||||
Other assets | 145,949 | 37,741 | 22,150 | 17,283 | 223,123 | |||||||||||||||
Total assets | $ | 341,253 | $ | 75,953 | $ | 62,467 | $ | 34,174 | $ | 513,847 | ||||||||||
Mortgage and notes payable | $ | — | $ | 71,200 | $ | 50,427 | $ | — | $ | 121,627 | ||||||||||
Other liabilities | 63,265 | 4,050 | 5,147 | 4,531 | 76,993 | |||||||||||||||
Total liabilities | 63,265 | 75,250 | 55,574 | 4,531 | 198,620 | |||||||||||||||
Members’/partners’ equity | 278,647 | 703 | 6,893 | 29,643 | 315,886 | |||||||||||||||
Non-controlling interest | (659 | ) | — | — | — | (659 | ) | |||||||||||||
Total equity | 277,988 | 703 | 6,893 | 29,643 | 315,227 | |||||||||||||||
Total liabilities and equity | $ | 341,253 | $ | 75,953 | $ | 62,467 | $ | 34,174 | $ | 513,847 | ||||||||||
Our predecessor's share of equity—carrying value of our investments in non-controlled entities | $ | 66,179 | $ | 847 | $ | 3,446 | $ | 6,407 | $ | 76,879 | ||||||||||
The following reflects summarized financial information of the non-controlled entities for the period January 1, 2013 through October 6, 2013 and for the years ended December 31, 2012 and 2011 (amounts in thousands): | ||||||||||||||||||||
Period from January 1, 2013 to October 6, 2013 | ||||||||||||||||||||
Statements of Operations | Empire | 1333 | 1350 | 501 | Total | |||||||||||||||
State | Broadway | Broadway | Seventh | |||||||||||||||||
Building | Associates | Associates | Avenue | |||||||||||||||||
Co. | Associates | |||||||||||||||||||
Revenue: | ||||||||||||||||||||
Rental revenue and other | $ | 101,496 | $ | 11,711 | $ | 16,439 | $ | 13,991 | $ | 143,637 | ||||||||||
Observatory revenue | 76,687 | — | — | — | 76,687 | |||||||||||||||
Total revenue | 178,183 | 11,711 | 16,439 | 13,991 | 220,324 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Operating expenses—rental | 89,670 | 5,766 | 7,989 | 10,830 | 114,255 | |||||||||||||||
Operating expenses—overage rent | 10,894 | — | — | 106 | 11,000 | |||||||||||||||
Operating expenses—observatory | 17,150 | — | — | — | 17,150 | |||||||||||||||
Interest | — | 3,620 | 2,461 | — | 6,081 | |||||||||||||||
Depreciation and amortization | 10,997 | 2,186 | 3,264 | 1,127 | 17,574 | |||||||||||||||
Total expenses | 128,711 | 11,572 | 13,714 | 12,063 | 166,060 | |||||||||||||||
Net income | $ | 49,472 | $ | 139 | $ | 2,725 | $ | 1,928 | $ | 54,264 | ||||||||||
Our predecessor's share of equity in net income of non-controlled entities | $ | 13,467 | $ | 70 | $ | 1,179 | $ | 159 | $ | 14,875 | ||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Statements of Operations | Empire | 1333 | 1350 | 501 | Total | |||||||||||||||
State | Broadway | Broadway | Seventh | |||||||||||||||||
Building | Associates | Associates | Avenue | |||||||||||||||||
Co. | Associates | |||||||||||||||||||
Revenue: | ||||||||||||||||||||
Rental revenue and other | $ | 133,666 | $ | 14,539 | $ | 21,275 | $ | 18,827 | $ | 188,307 | ||||||||||
Observatory revenue | 91,870 | — | — | — | 91,870 | |||||||||||||||
Total revenue | 225,536 | 14,539 | 21,275 | 18,827 | 280,177 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Operating expenses—rental | 119,482 | 7,528 | 10,667 | 13,101 | 150,778 | |||||||||||||||
Operating expenses—overage rent | 24,199 | — | — | 2,497 | 26,696 | |||||||||||||||
Operating expenses—observatory | 20,709 | — | — | — | 20,709 | |||||||||||||||
Interest | — | 4,748 | 2,993 | — | 7,741 | |||||||||||||||
Depreciation and amortization | 13,615 | 1,112 | 3,489 | 1,496 | 19,712 | |||||||||||||||
Total expenses | 178,005 | 13,388 | 17,149 | 17,094 | 225,636 | |||||||||||||||
Net income | $ | 47,531 | $ | 1,151 | $ | 4,126 | $ | 1,733 | $ | 54,541 | ||||||||||
Our predecessor's share of equity in net income of non-controlled entities | $ | 11,015 | $ | 576 | $ | 2,063 | $ | 694 | $ | 14,348 | ||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||
Statements of Operations | Empire | 1333 | 1350 | 501 | Total | |||||||||||||||
State | Broadway | Broadway | Seventh | |||||||||||||||||
Building | Associates | Associates | Avenue | |||||||||||||||||
Co. | Associates | |||||||||||||||||||
Revenue: | ||||||||||||||||||||
Rental revenue and other | $ | 118,720 | $ | 14,670 | $ | 19,179 | $ | 17,713 | $ | 170,282 | ||||||||||
Observatory revenue | 80,562 | — | — | — | 80,562 | |||||||||||||||
Total revenue | 199,282 | 14,670 | 19,179 | 17,713 | 250,844 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Operating expenses—rental | 122,381 | 7,072 | 10,328 | 13,169 | 152,950 | |||||||||||||||
Operating expenses—overage rent | 28,780 | — | — | 1,545 | 30,325 | |||||||||||||||
Operating expenses—observatory | 20,009 | — | — | — | 20,009 | |||||||||||||||
Interest | — | 4,741 | 2,701 | — | 7,442 | |||||||||||||||
Depreciation and amortization | 15,833 | 3,053 | 3,117 | 1,870 | 23,873 | |||||||||||||||
Total expenses | 187,003 | 14,866 | 16,146 | 16,584 | 234,599 | |||||||||||||||
Net income (loss) | $ | 12,279 | $ | (196 | ) | $ | 3,033 | $ | 1,129 | $ | 16,245 | |||||||||
Our predecessor's share of equity in net income of non-controlled entities | $ | 2,158 | $ | 391 | $ | 935 | $ | 409 | $ | 3,893 | ||||||||||
Deferred_Costs_Acquired_Lease_
Deferred Costs, Acquired Lease Intangibles and Goodwill | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||||||||||
Deferred Costs, Acquired Lease Intangibles and Goodwill | ' | |||||||||||||||
Deferred Costs, Acquired Lease Intangibles and Goodwill | ||||||||||||||||
Deferred costs, net consisted of the following at December 31, (amounts in thousands): | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Leasing costs | $ | 90,198 | $ | (27,459 | ) | $ | 78,865 | $ | (24,939 | ) | ||||||
Financing costs | 27,416 | (11,217 | ) | 23,609 | (13,098 | ) | ||||||||||
Offering costs | — | — | 27,789 | — | ||||||||||||
Total deferred costs | $ | 117,614 | $ | (38,676 | ) | $ | 130,263 | $ | (38,037 | ) | ||||||
Amortization expense related to deferred leasing costs was $10.6 million, $7.4 million, and $6.4 million and deferred financing costs was $12.7 million, $4.9 million, and $3.2 million, for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||||
Offering costs for work done by employees of the supervisor on behalf of the non-controlled entities of $1.1 million, $1.3 million, and $1.2 million for the years ended December 31, 2013, 2012, and 2011, respectively, were incurred and advanced by our supervisor and have been reimbursed to our supervisor by the non-controlled entities. In addition, offering costs for work done by employees of the supervisor of approximately $0.4 million, $0.6 million, and $0.3 million for the years ended December 31, 2013, 2012, and 2011, respectively, were incurred and advanced by our supervisor on behalf of the entities that own the option properties and have been reimbursed to our supervisor by the entities that own the option properties. | ||||||||||||||||
Amortizing acquired intangible assets and liabilities consisted of the following at December 31, (amounts in thousands): | ||||||||||||||||
2013 | ||||||||||||||||
Gross Amount | Accumulated Amortization | |||||||||||||||
Acquired below-market ground lease | $ | 62,738 | (426 | ) | ||||||||||||
Acquired in-place lease value and deferred leasing costs | 186,415 | (5,697 | ) | |||||||||||||
Acquired above-market leases | 72,123 | (2,858 | ) | |||||||||||||
Acquired below-market leases | (134,651 | ) | 4,769 | |||||||||||||
Amortization expense related to acquired lease intangibles for the year ended December 31, 2013 was $5.3 million and $0.0 million for the years ended December 31, 2012 and 2011. Rental revenue related to the amortization of below market leases, net of above market leases for the year ended December 31, 2013 was $1.9 million and $0.0 million for the years ended December 31, 2012 and 2011. The remaining weighted-average amortization period as of December 31, 2013, is 5.6 years, 4.7 years and 5.2 years for in-place leases and deferred leasing costs, above-market leases and below-market leases, respectively. We expect to recognize amortization expense and rental revenue from the acquired intangible assets as follows (amounts in thousands): | ||||||||||||||||
For the year ending: | Future Amortization Expense | Future Rental Revenue | ||||||||||||||
2014 | $ | 30,466 | $ | 7,484 | ||||||||||||
2015 | 24,737 | 6,665 | ||||||||||||||
2016 | 20,873 | 5,997 | ||||||||||||||
2017 | 19,237 | 6,384 | ||||||||||||||
2018 | 16,363 | 6,086 | ||||||||||||||
Thereafter | 131,354 | 28,001 | ||||||||||||||
$ | 243,030 | $ | 60,617 | |||||||||||||
As of December 31, 2013, we had goodwill of $491.5 million. In 2013, we acquired the interests in Empire State Building Company, L.L.C. and 501 Seventh Avenue Associates, L.L.C. for an amount in excess of their net tangible and identified intangible assets and liabilities and as a result we recorded goodwill related to the transaction (see also Note 3). Goodwill was allocated $227.5 million to the observatory operations of the Empire State Building, $250.8 million to Empire State Building Company, L.L.C., and $13.2 million to 501 Seventh Avenue Associates, L.L.C. | ||||||||||||||||
We performed an annual review of goodwill for impairment as of December 31, 2013 and concluded there was no impairment of goodwill. Our methodology to review goodwill impairment, which includes a significant amount of judgment and estimates, provides a reasonable basis to determine whether impairment has occurred. However, many of the factors employed in determining whether or not goodwill is impaired are outside of our control and it is reasonably likely that assumptions and estimates will change in future periods. |
Debt
Debt | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Debt | ' | |||||||||||||||
Debt | ||||||||||||||||
Mortgage notes payable are collateralized by the following respective real estate properties and assignment of operating leases as of December 31, 2013 and 2012 (amounts in thousands): | ||||||||||||||||
Principal Balance as | Principal Balance as | Stated | Effective | Maturity | ||||||||||||
of December 31, 2013 | of December 31, 2012 | Rate | Rate(1) | Date(2) | ||||||||||||
Mortgage debt collateralized by: | ||||||||||||||||
Fixed rate debt | ||||||||||||||||
501 Seventh Avenue | ||||||||||||||||
(Note 1) | $ | 1,037 | $ | 1,075 | 5.75 | % | 6.28 | % | 8/1/14 | |||||||
(Note 2)(3) | 31,459 | 32,589 | 5.75 | % | 6.28 | % | 8/1/14 | |||||||||
(Note 2)(3) | 6,889 | 7,107 | 6.04 | % | 6.55 | % | 8/1/14 | |||||||||
1359 Broadway | ||||||||||||||||
(first lien mortgage loan) | 9,579 | 9,922 | 5.75 | % | 6.24 | % | 8/1/14 | |||||||||
(second lien mortgage loan)(4) | 5,561 | 5,761 | 5.75 | % | 6.25 | % | 8/1/14 | |||||||||
(second lien mortgage loan)(4) | 11,311 | 11,689 | 5.87 | % | 6.36 | % | 8/1/14 | |||||||||
(second lien mortgage loan)(4) | 18,572 | 19,068 | 6.4 | % | 6.86 | % | 8/1/14 | |||||||||
One Grand Central Place | ||||||||||||||||
(first lien mortgage loan) | 71,723 | 73,922 | 5.34 | % | 6.38 | % | 11/5/14 | |||||||||
(second lien mortgage loan)(5) | 14,884 | 15,187 | 7 | % | 6.72 | % | 11/5/14 | |||||||||
500 Mamaroneck Avenue | 32,620 | 33,256 | 5.41 | % | 6.7 | % | 1/1/15 | |||||||||
250 West 57th Street | ||||||||||||||||
(first lien mortgage loan) | 25,621 | 26,442 | 5.33 | % | 6.92 | % | 1/5/15 | |||||||||
(second lien mortgage loan) | 11,252 | 11,524 | 6.13 | % | 7.81 | % | 1/5/15 | |||||||||
Metro Center | 96,158 | — | 5.89 | % | 6.15 | % | 1/1/16 | |||||||||
(Note 1)(6) | — | 59,937 | 5.8 | % | — | % | 1/1/16 | |||||||||
(Note 2)(6) | — | 38,151 | 6.02 | % | — | % | 1/1/16 | |||||||||
10 Union Square | 20,972 | 21,284 | 6 | % | 6.48 | % | 5/1/17 | |||||||||
10 Bank Street | 33,444 | 33,963 | 5.72 | % | 5.94 | % | 6/1/17 | |||||||||
1542 Third Avenue | 19,011 | 19,370 | 5.9 | % | 6.31 | % | 6/1/17 | |||||||||
First Stamford Place | 245,629 | 248,716 | 5.65 | % | 5.82 | % | 7/5/17 | |||||||||
1010 Third Avenue and 77 West 55th Street | 28,096 | 28,570 | 5.69 | % | 6.12 | % | 7/5/17 | |||||||||
383 Main Avenue | 30,403 | 30,924 | 5.59 | % | 5.72 | % | 7/5/17 | |||||||||
1333 Broadway | 78,121 | (15) | — | 6.32 | % | 6.68 | % | 1/5/18 | ||||||||
1350 Broadway (first lien mortgage loan) | 43,305 | (16) | — | 5.87 | % | 6.02 | % | 4/5/18 | ||||||||
69-97 Main Street (7) | — | 9,218 | 5.64 | % | — | 5/1/13 | ||||||||||
Total fixed rate debt | 835,647 | 737,675 | ||||||||||||||
Floating rate debt | ||||||||||||||||
501 Seventh Avenue (third lien mortgage loan) | 6,540 | 6,540 | (8) | (8) | 8/1/14 | |||||||||||
1350 Broadway (second lien mortgage loan) | 13,543 | (17) | — | (9) | (9) | 10/10/14 | ||||||||||
The Empire State Building (secured term loan) | — | 219,000 | (10) | (10) | 7/26/14 | |||||||||||
One Grand Central Place (third lien mortgage loan) | 6,382 | — | (11) | (11) | 11/5/14 | |||||||||||
250 West 57th Street (third lien mortgage loan) | 21,000 | 14,935 | (12) | (12) | 1/5/15 | |||||||||||
Secured revolving credit facility | 25,000 | — | (13) | (13) | 10/5/17 | |||||||||||
Secured term credit facility | 300,000 | — | (14) | (14) | 10/5/18 | |||||||||||
Total floating rate debt | 372,465 | 240,475 | ||||||||||||||
Total | $ | 1,208,112 | $ | 978,150 | ||||||||||||
______________ | ||||||||||||||||
-1 | The effective rate is the yield as of December 31, 2013, including the effects of debt issuance costs. | |||||||||||||||
-2 | Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty. | |||||||||||||||
-3 | Represents the two tranches of the second lien mortgage loan. | |||||||||||||||
-4 | Represents three tranches of the second lien mortgage loan. | |||||||||||||||
-5 | Represents a second lien mortgage loan. | |||||||||||||||
-6 | Notes 1 and 2 were pari passu. | |||||||||||||||
-7 | This loan was paid off with the proceeds of a new $9.5 million floating rate loan which we closed on during April 2013 and which was subsequently repaid during December 2013. | |||||||||||||||
-8 | Floating at 30 day LIBOR plus 2.0%. The rate as of December 31, 2013 was 2.17%. | |||||||||||||||
-9 | Interest at the greater of 4.25% and Prime plus 1%. The rate at December 31, 2013 was 4.25%. | |||||||||||||||
-10 | Floating at 30 day LIBOR plus 2.5%. The rate as of December 31, 2013 was 2.67%. This loan was paid off with the proceeds of our secured revolving and term credit facility on October 7, 2013. | |||||||||||||||
-11 | Interest at the greater of Prime plus 0.50% and 3.75%. The rate as of December 31, 2013 was 3.75%. | |||||||||||||||
-12 | Interest at the greater of 4.25% and prime plus 1%. Prior to January 5, 2015, we have the option to fix the interest rate on all or any portion of the principal then outstanding, up to three times and in minimum increments of $5,000 to an annual rate equal to either (i) the greater of (a) 4.75% or (b) 300 basis points in excess of the weekly average yield on United States Treasury Securities adjusted to a maturity closest to January 5, 2015 as most recently made available by the Federal Reserve Board as of two days prior to the effective date of the fixing of the interest rate, and (ii) the greater of (a) 5.00% or (b) 300 basis points in excess of the weekly average yield on United States Treasury Securities adjusted to a maturity closest to January 5, 2015 as most recently made available by the Federal Reserve Board as of 30 days prior to the effective date of the fixing of the interest rate. If option (i) is selected, we will be subject to the payment of pre‑payment fees, and if option (ii) is selected, we may prepay the loan without any pre‑payment fees. The rate as of December 31, 2013 was 4.25%. | |||||||||||||||
-13 | Floating at 30 day LIBOR plus 1.20%. The rate as of December 31, 2013 was 1.37%. | |||||||||||||||
-14 | Floating at 30 day LIBOR plus 1.35%. The rate at December 31, 2013 was 1.52%. | |||||||||||||||
-15 | Includes unamortized premium of $7,674. | |||||||||||||||
-16 | Includes unamortized premium of $3,885. | |||||||||||||||
-17 | Includes unamortized premium of $134. | |||||||||||||||
Principal Payments | ||||||||||||||||
Aggregate required principal payments on mortgage notes payable at December 31, 2013 are as follows (amounts in thousands): | ||||||||||||||||
2014 | $ | 197,480 | ||||||||||||||
2015 | 90,493 | |||||||||||||||
2016 | 96,158 | |||||||||||||||
2017 | 402,555 | |||||||||||||||
2018 | 421,426 | |||||||||||||||
Total principal maturities | $ | 1,208,112 | ||||||||||||||
Secured Revolving and Term Credit Facility | ||||||||||||||||
We entered into an agreement for a secured revolving and term credit facility in the maximum aggregate original principal amount of up to $800.0 million with an accordion feature to increase the availability to $1.25 billion under certain circumstances. The secured revolving and term credit facility was used to fully repay the existing $500.0 million term loan previously secured by the Empire State Building, which had a balance of $300.0 million. The secured revolving and term credit facility has an outstanding balance of $325.0 million at December 31, 2013. | ||||||||||||||||
Amounts outstanding under the term loan bear interest at a floating rate equal to, at our election, (x) a Eurodollar rate, plus a spread ranging from 1.00% to 2.00% depending upon our leverage ratio and credit rating which, at December 31, 2013, was 1.35%; or (y) a base rate, plus a spread ranging from 0.00% to 1.00% depending upon our leverage ratio and credit rating which, at December 31, 2013, was 0.35%. Amounts outstanding under the revolving credit facility bear interest at a floating rate equal to, at our election, (x) a Eurodollar rate, plus a spread ranging from 0.925% to 1.70% depending upon our leverage ratio and credit rating which, at December 31, 2013, was 1.20%; or (y) a base rate, plus a spread ranging from 0.00% to 0.70% depending upon our leverage ratio and credit rating which, at December 31, 2013, was 0.20%. In addition, the revolving credit facility permits us to borrow at competitive bid rates determined in accordance with the procedures described in the revolving credit facility. | ||||||||||||||||
The term loan has a term of five years and the revolving credit facility has an initial term of four years. We have the option to extend the initial term of the revolving credit facility for an additional one-year period, subject to certain conditions, including the payment of an extension fee equal to 0.20% of the then-outstanding commitments under the revolving credit facility. The secured revolving and term credit facility also includes an unused facility fee of 0.20%. In addition, the secured revolving and term credit facility includes covenants which may restrict our ability to pay dividends if we fail to meet certain tests. | ||||||||||||||||
As of December 31, 2013, availability under the secured revolving and term credit facility is reduced by $33.2 million until certain capital expenditures at the Empire State Building are made by us from proceeds from the secured revolving and term credit facility or cash on hand. | ||||||||||||||||
Unsecured Loan and Notes Payable | ||||||||||||||||
Our predecessor held unsecured notes payable totaling $14.7 million to trusts which benefit parties related to the sponsors. The notes bore interest at a rate of 1.2% compounded annually and are due on November 14, 2020. This liability was distributed to certain owners of our predecessor and was not assumed by us during the Offering and formation transactions. | ||||||||||||||||
On April 21, 2011, one of the combined entities (500 Mamaroneck, L.P.) entered into a promissory note agreement with the sponsors, as agents for certain investors in 500 Mamaroneck, L.P. (“2011 Promissory Note”), under which such investors loaned $3.6 million (including $1.2 million from the sponsors) to 500 Mamaroneck, L.P. Loans made pursuant to the 2011 Promissory Note earn interest at the rate of 10% per annum, payable quarterly, beginning July 1, 2011. The loans had a maturity date of the earliest of (i) January 1, 2015, (ii) sale or transfer of title to the property, or (iii) satisfaction of the existing first mortgage loan on the property. Loans made under the 2011 Promissory Note were repayable without penalty at any time in part or in full, along with all accrued interest. During October 2013, this loan was repaid with proceeds of the Offering. | ||||||||||||||||
During April 2013, our predecessor received a loan from an entity, which is controlled by Anthony E. Malkin and Peter L. Malkin, made to fund cash needs including the payment of leasing commissions and expenditures on tenant installations at First Stamford Place. The loan had a principal amount of $4.5 million, an outstanding balance of $3.8 million, and bore interest at 30-day LIBOR plus 2.5% (2.67% at December 31, 2013). During October 2013, this loan was repaid with proceeds from the Offering. |
Accounts_Payable_and_Accrued_E
Accounts Payable and Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable and Accrued Expenses | ' | |||||||
Accounts Payable and Accrued Expenses | ||||||||
Accounts payable and accrued expenses consist of the following as of December 31, 2013 and 2012 (amounts in thousands): | ||||||||
2013 | 2012 | |||||||
Accounts payable and accrued expenses | $ | 57,657 | $ | 26,889 | ||||
Payable to the estate of Leona M. Helmsley (1) | 18,367 | — | ||||||
Accrued interest payable | 4,074 | 3,409 | ||||||
Due to affiliated companies | 1,810 | 12,376 | ||||||
Accounts payable and accrued expenses | $ | 81,908 | $ | 42,674 | ||||
___________ | ||||||||
-1 | Reflects a payable to the estate of Leona M. Helmsley for New York City transfer taxes. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The following disclosures of estimated fair value at December 31, 2013 and 2012 were determined by management, using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. | ||||||||||||||||
The following table presents the aggregate carrying value of our debt and the corresponding estimates of fair value based on discounted cash flow models, based on Level 3 inputs including current interest rates at which similar borrowings could be made by us as of December 31, 2013 and 2012 (amounts in thousands): | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Mortgage notes payable and secured term loan and credit facility | $ | 1,208,112 | $ | 1,225,064 | $ | 978,150 | $ | 1,003,756 | ||||||||
Unsecured loans and notes payable—related parties | — | — | 18,339 | 13,818 | ||||||||||||
Total | $ | 1,208,112 | $ | 1,225,064 | $ | 996,489 | $ | 1,017,574 | ||||||||
Disclosure about fair value of financial instruments is based on pertinent information available to us as of December 31, 2013 and 2012. Although we are not aware of any factors that would significantly affect the reasonable fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein. |
Rental_Income
Rental Income | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Leases [Abstract] | ' | |||||
Rental Income | ' | |||||
Rental Income | ||||||
We lease various office spaces to tenants over terms ranging from one to 18 years. Certain leases have renewal options for additional terms. The leases provide for base monthly rentals and reimbursements for real estate taxes, escalations linked to the consumer price index or common area maintenance known as operating expense escalation. Operating expense reimbursements are reflected in our combined statements of operations as tenant expense reimbursement. | ||||||
As of December 31, 2013, we were entitled to the following future contractual minimum lease payments on non-cancellable operating leases to be receives which expire on various dates through 2031 (amounts in thousands): | ||||||
2014 | $ | 317,984 | ||||
2015 | 313,466 | |||||
2016 | 295,111 | |||||
2017 | 275,114 | |||||
2018 | 247,054 | |||||
Thereafter | 1,296,343 | |||||
$ | 2,745,072 | |||||
The above future minimum lease payments exclude tenant recoveries, amortization of deferred rent receivables and the net accretion of above-below-market lease intangibles. Some leases are subject to termination options generally upon payment of a termination fee. The preceding table is prepared assuming such options are not exercised. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Commitments and Contingencies | ' | ||||||||||||
Commitments and Contingencies | |||||||||||||
Option properties | |||||||||||||
We have executed option agreements with affiliates of our predecessor granting us the right to acquire long-term leasehold and/or sub-leasehold interests in 1400 Broadway and/or 112 West 34th Street (including fee title interest in a small connected structure at 122 West 34th Street), both office properties in midtown Manhattan (the “option properties”). Our subsidiary currently supervises each of the option properties pursuant to a management agreement entered into by our subsidiary and the owners of the option properties. The purchase price for each of the option properties will be based on an appraisal by independent third parties, unless we and the owners of the option properties, with the consent of the estate of Leona M. Helmsley (a member of affiliates of our predecessor and of the owners of option properties), agree to a negotiated price. We and the owners of the option properties are utilizing the appraisal process set forth in the option agreements. The deadline for the appraised value to be determined is April 7, 2014. Following such determination, we have five months within which to decide whether to exercise the option, and approximately 90 days thereafter to close any resulting purchase. As part of the option agreements, we have agreed that Anthony E. Malkin, our Chairman, Chief Executive Officer and President, will not participate in the negotiations and valuation process on our behalf. Our Chairman Emeritus, Peter L. Malkin, has also agreed not to participate in the process on our behalf. In addition our Board of Directors has appointed a special committee consisting of independent members of such Board to review the appraisal or negotiation process on its behalf. A majority of the independent members of such Board of Directors must approve the price and terms of the acquisition of interests in each of the option properties. The purchase price is payable in a combination of cash, shares of our common stock and operating partnership units, but the estate of Leona M. Helmsley will have the right to elect to receive all cash. Our option expires on the later of (i) March 19, 2014 with respect to 112-122 West 34th Street and July 29, 2014 with respect to 1400 Broadway (which dates are 12 months in each case after the recently resolved litigation with respect to such property) or (ii) five months after the completion of the independent valuation described above, which completion shall not be later than six months following the closing of the Offering, but such expiration shall in no event be later than seven years from the completion of the Offering. | |||||||||||||
Legal Proceedings | |||||||||||||
Litigation | |||||||||||||
Except as described below, as of December 31, 2013, we were not involved in any material litigation, nor, to our knowledge, was any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business such as disputes with tenants. We believe that the costs and related liabilities, if any, which may result from such actions, will not materially affect our combined financial position, operating results or liquidity. | |||||||||||||
In March 2012, five putative class actions, or the Original Class Actions, were filed in New York State Supreme Court, New York County by investors in certain of the existing entities (constituting the predecessor and the non-controlled entities) (the "existing entities") on March 1, 2012, March 7, 2012, March 12, 2012, March 14, 2012 and March 19, 2012. The plaintiffs asserted claims against our predecessor’s management companies, Anthony E. Malkin, Peter L. Malkin, the estate of Leona M. Helmsley, our operating partnership and us for breach of fiduciary duty, unjust enrichment and/or aiding and abetting breach of fiduciary duty. They alleged, among other things, that the terms of the consolidation and the process by which it was structured (including the valuation that was employed) are unfair to the investors in the existing entities, the consolidation provides excessive benefits to Malkin Holdings LLC (now our subsidiary) and its affiliates and the then-draft prospectus/consent solicitation with respect to the consolidation filed with the SEC failed to make adequate disclosure to permit a fully-informed decision about the consolidation. The complaints sought money damages and injunctive relief preventing the consolidation. The Original Class Actions were consolidated and co-lead plaintiffs’ counsel were appointed by the New York State Supreme Court by order dated June 26, 2012. Furthermore, an underlying premise of the Original Class Actions, as noted in discussions among plaintiffs' counsel and defendants' counsel, was that the consolidation had been structured in such a manner that would cause investors in Empire State Building Associates L.L.C., 60 East 42nd St. Associates L.L.C. and 250 West 57th St. Associates L.L.C. (the “subject LLCs”) immediately to incur substantial tax liabilities. | |||||||||||||
The parties entered into a Stipulation of Settlement dated September 28, 2012, resolving the Original Class Actions. The Stipulation of Settlement recites that the consolidation was approved by overwhelming consent of the investors in the existing entities. The Stipulation of Settlement states that counsel for the plaintiff class satisfied themselves that they have received adequate access to relevant information, including the independent valuer's valuation process and methodology, that the disclosures in the Registration Statement on Form S-4, as amended, are appropriate, that the consolidation presents potential benefits, including the opportunity for liquidity and capital appreciation, that merit the investors' serious consideration and that each of the named class representatives intends to support the consolidation as modified. The Stipulation of Settlement further states that counsel for the plaintiff class are satisfied that the claims regarding tax implications, enhanced disclosures, appraisals and exchange values of the properties that would be consolidated into our company, and the interests of the investors in the existing entities, have been addressed adequately, and they have concluded that the settlement pursuant to the Stipulation of Settlement and opportunity to consider the proposed consolidation on the basis of revised consent solicitations are fair, reasonable, adequate and in the best interests of the plaintiff class. | |||||||||||||
The defendants in the Stipulation of Settlement denied that they committed any violation of law or breached any of their duties and did not admit that they had any liability to the plaintiffs. | |||||||||||||
The terms of the settlement include, among other things (i) a payment of $55.0 million, with a minimum of 80% in cash and maximum of 20% in freely-tradable shares of common stock and/or freely-tradable operating partnership units to be distributed, after reimbursement of plaintiffs' counsel's court-approved expenses and payment of plaintiffs' counsel's court-approved attorneys' fees (which are included within the $55.0 million settlement payment) and, in the case of shares of common stock and/or operating partnership units, after the termination of specified lock-up periods, to investors in the existing entities pursuant to a plan of allocation to be prepared by counsel for plaintiffs; (ii) defendants' agreement that (a) the Offering would be on the basis of a firm commitment underwriting; (b) if, during the solicitation period, any of the three subject LLCs' percentage of total exchange value is lower than what was stated in the final prospectus/consent solicitation with respect to the consolidation by 10% or more, such decrease would be promptly disclosed by defendants to investors in the subject LLCs; and (c) unless total gross proceeds of $600.0 million are raised in the Offering, defendants will not proceed with the consolidation without further approval of the subject LLCs; and (iii) defendants' agreement to make additional disclosures in the prospectus/consent solicitation with respect to the consolidation regarding certain matters (which are included therein). Investors in the existing entities will not be required to bear any portion of the settlement payment. The payment in settlement of the Original Class Actions will be made by the estate of Leona M. Helmsley and affiliates of Malkin Holdings LLC (provided that none of Malkin Holdings LLC's affiliates that would become our direct or indirect subsidiary in the consolidation will have any liability for such payment) and certain investors, in the existing entities who agree to contribute. We will not bear any of the settlement payment. | |||||||||||||
The settlement further provides for the certification of a class of investors in the existing entities, other than defendants and other related persons and entities, and a release of any claims of the members of the class against the defendants and related persons and entities, as well as underwriters and other advisors. The release in the settlement excludes certain claims, including but not limited to, claims arising from or related to any supplement to the Registration Statement on Form S-4 that is declared effective to which the plaintiffs' counsel objects in writing, which objection will not be unreasonably made or delayed, so long as plaintiffs' counsel has had adequate opportunity to review such supplement. There was no such supplement that plaintiff's counsel objected to in writing. The settlement was subject to court approval. It is not effective until such court approval is final, including the resolution of any appeal. Defendants continue to deny any wrongdoing or liability in connection with the allegations in the Original Class Actions. | |||||||||||||
On January 18, 2013, the parties jointly moved for preliminary approval of the settlement, for permission to send notice of the settlement to the class, and for the scheduling of a final settlement hearing. On January 28, 2013, six of the investors in Empire State Building Associates L.L.C. filed an objection to preliminary approval, and cross-moved to intervene in the Original Class Actions and for permission to file a separate complaint on behalf of the investors in Empire State Building Associates L.L.C. On February 21, 2013, the court denied the cross motion of such objecting investors, and the court denied permission for such objecting investors to file a separate complaint as part of the Original Class Actions, but permitted them to file a brief solely to support their allegation that the buyout would deprive non-consenting investors in Empire State Building Associates L.L.C. of “fair value” in violation of the New York Limited Liability Company Law. The court rejected the objecting investors’ assertion that preliminary approval be denied and granted preliminary approval of the settlement. | |||||||||||||
Pursuant to a decision issued on April 30, 2013, the court rejected the allegation regarding the New York Limited Liability Company Law and ruled in Malkin Holdings LLC’s favor, holding that such buyout provisions are legally binding and enforceable and that investors do not have the rights they claimed under the New York Limited Liability Company Law. | |||||||||||||
On May 2, 2013, the court held a hearing regarding final approval of the Original Class Actions settlement, at the conclusion of which the court stated that it intended to approve the settlement. On May 17, 2013, the court issued its Opinion and Order. The court rejected the objections by all objectors and upheld the settlement in its entirety. Of the approximately 4,500 class members who are investors in all of the existing entities included in the consolidation, 12 opted out of the settlement. Those who opted out will not receive any share of the settlement proceeds, but can pursue separate claims for monetary damages. They are bound by the settlement agreement regarding equitable relief, so they cannot seek an injunction to halt the consolidation or our initial public offering. The settlement will not become final until resolution of any appeal. | |||||||||||||
Also on May 17, 2013, the court issued its Opinion and Order on attorneys’ fees. Class counsel applied for an award of $15.0 million in fees and $295,895 in expenses, which the court reduced to $11.59 million in fees and $265,282 in expenses (which are included within the $55.0 million settlement payment). | |||||||||||||
The investors who challenged the buyout provision filed a notice of appeal of the court’s April 30, 2013 decision and moved before the appellate court for a stay of all proceedings relating to the settlement, including such a stay as immediate interim relief. On May 1, 2013, their request for immediate interim relief was denied. On May 13, 2013, Malkin Holdings LLC filed its brief in opposition to the motion for the stay. On June 18, 2013, the appellate court denied the motion for the stay. On July 16, 2013, these investors filed their brief and other supporting papers on their appeal of the April 30, 2013 decision, which are required to perfect the appeal. On September 4, 2013, Malkin Holdings LLC filed its brief on the appeal, and also moved to dismiss the appeal on the grounds that these investors lack standing to pursue it. Malkin Holdings LLC contended that these investors were not entitled to appraisal under the New York Limited Liability Company Law because, among other reasons (i) they are not members of Empire State Building Associates L.L.C., and only members have such rights; (ii) the transaction in question is not a merger or consolidation as defined by statute, and appraisal only applies in those transactions; and (iii) when Empire State Building Associates L.L.C. was converted into a limited liability company, the parties agreed that no appraisal would apply. Moreover, Malkin Holdings LLC contended that only the 12 investors who opted out of the class action settlement could pursue appraisal, because that settlement contains a broad release of (and there is an associated bar order from the court preventing) any such claims. Malkin Holdings LLC further noted that of the six investors attempting to pursue the appeal, only two had in fact opted out of the class action settlement. On September 13, 2013, these investors filed their reply brief on the appeal, and opposed the motion to dismiss. On September 19, 2013, Malkin Holdings LLC filed its reply brief on the motion to dismiss. On October 3, 2013, the appeals court denied the motion to dismiss without prejudice to address the matter directly on the appeal, effectively referring the issues raised in the motion to the panel that will hear the appeal itself. The appeals court heard argument on November 21, 2013, and in a Decision and Order dated February 25, 2014, it affirmed the trial court’s ruling. | |||||||||||||
In addition, on June 20, 2013, these same investors, and one additional investor who also opposed the settlement of the Original Class Action, filed additional notices of appeal from the trial court’s rulings in the Original Class Actions. These notices of appeal related to (i) the order entered February 22, 2013 granting preliminary approval of the Original Class Action settlement and setting a hearing for final approval; (ii) the order entered February 26, 2013, refusing to sign a proposed order to show cause for a preliminary injunction regarding the consolidation; (iii) an order entered April 2, 2013, denying the motion to intervene and to file a separate class action on behalf of Empire State Building Associates L.L.C. investors; (iv) the order entered April 10, 2013, refusing to sign the order to show cause seeking to extend the deadline for class members to opt out of the Original Class Action settlement; (v) the Final Judgment and Order entered May 17, 2013; (vi) the order entered May 17, 2013 approving the Original Class Action settlement; and (vii) the order entered May 17, 2013 awarding class counsel attorneys’ fees and costs. On January 6, 2014, Class counsel moved to dismiss these additional appeals on the grounds that they were not timely perfected by filing an appellate brief and record. On February 6, 2014, the appeals court granted the motion unless the appeals are perfected by March 17, 2014. | |||||||||||||
There is no right to any further appeal of the appeals court’s February 25, 2014 ruling. However, the investors who challenged the buy-out provision may move for leave to appeal the appeals court’s ruling to the New York Court of Appeals, a process that may take many months. We cannot predict the timing or outcome of such a motion or, if it is granted, the appeal process or any related relief, if such further appeal were successful. If the trial and appeals courts’ decisions were reversed by the Court of Appeals, there is a risk that it could have a material adverse effect on us, which could take the form of monetary damages or other equitable relief, and the court could order some or all of the relief that the objecting investors have requested, as described above. Although there can be no assurance, we believe that the trial and appeals courts’ decisions were correct, that they will be upheld on any further appeal. | |||||||||||||
On March 14, 2014, one of the investors who had filed a notice of appeal from the trial court’s rulings in the Original Class Actions noted above perfected an appeal from the court’s May 17, 2013 Final Judgment and Order and orders approving the Original Class Action Settlement and awarding class counsel attorneys’ fees and costs. Responses to this appeal are due April 16, 2014. We cannot predict the timing or outcome of an appeal. If the court’s decision were reversed by an appellate court, there is a risk that it could have a material adverse effect on us, including the imposition of monetary damages, injunctive relief or both. Although there can be no assurance, we believe that the trial court’s decision was correct, and that it will be upheld on appeal. No other appeals were filed by the March 17, 2014 deadline set by the appeals court in its February 6, 2014 order. | |||||||||||||
In addition, commencing December 24, 2013, four putative class actions, or the Second Class Actions, were filed in New York State Supreme Court, New York County, against Malkin Holdings LLC, Peter L. Malkin, Anthony E. Malkin and Thomas N. Keltner, Jr. on behalf of former investors in Empire State Building Associates L.L.C. Generally, the Second Class Actions alleged that the defendants breached their fiduciary duties and were unjustly enriched. One of the Second Class Actions named us and our operating partnership as defendants, alleging that they aided and abetted the breaches of fiduciary duty. The Second Class Actions were consolidated on consent and co-lead class counsel was appointed by order dated February 11, 2014. A Consolidated Amended Complaint was filed February 7, 2014, which did not name us or our operating partnership as defendants. It seeks monetary damages. On March 7, 2014, defendants filed a motion to dismiss the Second Class Actions. We cannot predict the outcome of the motion (or if the motion is not granted, the outcome of the Second Class Actions). | |||||||||||||
We will incur costs in connection with this litigation. If the court were to rule against the defendants there is a risk that it could have a material adverse effect on us, which could take the form of monetary damages or other equitable relief. | |||||||||||||
In connection with the Offering and formation transactions, we entered into indemnification agreements with our directors, executive officers and chairman emeritus, providing for the indemnification by us for certain liabilities and expenses incurred as a result of actions brought, or threatened to be brought, against them. As a result, Anthony E. Malkin, Peter L. Malkin and Thomas N. Keltner, Jr. have defense and indemnity rights from us with respect to the Second Class Actions. | |||||||||||||
Additionally, there is a risk that other third parties will assert claims against us, Malkin Holdings LLC, or any other party entitled to defense and indemnity from us, including, without limitation, claims that Malkin Holdings LLC breached its fiduciary duties to investors in the existing entities or that the consolidation violates the relevant operating agreements, and third parties may commence litigation related to such claims. As a result, we may incur costs associated with defending or settling such litigation or paying any judgment if we lose. | |||||||||||||
Unfunded Capital Expenditures | |||||||||||||
At December 31, 2013, we estimate that we will incur approximately $48.3 million of capital expenditures (including tenant improvements and leasing commissions) on our wholly-owned properties pursuant to existing lease agreements. We expect to fund these capital expenditures with operating cash flow, additional property level mortgage financings, our secured credit facility, and cash on hand. Future property acquisitions may require substantial capital investments for refurbishment and leasing costs. We expect that these financing requirements will be met in a similar fashion. | |||||||||||||
Concentration of Credit Risk | |||||||||||||
Financial instruments that subject us to credit risk consist primarily of cash, restricted cash, tenant and other receivables and deferred rent receivables. | |||||||||||||
Beginning January 1, 2013, non‑interest bearing transaction accounts are no longer insured separately from depositors' other accounts at the same Federal Deposit Insurance Corporation ("FDIC") Insured Depository Institution ("IDI"). Instead, non‑interest bearing transaction accounts are added to any of a depositor's other accounts in the applicable ownership category, and the aggregate balance will be insured up to at least the standard maximum deposit insurance amount of $250,000, per depositor, at each separately chartered IDI. At December 31, 2013, we held on deposit at various major financial institutions cash and cash equivalents and restricted cash balances in excess of amounts insured by the FDIC. | |||||||||||||
Real Estate Investments | |||||||||||||
Our properties are located in Manhattan, New York; Fairfield County, Connecticut; and Westchester County, New York. The latter locations are suburbs of the city of New York. The ability of the tenants to honor the terms of their respective leases is dependent upon the economic, regulatory and social factors affecting the markets in which the tenants operate. We perform ongoing credit evaluations of our tenants for potential credit losses. | |||||||||||||
Tenant Credit Evaluations | |||||||||||||
Our investments in real estate properties are subject to risks incidental to the ownership and operation of commercial real estate. These risks include, among others, the risks normally associated with changes in general economic conditions, trends in the real estate industry, creditworthiness of tenants, competition of tenants and customers, changes in tax laws, interest rate levels, the availability and cost of financing, and potential liability under environmental and other laws. | |||||||||||||
We may require tenants to provide some form of credit support such as corporate guarantees and/or other financial guarantees and we perform ongoing credit evaluations of tenants. Although the tenants operate in a variety of industries, to the extent we have a significant concentration of rental revenue from any single tenant, the inability of that tenant to make its lease payments could have an adverse effect on our company. | |||||||||||||
Major Customers and Other Concentrations | |||||||||||||
For the year ended December 31, 2013, three tenants were major tenants who made up more than 10% of the revenues in the aggregate. These tenants represent approximately 6.01%, 2.72%, and 2.68% (total of 11.41%) of 2013 revenues. Excluding the revenues we recognized under operating leases with non-controlled entities, for the year ended December 31, 2012, three tenants were major tenants who made up more than 10% of the revenues in the aggregate. These tenants represent approximately 4.43%, 3.21% and 2.98% (total of 10.62%) of 2012 revenues. | |||||||||||||
For the year ended December 31, 2013 and 2012, three properties accounted for more than 10% of total revenues in the aggregate. For the year ended December 31, 2013, Empire State Building represented approximately 13.01% of total revenues, One Grand Central Place represented approximately 20.99%, and First Stamford Place represented approximately 11.62%. For the year ended December 31, 2012, One Grand Central Place represented approximately 24.20% of total revenues, First Stamford Place represented approximately 13.93%, and 250 West 57th Street represented approximately 10.44%. | |||||||||||||
Asset Retirement Obligations | |||||||||||||
We are required to accrue costs that we are legally obligated to incur on retirement of our properties which result from acquisition, construction, development and/or normal operation of such properties. Retirement includes sale, abandonment or disposal of a property. Under that standard, a conditional asset retirement obligation represents a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within a company’s control and a liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated. Environmental site assessments and investigations have identified asbestos or asbestos-containing building materials in certain of our properties. As of December 31, 2013, management has no plans to remove or alter these properties in a manner that would trigger federal and other applicable regulations for asbestos removal, and accordingly, the obligations to remove the asbestos or asbestos-containing building materials from these properties have indeterminable settlement dates. As such, we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligation. However ongoing asbestos abatement, maintenance programs and other required documentation are carried out as required and related costs are expensed as incurred. | |||||||||||||
Other Environmental Matters | |||||||||||||
Certain of our properties have been inspected for soil contamination due to pollutants, which may have occurred prior to our ownership of these properties or subsequently in connection with its development and/or its use. Required remediation to such properties has been completed and as of December 31, 2013, management believes that there are no obligations related to environmental remediation other than maintaining the affected sites in conformity with the relevant authority’s mandates and filing the required documents. All such maintenance costs are expensed as incurred. We expect that resolution of the environmental matters relating to the above will not have a material impact on our business, assets, consolidated and combined financial condition, results of operations or liquidity. However, we cannot be certain that we have identified all environmental liabilities at our properties, that all necessary remediation actions have been or will be undertaken at our properties or that we will be indemnified, in full or at all, in the event that such environmental liabilities arise. | |||||||||||||
Insurance Coverage | |||||||||||||
We carry insurance coverage on our properties of types and in amounts with deductibles that we believe are in line with coverage customarily obtained by owners of similar properties. | |||||||||||||
Multiemployer Pension and Defined Contribution Plans | |||||||||||||
We contribute to a number of multiemployer defined benefit pension plans under the terms of | |||||||||||||
collective-bargaining agreements that cover its union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: | |||||||||||||
• | Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. | ||||||||||||
• | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. | ||||||||||||
• | If we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | ||||||||||||
We participate in various unions. The union which has significant employees and costs is as follows: | |||||||||||||
32BJ | |||||||||||||
We participate in the Building Service 32BJ, or Union, Pension Plan and Health Plan. The Pension Plan is a multi-employer, non-contributory defined benefit pension plan that was established under the terms of collective bargaining agreements between the Service Employees International Union, Local 32BJ, the Realty Advisory Board on Labor Relations, Inc. and certain other employees. This Pension Plan is administered by a joint board of trustees consisting of union trustees and employer trustees and operates under employer identification number 13-1879376. The Pension Plan year runs from July 1 to June 30. Employers contribute to the Pension Plan at a fixed rate on behalf of each covered employee. Separate actuarial information regarding such pension plans is not made available to the contributing employers by the union administrators or trustees, since the plans do not maintain separate records for each reporting unit. However, on September 28, 2011 and September 28, 2012, the actuary certified that for the plan years beginning July 1, 2010, July 1, 2011 and July 1, 2012, respectively, the Pension Plan was in critical status under the Pension Protection Act of 2006. The Pension Plan trustees adopted a rehabilitation plan consistent with this requirement. For each of the years ended June 30, 2013, 2012 and 2011, the Pension Plan received contributions from employers totaling $221.9 million, $212.7 million and $201.3 million, respectively. | |||||||||||||
The Health Plan was established under the terms of collective bargaining agreements between the Union, the Realty Advisory Board on Labor Relations, Inc. and certain other employers. The Health Plan provides health and other benefits to eligible participants employed in the building service industry who are covered under collective bargaining agreements, or other written agreements, with the Union. The Health Plan is administered by a Board of Trustees with equal representation by the employers and the Union and operates under employer identification number 13-2928869. The Health Plan receives contributions in accordance with collective bargaining agreements or participation agreements. Generally, these agreements provide that the employers contribute to the Health Plan at a fixed rate on behalf of each covered employee. For the years ended June 30, 2013, 2012 and 2011, the Health Plan received contributions from employers totaling $923.5 million, $893.3 million and $843.2 million, respectively. | |||||||||||||
Terms of Collective Bargaining Agreements | |||||||||||||
The most recent collective bargaining agreement for Local 32BJ commenced from January 1, 2012 through December 31, 2015 (prior agreement was from January 1, 2008 through December 31, 2011). | |||||||||||||
Contributions | |||||||||||||
Contributions we made to the multi-employer plans for the years ended December 31, 2013, 2012 and 2011 are included in the table below (amounts in thousands): | |||||||||||||
Benefit Plan | 2013 | 2012 | 2011 | ||||||||||
Pension Plans (pension and annuity)* | $ | 1,201 | $ | 768 | $ | 750 | |||||||
Health Plans** | 3,319 | 2,013 | 1,899 | ||||||||||
Other*** | 232 | 160 | 165 | ||||||||||
Total plan contributions | $ | 4,752 | $ | 2,941 | $ | 2,814 | |||||||
* | Pension plans include $0.4 million, $0.3 million and $0.4 million for the years ended 2013, 2012 and 2011, respectively, from multiemployer plans not discussed above. | ||||||||||||
** Health plans include $0.8 million, $0.5 million and $0.5 million for the years ended 2013, 2012 and 2011, respectively, from multiemployer plans not discussed above. | |||||||||||||
*** Other includes $0.05 million, $0.08 million and $0.05 million for the years ended 2013, 2012 and 2011, respectively, in connection with One Grand Central Place and 250 West 57th Street for multiemployer plans not discussed above for union costs which were not itemized between pension and health plans. |
Equity
Equity | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Stockholders' Equity Note Disclosure, Disclosure of Compensation Related Costs, Share-based Payments and Earnings Per Share [Abstract] | ' | |||||||||
Equity | ' | |||||||||
Equity | ||||||||||
Shares and Units | ||||||||||
An operating partnership unit ("OP Unit") and a share of our common stock have essentially the same economic characteristics as they receive the same per unit profit distributions of our operating partnership. An OP Unit may be tendered for redemption for cash, however, we have sole and absolute discretion and the authorized common stock to exchange for shares of common stock on a one-for-one basis. | ||||||||||
Long-term incentive plan ("LTIP") units are a special class of partnership interests in our operating partnership. Each LTIP unit awarded will be deemed equivalent to an award of one share of stock under the 2013 Equity Incentive Plan ("2013 Plan"), reducing the availability for other equity awards on a one-for-one basis. The vesting period for LTIP units, if any, will be determined at the time of issuance. Cash distributions on each LTIP unit, whether vested or not, will be the same as those made on the OP Units. Under the terms of the LTIP units, our operating partnership will revalue for tax purposes its assets upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of LTIP units to equalize the capital accounts of such holders with the capital accounts of OP unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with OP unitholders, LTIP units are convertible into OP Units in our operating partnership on a one for one basis. | ||||||||||
As of December 31, 2013, there were approximately 245.5 million OP Units outstanding, of which approximately 95.6 million, or 38.9%, were owned by us and approximately 149.9 million, or 61.1%, were owned by other partners, including certain directors, officers and other members of executive management. | ||||||||||
Dividends and Distributions | ||||||||||
During 2013, we declared a partial dividend of $0.0795 per share and OP Unit, which was paid on December 30, 2013, to securityholders of record on December 16, 2013 for the period from October 7, 2013 to December 31, 2013, representing a pro-ration of a full quarter dividend of $0.085 per share. Total dividends paid to common stockholders during 2013 were $7.6 million. Total distributions paid to OP unitholders, excluding inter-company distributions, during 2013 totaled $11.9 million. | ||||||||||
Earnings and profits, which determine the tax treatment of distributions to stockholders, will differ from income reported for financial reporting purposes due to the differences for federal income tax purposes, including, but not limited to, treatment of loss on extinguishment of debt, revenue recognition, compensation expense, and basis of depreciable assets and estimated useful lives used to compute depreciation. The dividends of $0.0795 per share are classified for income tax purposes as 100.0% taxable ordinary dividend. | ||||||||||
Incentive and Share-Based Compensation | ||||||||||
In connection with Offering, we adopted our 2013 Plan. The 2013 Plan provides for grants to directors, employees and consultants of our company and operating partnership, stock options, restricted stock, dividend equivalents, stock payments, performance shares, LTIP units, stock appreciation rights and other incentive awards. An aggregate of approximately 12.2 million shares of our common stock are authorized for issuance under awards granted pursuant to the 2013 Plan, and as of December 31, 2013, approximately 11.1 million shares of common stock remain available for future issuance. | ||||||||||
Concurrently with the closing of the Offering, we made grants of LTIP units to executive officers under the 2013 Plan. At such time, we granted a total of 440,192 LTIP units that are subject to time-based vesting and 146,730 LTIP units that are subject to performance-based vesting, with fair market values of $5.4 million for the time-based vesting awards and $0.9 million for the performance-based vesting awards. The awards subject to time-based vesting vest in four substantially equal installments, subject to the grantee's continued employment. The first installment vests on the first anniversary of the grant date and the remainder will vest thereafter in three equal annual installments. The vesting of the LTIP units subject to performance-based vesting is based on the achievement of absolute and relative total stockholder return hurdles over a three-year performance period, commencing on October 2, 2013. Following the completion of the three-year performance period, our compensation committee will determine the number of shares to which the grantee is entitled based on our performance relative to the performance hurdles set forth in the LTIP units award agreements the grantee entered into in connection with the initial award grant. These units then vest in two substantially equal installments, with the first installment vesting on the third anniversary of the grant date and the second installment vesting on the fourth anniversary of the grant date, subject to the grantee's continued employment on those dates. | ||||||||||
Concurrently with the closing of the Offering, we made grants of LTIP units and restricted stock to certain other employees under the 2013 Plan. At such time, we granted a total of 193,059 LTIP units and 119,146 shares of restricted stock that are subject to time-based vesting and 64,352 LTIP units and 39,706 shares of restricted stock that are subject to performance-based vesting, with fair market values of $3.9 million for the time-based vesting awards and $0.6 million for the performance-based vesting awards. These shares are subject to time-based and performance-based vesting, with the terms described above. | ||||||||||
Concurrently with the closing of the Offering, we made grants of LTIP units to our non-employee directors under the 2013 Plan. At such time, we granted a total of 69,228 LTIP units that are subject to time-based vesting, with fair market values of $0.9 million. The awards vest in three substantially equal installments, subject to the director's continued service on our Board of Directors. The first installment vests on the first anniversary of the grant date and the remainder will vest thereafter in two equal annual installments. | ||||||||||
For the performance-based LTIP units and restricted stock awards, the fair value of the awards was estimated using a Monte Carlo Simulation model. Our stock price, along with the prices of the comparative indexes, is assumed to follow the Geometric Brownian Motion Process. Geometric Brownian Motion is a common assumption when modeling in financial markets, as it allows the modeled quantity (in this case, the stock price) to vary randomly from its current value and take any value greater than zero. The volatilities of the returns on our stock price and the comparative indexes were estimated based on implied volatilities and historical volatilities using a six-year look-back period. The expected growth rate of the stock prices over the performance period is determined with consideration of the risk free rate as of the grant date. For LTIP units and restricted stock grants that are time-vesting, we estimate the stock compensation expense based on the fair value of the stock at the grant date. | ||||||||||
LTIP units and restricted stock issued during the year ended December 31, 2013 were valued at $11.7 million. The weighted-average per unit or share fair value was $10.89 for grants in 2013. The per unit or share granted in 2013 was estimated on the date of grant using the following assumptions: an expected life of 3.0 years, a risk-free interest rate of 0.66%, and an expected price volatility of 28.0%. | ||||||||||
No other stock options, dividend equivalents, or stock appreciation rights were issued or outstanding in 2013. | ||||||||||
The following is a summary of restricted stock and LTIP unit activity the year ended December 31, 2013: | ||||||||||
Restricted Stock | LTIP Units | Weighted Average Grant Price | ||||||||
Granted | 158,852 | 913,561 | $ | 13 | ||||||
Vested | (12,607 | ) | — | 13 | ||||||
Forfeited | (1,874 | ) | — | 13 | ||||||
Unvested balance at December 31, 2013 | 144,371 | 913,561 | $ | 13 | ||||||
The LTIP unit and restricted stock award agreements will immediately vest the later of the grantee attains the (i) age of 60 and (ii) the date on which grantee has first completed ten years of continuous service with our company or its affiliates. For award agreements that qualify, we recognize noncash compensation expense on the grant date for the time-based awards and ratably over the vesting period for the performance-based awards, and accordingly we recognized $2.3 million for the period October 7, 2013 through December 31, 2013. Unrecognized compensation expense was $0.3 million at December 31, 2013, which will be recognized over a period of 2.7 years. | ||||||||||
For the remainder of the LTIP unit and restricted stock awards, we recognize noncash compensation expense ratably over the vesting period, and accordingly, we recognized $0.7 million in noncash compensation expense for the period October 7, 2013 through December 31, 2013. Unrecognized compensation expense was $8.3 million at December 31, 2013, which will be recognized over a weighted average period of 3.6 years. | ||||||||||
Earnings Per Share | ||||||||||
Earnings per share for the period October 7, 2013 through December 31, 2013 is computed as follows (amounts in thousands): | ||||||||||
2013 | ||||||||||
Numerator: | ||||||||||
Net income attributable to Empire State Realty Trust, Inc. - basic and diluted | $ | 75,245 | ||||||||
Denominator: | ||||||||||
Weighted average shares outstanding - basic | 95,574 | |||||||||
Effective of dilutive securities - share-based compensation | 37 | |||||||||
Weighted average shares outstanding - dilutive | 95,611 | |||||||||
There were no antidilutive shares as of December 31, 2013. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Formation Transactions | |
Each property that is owned by us through our operating partnership was owned directly or indirectly by the entities comprising our predecessor or was a property in which our predecessor had a non-controlling interest. Each of the existing entities had entered into a contribution agreement with us and our operating partnership in connection with the formation transactions, pursuant to which substantially concurrently with the completion of the Offering it contributed its assets (including its ownership interests in any of the properties) and liabilities to our operating partnership or our operating partnership’s subsidiaries in exchange for shares of our common stock, operating partnership units and/or cash, which it distributed to its equity owners in accordance with their individual elections. Each of our predecessor’s management companies had entered into a merger agreement with us and our operating partnership in connection with the formation transactions, pursuant to which certain subsidiaries of our operating partnership merged with and into such management company or pursuant to which such management company merged with and into subsidiaries of us in exchange for shares of our common stock and/or operating partnership units, which was issued to the equity owners of such management company. In addition, each of (i) the Malkin Group (as defined below) and (ii) the estate of Leona M. Helmsley and entities affiliated therewith, including the Leona M. and Harry B. Helmsley Charitable Trust, entered into contribution agreements and merger agreements with us and our operating partnership, pursuant to which each of them contributed their direct or indirect interests in certain existing entities to us in exchange for operating partnership units, shares of common stock and/or cash. The operating partnership units and shares of common stock that we issued in the formation transactions to investors in the public existing entities were registered pursuant to a registration statement on Form S-4 that we separately filed with the Securities and Exchange Commission (the "SEC"). To the extent that we or our subsidiaries (other than our operating partnership and its subsidiaries) were a party directly to certain mergers in the formation transactions, we contributed the assets and liabilities received in such merger transactions to our operating partnership in exchange for operating partnership units. The value of the shares of our common stock and operating partnership units that we issued, and the amount of cash that we paid, in connection with the formation transactions aggregated $2.8 billion based on the actual public Offering price of our Class A common stock in the Offering. The existing entities and our predecessor’s management companies declared final distributions, inclusive of reimbursement of expenses incurred in connection with the formation transactions, to the investors in such entities, including members of our senior management team and certain of our directors, in an amount of approximately $180.0 million in the aggregate, and of which $38.9 million was paid to the Malkin Group, including Peter L. Malkin and Anthony E. Malkin, in accordance to their ownership interests in each applicable existing entity and predecessor management company. | |
The contribution agreements and the merger agreements referenced above generally contained representations by existing entities and predecessor management companies with respect to the ownership of their assets and certain other limited matters. While these representations and warranties survived the closing of the formation transactions, neither the existing entities nor any of their members, managers, officers or employees, to the extent applicable, will be liable for any breaches of the surviving representations or warranties. Accordingly, our sole remedy against the existing entities (which liquidated after completion of the formation transactions) would be for breach of contract. Additionally, the continuing investors provided us with no indemnification for breaches of the surviving representations and warranties contained in the merger agreements and contribution agreements. However, in connection with the formation transactions, Anthony E. Malkin and his siblings, Scott D. Malkin and Cynthia M. Blumenthal, entered into a representation, warranty and indemnity agreement, with us, pursuant to which they made limited representations and warranties to us regarding the entities, properties and assets that we acquired the formation transactions for one year following the completion of our initial public offering and agreed to indemnify us and our operating partnership for breaches of such representations subject to a $1.0 million deductible and a cap of $25.0 million. They pledged operating partnership units and shares of Class A common stock to our operating partnership with a value equal to $25.0 million in order to secure their indemnity obligation, and such operating partnership units and shares of common stock are the sole recourse of our operating partnership in the case of a breach of any representation or warranty or other claim for indemnification. | |
Under the contribution and merger agreements, Anthony E. Malkin directly and/or indirectly received 210,289 shares of our Class A common stock, 586,095 shares of our Class B common stock, and 28,718,631 operating partnership units, representing, in aggregate, a 12.0% beneficial interest in our company on a fully diluted basis, and Peter L. Malkin directly and/or indirectly received 2,772 shares of our Class A common stock, 100,084 shares of our Class B common stock, and 6,027,867 operating partnership units representing, in aggregate, a 2.5% beneficial interest in our company on a fully diluted basis. The Malkin Group, which includes Anthony E. Malkin, Peter L. Malkin and their related parties and affiliates, directly and/or indirectly received 396,025 shares of our Class A common stock, 747,435 shares of our Class B common stock, and 37,748,249 operating partnership units, representing, in aggregate, a 15.8% beneficial interest in our company on a fully diluted basis. Other members of our senior management team received an aggregate of 1,167,336 operating partnership units, and 2,407 shares of our Class B common stock representing a 0.5% interest on a fully diluted basis. | |
We did not conduct arm’s-length negotiations with the parties involved regarding the terms of the formation transactions. In the course of structuring the formation transactions, certain members of our senior management team and other contributors had the ability to influence the type and level of benefits they received from us. Additionally, Anthony E. Malkin has a conflict of interest because we entered into agreements granting us the option to acquire long-term leasehold and/or sub-leasehold interests in the option properties in which the Malkin Group controls and owns economic interests. As a result, an exercise of such options by us could economically benefit him. A majority of our independent directors must approve the price and terms of the acquisition of interests in each of our option properties. | |
The term “Malkin Group” means all of the following, as a group: Anthony E. Malkin, Peter L. Malkin and each of their spouses and lineal descendants (including spouses of such descendants), any estates of any of the foregoing, any trusts now or hereafter established for the benefit of any of the foregoing, or any corporation, partnership, limited liability company or other legal entity controlled by Anthony E. Malkin or any permitted successor in such entity for the benefit of any of the foregoing; provided, however that solely with respect to tax protection rights and parties who entered into the contribution agreements described in this Annual Report on Form 10-K, the Malkin Group shall also include the lineal descendants of Lawrence A. Wien and his spouse (including spouses of such descendants), any estates of the foregoing, any trusts now or hereafter established for the benefit of any of the foregoing, or any corporation, partnership, limited liability company or other legal entity controlled by Anthony E. Malkin for the benefit of the foregoing. | |
Tax Protection Agreement | |
In connection with the completion of the Offering and the related formation transactions, we entered into a tax protection agreement with Anthony E. Malkin and Peter L. Malkin that is intended to protect the Malkin Group and an additional third party investor in Metro Center (who was one of the original landowners and was involved in the development of the property) against certain of the tax consequences described above to a limited extent. | |
First, this agreement provides that our operating partnership will not sell, exchange, transfer or otherwise dispose of four properties, which we refer to in this section as protected assets, or any interest in a protected asset for a period of 12 years, with respect to First Stamford Place and the later of (x) eight years or (y) the death of Peter L. Malkin and Isabel W. Malkin who are 80 and 77 years old, respectively, for the three other protected assets, Metro Center, 10 Bank Street and 1542 Third Avenue, unless: | |
(1)Anthony E. Malkin consents to the sale, exchange, transfer or other disposition; or | |
(2)our operating partnership delivers to each protected party thereunder a cash payment intended to approximate the tax liability arising from the recognition of the pre-contribution built-in gain resulting from the sale, exchange, transfer or other disposition of such protected asset (with the pre-contribution “built-in gain” being not more than the taxable gain that would have been recognized by such protected party had the protected asset been sold for fair market value in a taxable transaction at the time of the consolidation) plus an additional amount so that, after the payment of all taxes on amounts received pursuant to the agreement (including any tax liability incurred as a result of receiving such payment), the protected party retains an amount equal to such protected party’s total tax liability incurred as a result of the recognition of the pre-contribution built-in gain pursuant to such sale, exchange, transfer or other disposition; or | |
(3)the disposition does not result in a recognition of any built-in gain by the protected party | |
Second, with respect to the Malkin Group, including Anthony E. Malkin and Peter L. Malkin, and one additional third party investor in Metro Center (who was one of the original landowners and was involved in the development of the property), to protect against gain recognition resulting from a reduction in such continuing investor’s share of the operating liabilities, the agreement provides that during the period from the closing of the Offering until such continuing investor owns less than the aggregate number of operating partnership units and shares of common stock equal to 50% of the aggregate number of such units and shares they received in the related formation transactions, which we refer to in this section as the tax protection period, our operating partnership will (i) refrain from prepaying any amounts outstanding under any indebtedness secured by the protected assets and (ii) use its commercially reasonable efforts to refinance such indebtedness at or prior to maturity at its current principal amount, or, if our operating partnership is unable to refinance such indebtedness at its current principal amount, at the highest principal amount possible. The agreement also provides that, during the tax protection period, our operating partnership will make available to such continuing investors the opportunity (i) to enter into a “bottom dollar” guarantee of their allocable share of $160.0 million of aggregate indebtedness of our operating partnership meeting certain requirements or (ii) in the event our operating partnership has recourse debt outstanding and such a continuing investor agrees in lieu of guaranteeing debt pursuant to clause (i) above, to enter into a deficit restoration obligation, in each case, in a manner intended to provide an allocation of operating partnership liabilities to the continuing investor. In the event that a continuing investor guarantees debt of our operating partnership, such continuing investor will be responsible, under certain circumstances, for the repayment of the guaranteed amount to the lender in the event that the lender would otherwise recognize a loss on the loan, such as, for example, if property securing the loan was foreclosed and the value was not sufficient to repay a certain amount of the debt. A deficit restoration obligation is a continuing investor’s obligation, under certain circumstances, to contribute a designated amount of capital to our operating partnership upon our operating partnership’s liquidation in the event that the assets of our operating partnership are insufficient to repay our operating partnership liabilities. | |
Because we expect that our operating partnership will at all times have sufficient liabilities to allow it to meet its obligations to allocate liabilities to its partners that are protected parties under the tax protection agreement, our operating partnership’s indemnification obligation with respect to “certain tax liabilities” would generally arise only in the event that the operating partnership disposes in a taxable transaction of a protected asset within the period specified above in a taxable transaction. In the event of such a disposition, the amount of our operating partnership’s indemnification obligation would depend on several factors, including the amount of “built-in gain,” if any, recognized and allocated to the indemnified partners with respect to such disposition and the effective tax rate to be applied to such gain at the time of such disposition. | |
The operating partnership agreement requires that allocations with respect to such acquired property be made in a manner consistent with Section 704(c) of the Code. Treasury Regulations issued under Section 704(c) of the Code provide partnerships with a choice of several methods of allocating book-tax differences. Under the tax protection agreement, our operating partnership has agreed to use the “traditional method” for accounting for book-tax differences for the properties acquired by our operating partnership in the consolidation. Under the traditional method, which is the least favorable method from our perspective, the carryover basis of the acquired properties in the hands of our operating partnership (i) may cause us to be allocated lower amounts of depreciation and other deductions for tax purposes than would be allocated to us if all of the acquired properties were to have a tax basis equal to their fair market value at the time of acquisition and (ii) in the event of a sale of such properties, could cause us to be allocated gain in excess of its corresponding economic or book gain (or taxable loss that is less than its economic or book loss), with a corresponding benefit to the partners transferring such properties to our operating partnership for interests in our operating partnership. | |
Partnership Agreement | |
Pursuant to the operating partnership agreement, limited partners of our operating partnership will have rights beginning 12 months after the completion of the Offering to require our operating partnership to redeem all or part of their operating partnership units for cash equal to the then-current market value of an equal number of shares of our Class A common stock (determined in accordance with and subject to adjustment under the partnership agreement), or, at our election, to exchange their operating partnership units for shares of our Class A common stock on a one-for-one basis subject to certain adjustments and the restrictions on ownership and transfer. | |
Registration Rights | |
We entered into a registration rights agreement with certain persons receiving shares of our common stock or operating partnership units in the formation transactions, including certain members of our senior management team and our other continuing investors. Under the registration rights agreement, subject to certain limitations, not later than 12 months from the beginning of the first full calendar month following the completion of the Offering, we will file one or more registration statements, which we refer to as the resale shelf registration statements, covering the resale of all shares of Class A common stock issued in the formation transactions (to the extent not already registered), all shares of Class A common stock issued to our independent directors, all shares of our Class A common stock issued to members of our senior management team pursuant to our Equity Incentive Plan, and all shares of Class A common stock that may be issued upon redemption of operating partnership units or upon conversion of our Class B common stock, or collectively the registrable shares. We may, at our option, satisfy our obligation to prepare and file a resale shelf registration statement with respect to shares of our Class A common stock issued upon redemption of operating partnership units or issued upon conversion of shares of our Class B common stock by filing one or more issuer shelf registration statements which, collectively with the resale shelf registration statements, we refer to as the shelf registration statements, registering the issuance by us of shares of our Class A common stock under the Securities Act, provided that we will be obligated to file an issuer shelf registration statement with respect to shares of our Class A common stock issued upon redemption of operating partnership units or issued upon conversion of shares of Class B common stock to continuing investors in the public existing entities. We have agreed to use our commercially reasonable efforts to cause each shelf registration statement to be declared effective within 120 days of filing, which we refer to as the shelf effective date. Commencing upon the shelf effective date, under certain circumstances, we will also be required to undertake an underwritten offering upon the written request of the Malkin Group, which we refer to as the holder, provided (i) the registrable shares to be registered in such offering will have a market value of at least $150.0 million, (ii) we will not be obligated to effect more than two underwritten offerings during any 12-month period following the resale shelf effective date; and (iii) the holder will not have the ability to effect more than four underwritten offerings. In addition, commencing April 8, 2014 and ending on the shelf effective date (unless the resale shelf registration statement has not been declared effective on the shelf effective date, in which case during each 180 day period following the shelf effective date), the holder will have demand rights to require us, subject to certain limitations, to undertake an underwritten offering with respect to the registrable shares having a market value of at least $150.0 million under a registration statement, provided, however, that any such registration shall not be counted for purposes of determining the four underwritten offerings described in the preceding sentence. In addition, if we file a registration statement with respect to an underwritten offering for our own account or on behalf of the holder, the holder will have the right, subject to certain limitations, to register such number of registrable shares held by him, her or it as each such holder requests. With respect to underwritten offerings on behalf of the holder, we will have the right to register such number of primary shares as we request; provided, however, that if cut backs are required by the managing underwriters of such an offering, our primary shares shall be cutback first (but in no event will our shares be cut back to less than $25.0 million). | |
We have also agreed to indemnify the persons receiving rights against specified liabilities, including certain potential liabilities arising under the Securities Act, or to contribute to the payments such persons may be required to make in respect thereof. We have agreed to pay all of the expenses relating to the registration and any underwritten offerings of such securities, including, without limitation, all registration, listing, filing and stock exchange or FINRA fees, all fees and expenses of complying with securities or “blue sky” laws, all printing expenses and all fees and disbursements of counsel and independent public accountants retained by us, but excluding underwriting discounts and commissions, any out-of-pocket expenses (except we will pay any holder’s out-of-pocket fees (including disbursements of such holder’s counsel, accountants and other advisors) up to $25,000 in the aggregate for each underwritten offering and each filing of a resale shelf registration statement or demand registration statement), and any transfer taxes. | |
Employment Agreement and Change in Control Severance Agreements | |
In connection with the completion of the Offering, we entered into an employment agreement with Anthony E. Malkin, which provides for salary, bonuses and other benefits, including among other things, severance benefits upon a termination of employment under certain circumstances and the issuance of equity awards. In addition, we entered into change in control severance agreements with David A. Karp, Thomas P. Durels and Thomas N. Keltner, Jr. | |
Indemnification of Our Directors and Officers | |
In connection with the completion of the Offering, we entered into indemnification agreements with each of our directors, executive officers, chairman emeritus and certain other parties, providing for the indemnification by us for certain liabilities and expenses incurred as a result of actions brought, or threatened to be brought, against (i) our directors, executive officers and chairman emeritus and (ii) our executive officers, chairman emeritus and certain other parties who are former members, managers, stockholders, directors, limited partners, general partners, officers or controlling persons of our predecessor in their capacities. | |
Option Agreements | |
We have executed option agreements with affiliates of our predecessor granting us the right to acquire long-term leasehold and/or sub-leasehold interests in 1400 Broadway and/or 112 West 34th Street (including fee title interest in a small connected structure at 122 West 34th Street), both office properties in midtown Manhattan (the “option properties”). Our subsidiary currently supervises each of the option properties pursuant to a management agreement entered into by our subsidiary and the owners of the option properties. The purchase price for each of the option properties will be based on an appraisal by independent third parties, unless we and the owners of the option properties, with the consent of the estate of Leona M. Helmsley (a member of affiliates of our predecessor and of the owners of option properties), agree to a negotiated price. We and the owners of the option properties are utilizing the appraisal process set forth in the option agreements. The deadline for the appraised value to be determined is April 7, 2014. Following such determination, we have five months within which to decide whether to exercise the option, and approximately 90 days thereafter to close any resulting purchase. As part of the option agreements, we have agreed that Anthony E. Malkin, our Chairman, Chief Executive Officer and President, will not participate in the negotiations and valuation process on our behalf. Our Chairman Emeritus, Peter L. Malkin, has also agreed not to participate in the process. In addition our Board of Directors has appointed a special committee consisting of independent members of such Board to review the appraisal or negotiation process on its behalf. A majority of the independent members of such Board of Directors must approve the price and terms of the acquisition of interests in each of the option properties. The purchase price is payable in a combination of cash, shares of our common stock and operating partnership units, but the estate of Leona M. Helmsley will have the right to elect to receive all cash. Our option expires on the later of (i) March 19, 2014 with respect to 112-122 West 34th Street and July 29, 2014 with respect to 1400 Broadway (which dates are 12 months in each case after the recently resolved litigation with respect to such property) or (ii) five months after the completion of the independent valuation described above, which completion shall not be later than six months following the closing of the Offering, but such expiration shall in no event be later than seven years from the completion of the Offering. | |
Excluded Properties and Businesses | |
Our portfolio represents all of our predecessor’s Manhattan and greater New York metropolitan area office and retail assets in which it holds a majority interest. The Malkin Group, including Anthony E. Malkin, our Chairman, Chief Executive Officer and President, owns non-controlling interests in, and Anthony E. Malkin and Peter L. Malkin control the general partners or managers of, the entities that own interests in six multi-family properties, five net leased retail properties, one former post office property in Greenwich, Connecticut which has recently commenced conversion into a single tenant property following the recent receipt of zoning authorization for such conversion, and a development parcel that is zoned for residential use. The Malkin Group also owns non-controlling interests in one Manhattan office property, two Manhattan retail properties and several retail properties outside of Manhattan, none of which will be contributed to us in the formation transactions. We refer to the non-controlling interests described above collectively as the excluded properties. In addition, the Malkin Group owns interests in six mezzanine and senior equity funds, two industrial funds, five residential property managers and a registered broker dealer, none of which was contributed to us in the formation transactions, and which we refer to collectively as the excluded businesses. The Malkin Group owns certain non-real estate family investments that will not be contributed to us in the formation transactions. Other than the Greenwich retail property, we do not believe that the excluded properties or the excluded businesses are consistent with our portfolio geographic or property type composition, management or strategic direction. | |
Pursuant to management and/or service agreements with the owners of interests in those excluded properties and services agreements with the five residential property managers and the managers of certain other excluded businesses which historically were managed by affiliates of our predecessor, we are designated as the manager of the excluded properties and will provide services to the owners of certain of the excluded properties and the five residential property managers and provide services and access to office space to the existing managers of the other excluded businesses (other than with respect to the registered broker dealer). As the manager or service provider, we are paid a management or other fee with respect to those excluded properties and excluded businesses (other than with respect to the registered broker dealer) where our predecessor had previously received a management fee on the same terms as the fee paid to our predecessor, and reimbursed for our costs in providing the management and other services to those excluded properties and businesses where our predecessor had not previously received a management fee. Our management of the excluded properties and provision of services to the five residential property managers and the existing managers of the other excluded businesses will represent a minimal portion of our overall business. There is no established time period in which we will manage such properties or provide services to the owners of certain of the excluded properties and the five residential property managers and provide services and access to office space to the existing managers of the other excluded businesses and Peter L. Malkin and Anthony E. Malkin expect to sell certain of these properties or unwind certain of these businesses over time. We are not precluded from acquiring all or certain interests in the excluded properties or businesses. If we were to attempt any such acquisition, we anticipate that Anthony E. Malkin, our Chairman, Chief Executive Officer and President, will not participate in the negotiation process on our behalf with respect to our potential acquisition of any of these excluded properties or businesses and the approval of a majority of our independent directors will be required to approve any such acquisition. | |
Reimbursement of Pre-Closing Transaction Costs | |
As part of the contribution and option agreements, $103.8 million of expenses incurred in connection with the formation transactions and the Offering were reimbursed from the proceeds of the Offering. The existing entities and our predecessor's management companies declared final distributions, inclusive of reimbursement of these expenses, to the investors in such entities, including members of our senior management team and certain of our directors, in an amount of approximately $180.0 million in the aggregate, and of which $38.9 million was paid to the Malkin Group, including Peter L. Malkin and Anthony E. Malkin, in accordance to their ownership interests in each applicable existing entity and predecessor management company. | |
Repayment of Loans to Property Owning Entities | |
We used a portion of the net proceeds from the Offering to repay a loan in the amount of $3.6 million made in connection with 500 Mamaroneck Avenue to fund leasing costs at the property, of which approximately $1.2 million of such loan was made by Anthony E. Malkin and Peter L. Malkin. In addition, we assumed a loan in the amount of $3.8 million, made by an entity that was controlled by, and interests in which were held by, Anthony E. Malkin and Peter L. Malkin, to fund cash needs including the payment of leasing commissions and expenditures on tenant installations at First Stamford Place. We used our secured revolving and term credit facility to fully repay this loan shortly after the closing of the Offering. | |
Releases of Guarantees | |
Peter L. Malkin and Anthony E. Malkin were released from or otherwise indemnified for liabilities arising under certain guarantees and indemnities with respect to approximately $1.3 billion of mortgage loans (including currently undrawn amounts) on our properties, which were assumed by us upon closing of the formation transactions in respect of obligations arising after the closing. The guarantees and indemnities with respect to all of the indebtedness are, in most instances, limited to losses incurred by the applicable lender arising from acts such as fraud, misappropriation of funds, intentional breach, bankruptcy and certain environmental matters. In connection with our assumption of these mortgage loans, we had the guarantors and/or indemnitors released from these guarantees and indemnities and our operating partnership assumed any such guarantee and indemnity obligations as replacement guarantor and/or indemnitor, except with respect to one $250.0 million mortgage loan on First Stamford Place. Our operating partnership entered into an indemnification agreement with Peter L. Malkin and Anthony E. Malkin pursuant to which our operating partnership is obligated to indemnify Peter L. Malkin and Anthony E. Malkin for any amounts paid by them under the guarantees and/or indemnities with respect to this mortgage loan. | |
Services are and were provided by us or our predecessor to affiliates of the sponsors. These affiliates were related parties because beneficial interests were or are held, directly or indirectly, by the sponsors, their affiliates and their family members. | |
During the years ended December 31, 2013, 2012 and 2011, we or our predecessor engaged in various transactions with affiliates of the sponsors and their family members. These transactions are reflected in our consolidated and our predecessor's combined statements of operations as third-party management and other fees and the unpaid balances are reflected in the due from affiliated companies on our predecessor's combined balance sheets. | |
Supervisory Fee Revenue | |
We or our predecessor earned supervisory fees from affiliated entities not included in our consolidated and our predecessor's combined financial statements of $2.8 million, $1.9 million and $2.1 million during the years ended December 31, 2013, 2012 and 2011, respectively. These fees are included within third-party management and other fees. | |
We or our predecessor earned supervisory fees from uncombined entities included in our predecessor's combined financial statements on the equity method of $0.6 million, $0.8 million and $1.2 million during the years ended December 31, 2013, 2012 and 2011. These fees are included within third-party management and other fees. | |
Property Management Fee Revenue | |
We or our predecessor earned property management fees from affiliated entities not included in our consolidated and our predecessor's combined financial statements of $1.6 million, $1.0 million and $0.9 million during the years ended December 31, 2013, 2012 and 2011 respectively. These fees are included within third-party management and other fees. | |
We or our predecessor earned property management fees from uncombined entities included in our predecessor's combined financial statements on the equity method of $0.1 million, $1.2 million and $0.7 million during the years ended December 31, 2013. 2012 and 2011, respectively. These fees are included within third-party management and other fees. | |
Lease Commissions | |
We or our predecessor earned leasing commissions from affiliated entities not included in our consolidated and our predecessor's combined financial statements of $0.0 million, $0.2 million and $0.0 million during the years ended December 31, 2013, 2012 and 2011, respectively. These fees are included within third-party management and other fees. | |
Profit Share | |
We or our predecessor received additional payments equal to a specified percentage of distributions in excess of specified amounts, both being defined, from affiliated entities not included in our consolidated and our predecessor's combined financial statements. Our profits interest totaled $3.3 million, $0.7 million and $0.8 million during the years ended December 31, 2013, 2012 and 2011, respectively. These fees are included within other income and fees. | |
We or our predecessor received additional payments equal to a specified percentage of distributions in excess of specified amounts, both being defined, from uncombined entities included in our predecessor's combined financial statements on the equity method. Our predecessor's profits interest totaled $0.4 million, $0.9 million and $0.9 million during the years ended December 31, 2013, 2012 and 2011, respectively. These fees are included within other income and fees. | |
Other Fees and Disbursements from Non-Controlled Affiliates | |
We or our predecessor earned other fees and disbursements from affiliated entities not included in our consolidated and our predecessor's combined financial statements of $0.02 million, $0.6 million and $0.9 million during the years ended December 31, 2013, 2012 and 2011, respectively. These fees are included within other income and fees. | |
Our predecessor earned other fees and disbursements from uncombined subsidiaries included in its combined financial statements on the equity method of $1.1 million, $1.3 million and $1.2 million during the years ended December 31, 2013, 2012 and 2011, respectively. These fees are included within other income and fees. | |
Included in these other fees are reimbursements from uncombined entities included in our predecessor's combined financial statements on the equity method for offering costs related to the Offering of $1.1 million, $1.3 million and $1.2 million during the years ended December 31, 2013, 2012 and 2011, respectively, of which $0.0 million, $0.4 million and $0.9 million were included in due from affiliated companies as of December 31, 2013, 2012 and 2011, respectively. | |
Family Office Services | |
Family office services mainly comprise accounting and bookkeeping services. During the years ended December 31, 2013, 2012 and 2011, we and our predecessor provided certain family office services to the sponsors. The sponsors reimbursed us for direct costs in the amount of $1.1 million, $0.8 million and $0.8 million, in 2013, 2012 and 2011, respectively. | |
Other | |
Included in Tenant and other receivables are amounts due from partners and stockholders of $0.08 million, $0.5 million and $0.5 million during the years ended December 31, 2013, 2012 and 2011, respectively. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Reporting | ' | |||||||||||||||
Segment Reporting | ||||||||||||||||
We have identified two reportable segments: (1) Real Estate and (2) Observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, repositioning and disposition of our real estate assets. Our observatory segment operates the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and different marketing strategies. We account for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. We include our construction operation in "Other" and it includes all activities related to providing construction services to tenants and to other entities within and outside our company. | ||||||||||||||||
The following tables provides components of segment profit for each segment for the years ended December 31, 2013, 2012 and 2011, as reviewed by management (amounts in thousands): | ||||||||||||||||
Period from October 7, 2013 through December 31, 2013 | ||||||||||||||||
Real Estate | Observatory | Other | Totals | |||||||||||||
Revenues from external customers | $ | 98,564 | $ | 23,735 | $ | 5,264 | $ | 127,563 | ||||||||
Intersegment revenues | 20,134 | (1) | — | 1,537 | 21,671 | |||||||||||
Total revenues | 118,698 | 23,735 | 6,801 | 149,234 | ||||||||||||
All operating expenses, excluding noncash items | (51,643 | ) | (25,743 | ) | (6,792 | ) | (84,178 | ) | ||||||||
Interest expense | (13,147 | ) | — | — | (13,147 | ) | ||||||||||
Depreciation and amortization expense | (27,376 | ) | (4 | ) | (5 | ) | (27,385 | ) | ||||||||
Segment profit (loss) | $ | 26,532 | $ | (2,012 | ) | $ | 4 | $ | 24,524 | |||||||
Segment assets | $ | 2,218,143 | $ | 249,084 | $ | 8,834 | $ | 2,476,061 | ||||||||
Expenditures for segment assets | $ | 56,434 | $ | — | $ | — | $ | 56,434 | ||||||||
___________ | ||||||||||||||||
-1 | The observatory pays a market-based rent payment comprised of fixed and percentage rent to the Empire State Building. | |||||||||||||||
Period from January 1, 2013 through October 6, 2013 | ||||||||||||||||
Real Estate | Other | Totals | ||||||||||||||
Revenues from external customers | $ | 187,284 | $ | 18,636 | $ | 205,920 | ||||||||||
Intersegment revenues | 56 | 6,837 | 6,893 | |||||||||||||
Total revenues | 187,340 | 25,473 | 212,813 | |||||||||||||
All operating expenses, excluding noncash items | (65,628 | ) | (25,824 | ) | (91,452 | ) | ||||||||||
Interest expense | (50,660 | ) | — | (50,660 | ) | |||||||||||
Depreciation and amortization expense | (38,963 | ) | (19 | ) | (38,982 | ) | ||||||||||
Equity in net income of non-controlled entities | 14,875 | — | 14,875 | |||||||||||||
Segment profit | $ | 46,964 | $ | (370 | ) | $ | 46,594 | |||||||||
Segment assets | $ | 1,023,333 | $ | 10,585 | $ | 1,033,918 | ||||||||||
Investment in non-controlled entities | $ | 88,304 | $ | — | $ | 88,304 | ||||||||||
Expenditures for segment assets | $ | 55,820 | $ | 130 | $ | 55,950 | ||||||||||
2012 | ||||||||||||||||
Real Estate | Other | Totals | ||||||||||||||
Revenues from external customers | $ | 241,292 | $ | 18,902 | $ | 260,194 | ||||||||||
Intersegment revenues | 74 | 5,714 | 5,788 | |||||||||||||
Total revenues | 241,366 | 24,616 | 265,982 | |||||||||||||
All operating expenses, excluding noncash items | (85,848 | ) | (24,734 | ) | (110,582 | ) | ||||||||||
Interest expense | (54,394 | ) | — | (54,394 | ) | |||||||||||
Depreciation and amortization expense | (42,661 | ) | (29 | ) | (42,690 | ) | ||||||||||
Equity in net income of non-controlled entities | 14,348 | — | 14,348 | |||||||||||||
Segment profit (loss) | $ | 72,811 | $ | (147 | ) | $ | 72,664 | |||||||||
Segment assets | $ | 964,160 | $ | 11,514 | $ | 975,674 | ||||||||||
Investment in non-controlled entities | $ | 76,879 | $ | — | $ | 76,879 | ||||||||||
Expenditures for segment assets | $ | 87,659 | $ | — | $ | 87,659 | ||||||||||
2011 | ||||||||||||||||
Real Estate | Other | Totals | ||||||||||||||
Revenues from external customers | $ | 247,191 | $ | 47,560 | $ | 294,751 | ||||||||||
Intersegment revenues | 73 | 6,476 | 6,549 | |||||||||||||
Total revenues | 247,264 | 54,036 | 301,300 | |||||||||||||
All operating expenses, excluding noncash items | (85,833 | ) | (52,122 | ) | (137,955 | ) | ||||||||||
Interest expense | (54,746 | ) | — | (54,746 | ) | |||||||||||
Depreciation and amortization expense | (35,481 | ) | (32 | ) | (35,513 | ) | ||||||||||
Equity in net income of non-controlled entities | 3,893 | — | 3,893 | |||||||||||||
Segment profit (loss) | $ | 75,097 | $ | 1,882 | $ | 76,979 | ||||||||||
Segment assets | $ | 916,617 | $ | 15,728 | $ | 932,345 | ||||||||||
Investment in non-controlled entities | $ | 72,626 | $ | — | $ | 72,626 | ||||||||||
Expenditures for segment assets | $ | 60,582 | $ | — | $ | 60,582 | ||||||||||
The following table provides a reconciliation of segment data to the combined financial statements: | ||||||||||||||||
Company | Predecessor | |||||||||||||||
Period from October 7, 2013 through December 31, 2013 | Period from January 1, 2013 through October 6, 2013 | 2012 | 2011 | |||||||||||||
Revenue reconciliation | ||||||||||||||||
Total revenues for reportable segments | $ | 149,234 | $ | 212,813 | $ | 265,982 | $ | 301,300 | ||||||||
Other revenues | 20 | 152 | 100 | 37 | ||||||||||||
Elimination for intersegment revenues | (21,671 | ) | (6,893 | ) | (5,788 | ) | (6,549 | ) | ||||||||
Total combined revenues | $ | 127,583 | $ | 206,072 | $ | 260,294 | $ | 294,788 | ||||||||
Profit or loss | ||||||||||||||||
Total profit or loss for reportable segments | $ | 24,524 | $ | 46,594 | $ | 72,664 | $ | 76,979 | ||||||||
Other profit or loss items | (15,329 | ) | (23,600 | ) | (20,963 | ) | (15,541 | ) | ||||||||
Formation transaction expenses | — | (4,507 | ) | (2,247 | ) | (2,845 | ) | |||||||||
Elimination for intersegment profit or loss | (207 | ) | (871 | ) | (911 | ) | (959 | ) | ||||||||
Unallocated amounts: | ||||||||||||||||
Investment income | 20 | 152 | 100 | 37 | ||||||||||||
Settlement expense | — | (55,000 | ) | — | — | |||||||||||
Aircraft expenses | — | — | — | (274 | ) | |||||||||||
Acquisition expenses | (138,140 | ) | — | — | — | |||||||||||
Gain on consolidation of non-controlled entities | 322,563 | — | — | — | ||||||||||||
Net income | 193,431 | $ | (37,232 | ) | $ | 48,643 | $ | 57,397 | ||||||||
Net income attributable to non-controlling interests | (118,186 | ) | ||||||||||||||
Net income attributable to Empire State Realty Trust, Inc. | $ | 75,245 | ||||||||||||||
Summary_of_Quarterly_Financial
Summary of Quarterly Financial Information (unaudited) (Notes) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Summary of Quarterly Financial Information (unaudited) | ' | |||||||||||||||
Summary of Quarterly Financial Information (unaudited) | ||||||||||||||||
The quarterly results of operations of our company and our predecessor for the years ended December 31, 2013 and 2012 are as follows (amounts in thousands): | ||||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | December 31, 2013 (1) | |||||||||||||
Revenues | $ | 62,420 | $ | 59,569 | $ | 62,278 | $ | 149,388 | ||||||||
Net income | $ | 1,930 | $ | 3,071 | $ | 2,281 | $ | 148,917 | ||||||||
Net income attributable to non-controlling interests | (118,186 | ) | ||||||||||||||
Net income attributable to Empire State Realty Trust, Inc. | $ | 30,731 | ||||||||||||||
Basic and diluted net income per share attributable to Empire State Realty Trust, Inc. | $ | 0.79 | ||||||||||||||
31-Mar-12 | 30-Jun-12 | 30-Sep-12 | 31-Dec-12 | |||||||||||||
Revenues | $ | 59,842 | $ | 57,404 | $ | 59,415 | $ | 83,633 | ||||||||
Net income | $ | 10,811 | $ | 6,774 | $ | 9,015 | $ | 22,043 | ||||||||
___________ | ||||||||||||||||
-1 | The results of operations of our predecessor for October 1, 2013 through October 6, 2013 and the results of operations of our company for October 7, 2013 through December 31, 2013 have been combined. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On February 21, 2014, we announced that our Board of Directors declared a dividend of $0.085 per share for the first quarter 2014, payable to holders of our Class A common stock and Class B common stock and to holders of Empire State Realty OP, L.P.'s Series ES, Series 250 and Series 60 OP Units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR OP Units. The dividend will be payable in cash on March 31, 2014 to securityholders of record at the close of business on March 14, 2014. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | ||||||||||||||||
Schedule II—Valuation and Qualifying Accounts | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Description | Balance At | Additions | Uncollectible | Balance | |||||||||||||
Beginning | Charged | Accounts | at End of | ||||||||||||||
of Year | Against | Written-Off | Year | ||||||||||||||
Operations | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 923 | $ | (448 | ) | $ | 240 | $ | 715 | ||||||||
Year ended December 31, 2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 1,652 | $ | 498 | $ | (1,227 | ) | $ | 923 | ||||||||
Year ended December 31, 2011 | |||||||||||||||||
Allowance for doubtful accounts | $ | 1,493 | $ | 1,226 | $ | (1,067 | ) | $ | 1,652 | ||||||||
Schedule_III_Real_Estate_and_A
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Schedule III - Real Estate and Accumulated Depreciation | ' | |||||||||||||||||||||||||||||||||||
Schedule III—Real Estate and Accumulated Depreciation | ||||||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Initial Cost to | Cost Capitalized | Gross Amount at | ||||||||||||||||||||||||||||||||||
the Company | Subsequent to | which Carried | ||||||||||||||||||||||||||||||||||
Acquisition | at 12/31/13 | |||||||||||||||||||||||||||||||||||
Development | Type | Encumbrances | Land | Building & | Improvements | Carrying | Land | Buildings & | Total | Accumulated | Date of | Date | Life on | |||||||||||||||||||||||
Improvements | Costs | Improvements | Depreciation | Construction | Acquired | which | ||||||||||||||||||||||||||||||
depreciation | ||||||||||||||||||||||||||||||||||||
in latest | ||||||||||||||||||||||||||||||||||||
income | ||||||||||||||||||||||||||||||||||||
statement is | ||||||||||||||||||||||||||||||||||||
computed | ||||||||||||||||||||||||||||||||||||
1333 Broadway, New York, NY | office / | 78,121 | 91,435 | 120,190 | 81 | n/a | 91,435 | 120,271 | 211,706 | (927 | ) | 1915 | 2013 | various | ||||||||||||||||||||||
retail | ||||||||||||||||||||||||||||||||||||
1350 Broadway, New York, NY | office / | 56,848 | — | 102,518 | 1,345 | n/a | — | 103,863 | 103,863 | (925 | ) | 1929 | 2013 | various | ||||||||||||||||||||||
retail | ||||||||||||||||||||||||||||||||||||
250 West 57th Street, New York, NY | office/ | 57,873 | 2,117 | 5,041 | 67,432 | n/a | 2,117 | 72,473 | 74,590 | (19,775 | ) | 1921 | 1953 | various | ||||||||||||||||||||||
retail | ||||||||||||||||||||||||||||||||||||
501 Seventh Avenue, New York, NY | office/ | 45,925 | 1,100 | 2,600 | 75,390 | n/a | 1,100 | 77,990 | 79,090 | (27,227 | ) | 1923 | 1950 | various | ||||||||||||||||||||||
retail | ||||||||||||||||||||||||||||||||||||
1359 Broadway, New York, NY | office/ | 45,023 | 1,233 | 1,809 | 43,532 | n/a | 1,233 | 45,341 | 46,574 | (15,523 | ) | 1924 | 1953 | various | ||||||||||||||||||||||
retail | ||||||||||||||||||||||||||||||||||||
350 Fifth Avenue (Empire State Building), New York, NY | office/ | 325,000 | 21,551 | 38,934 | 471,196 | n/a | 21,551 | 510,130 | 531,681 | (35,264 | ) | 1930 | 2013 | various | ||||||||||||||||||||||
retail | ||||||||||||||||||||||||||||||||||||
One Grand Central Place, | office/ | 92,989 | 7,240 | 17,490 | 137,599 | n/a | 7,240 | 155,089 | 162,329 | (57,124 | ) | 1930 | 1954 | various | ||||||||||||||||||||||
New York, NY | retail | |||||||||||||||||||||||||||||||||||
First Stamford Place, Stamford, CT | office | 245,629 | 22,952 | 122,739 | 36,964 | n/a | 24,861 | 157,794 | 182,655 | (52,803 | ) | 1986 | 2001 | various | ||||||||||||||||||||||
One Station Place, Stamford, CT (Metro Center) | office | 96,158 | 5,313 | 28,602 | 9,860 | n/a | 5,313 | 38,462 | 43,775 | (23,660 | ) | 1987 | 1984 | various | ||||||||||||||||||||||
383 Main Avenue, Norwalk, CT | office | 30,403 | 2,262 | 12,820 | 9,320 | n/a | 2,262 | 22,140 | 24,402 | (8,573 | ) | 1985 | 1994 | various | ||||||||||||||||||||||
500 Mamaroneck Avenue, Harrison, NY | office | 32,620 | 4,571 | 25,915 | 15,385 | n/a | 4,571 | 41,300 | 45,871 | (15,344 | ) | 1987 | 1999 | various | ||||||||||||||||||||||
10 Bank Street, White Plains, NY | office | 33,444 | 5,612 | 31,803 | 8,681 | n/a | 5,612 | 40,484 | 46,096 | (14,448 | ) | 1989 | 1999 | various | ||||||||||||||||||||||
10 Union Square, New York, NY | retail | 20,972 | 5,003 | 12,866 | 1,548 | n/a | 5,003 | 14,414 | 19,417 | (5,798 | ) | 1987 | 1996 | various | ||||||||||||||||||||||
1542 Third Avenue, New York, NY | retail | 19,011 | 2,239 | 15,266 | 102 | n/a | 2,239 | 15,368 | 17,607 | (5,641 | ) | 1991 | 1999 | various | ||||||||||||||||||||||
1010 Third Avenue, New York, NY and 77 West 55th Street, New York, NY | retail | 28,096 | 4,462 | 15,817 | 778 | n/a | 4,462 | 16,595 | 21,057 | (6,453 | ) | 1962 | 1998 | various | ||||||||||||||||||||||
69-97 Main Street, Westport, CT | retail | — | 2,782 | 15,766 | 918 | n/a | 2,782 | 16,684 | 19,466 | (4,543 | ) | 1922 | 2003 | various | ||||||||||||||||||||||
103-107 Main Street, Westport, CT | retail | — | 1,243 | 7,043 | (41 | ) | n/a | 1,243 | 7,002 | 8,245 | (1,323 | ) | 1900 | 2006 | various | |||||||||||||||||||||
Property for development at the Transportation Hub in Stamford CT | land | — | 4,542 | — | 6,457 | — | 4,542 | 6,457 | 10,999 | — | na | na | na | |||||||||||||||||||||||
Totals | 1,208,112 | 185,657 | 577,219 | 886,547 | — | 187,566 | 1,461,857 | 1,649,423 | (295,351 | ) | ||||||||||||||||||||||||||
_______________ | ||||||||||||||||||||||||||||||||||||
Empire State Realty Trust, Inc. and Empire State Realty Trust, Inc. Predecessor | ||||||||||||||||||||||||||||||||||||
Notes to Schedule III—Real Estate and Accumulated Depreciation | ||||||||||||||||||||||||||||||||||||
(amounts in thousands) | ||||||||||||||||||||||||||||||||||||
1. Reconciliation of Investment Properties | ||||||||||||||||||||||||||||||||||||
The changes in our investment properties for the years ended December 31, 2013, 2012 and 2011 are as follows: | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 939,330 | $ | 856,151 | $ | 796,008 | ||||||||||||||||||||||||||||||
Acquisition of new properties | 607,779 | — | — | |||||||||||||||||||||||||||||||||
Improvements | 130,346 | 85,409 | 70,821 | |||||||||||||||||||||||||||||||||
Distribution of real property to owners prior to the formation transactions | (16,345 | ) | — | — | ||||||||||||||||||||||||||||||||
Disposals | (11,687 | ) | (2,230 | ) | (10,678 | ) | ||||||||||||||||||||||||||||||
Balance, end of year | $ | 1,649,423 | $ | 939,330 | $ | 856,151 | ||||||||||||||||||||||||||||||
The unaudited aggregate cost of investment properties for federal income tax purposes as of December 31, 2013 was $1,212,869. | ||||||||||||||||||||||||||||||||||||
2. Reconciliation of Accumulated Depreciation | ||||||||||||||||||||||||||||||||||||
The changes in our accumulated depreciation for the years ended December 31, 2013, 2012 and 2011 are as follows: | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 257,091 | $ | 224,019 | $ | 205,542 | ||||||||||||||||||||||||||||||
Depreciation expense | 49,947 | 35,302 | 29,155 | |||||||||||||||||||||||||||||||||
Disposals | (11,687 | ) | (2,230 | ) | (10,678 | ) | ||||||||||||||||||||||||||||||
Balance, end of year | $ | 295,351 | $ | 257,091 | $ | 224,019 | ||||||||||||||||||||||||||||||
Depreciation of investment properties reflected in the combined statements of operations is calculated over the estimated original lives of the assets as follows: | ||||||||||||||||||||||||||||||||||||
Buildings | 39 years | |||||||||||||||||||||||||||||||||||
Building improvements | 39 years | |||||||||||||||||||||||||||||||||||
Tenant improvements | Term of related lease |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of Quarterly Presentation and Principles of Combination | ' | |
Basis of Presentation and Principles of Consolidation and Combination | ||
The accompanying consolidated and combined financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission (the "SEC") represent our assets and liabilities and operating results. The consolidated and combined financial statements include our accounts and our wholly-owned subsidiaries as well as our operating partnership and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. For purposes of comparison, certain items shown in the 2012 consolidated and combined financial statements have been reclassified to conform to the presentation used for 2013. | ||
Consolidation, Subsidiaries or Other Investments, Consolidated Entities | ' | |
Our predecessor's combined financial statements include all the accounts and operations of our predecessor. The real estate entities included in the accompanying combined financial statements have been combined on the basis that, for the periods presented, such entities were under common control, common management and common ownership of the Sponsors. Equity interests in the combining entities that were not controlled by the sponsors are shown as investments in non-controlled entities. We acquired these interests as a result of the formation transactions. | ||
Consolidation, Variable Interest Entity | ' | |
Our predecessor consolidated variable interest entities, or VIEs, in which it was considered a primary beneficiary. The primary beneficiary is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. | ||
Included in commercial real estate properties on our predecessor's combined balance sheet as of December 31, 2012 are approximately $0.4 million related to our combined VIEs. Included in mortgages and other loans payable on our combined balance sheets as of December 31, 2012 are approximately $0.6 million, related to our combined VIEs. We had no VIEs as of December 31, 2013. | ||
We will assess the accounting treatment for each investment we may have in the future. This assessment will include a review of each entity’s organizational agreement to determine which party has what rights and whether those rights are protective or participating. For all VIEs, we will review such agreements in order to determine which party has the power to direct the activities that most significantly impact the entity’s economic performance and benefit. In situations where we or our partner could approve, among other things, the annual budget, the entity’s tax return before filing, and leases that cover more than a nominal amount of space relative to the total rentable space at each property, we would not consolidate the investment as we consider these to be substantive participation rights that result in shared power of the activities that would most significantly impact the performance and benefit of such joint venture investment. Such agreements could also contain certain protective rights such as the requirement of partner approval to sell, finance or refinance the investment and the payment of capital expenditures and operating expenditures outside of the approved budget or operating plan. | ||
A non-controlling interest in a consolidated subsidiary is defined as the portion of the equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. Non-controlling interests are required to be presented as a separate component of equity in the combined balance sheets and in the combined statements of operations by requiring earnings and other comprehensive income to be attributed to controlling and non-controlling interests. As the financial statements of our predecessor have been prepared on a combined basis, there is no non-controlling interest for our predecessor for the periods presented. | ||
Accounting Estimates | ' | |
Accounting Estimates | ||
The preparation of the consolidated and combined financial statements in accordance with GAAP requires management to use estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Significant items subject to such estimates and assumptions include allocation of the purchase price of acquired real estate properties among tangible and intangible assets, determination of the useful life of real estate properties and other long-lived assets, valuation and impairment analysis of combined and uncombined commercial real estate properties and other long-lived assets, estimate of percentage of completion on construction contracts, valuation of the allowance for doubtful accounts, and valuation of equity based compensation. These estimates are prepared using management’s best judgment, after considering past, current, and expected events and economic conditions. Actual results could differ from those estimates. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Rental Revenue | ||
Rental revenue includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease which includes the effects of rent steps and rent abatements under the leases. We commence rental revenue recognition when the tenant takes possession of the leased space or controls the physical use of the leased space and the leased space is substantially ready for its intended use. In addition, many of our leases contain fixed percentage increases over the base rent to cover escalations. We account for all of our leases as operating leases. Deferred rent receivables, including free rental periods and leasing arrangements allowing for increased base rent payments are accounted for in a manner that provides an even amount of fixed lease revenues over the respective non-cancellable lease terms. Differences between rental income recognized and amounts due under the respective lease agreements are recognized as an increase or decrease to deferred rents receivable. | ||
The timing of rental revenue recognition is impacted by the ownership of tenant improvements and allowances. When we are the owner of the tenant improvements, revenue recognition commences after both the improvements are completed and the tenant takes possession or control of the space. In contrast, if we determine that the tenant allowances we are funding are lease incentives, then we commence revenue recognition when possession or control of the space is turned over to the tenant. Tenant improvement ownership is determined based on various factors including, but not limited to, whether the lease stipulates how and on what a tenant improvement allowance may be spent, whether the tenant or landlord retains legal title to the improvements at the end of the lease term, whether the tenant improvements are unique to the tenant or general-purpose in nature, and whether the tenant improvements are expected to have any residual value at the end of the lease. | ||
In addition to base rent, our tenants also generally will pay their pro rata share of increases in real estate taxes and operating expenses for the building over a base year. In some leases, in lieu of paying additional rent based upon increases in building operating expenses, the tenant will pay additional rent based upon increases in the wage rate paid to porters over the porters’ wage rate in effect during a base year or increases in the Consumer Price Index over the index value in effect during a base year. | ||
We will recognize rental revenue of acquired in-place above- and below-market leases at their fair values over the terms of the respective leases, including, for below-market leases, fixed option renewal periods, if any. | ||
Lease cancellation fees are recognized when the fees are determinable, tenant vacancy has occurred, collectability is reasonably assured, we have no continuing obligation to provide services to such former tenants and the payment is not subject to any conditions that must be met or waived. Total lease cancellation fees for the years ended December 31, 2013, 2012, and 2011 were $1.6 million, $3.9 million, and $0.7 million, respectively. Such fees are included in other income and fees in our consolidated and combined statements of operations. | ||
Observatory Revenue | ||
Revenue from the sale of Observatory tickets are recognized upon admission or ticket expirations. Deferred income related to unused and unexpired tickets as of December 31, 2013 was $3.7 million. | ||
Construction Revenue | ||
Revenues from construction contracts are recognized under the percentage-of completion method. Under this method, progress towards completion is recognized according to the ratio of incurred costs to estimated total costs. This method is used because management considers the “cost-to-cost” method the most appropriate in the circumstances. | ||
Contract costs include all direct material, direct labor and other direct costs and an allocation of certain overhead related to contract performance. General and administrative costs are charged to expense as incurred. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions and estimated profitability, including those arising from settlements, may result in revisions to costs and income and are recognized in the period in which the revisions are determined. | ||
Gains on Sale of Real Estate | ||
We record a gain on sale of real estate when title is conveyed to the buyer and we have no substantial economic involvement with the property. If the sales criteria for the full accrual method are not met, we defer some or all of the gain recognition and accounts for the continued operations of the property by applying the finance, leasing, profit sharing, deposit, installment or cost recovery methods, as appropriate, until the sales criteria are met. | ||
Gains from sales of depreciated properties are included in discontinued operations and the net proceeds from the sale of these properties are classified in the investing activities section of the combined statements of cash flows. During the periods presented, we did not sell any properties. | ||
Third-Party Management, Leasing and Other Fees | ||
We earn revenue arising from contractual agreements with affiliated entities of the sponsors that are not presented as controlled entities. This revenue is recognized as the related services are performed under the respective agreements in place. | ||
Advertising and Marketing Costs | ' | |
Advertising and Marketing Costs | ||
Advertising and marketing costs are expensed as incurred. | ||
Offering Costs and Formation Transaction Expenses | ' | |
Offering Costs and Formation Transaction Expenses | ||
In connection with the Offering and formation transactions, we incurred incremental accounting fees, legal fees and other professional fees. Approximately $33.5 million was previously deferred and recorded as a reduction of proceeds of the Offering. Certain costs associated with the Offering and formation transactions not directly attributable to the solicitation of consents of investors in the existing entities and the Offering, but rather related to structuring the formation transactions, are expensed as incurred. | ||
Real Estate Properties and Related Intangible Assets | ' | |
Real Estate Properties and Related Intangible Assets | ||
Land and buildings and improvements are recorded at cost less accumulated depreciation and amortization. The recorded cost includes cost of acquisitions, development and construction and tenant allowances and improvements. Expenditures for ordinary repairs and maintenance are charged to operations as incurred. Significant replacements and betterments which improve or extend the life of the asset are capitalized. Tenant improvements which improve or extend the life of the asset are capitalized. If a tenant vacates its space prior to the contractual termination of its lease, the unamortized balance of any tenant improvements are written off if they are replaced or have no future value. For developed properties, direct and indirect costs that clearly relate to projects under development are capitalized. Costs include construction costs, professional services such as architectural and legal costs, travel expenses, capitalized interest and direct payroll and other acquisition costs. We begin capitalization when the project is probable. Capitalization of interest ceases when the property is ready for its intended use, which is generally near the date that a certificate of occupancy is obtained. | ||
Depreciation and amortization are computed using the straight-line method for financial reporting purposes. Buildings and improvements are depreciated over the shorter of 39 years, the useful life, or the remaining term of any leasehold interest. Tenant improvement costs, which are included in building and improvements in the consolidated balance sheets, are depreciated over the shorter of (i) the related remaining lease term or (ii) the life of the improvement. Corporate equipment, which is included in “Other assets,” is depreciated over three to seven years. | ||
Acquisitions of properties are accounted for utilizing the acquisition method and accordingly the purchase cost is allocated to tangible and intangible assets and liabilities based on their fair values. The fair value of tangible assets acquired is determined by valuing the property as if it were vacant, applying methods similar to those used by independent appraisers of income-producing property. The resulting value is then allocated to land, buildings and improvements, and tenant improvements based on our determination of the fair value of these assets. The assumptions used in the allocation of fair values to assets acquired are based on our best estimates at the time of evaluation. | ||
Fair value is assigned to above-market and below-market leases based on the difference between (a) the contractual amounts to be paid by the tenant based on the existing lease and (b) our estimate of current market lease rates for the corresponding in-place leases, over the remaining terms of the in-place leases. Capitalized above-market lease amounts are amortized as a decrease to rental revenue over the remaining terms of the respective leases. Capitalized below-market lease amounts are amortized as an increase to rental revenue over the remaining terms of the respective leases. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off. | ||
The aggregate value of other acquired intangible assets consists of acquired ground leases and acquired in-place leases and tenant relationships. The fair value allocated to acquired in-place leases consists of a variety of components including, but not necessarily limited to: (a) the value associated with avoiding the cost of originating the acquired in-place leases (i.e. the market cost to execute a lease, including leasing commissions and legal fees, if any); (b) the value associated with lost revenue related to tenant reimbursable operating costs estimated to be incurred during the assumed lease-up period (i.e. real estate taxes, insurance and other operating expenses); (c) the value associated with lost rental revenue from existing leases during the assumed lease-up period; and (d) the value associated with any other inducements to secure a tenant lease. | ||
Regarding certain of our 2013 property acquisitions (see Note 3), the fair value asset and liability allocations are preliminary and may be adjusted as final information becomes available. | ||
We assess the potential for impairment of our long-lived assets, including real estate properties, annually or whenever events occur or a change in circumstances indicate that the recorded value might not be fully recoverable. We determine whether impairment in value has occurred by comparing the estimated future undiscounted cash flows expected from the use and eventual disposition of the asset to its carrying value. If the undiscounted cash flows do not exceed the carrying value, the real estate is adjusted to fair value and an impairment loss is recognized. Assets held for sale are recorded at the lower of cost or fair value less costs to sell. We do not believe that the value of any of our properties and intangible assets were impaired during the years ended December 31, 2013, 2012 and 2011. | ||
All operations and gains and losses associated with sales of real estate property or assets classified as held for sale are reclassified and presented as discontinued operations. | ||
Cash and Cash Equivalents and Restricted Cash | ' | |
Cash and Cash Equivalents | ||
Cash and cash equivalents consist of cash on hand, demand deposits with financial institutions and short-term liquid investments with original maturities of three months or less when purchased. The majority of our cash and cash equivalents are held at major commercial banks which may at times exceed the Federal Deposit Insurance Corporation limit. To date, we have not experienced any losses on our invested cash. | ||
Restricted Cash | ||
Restricted cash consists of amounts held by lenders and/or escrow agents to provide for future real estate tax expenditures and insurance expenditures, tenant vacancy related costs, debt service obligations and amounts held for tenants in accordance with lease agreements such as security deposits, as well as amounts held by our third-party property managers. | ||
Allowance for Doubtful Accounts | ' | |
Allowance for Doubtful Accounts | ||
We maintain an allowance against tenant and other receivables and deferred rents receivables for future potential tenant credit losses. The credit assessment is based on the estimated accrued rental revenue that is recoverable over the term of the respective lease. The computation of this allowance is based on the tenants’ payment history and current credit status, as well as certain industry or geographic specific credit considerations. If our estimate of collectability differs from the cash received, then the timing and amount of our reported revenue could be impacted. Bad debt expense is included in operating expenses on our consolidated and combined statements of operations and includes the impact of changes in the allowance for doubtful accounts on our consolidated and combined balance sheets. | ||
Deferred Lease Costs and Deferred Financing Costs | ' | |
Deferred Lease Costs | ||
Deferred lease costs consist of fees and direct costs incurred to initiate and renew leases, are amortized on a straight-line basis over the related lease term and the expense is included in depreciation and amortization in our combined statements of operations. Upon the early termination of a lease, unamortized deferred leasing costs are charged to expense. | ||
Deferred Financing Costs | ||
Fees and costs incurred to obtain long-term financing have been deferred and are being amortized as a component of interest expense in our combined statements of operations over the life of the respective mortgage on the straight-line method which approximates the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking debt, which do not close, are expensed in the period in which it is determined that the financing will not close. | ||
Equity Method Investments | ' | |
Equity Method Investments | ||
We account for our investments under the equity method of accounting where we do not have control but have the ability to exercise significant influence. Under this method, our investments are recorded at cost, and the investment accounts are adjusted for our share of the entities’ income or loss and for distributions and contributions. Equity income (loss) is allocated based on the portion of the ownership interest that is controlled by us. The agreements may designate different percentage allocations among investors for profits and losses; however, our recognition of the entity’s income or loss generally follows the entity’s distribution priorities, which may change upon the achievement of certain investment return thresholds. | ||
To the extent that we contributed assets to an entity, our investment in the entity is recorded at cost basis in the assets that were contributed to the entity. Upon contributing assets to an entity, we make a judgment as to whether the economic substance of the transaction is a sale. If so, gain or loss is recognized on the portion of the asset to which the other partners in the entity obtain an interest. | ||
To the extent that the carrying amount of these investments on our combined balance sheets is different than the basis reflected at the entity level, the basis difference would be amortized over the life of the related asset and included in our share of equity in net income of the entity. | ||
On a periodic basis, we assess whether there are any indicators that the carrying value of our investments in entities may be impaired on an other than temporary basis. An investment is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment on an other than temporary basis. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying value of the investment over the fair value of the investment. None of our predecessor's investments are other than temporarily impaired. | ||
Our predecessor recognized incentive income in the form of overage fees from certain uncombined entities (which include non-controlled and other properties not included in our predecessor) as income to the extent it has been earned and not subject to a clawback feature. | ||
If our predecessor's share of distributions and net losses exceeds our investments for certain of the equity method investments and if our predecessor remained liable for future obligations of the entity or was otherwise committed to provide future additional financial support, the investment balances would have been presented in the accompanying combined balance sheets as liabilities. The effects of material intercompany transactions with these equity method investments are eliminated. None of the entity debt is recourse to us. | ||
As of December 31, 2013, we had no equity method investments. | ||
Goodwill | ' | |
Goodwill | ||
Goodwill is tested annually for impairment and is tested for impairment more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount, including goodwill, exceeds the reporting unit’s fair value and the implied fair value of goodwill is less than the carrying amount of that goodwill. Non-amortizing intangible assets, such as trade names and trademarks, are subject to an annual impairment test based on fair value and amortizing intangible assets are tested whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. | ||
Fair Value | ' | |
Fair Value | ||
Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Financial Accounting Standards Board ("FASB") guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within levels one and two of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | ||
We use the following methods and assumptions in estimating fair value disclosures for financial instruments. | ||
For cash and cash equivalents, restricted cash, tenant and other receivables, due from affiliated companies, prepaid expenses and other assets, accrued interest payable, due to or from affiliate companies, deferred revenue, tenant security deposits, accounts payable and accrued expenses in our consolidated and combined balance sheets approximate their fair value due to the short term maturity of these instruments. | ||
The fair value of our mortgage notes payable, unsecured loans and notes payable-related parties, and term loan and credit facility, which are determined using Level 3 inputs, are estimated by discounting the future cash flows using current interest rates at which similar borrowings could be made to us. | ||
The methodologies used for valuing financial instruments have been categorized into three broad levels as follows: | ||
Level 1 - Quoted prices in active markets for identical instruments. | ||
Level 2 - Valuations based principally on other observable market parameters, including: | ||
• | Quoted prices in active markets for similar instruments; | |
• | Quoted prices in less active or inactive markets for identical or similar instruments; | |
• | Other observable inputs (such as risk free interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates); and | |
• | Market corroborated inputs (derived principally from or corroborated by observable market data). | |
Level 3 - Valuations based significantly on unobservable inputs, including: | ||
• | Valuations based on third-party indications (broker quotes or counterparty quotes) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 3 valuations; and | |
• | Valuations based on internal models with significant unobservable inputs. | |
These levels form a hierarchy. We follow this hierarchy for our financial instruments measured or disclosed at fair value on a recurring and nonrecurring basis and other required fair value disclosures. The classifications are based on the lowest level of input that is significant to the fair value measurement. | ||
Income Taxes | ' | |
Income Taxes | ||
We intend to elect to be taxed as a REIT under sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with the taxable year ended December 31, 2013. REITs are subject to a number of organizational and operational requirements, including a requirement that 90% of ordinary “REIT taxable income” (as determined without regard to the dividends paid deduction or net capital gains) be distributed. As a REIT, we will generally not be subject to U.S. federal income tax to the extent that we meet the organizational and operational requirements and our distributions equal or exceed REIT taxable income. For all periods subsequent to the effective date of our REIT election, we have met the organizational and operational requirements and distributions have exceeded net taxable income. Accordingly, no provision has been made for federal and state income taxes. | ||
We have elected to treat ESRT Observatory TRS, L.L.C., our subsidiary which holds our observatory operations, and ESRT Holdings TRS, L.L.C., our subsidiary that holds our third party management, construction, cafeteria, health club and cleaning operations, as taxable REIT subsidiaries. Taxable REIT subsidiaries may participate in non-real estate activities and/or perform non-customary services for tenants and their operations are generally subject to regular corporate income taxes. Our taxable REIT subsidiaries accounts for its income taxes in accordance with GAAP, which includes an estimate of the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. The calculation of the taxable REIT subsidiaries' tax provisions may require interpreting tax laws and regulations and could result in the use of judgments or estimates which could cause its recorded tax liability to differ from the actual amount due. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The taxable REIT subsidiaries periodically assess the realizability of deferred tax assets and the adequacy of deferred tax liabilities, including the results of local, state, or federal statutory tax audits or estimates and judgments used. | ||
We apply provisions for measuring and recognizing tax benefits associated with uncertain tax positions. Penalties and interest, if incurred, would be recorded as a component of income tax expense. As of December 31, 2013 and 2012, we do not have a liability for uncertain tax positions. As of December 31, 2013, the tax years ended December 31, 2010 through December 31, 2013 remain open for an audit by the Internal Revenue Service and state authorities. We have not received a notice of audit from the Internal Revenue Service and state authorities for any of the open tax years. | ||
During the periods presented, the entities included in our predecessor's combined financial statements are treated as partnerships or S corporations for U.S. federal and state income tax purposes and, accordingly, are not subject to entity-level tax. Rather, each entity’s taxable income or loss is allocated to its owners. Therefore, no provision or liability for U.S. federal or state income taxes has been included in the accompanying combined financial statements. | ||
Two of the limited liability companies in our Predecessor had non-real estate income subject to New York City unincorporated business tax (“NYCUBT”). In 2013, 2012, and 2011, one of these entities generated a loss for NYCUBT purposes while the other entity generated income. No provision or liability for U.S. federal, state, or local income taxes has been included in our Predecessor's combined financial statements as current year taxable income as referred to above is fully offset by a NYCUBT net operating loss carry forward from previous years. | ||
As a result of the consolidation and concurrent liquidation of the entities that had previously been subject to the NYCUBT, the NYCUBT net operating loss carryforward of $13.4 million at October 6, 2013 can no longer be used. | ||
Share-Based Compensation | ' | |
Share-Based Compensation | ||
Share-based compensation is measured at the fair value of the award on the date of grant and recognized as an expense on a straight-line basis over the vesting period. The determination of fair value of these awards is subjective and involves significant estimates and assumptions including expected volatility of our stock, expected dividend yield, expected term, and assumptions of whether these awards will achieve parity with other operating partnership units or achieve performance thresholds. We believe that the assumptions and estimates utilized are appropriate based on the information available to management at the time of grant. | ||
Per Share Data | ' | |
Per Share Data | ||
Basic and diluted earnings per share are computed based upon the weighted average number of shares outstanding during the respective period. | ||
Segment Reporting | ' | |
Segment Reporting | ||
We have identified two reportable segments: (1) Real Estate and (2) Observatory. Our real estate segment includes all activities related to the ownership, management, operation, acquisition, repositioning and disposition of our real estate assets. Our observatory segment operates the 86th and 102nd floor observatories at the Empire State Building. These two lines of businesses are managed separately because each business requires different support infrastructures, provides different services and has dissimilar economic characteristics such as investments needed, stream of revenues and different marketing strategies. We account for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. We include our construction operation in "Other" and it includes all activities related to providing construction services to tenants and to other entities within and outside our company. | ||
Recently Issued or Adopted Accounting Standards | ' | |
Recently Issued or Adopted Accounting Standards | ||
In February 2013, the FASB issued Accounting Standards Update 2013-02, Reporting of Amounts Reclassified Out of Accumulated Comprehensive Income (“ASU 2013-02”), which requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if GAAP requires the amount being reclassified to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income within the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about the reclassified amounts. Our adoption of ASU 2013-02 on January 1, 2013 did not have a significant impact on our consolidated and combined financial statements or disclosures. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Schedule of allocation of the purchase price for assets and liabilities acquired | ' | |||||||
The following table is an allocation of the purchase price for the assets and liabilities acquired in the formation transactions (amounts in thousands). The fair value asset and liability allocations are preliminary and may be adjusted as final information becomes available. | ||||||||
Consideration paid: | ||||||||
Cash and issuance of Class A Common Stock, Class B Common Stock, and OP units | $ | 1,047,487 | ||||||
Debt assumed | 124,354 | |||||||
Total consideration paid | $ | 1,171,841 | ||||||
Net assets acquired: | ||||||||
Land | $ | 91,435 | ||||||
Building and improvements | 516,344 | |||||||
Acquired below-market ground lease | 62,738 | |||||||
Acquired above-market leases | 72,123 | |||||||
Acquired in place lease value and deferred leasing costs | 186,415 | |||||||
Goodwill | 491,479 | |||||||
Other assets, net of other liabilities | 6,061 | |||||||
Mortgage notes payable | (136,226 | ) | ||||||
Acquired below-market leases | (134,651 | ) | ||||||
Total net assets acquired | $ | 1,155,718 | ||||||
Gain on the elimination of leasehold positions | $ | 35,147 | ||||||
Fair values of the assets acquired and assumed liabilities were greater than the consideration granted: | ||||||||
1333 Broadway Associates L.L.C. | 40,962 | |||||||
1350 Broadway Associates L.L.C. | 32,122 | |||||||
Total | $ | 108,231 | ||||||
Schedule of pro forma information | ' | |||||||
The unaudited pro forma information is provided for informational purposes only and is not indicative of results that would have occurred or which may occur in the future (amounts in thousands, expect per share amount): | ||||||||
For the year ended December 31, | ||||||||
2013 | 2012 | |||||||
Total revenues | $ | 563,878 | $ | 549,707 | ||||
Net income | 18,992 | 311,434 | ||||||
Net income attributable to Empire State Realty Trust, Inc. | 21,871 | — | ||||||
Net income attributable to Empire State Realty Trust, Inc. per share - basic and diluted | $ | 0.23 | $ | — | ||||
Investments_in_Noncontrolled_E1
Investments in Non-controlled Entities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||||||
Schedule of Equity Method Investments | ' | |||||||||||||||||||
The investments in non-controlled entities consisted of the following at December 31, 2012: | ||||||||||||||||||||
Entity | Property | Nominal % Ownership | ||||||||||||||||||
Empire State Building Company, L.L.C. | 350 Fifth Ave, New York, NY | 23.75 | % | |||||||||||||||||
1333 Broadway Associates, L.L.C. | 1333 Broadway, New York, NY | 50 | % | |||||||||||||||||
1350 Broadway Associates, L.L.C. | 1350 Broadway, New York, NY | 50 | % | |||||||||||||||||
501 Seventh Avenue Associates, L.L.C. | 501 Seventh Ave, New York, NY | 20.469 | % | |||||||||||||||||
Schedule of Equity Method Investment, Financial Information, Equity Activity | ' | |||||||||||||||||||
The following table reflects the activity in our investments in non-controlled entities for the years ended December 31, 2013 and 2012 (amounts in thousands): | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Balance at beginning of year | $ | 76,879 | $ | 72,626 | ||||||||||||||||
Equity in net income | 14,875 | 14,348 | ||||||||||||||||||
Distributions | (3,391 | ) | (10,095 | ) | ||||||||||||||||
Consolidation of non-controlled entities | (88,363 | ) | — | |||||||||||||||||
Balance at end of period | $ | — | $ | 76,879 | ||||||||||||||||
Schedule of Equity Method Investment, Financial Information, Balance Sheets | ' | |||||||||||||||||||
The following reflects summarized financial information of the non-controlled entities at December 31, 2012 (amounts in thousands): | ||||||||||||||||||||
Balance Sheets | Empire | 1333 | 1350 | 501 | Total | |||||||||||||||
State | Broadway | Broadway | Seventh | |||||||||||||||||
Building | Associates | Associates | Avenue | |||||||||||||||||
Co. | Associates | |||||||||||||||||||
Real estate, net | $ | 195,304 | $ | 38,212 | $ | 40,317 | $ | 16,891 | $ | 290,724 | ||||||||||
Other assets | 145,949 | 37,741 | 22,150 | 17,283 | 223,123 | |||||||||||||||
Total assets | $ | 341,253 | $ | 75,953 | $ | 62,467 | $ | 34,174 | $ | 513,847 | ||||||||||
Mortgage and notes payable | $ | — | $ | 71,200 | $ | 50,427 | $ | — | $ | 121,627 | ||||||||||
Other liabilities | 63,265 | 4,050 | 5,147 | 4,531 | 76,993 | |||||||||||||||
Total liabilities | 63,265 | 75,250 | 55,574 | 4,531 | 198,620 | |||||||||||||||
Members’/partners’ equity | 278,647 | 703 | 6,893 | 29,643 | 315,886 | |||||||||||||||
Non-controlling interest | (659 | ) | — | — | — | (659 | ) | |||||||||||||
Total equity | 277,988 | 703 | 6,893 | 29,643 | 315,227 | |||||||||||||||
Total liabilities and equity | $ | 341,253 | $ | 75,953 | $ | 62,467 | $ | 34,174 | $ | 513,847 | ||||||||||
Our predecessor's share of equity—carrying value of our investments in non-controlled entities | $ | 66,179 | $ | 847 | $ | 3,446 | $ | 6,407 | $ | 76,879 | ||||||||||
Schedule of Equity Method Investment, Financial Information, Statement of Operations | ' | |||||||||||||||||||
Period from January 1, 2013 to October 6, 2013 | ||||||||||||||||||||
Statements of Operations | Empire | 1333 | 1350 | 501 | Total | |||||||||||||||
State | Broadway | Broadway | Seventh | |||||||||||||||||
Building | Associates | Associates | Avenue | |||||||||||||||||
Co. | Associates | |||||||||||||||||||
Revenue: | ||||||||||||||||||||
Rental revenue and other | $ | 101,496 | $ | 11,711 | $ | 16,439 | $ | 13,991 | $ | 143,637 | ||||||||||
Observatory revenue | 76,687 | — | — | — | 76,687 | |||||||||||||||
Total revenue | 178,183 | 11,711 | 16,439 | 13,991 | 220,324 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Operating expenses—rental | 89,670 | 5,766 | 7,989 | 10,830 | 114,255 | |||||||||||||||
Operating expenses—overage rent | 10,894 | — | — | 106 | 11,000 | |||||||||||||||
Operating expenses—observatory | 17,150 | — | — | — | 17,150 | |||||||||||||||
Interest | — | 3,620 | 2,461 | — | 6,081 | |||||||||||||||
Depreciation and amortization | 10,997 | 2,186 | 3,264 | 1,127 | 17,574 | |||||||||||||||
Total expenses | 128,711 | 11,572 | 13,714 | 12,063 | 166,060 | |||||||||||||||
Net income | $ | 49,472 | $ | 139 | $ | 2,725 | $ | 1,928 | $ | 54,264 | ||||||||||
Our predecessor's share of equity in net income of non-controlled entities | $ | 13,467 | $ | 70 | $ | 1,179 | $ | 159 | $ | 14,875 | ||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Statements of Operations | Empire | 1333 | 1350 | 501 | Total | |||||||||||||||
State | Broadway | Broadway | Seventh | |||||||||||||||||
Building | Associates | Associates | Avenue | |||||||||||||||||
Co. | Associates | |||||||||||||||||||
Revenue: | ||||||||||||||||||||
Rental revenue and other | $ | 133,666 | $ | 14,539 | $ | 21,275 | $ | 18,827 | $ | 188,307 | ||||||||||
Observatory revenue | 91,870 | — | — | — | 91,870 | |||||||||||||||
Total revenue | 225,536 | 14,539 | 21,275 | 18,827 | 280,177 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Operating expenses—rental | 119,482 | 7,528 | 10,667 | 13,101 | 150,778 | |||||||||||||||
Operating expenses—overage rent | 24,199 | — | — | 2,497 | 26,696 | |||||||||||||||
Operating expenses—observatory | 20,709 | — | — | — | 20,709 | |||||||||||||||
Interest | — | 4,748 | 2,993 | — | 7,741 | |||||||||||||||
Depreciation and amortization | 13,615 | 1,112 | 3,489 | 1,496 | 19,712 | |||||||||||||||
Total expenses | 178,005 | 13,388 | 17,149 | 17,094 | 225,636 | |||||||||||||||
Net income | $ | 47,531 | $ | 1,151 | $ | 4,126 | $ | 1,733 | $ | 54,541 | ||||||||||
Our predecessor's share of equity in net income of non-controlled entities | $ | 11,015 | $ | 576 | $ | 2,063 | $ | 694 | $ | 14,348 | ||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||
Statements of Operations | Empire | 1333 | 1350 | 501 | Total | |||||||||||||||
State | Broadway | Broadway | Seventh | |||||||||||||||||
Building | Associates | Associates | Avenue | |||||||||||||||||
Co. | Associates | |||||||||||||||||||
Revenue: | ||||||||||||||||||||
Rental revenue and other | $ | 118,720 | $ | 14,670 | $ | 19,179 | $ | 17,713 | $ | 170,282 | ||||||||||
Observatory revenue | 80,562 | — | — | — | 80,562 | |||||||||||||||
Total revenue | 199,282 | 14,670 | 19,179 | 17,713 | 250,844 | |||||||||||||||
Expenses: | ||||||||||||||||||||
Operating expenses—rental | 122,381 | 7,072 | 10,328 | 13,169 | 152,950 | |||||||||||||||
Operating expenses—overage rent | 28,780 | — | — | 1,545 | 30,325 | |||||||||||||||
Operating expenses—observatory | 20,009 | — | — | — | 20,009 | |||||||||||||||
Interest | — | 4,741 | 2,701 | — | 7,442 | |||||||||||||||
Depreciation and amortization | 15,833 | 3,053 | 3,117 | 1,870 | 23,873 | |||||||||||||||
Total expenses | 187,003 | 14,866 | 16,146 | 16,584 | 234,599 | |||||||||||||||
Net income (loss) | $ | 12,279 | $ | (196 | ) | $ | 3,033 | $ | 1,129 | $ | 16,245 | |||||||||
Our predecessor's share of equity in net income of non-controlled entities | $ | 2,158 | $ | 391 | $ | 935 | $ | 409 | $ | 3,893 | ||||||||||
Deferred_Costs_Acquired_Lease_1
Deferred Costs, Acquired Lease Intangibles and Goodwill (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Deferred Costs, Net | ' | |||||||||||||||
Deferred costs, net consisted of the following at December 31, (amounts in thousands): | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
Leasing costs | $ | 90,198 | $ | (27,459 | ) | $ | 78,865 | $ | (24,939 | ) | ||||||
Financing costs | 27,416 | (11,217 | ) | 23,609 | (13,098 | ) | ||||||||||
Offering costs | — | — | 27,789 | — | ||||||||||||
Total deferred costs | $ | 117,614 | $ | (38,676 | ) | $ | 130,263 | $ | (38,037 | ) | ||||||
Schedule of Amortizing Acquired Intangible Assets and Liabilities | ' | |||||||||||||||
Amortizing acquired intangible assets and liabilities consisted of the following at December 31, (amounts in thousands): | ||||||||||||||||
2013 | ||||||||||||||||
Gross Amount | Accumulated Amortization | |||||||||||||||
Acquired below-market ground lease | $ | 62,738 | (426 | ) | ||||||||||||
Acquired in-place lease value and deferred leasing costs | 186,415 | (5,697 | ) | |||||||||||||
Acquired above-market leases | 72,123 | (2,858 | ) | |||||||||||||
Acquired below-market leases | (134,651 | ) | 4,769 | |||||||||||||
Schedule of Future Amortization Expense and Rental Revenue from Acquired Intangible Assets | ' | |||||||||||||||
We expect to recognize amortization expense and rental revenue from the acquired intangible assets as follows (amounts in thousands): | ||||||||||||||||
For the year ending: | Future Amortization Expense | Future Rental Revenue | ||||||||||||||
2014 | $ | 30,466 | $ | 7,484 | ||||||||||||
2015 | 24,737 | 6,665 | ||||||||||||||
2016 | 20,873 | 5,997 | ||||||||||||||
2017 | 19,237 | 6,384 | ||||||||||||||
2018 | 16,363 | 6,086 | ||||||||||||||
Thereafter | 131,354 | 28,001 | ||||||||||||||
$ | 243,030 | $ | 60,617 | |||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Debt | ' | |||||||||||||||
Mortgage notes payable are collateralized by the following respective real estate properties and assignment of operating leases as of December 31, 2013 and 2012 (amounts in thousands): | ||||||||||||||||
Principal Balance as | Principal Balance as | Stated | Effective | Maturity | ||||||||||||
of December 31, 2013 | of December 31, 2012 | Rate | Rate(1) | Date(2) | ||||||||||||
Mortgage debt collateralized by: | ||||||||||||||||
Fixed rate debt | ||||||||||||||||
501 Seventh Avenue | ||||||||||||||||
(Note 1) | $ | 1,037 | $ | 1,075 | 5.75 | % | 6.28 | % | 8/1/14 | |||||||
(Note 2)(3) | 31,459 | 32,589 | 5.75 | % | 6.28 | % | 8/1/14 | |||||||||
(Note 2)(3) | 6,889 | 7,107 | 6.04 | % | 6.55 | % | 8/1/14 | |||||||||
1359 Broadway | ||||||||||||||||
(first lien mortgage loan) | 9,579 | 9,922 | 5.75 | % | 6.24 | % | 8/1/14 | |||||||||
(second lien mortgage loan)(4) | 5,561 | 5,761 | 5.75 | % | 6.25 | % | 8/1/14 | |||||||||
(second lien mortgage loan)(4) | 11,311 | 11,689 | 5.87 | % | 6.36 | % | 8/1/14 | |||||||||
(second lien mortgage loan)(4) | 18,572 | 19,068 | 6.4 | % | 6.86 | % | 8/1/14 | |||||||||
One Grand Central Place | ||||||||||||||||
(first lien mortgage loan) | 71,723 | 73,922 | 5.34 | % | 6.38 | % | 11/5/14 | |||||||||
(second lien mortgage loan)(5) | 14,884 | 15,187 | 7 | % | 6.72 | % | 11/5/14 | |||||||||
500 Mamaroneck Avenue | 32,620 | 33,256 | 5.41 | % | 6.7 | % | 1/1/15 | |||||||||
250 West 57th Street | ||||||||||||||||
(first lien mortgage loan) | 25,621 | 26,442 | 5.33 | % | 6.92 | % | 1/5/15 | |||||||||
(second lien mortgage loan) | 11,252 | 11,524 | 6.13 | % | 7.81 | % | 1/5/15 | |||||||||
Metro Center | 96,158 | — | 5.89 | % | 6.15 | % | 1/1/16 | |||||||||
(Note 1)(6) | — | 59,937 | 5.8 | % | — | % | 1/1/16 | |||||||||
(Note 2)(6) | — | 38,151 | 6.02 | % | — | % | 1/1/16 | |||||||||
10 Union Square | 20,972 | 21,284 | 6 | % | 6.48 | % | 5/1/17 | |||||||||
10 Bank Street | 33,444 | 33,963 | 5.72 | % | 5.94 | % | 6/1/17 | |||||||||
1542 Third Avenue | 19,011 | 19,370 | 5.9 | % | 6.31 | % | 6/1/17 | |||||||||
First Stamford Place | 245,629 | 248,716 | 5.65 | % | 5.82 | % | 7/5/17 | |||||||||
1010 Third Avenue and 77 West 55th Street | 28,096 | 28,570 | 5.69 | % | 6.12 | % | 7/5/17 | |||||||||
383 Main Avenue | 30,403 | 30,924 | 5.59 | % | 5.72 | % | 7/5/17 | |||||||||
1333 Broadway | 78,121 | (15) | — | 6.32 | % | 6.68 | % | 1/5/18 | ||||||||
1350 Broadway (first lien mortgage loan) | 43,305 | (16) | — | 5.87 | % | 6.02 | % | 4/5/18 | ||||||||
69-97 Main Street (7) | — | 9,218 | 5.64 | % | — | 5/1/13 | ||||||||||
Total fixed rate debt | 835,647 | 737,675 | ||||||||||||||
Floating rate debt | ||||||||||||||||
501 Seventh Avenue (third lien mortgage loan) | 6,540 | 6,540 | (8) | (8) | 8/1/14 | |||||||||||
1350 Broadway (second lien mortgage loan) | 13,543 | (17) | — | (9) | (9) | 10/10/14 | ||||||||||
The Empire State Building (secured term loan) | — | 219,000 | (10) | (10) | 7/26/14 | |||||||||||
One Grand Central Place (third lien mortgage loan) | 6,382 | — | (11) | (11) | 11/5/14 | |||||||||||
250 West 57th Street (third lien mortgage loan) | 21,000 | 14,935 | (12) | (12) | 1/5/15 | |||||||||||
Secured revolving credit facility | 25,000 | — | (13) | (13) | 10/5/17 | |||||||||||
Secured term credit facility | 300,000 | — | (14) | (14) | 10/5/18 | |||||||||||
Total floating rate debt | 372,465 | 240,475 | ||||||||||||||
Total | $ | 1,208,112 | $ | 978,150 | ||||||||||||
______________ | ||||||||||||||||
-1 | The effective rate is the yield as of December 31, 2013, including the effects of debt issuance costs. | |||||||||||||||
-2 | Pre-payment is generally allowed for each loan upon payment of a customary pre-payment penalty. | |||||||||||||||
-3 | Represents the two tranches of the second lien mortgage loan. | |||||||||||||||
-4 | Represents three tranches of the second lien mortgage loan. | |||||||||||||||
-5 | Represents a second lien mortgage loan. | |||||||||||||||
-6 | Notes 1 and 2 were pari passu. | |||||||||||||||
-7 | This loan was paid off with the proceeds of a new $9.5 million floating rate loan which we closed on during April 2013 and which was subsequently repaid during December 2013. | |||||||||||||||
-8 | Floating at 30 day LIBOR plus 2.0%. The rate as of December 31, 2013 was 2.17%. | |||||||||||||||
-9 | Interest at the greater of 4.25% and Prime plus 1%. The rate at December 31, 2013 was 4.25%. | |||||||||||||||
-10 | Floating at 30 day LIBOR plus 2.5%. The rate as of December 31, 2013 was 2.67%. This loan was paid off with the proceeds of our secured revolving and term credit facility on October 7, 2013. | |||||||||||||||
-11 | Interest at the greater of Prime plus 0.50% and 3.75%. The rate as of December 31, 2013 was 3.75%. | |||||||||||||||
-12 | Interest at the greater of 4.25% and prime plus 1%. Prior to January 5, 2015, we have the option to fix the interest rate on all or any portion of the principal then outstanding, up to three times and in minimum increments of $5,000 to an annual rate equal to either (i) the greater of (a) 4.75% or (b) 300 basis points in excess of the weekly average yield on United States Treasury Securities adjusted to a maturity closest to January 5, 2015 as most recently made available by the Federal Reserve Board as of two days prior to the effective date of the fixing of the interest rate, and (ii) the greater of (a) 5.00% or (b) 300 basis points in excess of the weekly average yield on United States Treasury Securities adjusted to a maturity closest to January 5, 2015 as most recently made available by the Federal Reserve Board as of 30 days prior to the effective date of the fixing of the interest rate. If option (i) is selected, we will be subject to the payment of pre‑payment fees, and if option (ii) is selected, we may prepay the loan without any pre‑payment fees. The rate as of December 31, 2013 was 4.25%. | |||||||||||||||
-13 | Floating at 30 day LIBOR plus 1.20%. The rate as of December 31, 2013 was 1.37%. | |||||||||||||||
-14 | Floating at 30 day LIBOR plus 1.35%. The rate at December 31, 2013 was 1.52%. | |||||||||||||||
-15 | Includes unamortized premium of $7,674. | |||||||||||||||
-16 | Includes unamortized premium of $3,885. | |||||||||||||||
-17 | Includes unamortized premium of $134. | |||||||||||||||
Schedule of Maturities of Long-term Debt | ' | |||||||||||||||
Aggregate required principal payments on mortgage notes payable at December 31, 2013 are as follows (amounts in thousands): | ||||||||||||||||
2014 | $ | 197,480 | ||||||||||||||
2015 | 90,493 | |||||||||||||||
2016 | 96,158 | |||||||||||||||
2017 | 402,555 | |||||||||||||||
2018 | 421,426 | |||||||||||||||
Total principal maturities | $ | 1,208,112 | ||||||||||||||
Accounts_Payable_and_Accrued_E1
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of Accounts Payable and Accrued Expenses | ' | |||||||
Accounts payable and accrued expenses consist of the following as of December 31, 2013 and 2012 (amounts in thousands): | ||||||||
2013 | 2012 | |||||||
Accounts payable and accrued expenses | $ | 57,657 | $ | 26,889 | ||||
Payable to the estate of Leona M. Helmsley (1) | 18,367 | — | ||||||
Accrued interest payable | 4,074 | 3,409 | ||||||
Due to affiliated companies | 1,810 | 12,376 | ||||||
Accounts payable and accrued expenses | $ | 81,908 | $ | 42,674 | ||||
___________ | ||||||||
-1 | Reflects a payable to the estate of Leona M. Helmsley for New York City transfer taxes. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of the aggregate carrying value of debt and estimates of fair value | ' | |||||||||||||||
The following table presents the aggregate carrying value of our debt and the corresponding estimates of fair value based on discounted cash flow models, based on Level 3 inputs including current interest rates at which similar borrowings could be made by us as of December 31, 2013 and 2012 (amounts in thousands): | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Mortgage notes payable and secured term loan and credit facility | $ | 1,208,112 | $ | 1,225,064 | $ | 978,150 | $ | 1,003,756 | ||||||||
Unsecured loans and notes payable—related parties | — | — | 18,339 | 13,818 | ||||||||||||
Total | $ | 1,208,112 | $ | 1,225,064 | $ | 996,489 | $ | 1,017,574 | ||||||||
Rental_Income_Tables
Rental Income (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Leases [Abstract] | ' | |||||
Schedule of Future Minimum Payments Receivable for Operating Leases | ' | |||||
As of December 31, 2013, we were entitled to the following future contractual minimum lease payments on non-cancellable operating leases to be receives which expire on various dates through 2031 (amounts in thousands): | ||||||
2014 | $ | 317,984 | ||||
2015 | 313,466 | |||||
2016 | 295,111 | |||||
2017 | 275,114 | |||||
2018 | 247,054 | |||||
Thereafter | 1,296,343 | |||||
$ | 2,745,072 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||
Schedule of Multiemployer Plans | ' | ||||||||||||
Contributions we made to the multi-employer plans for the years ended December 31, 2013, 2012 and 2011 are included in the table below (amounts in thousands): | |||||||||||||
Benefit Plan | 2013 | 2012 | 2011 | ||||||||||
Pension Plans (pension and annuity)* | $ | 1,201 | $ | 768 | $ | 750 | |||||||
Health Plans** | 3,319 | 2,013 | 1,899 | ||||||||||
Other*** | 232 | 160 | 165 | ||||||||||
Total plan contributions | $ | 4,752 | $ | 2,941 | $ | 2,814 | |||||||
* | Pension plans include $0.4 million, $0.3 million and $0.4 million for the years ended 2013, 2012 and 2011, respectively, from multiemployer plans not discussed above. | ||||||||||||
** Health plans include $0.8 million, $0.5 million and $0.5 million for the years ended 2013, 2012 and 2011, respectively, from multiemployer plans not discussed above. | |||||||||||||
*** Other includes $0.05 million, $0.08 million and $0.05 million for the years ended 2013, 2012 and 2011, respectively, in connection with One Grand Central Place and 250 West 57th Street for multiemployer plans not discussed above for union costs which were not itemized between pension and health plans. |
Equity_Tables
Equity (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Stockholders' Equity Note Disclosure, Disclosure of Compensation Related Costs, Share-based Payments and Earnings Per Share [Abstract] | ' | |||||||||
Summary of Restricted Stock and Long-Term Incentive Plan Activity | ' | |||||||||
The following is a summary of restricted stock and LTIP unit activity the year ended December 31, 2013: | ||||||||||
Restricted Stock | LTIP Units | Weighted Average Grant Price | ||||||||
Granted | 158,852 | 913,561 | $ | 13 | ||||||
Vested | (12,607 | ) | — | 13 | ||||||
Forfeited | (1,874 | ) | — | 13 | ||||||
Unvested balance at December 31, 2013 | 144,371 | 913,561 | $ | 13 | ||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||
Earnings per share for the period October 7, 2013 through December 31, 2013 is computed as follows (amounts in thousands): | ||||||||||
2013 | ||||||||||
Numerator: | ||||||||||
Net income attributable to Empire State Realty Trust, Inc. - basic and diluted | $ | 75,245 | ||||||||
Denominator: | ||||||||||
Weighted average shares outstanding - basic | 95,574 | |||||||||
Effective of dilutive securities - share-based compensation | 37 | |||||||||
Weighted average shares outstanding - dilutive | 95,611 | |||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||||||
The following tables provides components of segment profit for each segment for the years ended December 31, 2013, 2012 and 2011, as reviewed by management (amounts in thousands): | ||||||||||||||||
Period from October 7, 2013 through December 31, 2013 | ||||||||||||||||
Real Estate | Observatory | Other | Totals | |||||||||||||
Revenues from external customers | $ | 98,564 | $ | 23,735 | $ | 5,264 | $ | 127,563 | ||||||||
Intersegment revenues | 20,134 | (1) | — | 1,537 | 21,671 | |||||||||||
Total revenues | 118,698 | 23,735 | 6,801 | 149,234 | ||||||||||||
All operating expenses, excluding noncash items | (51,643 | ) | (25,743 | ) | (6,792 | ) | (84,178 | ) | ||||||||
Interest expense | (13,147 | ) | — | — | (13,147 | ) | ||||||||||
Depreciation and amortization expense | (27,376 | ) | (4 | ) | (5 | ) | (27,385 | ) | ||||||||
Segment profit (loss) | $ | 26,532 | $ | (2,012 | ) | $ | 4 | $ | 24,524 | |||||||
Segment assets | $ | 2,218,143 | $ | 249,084 | $ | 8,834 | $ | 2,476,061 | ||||||||
Expenditures for segment assets | $ | 56,434 | $ | — | $ | — | $ | 56,434 | ||||||||
___________ | ||||||||||||||||
-1 | The observatory pays a market-based rent payment comprised of fixed and percentage rent to the Empire State Building. | |||||||||||||||
Period from January 1, 2013 through October 6, 2013 | ||||||||||||||||
Real Estate | Other | Totals | ||||||||||||||
Revenues from external customers | $ | 187,284 | $ | 18,636 | $ | 205,920 | ||||||||||
Intersegment revenues | 56 | 6,837 | 6,893 | |||||||||||||
Total revenues | 187,340 | 25,473 | 212,813 | |||||||||||||
All operating expenses, excluding noncash items | (65,628 | ) | (25,824 | ) | (91,452 | ) | ||||||||||
Interest expense | (50,660 | ) | — | (50,660 | ) | |||||||||||
Depreciation and amortization expense | (38,963 | ) | (19 | ) | (38,982 | ) | ||||||||||
Equity in net income of non-controlled entities | 14,875 | — | 14,875 | |||||||||||||
Segment profit | $ | 46,964 | $ | (370 | ) | $ | 46,594 | |||||||||
Segment assets | $ | 1,023,333 | $ | 10,585 | $ | 1,033,918 | ||||||||||
Investment in non-controlled entities | $ | 88,304 | $ | — | $ | 88,304 | ||||||||||
Expenditures for segment assets | $ | 55,820 | $ | 130 | $ | 55,950 | ||||||||||
2012 | ||||||||||||||||
Real Estate | Other | Totals | ||||||||||||||
Revenues from external customers | $ | 241,292 | $ | 18,902 | $ | 260,194 | ||||||||||
Intersegment revenues | 74 | 5,714 | 5,788 | |||||||||||||
Total revenues | 241,366 | 24,616 | 265,982 | |||||||||||||
All operating expenses, excluding noncash items | (85,848 | ) | (24,734 | ) | (110,582 | ) | ||||||||||
Interest expense | (54,394 | ) | — | (54,394 | ) | |||||||||||
Depreciation and amortization expense | (42,661 | ) | (29 | ) | (42,690 | ) | ||||||||||
Equity in net income of non-controlled entities | 14,348 | — | 14,348 | |||||||||||||
Segment profit (loss) | $ | 72,811 | $ | (147 | ) | $ | 72,664 | |||||||||
Segment assets | $ | 964,160 | $ | 11,514 | $ | 975,674 | ||||||||||
Investment in non-controlled entities | $ | 76,879 | $ | — | $ | 76,879 | ||||||||||
Expenditures for segment assets | $ | 87,659 | $ | — | $ | 87,659 | ||||||||||
2011 | ||||||||||||||||
Real Estate | Other | Totals | ||||||||||||||
Revenues from external customers | $ | 247,191 | $ | 47,560 | $ | 294,751 | ||||||||||
Intersegment revenues | 73 | 6,476 | 6,549 | |||||||||||||
Total revenues | 247,264 | 54,036 | 301,300 | |||||||||||||
All operating expenses, excluding noncash items | (85,833 | ) | (52,122 | ) | (137,955 | ) | ||||||||||
Interest expense | (54,746 | ) | — | (54,746 | ) | |||||||||||
Depreciation and amortization expense | (35,481 | ) | (32 | ) | (35,513 | ) | ||||||||||
Equity in net income of non-controlled entities | 3,893 | — | 3,893 | |||||||||||||
Segment profit (loss) | $ | 75,097 | $ | 1,882 | $ | 76,979 | ||||||||||
Segment assets | $ | 916,617 | $ | 15,728 | $ | 932,345 | ||||||||||
Investment in non-controlled entities | $ | 72,626 | $ | — | $ | 72,626 | ||||||||||
Expenditures for segment assets | $ | 60,582 | $ | — | $ | 60,582 | ||||||||||
The following table provides a reconciliation of segment data to the combined financial statements: | ||||||||||||||||
Company | Predecessor | |||||||||||||||
Period from October 7, 2013 through December 31, 2013 | Period from January 1, 2013 through October 6, 2013 | 2012 | 2011 | |||||||||||||
Revenue reconciliation | ||||||||||||||||
Total revenues for reportable segments | $ | 149,234 | $ | 212,813 | $ | 265,982 | $ | 301,300 | ||||||||
Other revenues | 20 | 152 | 100 | 37 | ||||||||||||
Elimination for intersegment revenues | (21,671 | ) | (6,893 | ) | (5,788 | ) | (6,549 | ) | ||||||||
Total combined revenues | $ | 127,583 | $ | 206,072 | $ | 260,294 | $ | 294,788 | ||||||||
Profit or loss | ||||||||||||||||
Total profit or loss for reportable segments | $ | 24,524 | $ | 46,594 | $ | 72,664 | $ | 76,979 | ||||||||
Other profit or loss items | (15,329 | ) | (23,600 | ) | (20,963 | ) | (15,541 | ) | ||||||||
Formation transaction expenses | — | (4,507 | ) | (2,247 | ) | (2,845 | ) | |||||||||
Elimination for intersegment profit or loss | (207 | ) | (871 | ) | (911 | ) | (959 | ) | ||||||||
Unallocated amounts: | ||||||||||||||||
Investment income | 20 | 152 | 100 | 37 | ||||||||||||
Settlement expense | — | (55,000 | ) | — | — | |||||||||||
Aircraft expenses | — | — | — | (274 | ) | |||||||||||
Acquisition expenses | (138,140 | ) | — | — | — | |||||||||||
Gain on consolidation of non-controlled entities | 322,563 | — | — | — | ||||||||||||
Net income | 193,431 | $ | (37,232 | ) | $ | 48,643 | $ | 57,397 | ||||||||
Net income attributable to non-controlling interests | (118,186 | ) | ||||||||||||||
Net income attributable to Empire State Realty Trust, Inc. | $ | 75,245 | ||||||||||||||
Summary_of_Quarterly_Financial1
Summary of Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||
The quarterly results of operations of our company and our predecessor for the years ended December 31, 2013 and 2012 are as follows (amounts in thousands): | ||||||||||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | December 31, 2013 (1) | |||||||||||||
Revenues | $ | 62,420 | $ | 59,569 | $ | 62,278 | $ | 149,388 | ||||||||
Net income | $ | 1,930 | $ | 3,071 | $ | 2,281 | $ | 148,917 | ||||||||
Net income attributable to non-controlling interests | (118,186 | ) | ||||||||||||||
Net income attributable to Empire State Realty Trust, Inc. | $ | 30,731 | ||||||||||||||
Basic and diluted net income per share attributable to Empire State Realty Trust, Inc. | $ | 0.79 | ||||||||||||||
31-Mar-12 | 30-Jun-12 | 30-Sep-12 | 31-Dec-12 | |||||||||||||
Revenues | $ | 59,842 | $ | 57,404 | $ | 59,415 | $ | 83,633 | ||||||||
Net income | $ | 10,811 | $ | 6,774 | $ | 9,015 | $ | 22,043 | ||||||||
___________ | ||||||||||||||||
-1 | The results of operations of our predecessor for October 1, 2013 through October 6, 2013 and the results of operations of our company for October 7, 2013 through December 31, 2013 have been combined. |
Description_of_Business_and_Or1
Description of Business and Organization Description of Business and Organization Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||
Oct. 06, 2013 | Dec. 31, 2013 | Oct. 06, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 28, 2012 | Dec. 31, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
entity | sqft | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Secured Revolving and Term Credit Facility [Member] | Accredited Investor [Member] | Non-accredited Prior Investors [Member] | Common Class A [Member] | Common Class A [Member] | Common Class B [Member] | Office Building [Member] | Office Building [Member] | Office Building [Member] | Retail Site [Member] | Retail Site [Member] | Retail Site [Member] | Other Property [Member] | Consolidated Properties [Member] | |
entity | sqft | New York State Supreme Court, New York County [Member] | Accredited Investor [Member] | Accredited Investor [Member] | sqft | Manhattan [Member] | Fairfield County, Connecticut and Westchester County, New York [Member] | Manhattan and Westport, Connecticut [Member] | Manhattan [Member] | Westport, Connecticut [Member] | Stamford, Connecticut [Member] | Development Parcel [Member] | |||||||||
office_and_property | sqft | office_and_property | sqft | office_and_property | office_and_property | sqft | Predecessor [Member] | ||||||||||||||
office_and_property | sqft | sqft | parcel | ||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of real estate property | ' | 8,400,000 | ' | ' | ' | 380,000 | ' | ' | ' | ' | ' | ' | ' | 7,700,000 | 5,900,000 | 1,800,000 | 204,175 | 418,377 | ' | 380,000 | ' |
Number of properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | 7 | 5 | ' | 4 | 2 | ' | 1 |
Issuance of Common Stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82,200,000 | 12,100,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Share price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating partnership units issued during period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 149,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating partnership units issued during period | $2,800,000,000 | ' | ' | ' | ' | ' | ' | ' | $2,100,000,000 | $733,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | 800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | 1,250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OP units owned by the Company, percent | ' | 38.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of entities to be treated as taxable REIT subsidiary | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages awarded | ' | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of damages awarded required to be in cash | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percent of freely-tradable common stock or partnership units | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions | ' | ' | $8,223,000 | $2,107,000 | $2,153,000 | ' | $55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of entities acquired | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description_of_Business_and_Or2
Description of Business and Organization The Predecessor Narrative (Details) | Dec. 31, 2013 |
sqft | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' |
Area of real estate property | 8,400,000 |
Predecessor [Member] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' |
Area of real estate property | 380,000 |
Predecessor [Member] | Office and Retail Properties [Member] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' |
Number of offices and properties | 18 |
Predecessor [Member] | Office and Retail Properties [Member] | Consolidated Properties [Member] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' |
Number of offices and properties | 16 |
Predecessor [Member] | Office and Retail Properties [Member] | Unconsolidated Properties [Member] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' |
Number of offices and properties | 2 |
Predecessor [Member] | Development Parcel [Member] | Consolidated Properties [Member] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' |
Number of offices and properties | 1 |
Predecessor [Member] | Office Properties [Member] | Unconsolidated Properties [Member] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ' |
Number of offices and properties | 4 |
Area of real estate property | 380,000 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Narrative (Details) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
segment | State and Local Jurisdiction [Member] | Building and Building Improvements [Member] | Corporate Equipment [Member] | Corporate Equipment [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Minimum [Member] | Maximum [Member] | |||||||
Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial real estate properties, at cost, net | $1,354,072,000 | ' | ' | ' | ' | ' | ' | $400,000 |
Mortgage notes payable | ' | ' | ' | ' | ' | ' | ' | 600,000 |
Lease cancellation fees | 1,600,000 | 3,900,000 | 700,000 | ' | ' | ' | ' | ' |
Deferred revenue | 3,700,000 | ' | ' | ' | ' | ' | ' | ' |
Advertising expense | 4,200,000 | 1,300,000 | 1,600,000 | ' | ' | ' | ' | ' |
Transaction costs | 33,500,000 | ' | ' | ' | ' | ' | ' | ' |
Useful life | ' | ' | ' | ' | '39 years | '3 years | '7 years | ' |
Operating loss carryforwards | ' | ' | ' | $13,400,000 | ' | ' | ' | ' |
Number of reportable segments | 2 | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Narrative_Details
Acquisitions Narrative (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Oct. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 06, 2013 | Dec. 31, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | ||
entity | Leases and Deferred Leasing Costs [Member] | Acquired above-market leases [Member] | Below Market Lease [Member] | Total Acquisitions [Member] | Total Acquisitions [Member] | Empire State Building Observatory Operations [Member] | Empire State Building, L.L.C. [Member] | 1333 Broadway Associates [Member] | 1350 Broadway Associates [Member] | Empire State Building Company L.L.C. and 501 Seventh Avenue Associates L.L.C. [Member] [Member] | 501 Seventh Avenue Associates [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | ||||||||||||||
Empire State Building Co. [Member] | 1333 Broadway Associates [Member] | 1350 Broadway Associates [Member] | 501 Seventh Avenue Associates [Member] | ||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of entities acquired | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.75% | 50.00% | 50.00% | 20.47% | |
Gain on consolidation of non-controlled entities | ' | $322,563,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $214,300,000 | ' | ' | ' | $41,000,000 | $32,100,000 | $35,200,000 | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' | |
Noncontrolling interest ownership interest fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 302,700,000 | ' | ' | ' | ' | ' | ' | ' | |
Noncontrolling interest ownership interest cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,400,000 | 88,400,000 | ' | ' | ' | ' | ' | ' | |
Goodwill | ' | 491,479,000 | 491,479,000 | ' | ' | ' | ' | ' | ' | ' | 491,479,000 | ' | ' | ' | ' | ' | 491,479,000 | ' | 227,500,000 | 250,800,000 | ' | ' | ' | 13,200,000 | ' | ' | 0 | ' | ' | ' | ' | ' | |
Weighted average useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 7 months 6 days | '4 years 8 months 12 days | '5 years 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total revenues | ' | 127,583,000 | 149,388,000 | [1] | 62,278,000 | 59,569,000 | 62,420,000 | 83,633,000 | 59,415,000 | 57,404,000 | 59,842,000 | 206,072,000 | 260,294,000 | 294,788,000 | ' | ' | ' | ' | 77,000,000 | ' | ' | ' | ' | ' | ' | ' | 206,072,000 | 260,294,000 | 294,788,000 | ' | ' | ' | ' |
Operating expenses | ' | 105,428,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,500,000 | ' | ' | ' | ' | ' | ' | ' | 152,519,000 | 171,605,000 | 186,538,000 | ' | ' | ' | ' | |
Operating income | ' | 22,155,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,500,000 | ' | ' | ' | ' | ' | ' | ' | 53,553,000 | 88,689,000 | 108,250,000 | ' | ' | ' | ' | |
Net income | ' | $75,245,000 | $30,731,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27,600,000 | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' |
[1] | The results of operations of our predecessor for October 1, 2013 through October 6, 2013 and the results of operations of our company for October 7, 2013 through December 31, 2013 have been combined. |
Acquisitions_Schedule_of_alloc
Acquisitions Schedule of allocation of the purchase price for assets and liabilities acquired (Details) (USD $) | Dec. 31, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 |
In Thousands, unless otherwise specified | Total Acquisitions [Member] | Leasehold Positions [Member] | 1333 Broadway Associates [Member] | 1350 Broadway Associates [Member] | |
Consideration paid: | ' | ' | ' | ' | ' |
Cash and issuance of Class A Common Stock, Class B Common Stock, and OP units | ' | $1,047,487 | ' | ' | ' |
Debt assumed | ' | 124,354 | ' | ' | ' |
Total consideration paid | ' | 1,171,841 | ' | ' | ' |
Net assets acquired: | ' | ' | ' | ' | ' |
Land | ' | 91,435 | ' | ' | ' |
Building and improvements | ' | 516,344 | ' | ' | ' |
Acquired below-market ground lease | ' | 62,738 | ' | ' | ' |
Acquired above-market leases | ' | 72,123 | ' | ' | ' |
Acquired in place lease value and deferred leasing costs | ' | 186,415 | ' | ' | ' |
Goodwill | 491,479 | 491,479 | ' | ' | ' |
Other assets, net of other liabilities | ' | 6,061 | ' | ' | ' |
Mortgage notes payable | ' | -136,226 | ' | ' | ' |
Acquired below-market leases | ' | -134,651 | ' | ' | ' |
Total purchase price allocated | ' | 1,155,718 | ' | ' | ' |
Business Combination, Bargain Purchase [Abstract] | ' | ' | ' | ' | ' |
Total | ' | $108,231 | $35,147 | $40,962 | $32,122 |
Acquisitions_Schedule_of_pro_f
Acquisitions Schedule of pro forma information (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | ' | ' |
Total revenues | $563,878 | $549,707 |
Net income | 18,992 | 311,434 |
Net income attributable to Empire State Realty Trust, Inc. | $21,871 | $0 |
Net income attributable to Empire State Realty Trust, Inc. per share - basic and diluted (in dollars per share) | $0.23 | $0 |
Investments_in_Noncontrolled_E2
Investments in Non-controlled Entities Schedule of Equity Method Investments (Details) | 0 Months Ended |
Oct. 06, 2013 | |
entity | |
Schedule of Equity Method Investments [Line Items] | ' |
Number of entities acquired | 4 |
Empire State Building, L.L.C. [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Ownership percentage | 23.75% |
1333 Broadway Associates [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Ownership percentage | 50.00% |
1350 Broadway Associates [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Ownership percentage | 50.00% |
501 Seventh Avenue Associates [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Ownership percentage | 20.47% |
Investments_in_Noncontrolled_E3
Investments in Non-controlled Entities Schedule of Non-controlling Interested by Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Oct. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity Method Investment Summarized Financial Information, Equity [Roll Forward] | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | $76,879 | $76,879 | $72,626 | ' |
Equity in net income | 0 | 14,875 | 14,875 | 14,348 | 3,893 |
Distributions | 0 | ' | -3,391 | -10,095 | ' |
Consolidation of non-controlled entities | ' | ' | -88,363 | 0 | ' |
Balance at end of period | $0 | ' | $0 | $76,879 | $72,626 |
Investments_in_Noncontrolled_E4
Investments in Non-controlled Entities Summary of Financial Information of Non-consolidated Entities - Balance Sheet (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Real estate, net | ' | $290,724 | ' |
Other assets | ' | 223,123 | ' |
Total assets | ' | 513,847 | ' |
Mortgage and notes payable | ' | 121,627 | ' |
Other liabilities | ' | 76,993 | ' |
Total liabilities | ' | 198,620 | ' |
Membersb/partnersb equity | ' | 315,886 | ' |
Non-controlling interest | ' | -659 | ' |
Total equity | ' | 315,227 | ' |
Total liabilities and equity | ' | 513,847 | ' |
Our predecessor's share of equitybcarrying value of our investments in non-controlled entities | 0 | 76,879 | 72,626 |
Empire State Building Co. [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Real estate, net | ' | 195,304 | ' |
Other assets | ' | 145,949 | ' |
Total assets | ' | 341,253 | ' |
Mortgage and notes payable | ' | 0 | ' |
Other liabilities | ' | 63,265 | ' |
Total liabilities | ' | 63,265 | ' |
Membersb/partnersb equity | ' | 278,647 | ' |
Non-controlling interest | ' | -659 | ' |
Total equity | ' | 277,988 | ' |
Total liabilities and equity | ' | 341,253 | ' |
Our predecessor's share of equitybcarrying value of our investments in non-controlled entities | ' | 66,179 | ' |
1333 Broadway Associates [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Real estate, net | ' | 38,212 | ' |
Other assets | ' | 37,741 | ' |
Total assets | ' | 75,953 | ' |
Mortgage and notes payable | ' | 71,200 | ' |
Other liabilities | ' | 4,050 | ' |
Total liabilities | ' | 75,250 | ' |
Membersb/partnersb equity | ' | 703 | ' |
Non-controlling interest | ' | 0 | ' |
Total equity | ' | 703 | ' |
Total liabilities and equity | ' | 75,953 | ' |
Our predecessor's share of equitybcarrying value of our investments in non-controlled entities | ' | 847 | ' |
1350 Broadway Associates [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Real estate, net | ' | 40,317 | ' |
Other assets | ' | 22,150 | ' |
Total assets | ' | 62,467 | ' |
Mortgage and notes payable | ' | 50,427 | ' |
Other liabilities | ' | 5,147 | ' |
Total liabilities | ' | 55,574 | ' |
Membersb/partnersb equity | ' | 6,893 | ' |
Non-controlling interest | ' | 0 | ' |
Total equity | ' | 6,893 | ' |
Total liabilities and equity | ' | 62,467 | ' |
Our predecessor's share of equitybcarrying value of our investments in non-controlled entities | ' | 3,446 | ' |
501 Seventh Avenue Associates [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Real estate, net | ' | 16,891 | ' |
Other assets | ' | 17,283 | ' |
Total assets | ' | 34,174 | ' |
Mortgage and notes payable | ' | 0 | ' |
Other liabilities | ' | 4,531 | ' |
Total liabilities | ' | 4,531 | ' |
Membersb/partnersb equity | ' | 29,643 | ' |
Non-controlling interest | ' | 0 | ' |
Total equity | ' | 29,643 | ' |
Total liabilities and equity | ' | 34,174 | ' |
Our predecessor's share of equitybcarrying value of our investments in non-controlled entities | ' | $6,407 | ' |
Investments_in_Noncontrolled_E5
Investments in Non-controlled Entities Summary of Financial Information of Non-consolidated Entities - Statements of Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Oct. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue: | ' | ' | ' | ' | ' |
Rental revenue and other | ' | $143,637 | ' | $188,307 | $170,282 |
Observatory revenue | ' | 76,687 | ' | 91,870 | 80,562 |
Total revenue | ' | 220,324 | ' | 280,177 | 250,844 |
Expenses: | ' | ' | ' | ' | ' |
Operating expensesbrental | ' | 114,255 | ' | 150,778 | 152,950 |
Operating expensesboverage rent | ' | 11,000 | ' | 26,696 | 30,325 |
Operating expensesbobservatory | ' | 17,150 | ' | 20,709 | 20,009 |
Interest | ' | 6,081 | ' | 7,741 | 7,442 |
Depreciation and amortization | ' | 17,574 | ' | 19,712 | 23,873 |
Total expenses | ' | 166,060 | ' | 225,636 | 234,599 |
Net income | ' | 54,264 | ' | 54,541 | 16,245 |
Our predecessor's share of equity in net income of non-controlled entities | 0 | 14,875 | 14,875 | 14,348 | 3,893 |
Empire State Building Co. [Member] | ' | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' | ' |
Rental revenue and other | ' | 101,496 | ' | 133,666 | 118,720 |
Observatory revenue | ' | 76,687 | ' | 91,870 | 80,562 |
Total revenue | ' | 178,183 | ' | 225,536 | 199,282 |
Expenses: | ' | ' | ' | ' | ' |
Operating expensesbrental | ' | 89,670 | ' | 119,482 | 122,381 |
Operating expensesboverage rent | ' | 10,894 | ' | 24,199 | 28,780 |
Operating expensesbobservatory | ' | 17,150 | ' | 20,709 | 20,009 |
Interest | ' | 0 | ' | 0 | 0 |
Depreciation and amortization | ' | 10,997 | ' | 13,615 | 15,833 |
Total expenses | ' | 128,711 | ' | 178,005 | 187,003 |
Net income | ' | 49,472 | ' | 47,531 | 12,279 |
Our predecessor's share of equity in net income of non-controlled entities | ' | 13,467 | ' | 11,015 | 2,158 |
1333 Broadway Associates [Member] | ' | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' | ' |
Rental revenue and other | ' | 11,711 | ' | 14,539 | 14,670 |
Observatory revenue | ' | 0 | ' | 0 | 0 |
Total revenue | ' | 11,711 | ' | 14,539 | 14,670 |
Expenses: | ' | ' | ' | ' | ' |
Operating expensesbrental | ' | 5,766 | ' | 7,528 | 7,072 |
Operating expensesboverage rent | ' | 0 | ' | 0 | 0 |
Operating expensesbobservatory | ' | 0 | ' | 0 | 0 |
Interest | ' | 3,620 | ' | 4,748 | 4,741 |
Depreciation and amortization | ' | 2,186 | ' | 1,112 | 3,053 |
Total expenses | ' | 11,572 | ' | 13,388 | 14,866 |
Net income | ' | 139 | ' | 1,151 | -196 |
Our predecessor's share of equity in net income of non-controlled entities | ' | 70 | ' | 576 | 391 |
1350 Broadway Associates [Member] | ' | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' | ' |
Rental revenue and other | ' | 16,439 | ' | 21,275 | 19,179 |
Observatory revenue | ' | 0 | ' | 0 | 0 |
Total revenue | ' | 16,439 | ' | 21,275 | 19,179 |
Expenses: | ' | ' | ' | ' | ' |
Operating expensesbrental | ' | 7,989 | ' | 10,667 | 10,328 |
Operating expensesboverage rent | ' | 0 | ' | 0 | 0 |
Operating expensesbobservatory | ' | 0 | ' | 0 | 0 |
Interest | ' | 2,461 | ' | 2,993 | 2,701 |
Depreciation and amortization | ' | 3,264 | ' | 3,489 | 3,117 |
Total expenses | ' | 13,714 | ' | 17,149 | 16,146 |
Net income | ' | 2,725 | ' | 4,126 | 3,033 |
Our predecessor's share of equity in net income of non-controlled entities | ' | 1,179 | ' | 2,063 | 935 |
501 Seventh Avenue Associates [Member] | ' | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' | ' |
Rental revenue and other | ' | 13,991 | ' | 18,827 | 17,713 |
Observatory revenue | ' | 0 | ' | 0 | 0 |
Total revenue | ' | 13,991 | ' | 18,827 | 17,713 |
Expenses: | ' | ' | ' | ' | ' |
Operating expensesbrental | ' | 10,830 | ' | 13,101 | 13,169 |
Operating expensesboverage rent | ' | 106 | ' | 2,497 | 1,545 |
Operating expensesbobservatory | ' | 0 | ' | 0 | 0 |
Interest | ' | 0 | ' | 0 | 0 |
Depreciation and amortization | ' | 1,127 | ' | 1,496 | 1,870 |
Total expenses | ' | 12,063 | ' | 17,094 | 16,584 |
Net income | ' | 1,928 | ' | 1,733 | 1,129 |
Our predecessor's share of equity in net income of non-controlled entities | ' | $159 | ' | $694 | $409 |
Deferred_Costs_Acquired_Lease_2
Deferred Costs, Acquired Lease Intangibles and Goodwill Schedule of Deferred Costs, Net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Leasing costs | $90,198 | $78,865 |
Leasing costs, Accumulated Amortization | -27,459 | -24,939 |
Financing costs | 27,416 | 23,609 |
Financing costs, Accumulated Amortization | -11,217 | -13,098 |
Offering costs | 0 | 27,789 |
Offering costs, Accumulated Amortization | 0 | 0 |
Total deferred costs, Gross Amount | 117,614 | 130,263 |
Total deferred costs, Accumulated Amortization | ($38,676) | ($38,037) |
Deferred_Costs_Acquired_Lease_3
Deferred Costs, Acquired Lease Intangibles and Goodwill Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 06, 2013 | Oct. 06, 2013 | Oct. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Empire State Building Observatory Operations [Member] | Empire State Building, L.L.C. [Member] | 501 Seventh Avenue Associates [Member] | Other Fees and Disbursements from Non-Controlled Affiliates [Member] | Other Fees and Disbursements from Non-Controlled Affiliates [Member] | Other Fees and Disbursements from Non-Controlled Affiliates [Member] | Offering Costs for Work Done by Employees of Supervisor on Behalf of Option Properties [Member] | Offering Costs for Work Done by Employees of Supervisor on Behalf of Option Properties [Member] | Offering Costs for Work Done by Employees of Supervisor on Behalf of Option Properties [Member] | Lease Agreements [Member] | Lease Agreements [Member] | Lease Agreements [Member] | Leases and Deferred Leasing Costs [Member] | Acquired above-market leases [Member] | Below Market Lease [Member] | |||||
Unconsolidated Properties [Member] | Unconsolidated Properties [Member] | Unconsolidated Properties [Member] | Consolidated Properties [Member] | Consolidated Properties [Member] | Consolidated Properties [Member] | ||||||||||||||
Deferred Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of deferred leasing costs | ' | $10,600,000 | $7,400,000 | $6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of deferred finance costs and debt premiums | 152,000 | 12,700,000 | 4,900,000 | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering costs | 0 | 0 | 27,789,000 | ' | ' | ' | ' | 1,100,000 | 1,300,000 | 1,200,000 | 400,000 | 600,000 | 300,000 | ' | ' | ' | ' | ' | ' |
Amortization expense related to acquired lease intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,300,000 | 0 | 0 | ' | ' | ' |
Amortization of acquired above and below-market leases, net | -1,911,000 | 1,900,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years 7 months 6 days | '4 years 8 months 12 days | '5 years 2 months 12 days |
Goodwill | $491,479,000 | $491,479,000 | ' | ' | $227,500,000 | $250,800,000 | $13,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred_Costs_Acquired_Lease_4
Deferred Costs, Acquired Lease Intangibles and Goodwill - Acquired Leases (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Acquired below-market ground lease, Gross Amount | $62,738 |
Acquired below-market ground lease, Accumulated Amortization | -426 |
Acquired below-market leases, Gross Amount | -134,651 |
Acquired below-market leases, Accumulated Amortization | 4,769 |
Acquired in-place lease value and deferred leasing costs [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, Gross Amount | 186,415 |
Finite-lived intangible assets, Accumulated Amortization | -5,697 |
Acquired above-market leases [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, Gross Amount | 72,123 |
Finite-lived intangible assets, Accumulated Amortization | ($2,858) |
Deferred_Costs_Acquired_Lease_5
Deferred Costs, Acquired Lease Intangibles and Goodwill - Future Amortization Expense and Rental Revenue (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future Amortization Expense [Abstract] | ' |
Future Amortization Expense | $249,983 |
Future Rental Revenue [Abstract] | ' |
2014 | 7,484 |
2015 | 6,665 |
2016 | 5,997 |
2017 | 6,384 |
2018 | 6,086 |
Thereafter | 28,001 |
Future Rental Revenue | 60,617 |
Lease Agreements [Member] | ' |
Future Amortization Expense [Abstract] | ' |
2014 | 30,466 |
2015 | 24,737 |
2016 | 20,873 |
2017 | 19,237 |
2018 | 16,363 |
Thereafter | 131,354 |
Future Amortization Expense | $243,030 |
Debt_Schedule_of_Long_term_Deb
Debt Schedule of Long term Debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
501 Seventh Avenue - Note 1 [Member] | 501 Seventh Avenue - Note 1 [Member] | 501 Seventh Avenue - Note 2 - Tranche 1 [Member] | 501 Seventh Avenue - Note 2 - Tranche 1 [Member] | 501 Seventh Avenue - Note 2 - Tranche 2 [Member] | 501 Seventh Avenue - Note 2 - Tranche 2 [Member] | 1359 Broadway - First Lien [Member] | 1359 Broadway - First Lien [Member] | 1359 Broadway - Second Lien - Tranche 1 [Member] | 1359 Broadway - Second Lien - Tranche 1 [Member] | 1359 Broadway - Second Lien - Tranche 2 [Member] | 1359 Broadway - Second Lien - Tranche 2 [Member] | 1359 Broadway - Second Lien - Tranche 3 [Member] | 1359 Broadway - Second Lien - Tranche 3 [Member] | One Grand Central Place - First Lien [Member] | One Grand Central Place - First Lien [Member] | One Grand Central Place - Second Lien [Member] | One Grand Central Place - Second Lien [Member] | 500 Mamaroneck Avenue [Member] | 500 Mamaroneck Avenue [Member] | 250 West 57th Street - First Lien [Member] | 250 West 57th Street - First Lien [Member] | 250 West 57th Street - Second Lien [Member] | 250 West 57th Street - Second Lien [Member] | Metro Center [Member] | Metro Center [Member] | Metro Center - Note 1 [Member] | Metro Center - Note 1 [Member] | Metro Center - Note 2 [Member] | Metro Center - Note 2 [Member] | 10 Union Square [Member] | 10 Union Square [Member] | 10 Bank Street [Member] | 10 Bank Street [Member] | 1542 Third Avenue [Member] | 1542 Third Avenue [Member] | First Stamford Place [Member] | First Stamford Place [Member] | 1010 Third Avenue and 77 West 55th Street [Member] | 1010 Third Avenue and 77 West 55th Street [Member] | 383 Main Avenue [Member] | 383 Main Avenue [Member] | 1333 Broadway [Member] | 1333 Broadway [Member] | 1350 Broadway - First Lien Mortgage Loan [Member] | 1350 Broadway - First Lien Mortgage Loan [Member] | 69 - 97 Main Street - Fixed Rate [Member] | 69 - 97 Main Street - Fixed Rate [Member] | 69 - 97 Main Street - Fixed Rate [Member] | 501 Seventh Avenue - Third Lien [Member] | 501 Seventh Avenue - Third Lien [Member] | 1350 Broadway - 2nd Lien Mortgage Loan [Member] | 1350 Broadway - 2nd Lien Mortgage Loan [Member] | 1350 Broadway - 2nd Lien Mortgage Loan [Member] | 1350 Broadway - 2nd Lien Mortgage Loan [Member] | The Empire State Building [Member] | The Empire State Building [Member] | One Grand Central Place - Third Lien [Member] | One Grand Central Place - Third Lien [Member] | 250 West 57th Street - Third lien [Member] | 250 West 57th Street - Third lien [Member] | 250 West 57th Street - Third lien [Member] | 250 West 57th Street - Third lien [Member] | 250 West 57th Street - Third lien [Member] | Secured Revolving Credit Facility [Member] | Secured Revolving Credit Facility [Member] | Secured Revolving Credit Facility [Member] | Secured Term Credit Facility [Member] | Secured Term Credit Facility [Member] | Secured Term Credit Facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||
tranche | tranche | LIBOR [Member] | LIBOR [Member] | Prime Rate [Member] | Prime Rate [Member] | LIBOR [Member] | LIBOR [Member] | Prime Rate [Member] | Prime Rate [Member] | Interest Rate Fix Option 1 [Member] | Interest Rate Fix Option 2 [Member] | Prime Rate [Member] | Prime Rate [Member] | LIBOR [Member] | LIBOR [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||
Fixed rate debt | ' | $835,647,000 | $737,675,000 | $1,037,000 | $1,075,000 | $31,459,000 | [1] | $32,589,000 | [1] | $6,889,000 | [1] | $7,107,000 | [1] | $9,579,000 | $9,922,000 | $5,561,000 | [2] | $5,761,000 | [2] | $11,311,000 | [2] | $11,689,000 | [2] | $18,572,000 | [2] | $19,068,000 | [2] | $71,723,000 | $73,922,000 | $14,884,000 | [3] | $15,187,000 | [3] | $32,620,000 | $33,256,000 | $25,621,000 | $26,442,000 | $11,252,000 | $11,524,000 | $96,158,000 | $0 | $0 | [4] | $59,937,000 | [4] | $0 | [4] | $38,151,000 | [4] | $20,972,000 | $21,284,000 | $33,444,000 | $33,963,000 | $19,011,000 | $19,370,000 | $245,629,000 | $248,716,000 | $28,096,000 | $28,570,000 | $30,403,000 | $30,924,000 | $78,121,000 | [5] | $0 | $43,305,000 | [6] | $0 | $0 | [7] | ' | $9,218,000 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||
Floating rate debt | ' | 372,465,000 | 240,475,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,540,000 | 6,540,000 | 13,543,000 | [8] | 0 | ' | ' | 0 | 219,000,000 | 6,382,000 | 0 | ' | ' | ' | 21,000,000 | 14,935,000 | 25,000,000 | 0 | ' | 300,000,000 | 0 | ' | ||||||||||||||||||||||||||||||||||||||||||||
Total | 883,112,000 | 1,208,112,000 | 978,150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||
Stated Rate | ' | ' | ' | 5.75% | ' | 5.75% | [1] | ' | 6.04% | [1] | ' | 5.75% | ' | 5.75% | [2] | ' | 5.87% | [2] | ' | 6.40% | [2] | ' | 5.34% | ' | 7.00% | [3] | ' | 5.41% | ' | 5.33% | ' | 6.13% | ' | 5.89% | ' | 5.80% | [4] | ' | 6.02% | [4] | ' | 6.00% | ' | 5.72% | ' | 5.90% | ' | 5.65% | ' | 5.69% | ' | 5.59% | ' | 6.32% | ' | 5.87% | ' | 5.64% | [7] | ' | ' | ' | ' | ' | ' | ' | 4.25% | [9] | ' | ' | 3.75% | [10] | ' | 4.25% | [11] | 4.75% | [11] | 5.00% | [11] | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||
Effective Rate | ' | ' | ' | 6.28% | [12] | ' | 6.28% | [1],[12] | ' | 6.55% | [1],[12] | ' | 6.24% | [12] | ' | 6.25% | [12],[2] | ' | 6.36% | [12],[2] | ' | 6.86% | [12],[2] | ' | 6.38% | [12] | ' | 6.72% | [12],[3] | ' | 6.70% | [12] | ' | 6.92% | [12] | ' | 7.81% | [12] | ' | 6.15% | [12] | ' | 0.00% | [12],[4] | ' | 0.00% | [12],[4] | ' | 6.48% | [12] | ' | 5.94% | [12] | ' | 6.31% | [12] | ' | 5.82% | [12] | ' | 6.12% | [12] | ' | 5.72% | [12] | ' | 6.68% | [12] | ' | 6.02% | [12] | ' | 0.00% | [12],[7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||
Number of tranches | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from long term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,500,000 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | [13] | ' | ' | ' | 1.00% | [9] | ' | 2.50% | [14] | ' | 0.50% | [10] | ' | 1.00% | [11] | 3.00% | [11] | 3.00% | [11] | ' | ' | ' | ' | 1.20% | [15] | ' | ' | 1.35% | [16] | ||||||||||||||||||||||||||||||||||||
Interest rate at end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.17% | [13] | ' | ' | ' | ' | 4.25% | [9] | 2.67% | [14] | ' | 3.75% | [10] | ' | 4.25% | [11] | ' | ' | ' | ' | ' | ' | 1.37% | [15] | ' | ' | 1.52% | [16] | ||||||||||||||||||||||||||||||||||||||
Principal outstanding minimum increments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | [11] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||
Number of days prior to the Effective date to fix the interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 days | [11] | '30 days | [11] | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||
Unamortized premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,674,000 | ' | $3,885,000 | ' | ' | ' | ' | ' | ' | $134,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||
[1] | Represents the two tranches of the second lien mortgage loan. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Represents three tranches of the second lien mortgage loan. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Represents a second lien mortgage loan. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Notes 1 and 2 were pari passu. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Includes unamortized premium of $7,674. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | Includes unamortized premium of $3,885. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | This loan was paid off with the proceeds of a new $9.5 million floating rate loan which we closed on during April 2013 and which was subsequently repaid during December 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[8] | Includes unamortized premium of $134. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[9] | Interest at the greater of 4.25% and Prime plus 1%. The rate at December 31, 2013 was 4.25%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[10] | Interest at the greater of Prime plus 0.50% and 3.75%. The rate as of December 31, 2013 was 3.75%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[11] | Interest at the greater of 4.25% andB prime plus 1%. Prior to JanuaryB 5, 2015, we have the option to fix the interest rate on all or any portion of the principal then outstanding, up to three times and in minimum increments of $5,000 to an annual rate equal to either (i)B the greater of (a)B 4.75% or (b)B 300 basis points in excess of the weekly average yield on United States Treasury Securities adjusted to a maturity closest to JanuaryB 5, 2015 as most recently made available by the Federal Reserve Board as of two days prior to the effective date of the fixing of the interest rate, and (ii)B the greater of (a)B 5.00% or (b)B 300 basis points in excess of the weekly average yield on United States Treasury Securities adjusted to a maturity closest to JanuaryB 5, 2015 as most recently made available by the Federal Reserve Board as of 30 days prior to the effective date of the fixing of the interest rate. If option (i)B is selected, we will be subject to the payment of prebpayment fees, and if option (ii)B is selected, we may prepay the loan without any prebpayment fees. The rate as of December 31, 2013 was 4.25%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[12] | The effective rate is the yield as of DecemberB 31, 2013, including the effects of debt issuance costs. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[13] | Floating at 30 day LIBOR plus 2.0%. The rate as of DecemberB 31, 2013 was 2.17%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[14] | Floating at 30 day LIBOR plus 2.5%. The rate as of DecemberB 31, 2013 was 2.67%. This loan was paid off with the proceeds of our secured revolving and term credit facility on October 7, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[15] | Floating at 30 day LIBOR plus 1.20%. The rate as of December 31, 2013 was 1.37%. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[16] | Floating at 30 day LIBOR plus 1.35%. The rate at December 31, 2013 was 1.52%. |
Debt_Schedule_of_Maturities_of
Debt Schedule of Maturities of Long-term Debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total | $883,112 | ' |
Mortgages [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
2014 | 197,480 | ' |
2015 | 90,493 | ' |
2016 | 96,158 | ' |
2017 | 402,555 | ' |
2018 | 421,426 | ' |
Total | $1,208,112 | $978,150 |
Debt_Secured_Revolving_and_Ter
Debt Secured Revolving and Term Credit Facility (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Secured Revolving and Term Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Current borrowing capacity | $800,000,000 |
Maximum borrowing capacity | 1,250,000,000 |
Unused capacity commitment fee percentage | 0.20% |
Decrease in maximum borrowing capacity | 33,200,000 |
Secured Revolving and Term Credit Facility [Member] | Predecessor [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Extinguishment of debt | 325,000,000 |
Term Loan [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Term of facility | '5 years |
Term Loan [Member] | Eurodollar [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate at period end | 1.35% |
Term Loan [Member] | Eurodollar [Member] | Minimum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 1.00% |
Term Loan [Member] | Eurodollar [Member] | Maximum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 2.00% |
Term Loan [Member] | Base Rate [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate at period end | 0.35% |
Term Loan [Member] | Base Rate [Member] | Minimum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 0.00% |
Term Loan [Member] | Base Rate [Member] | Maximum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 1.00% |
Term Loan [Member] | Predecessor [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Maximum borrowing capacity | 500,000,000 |
Extinguishment of debt | $300,000,000 |
Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Term of facility | '4 years |
Extension period | '1 year |
Extension fee percent of outstanding commitments under revolving credit facility | 0.20% |
Revolving Credit Facility [Member] | Eurodollar [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate at period end | 1.20% |
Revolving Credit Facility [Member] | Eurodollar [Member] | Minimum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 0.93% |
Revolving Credit Facility [Member] | Eurodollar [Member] | Maximum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 1.70% |
Revolving Credit Facility [Member] | Base Rate [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate at period end | 0.20% |
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 0.00% |
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Basis spread on variable rate | 0.70% |
Debt_Unsecured_Loan_and_Notes_
Debt Unsecured Loan and Notes Payable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Apr. 21, 2011 | Apr. 21, 2011 |
Unsecured Debt [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | ||
Sponsors [Member] | Sponsors [Member] | Sponsors [Member] | Sponsors [Member] | 500 Mamaroneck Avenue [Member] | 500 Mamaroneck Avenue [Member] | ||
LIBOR [Member] | Investor [Member] | Sponsors [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Unsecured loan and notes payablebrelated parties | $0 | $14,700,000 | $3,800,000 | ' | ' | ' | ' |
Stated Rate | ' | 1.20% | ' | ' | ' | ' | 10.00% |
Face amount | ' | ' | ' | $4,500,000 | ' | $3,600,000 | $1,200,000 |
Basis spread on variable rate | ' | ' | ' | ' | 2.50% | ' | ' |
Interest rate at end of period | ' | ' | 2.67% | ' | ' | ' | ' |
Accounts_Payable_and_Accrued_E2
Accounts Payable and Accrued Expenses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Payables and Accruals [Abstract] | ' | ' | ||
Accounts payable and accrued expenses | $57,657 | $26,889 | ||
Payable to the estate of Leona M. Helmsley | 18,367 | [1] | 0 | [1] |
Accrued interest payable | 4,074 | 3,409 | ||
Due to affiliated companies | 1,810 | 12,376 | ||
Accounts payable and accrued expenses | $81,908 | $42,674 | ||
[1] | Reflects a payable to the estate of Leona M. Helmsley for New York City transfer taxes. |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments Schedule of the aggregate carrying value of debt and estimates of fair value (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Carrying Amount [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Mortgage notes payable and secured term loan and credit facility | $1,208,112 | $978,150 |
Unsecured loans and notes payablebrelated parties | 0 | 18,339 |
Total | 1,208,112 | 996,489 |
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Mortgage notes payable and secured term loan and credit facility | 1,225,064 | 1,003,756 |
Unsecured loans and notes payablebrelated parties | 0 | 13,818 |
Total | $1,225,064 | $1,017,574 |
Rental_Income_Details
Rental Income (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | ' |
Operating Leases [Line Items] | ' |
Term of lease | '1 year |
Maximum [Member] | ' |
Operating Leases [Line Items] | ' |
Term of lease | '18 years |
Rental_Income_Schedule_of_Futu
Rental Income Schedule of Future Minimum Payments Receivable for Operating Leases (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ' |
2014 | $317,984 |
2015 | 313,466 |
2016 | 295,111 |
2017 | 275,114 |
2018 | 247,054 |
Thereafter | 1,296,343 |
Total Future Minimum Payments Receivable for Operating Leases | $2,745,072 |
Commitments_and_Contingencies_1
Commitments and Contingencies Option Properties (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Period after appraisal to option the property | '5 months |
Period after exercise of option to close the purchase | '90 days |
Number of months after recently resolved litigation | '12 months |
Maximum option expiration period one | '5 months |
Period after completion of independent valuation | '6 months |
Maximum option expiration period two | '7 years |
Commitments_and_Contingencies_2
Commitments and Contingencies Litigation (Details) (USD $) | Jun. 30, 2013 | Mar. 14, 2014 | Dec. 24, 2013 | Sep. 04, 2013 | 17-May-13 | Sep. 28, 2012 | Jan. 28, 2013 | 17-May-13 | Jan. 28, 2013 | Mar. 31, 2012 |
investor | Subsequent Event [Member] | Pending Litigation [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | Predecessor [Member] | |
investor | New York State Supreme Court, New York County [Member] | New York State Supreme Court, New York County [Member] | New York State Supreme Court, New York County [Member] | New York State Supreme Court, New York County [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | ||
claim | participant | participant | llc | participant | New York State Supreme Court, New York County [Member] | New York State Supreme Court, New York County [Member] | New York State Supreme Court, New York County [Member] | |||
participant | participant | claim | ||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of claims | ' | ' | 4 | ' | ' | ' | ' | ' | ' | 5 |
Damages awarded | ' | ' | ' | ' | ' | $55,000,000 | ' | ' | ' | ' |
Percent of damages awarded required to be in cash | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' |
Maximum percent of freely-tradable common stock or partnership units | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' |
Number of LLC's | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' |
Maximum difference between exchange value and prospectus statement | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Loss Contingency, Proceeds from Issuance of Common Stock, Threshold Amount, Consolidation Considerations | ' | ' | ' | ' | ' | 600,000,000 | ' | ' | ' | ' |
Number of plaintiffs | ' | ' | ' | ' | ' | ' | 6 | 4,500 | 6 | ' |
Number of plaintiffs opting out of settlement | ' | ' | ' | 2 | 12 | ' | ' | ' | ' | ' |
Number of additional investors who apposed the settlement | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investors who had filed a notice of appeal | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Attorney fees sought | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' |
Attorney expenses sought | ' | ' | ' | ' | 295,895 | ' | ' | ' | ' | ' |
Attorney fees awarded | ' | ' | ' | ' | 11,590,000 | ' | ' | ' | ' | ' |
Attorney expenses awarded | ' | ' | ' | ' | $265,282 | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies Unfunded Capital Expenditures (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Unfunded capital expenditures | $48.30 |
Commitments_and_Contingencies_4
Commitments and Contingencies Major Customers and Other Concentrations (Details) (Customer Concentration Risk [Member], Sales Revenue, Services, Net [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
tenant | tenant | |
office_and_property | office_and_property | |
Concentration Risk [Line Items] | ' | ' |
Number of tenants | 3 | 3 |
Number of properties | 3 | 3 |
Empire State Building Co. [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | 13.01% | ' |
One Grand Central Place [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | 20.99% | 24.20% |
First Stamford Place [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | 11.62% | 13.93% |
250 West 57th Street [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | ' | 10.44% |
Major Tenant Three [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | 11.41% | 10.62% |
Customer 1 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | 6.01% | 4.43% |
Customer 2 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | 2.72% | 3.21% |
Customer 3 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration risk percentage | 2.68% | 2.98% |
Commitments_and_Contingencies_5
Commitments and Contingencies Multiemployer Pension and Defined Contribution Plans Narrative (Details) (Building Service 32BJ [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 |
Pension Plans [Member] | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Plan contributions | $221.90 | $212.70 | $201.30 |
Health Plans [Member] | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Plan contributions | $923.50 | $893.30 | $843.20 |
Commitments_and_Contingencies_6
Commitments and Contingencies Schedule of Contributions made to Multiemployer Plans (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Multiemployer Plans [Line Items] | ' | ' | ' | |||
Contributions | $4,752 | $2,941 | $2,814 | |||
Pension Plans [Member] | ' | ' | ' | |||
Multiemployer Plans [Line Items] | ' | ' | ' | |||
Contributions | 1,201 | [1] | 768 | [1] | 750 | [1] |
Pension Plans [Member] | Multiemployer Plan, Individually Insignificant Multiemployer Plans [Member] | ' | ' | ' | |||
Multiemployer Plans [Line Items] | ' | ' | ' | |||
Contributions | 400 | 300 | 400 | |||
Health Plans [Member] | ' | ' | ' | |||
Multiemployer Plans [Line Items] | ' | ' | ' | |||
Contributions | 3,319 | [2] | 2,013 | [2] | 1,899 | [2] |
Health Plans [Member] | Multiemployer Plan, Individually Insignificant Multiemployer Plans [Member] | ' | ' | ' | |||
Multiemployer Plans [Line Items] | ' | ' | ' | |||
Contributions | 800 | 500 | 500 | |||
Other [Member] | ' | ' | ' | |||
Multiemployer Plans [Line Items] | ' | ' | ' | |||
Contributions | 232 | [3] | 160 | [3] | 165 | [3] |
Other [Member] | Multiemployer Plan, Individually Insignificant Multiemployer Plans [Member] | ' | ' | ' | |||
Multiemployer Plans [Line Items] | ' | ' | ' | |||
Contributions | $50 | $80 | $50 | |||
[1] | ension plans include $0.4 million, $0.3 million and $0.4 million for the years ended 2013, 2012 and 2011, respectively, from multiemployer plans not discussed above. | |||||
[2] | Health plans include $0.8 million, $0.5 million and $0.5 million for the years ended 2013, 2012 and 2011, respectively, from multiemployer plans not discussed above. | |||||
[3] | ther includes $0.05 million, $0.08 million and $0.05 million for the years ended 2013, 2012 and 2011, respectively, in connection with One Grand Central Place and 250 West 57th Street for multiemployer plans not discussed above for union costs which were not itemized between pension and health plans. |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Shares and Units [Abstract] | ' | ' | ' |
OP units outstanding (shares) | 245.5 | 245.5 | 245.5 |
OP units owned by the Company (shares) | 95.6 | 95.6 | 95.6 |
OP units owned by the Company, percent | ' | ' | 38.90% |
OP units not owned by the Company (shares) | 149.9 | 149.9 | 149.9 |
OP units not owned by the Company, percent | ' | ' | 61.10% |
Dividends and Distributions [Abstract] | ' | ' | ' |
Partial dividend paid, per common share | $0.08 | ' | ' |
Partial dividend paid, per OP unit | $0.08 | ' | ' |
Full quarter dividend, per share | ' | $0.09 | ' |
Dividends paid to common shareholders | ' | ' | $7.60 |
Distributions paid to OP unitholders | ' | ' | $11.90 |
Dividends paid, percent taxable as ordinary dividends | ' | ' | 100.00% |
Equity_Incentive_and_Sharebase
Equity - Incentive and Share-based Compensation (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
2013 Plan [Member] | Long-Term Incentive Plan Unit and Restricted Stock [Member] | Long-Term Incentive Plan Unit [Member] | Restricted Stock [Member] | Awards that Meet Age and Service Requirements for Vesting [Member] | Awards that Do Not Meet Age and Service Requirements for Vesting [Member] | Executive Officer [Member] | Executive Officer [Member] | Employee [Member] | Employee [Member] | Employee [Member] | Employee [Member] | Director [Member] | ||
Time Based Long-Tern Incentive Plan Unit [Member] | Performance Based Long-Term Incentive Plan Unit [Member] | Time Based Long-Tern Incentive Plan Unit [Member] | Performance Based Long-Term Incentive Plan Unit [Member] | Performance Restricted Shares [Member] | Time Restricted Shares [Member] | Time Based Long-Tern Incentive Plan Unit [Member] | ||||||||
tranche | tranche | tranche | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized under the plan | ' | 12,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares that remain available for future issuance | ' | 11,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of share-based awards granted in period | ' | ' | $11.70 | ' | ' | ' | ' | $5.40 | $0.90 | $3.90 | $0.60 | ' | ' | $0.90 |
Expected term | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate | ' | ' | 0.66% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected price volatility | ' | ' | 28.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Vesting Installments | ' | ' | ' | ' | ' | ' | ' | 4 | 2 | ' | ' | ' | ' | 3 |
Award vesting period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' |
Expected volatility rate look-back period (in years) | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Stock and LTIP Unit Activity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | 913,561 | 158,852 | ' | ' | 440,192 | 146,730 | 193,059 | 64,352 | 39,706 | 119,146 | 69,228 |
Vested (in shares) | ' | ' | ' | 0 | -12,607 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | 0 | -1,874 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested balance at December 31 (in shares) | ' | ' | ' | 913,561 | 144,371 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, Weighted Average Grant Price, per share | $13 | ' | $10.89 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested, Weighted Average Grant Price, per share | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited, Weighted Average Grant Price, per share | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested balance at December 31, Weighted Average Grant Price, per share | $13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Age of grantee at which LTIP unit and restricted stock awards immediately vest | '60 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of service, upon completion of which, grantee's LTIP unit and restricted stock awards will immediately vest | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncash share-based compensation expense recognized | ' | ' | ' | ' | ' | 2.3 | 0.7 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | ' | ' | ' | ' | ' | $0.30 | $8.30 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense, period for recognition (in years) | ' | ' | ' | ' | ' | '2 years 8 months 12 days | '3 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' |
Equity_Earnings_Per_Share_Deta
Equity - Earnings Per Share (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | |
Numerator: | ' | ' | |
Net income attributable to Empire State Realty Trust, Inc. - basic and diluted | $75,245 | $30,731 | [1] |
Denominator: | ' | ' | |
Weighted average shares outstanding - basic (in shares) | 95,574 | ' | |
Effective of dilutive securities - share-based compensation | 37 | ' | |
Weighted average shares outstanding - dilutive | 95,611 | ' | |
[1] | The results of operations of our predecessor for October 1, 2013 through October 6, 2013 and the results of operations of our company for October 7, 2013 through December 31, 2013 have been combined. |
Related_Party_Transactions_For
Related Party Transactions Formation Transactions (Details) (USD $) | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||
Oct. 08, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 08, 2013 | Oct. 08, 2013 | Oct. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Malkin Group [Member] | Anthony E. Malkin, Scott D. Malkin and Cynthia M. Blumenthal [Member] | Anthony E. Malkin [Member] | Peter L. Malkin [Member] | Predecessor [Member] | Predecessor [Member] | Common Class A [Member] | Common Class A [Member] | Common Class A [Member] | Common Class A [Member] | Common Class B [Member] | Common Class B [Member] | Common Class B [Member] | Senior Management [Member] | Senior Management [Member] | ||
Investor [Member] | Malkin Group [Member] | Malkin Group [Member] | Anthony E. Malkin [Member] | Peter L. Malkin [Member] | Malkin Group [Member] | Anthony E. Malkin [Member] | Peter L. Malkin [Member] | Common Class B [Member] | ||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance Initial Public Offering, Net of Costs of Issuance | $2,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Capital Distribution | ' | ' | ' | ' | ' | 180,000,000 | 38,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Representation, Warranty and Indemnity Agreement Deductible | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Representation, Warranty and Indemnity Agreement Cap | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership Interests Pledged As Security for Representation, Warranty and Indemnification Agreement | ' | ' | $25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | ' | 82,200,000 | 396,025 | 210,289 | 2,772 | 747,435 | 586,095 | 100,084 | ' | 2,407 |
Partners' Capital Account, Units, Sale of Units | ' | 37,748,249 | ' | 28,718,631 | 6,027,867 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,167,336 | ' |
Related Party, Ownership Interest, Diluted Basis, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.80% | 12.00% | 2.50% | ' | 0.50% |
Related_Party_Transactions_Tax
Related Party Transactions Tax Protection Agreement (Details) (Malkin Group [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
property | |
Related Party Transaction [Line Items] | ' |
Number of properties protected | 4 |
Aggregate number of operating partnership units and common stock threshold during tax protection period | 50.00% |
Bottom dollar guarantee of aggregate indebtedness during tax protection period | $160 |
First Stamford Place [Member] | ' |
Related Party Transaction [Line Items] | ' |
Protection period | '12 years |
Other Protected Property [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of properties protected | 3 |
Protection period | '8 years |
Related_Party_Transactions_Par
Related Party Transactions Partnership Agreement (Details) (Investor [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Investor [Member] | ' |
Related Party Transaction [Line Items] | ' |
Limited partner rights period after initial public offering | '12 months |
Related_Party_Transactions_Reg
Related Party Transactions Registration Rights (Details) (Investor [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
offering | |
Investor [Member] | ' |
Related Party Transaction [Line Items] | ' |
Registration rights period after initial public offering maximum | '12 months |
Shelf registration statement effective period | '120 days |
Minimum market value of registrable shares | $150,000,000 |
Maximum number of underwritten offerings obligated to effect in a 12 month period | 2 |
Maximum number of underwritten offerings obligated to effect period | '12 months |
Maximum number of underwritten offerings obligated to effect | 4 |
Period following shelf effective date | '180 days |
Number of underwritten offerings | 4 |
Share value cut back threshold | 25,000,000 |
Maximum reimbursement of liabilities arising under the Securities Act | $25,000 |
Related_Party_Transactions_Opt
Related Party Transactions Option Agreements (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Period after appraisal to option the property | '5 months |
Period after exercise of option to close the purchase | '90 days |
Number of months after recently resolved litigation | '12 months |
Maximum option expiration period one | '5 months |
Period after completion of independent valuation | '6 months |
Maximum option expiration period two | '7 years |
Related_Party_Transactions_Exc
Related Party Transactions Excluded Properties and Businesses (Details) | Dec. 31, 2013 |
office_and_property | |
Retail Site [Member] | Manhattan [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of properties | 4 |
Office Building [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of properties | 12 |
Office Building [Member] | Manhattan [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of properties | 7 |
Malkin Group [Member] | Mezzanine and Senior Equity Funds [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of interests owned | 6 |
Malkin Group [Member] | Industrial Funds [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of interests owned | 2 |
Malkin Group [Member] | Residential Property Manager [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of properties | 5 |
Number of interests owned | 5 |
Malkin Group [Member] | Multi-family Property [Member] | Greenwich, Connecticut [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of properties | 6 |
Malkin Group [Member] | Retail Site [Member] | Greenwich, Connecticut [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of properties | 5 |
Malkin Group [Member] | Retail Site [Member] | Manhattan [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of properties | 2 |
Malkin Group [Member] | Former Post Office [Member] | Greenwich, Connecticut [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of properties | 1 |
Malkin Group [Member] | Office Building [Member] | Manhattan [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of properties | 1 |
Related_Party_Transactions_Rei
Related Party Transactions Reimbursement of Pre-Closing Transaction Costs (Details) (Pre-Closing Transaction Costs [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Investor [Member] | ' |
Related Party Transaction [Line Items] | ' |
Expenses from transactions with related party | $103.80 |
Senior Management and Certain Directors [Member] | ' |
Related Party Transaction [Line Items] | ' |
Expenses from transactions with related party | 180 |
Malkin Group [Member] | ' |
Related Party Transaction [Line Items] | ' |
Expenses from transactions with related party | $38.90 |
Related_Party_Transactions_Rep
Related Party Transactions Repayment of Loans to Property Owning Entities (Details) (500 Mamaroneck Avenue [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Apr. 21, 2011 |
Investor [Member] | ' |
Related Party Transaction [Line Items] | ' |
Repayment of notes from related parties | $3.60 |
Anthony E. and Peter L. Malkin [Member] | ' |
Related Party Transaction [Line Items] | ' |
Repayment of notes from related parties | 1.2 |
Anthony E. and Peter L. Malkin Interests Held [Member] | ' |
Related Party Transaction [Line Items] | ' |
Notes payable to related party assumed | $3.80 |
Related_Party_Transactions_Rel
Related Party Transactions Releases of Guarantees (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Anthony E. and Peter L. Malkin [Member] | Mortgages [Member] | ' |
Related Party Transaction [Line Items] | ' |
Release of guarantee | $1,300,000,000 |
Anthony E. and Peter L. Malkin [Member] | Mortgages [Member] | First Stamford Place [Member] | ' |
Related Party Transaction [Line Items] | ' |
Number of guarantees not released | 1 |
Mortgages [Member] | First Stamford Place [Member] | ' |
Related Party Transaction [Line Items] | ' |
Face amount | $250,000,000 |
Related_Party_Transactions_Rel1
Related Party Transactions Related Party Revenue (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Sponsors [Member] | Family Office Services [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | $1.10 | $0.80 | $0.80 |
Accounts and Notes Receivable, Net [Member] | Partners and Shareholders [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due from related parties | 0.08 | 0.5 | 0.5 |
Third party management and other fees [Member] | Sponsors [Member] | Supervisory Fee Revenue [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | 2.8 | 1.9 | 2.1 |
Third party management and other fees [Member] | Sponsors [Member] | Property Management Fee Revenue [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | 1.6 | 1 | 0.9 |
Third party management and other fees [Member] | Sponsors [Member] | Lease Commissions [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | 0 | 0.2 | 0 |
Third party management and other fees [Member] | Equity Method Investee [Member] | Supervisory Fee Revenue [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | 0.6 | 0.8 | 1.2 |
Third party management and other fees [Member] | Equity Method Investee [Member] | Property Management Fee Revenue [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | 0.1 | 1.2 | 0.7 |
Other income and fees [Member] | Sponsors [Member] | Profit Share [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | 3.3 | 0.7 | 0.8 |
Other income and fees [Member] | Sponsors [Member] | Other Fees and Disbursements from Non-Controlled Affiliates [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | 0.02 | 0.6 | 0.9 |
Other income and fees [Member] | Equity Method Investee [Member] | Profit Share [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | 0.4 | 0.9 | 0.9 |
Other income and fees [Member] | Equity Method Investee [Member] | Other Fees and Disbursements from Non-Controlled Affiliates [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | 1.1 | 1.3 | 1.2 |
Due from related parties | 0 | 0.4 | 0.9 |
Other income and fees [Member] | Equity Method Investee [Member] | Other Fees Reimbursed on the Equity Method for Offering Costs Related to Offering [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Revenue from related parties | $1.10 | $1.30 | $1.20 |
Segment_Reporting_Reportable_S
Segment Reporting Reportable Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Oct. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
segment | |||||||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ||
Total revenues | $127,583 | $149,388 | [1] | $62,278 | $59,569 | $62,420 | $83,633 | $59,415 | $57,404 | $59,842 | ' | $206,072 | $260,294 | $294,788 | |
Interest expense | -13,147 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Depreciation and amortization expense | -27,375 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Equity in net income of non-controlled entities | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 14,875 | 14,875 | 14,348 | 3,893 | ||
Segment profit (loss) | 75,245 | 30,731 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Segment assets | 2,476,061 | 2,476,061 | ' | ' | ' | ' | ' | ' | ' | ' | 2,476,061 | ' | ' | ||
Investment in non-controlled entities | 0 | 0 | ' | ' | ' | 76,879 | ' | ' | ' | ' | 0 | 76,879 | 72,626 | ||
Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | -21,671 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,893 | -5,788 | -6,549 | ||
Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 149,234 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 212,813 | 265,982 | 301,300 | ||
Total [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 127,563 | ' | ' | ' | ' | ' | ' | ' | ' | 205,920 | ' | 260,194 | 294,751 | ||
All operating expenses, excluding noncash items | -84,178 | ' | ' | ' | ' | ' | ' | ' | ' | -91,452 | ' | -110,582 | -137,955 | ||
Interest expense | -13,147 | ' | ' | ' | ' | ' | ' | ' | ' | -50,660 | ' | -54,394 | -54,746 | ||
Depreciation and amortization expense | -27,385 | ' | ' | ' | ' | ' | ' | ' | ' | -38,982 | ' | -42,690 | -35,513 | ||
Equity in net income of non-controlled entities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,875 | ' | 14,348 | 3,893 | ||
Segment assets | 2,476,061 | 2,476,061 | ' | ' | ' | 975,674 | ' | ' | ' | 1,033,918 | 2,476,061 | 975,674 | 932,345 | ||
Investment in non-controlled entities | ' | ' | ' | ' | ' | 76,879 | ' | ' | ' | 88,304 | ' | 76,879 | 72,626 | ||
Expenditures for segment assets | 56,434 | ' | ' | ' | ' | ' | ' | ' | ' | 55,950 | ' | 87,659 | 60,582 | ||
Total [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 21,671 | ' | ' | ' | ' | ' | ' | ' | ' | 6,893 | ' | 5,788 | 6,549 | ||
Total [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 149,234 | ' | ' | ' | ' | ' | ' | ' | ' | 212,813 | ' | 265,982 | 301,300 | ||
Segment profit (loss) | 24,524 | ' | ' | ' | ' | ' | ' | ' | ' | 46,594 | ' | 72,664 | 76,979 | ||
Real Estate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 98,564 | ' | ' | ' | ' | ' | ' | ' | ' | 187,284 | ' | 241,292 | 247,191 | ||
All operating expenses, excluding noncash items | -51,643 | ' | ' | ' | ' | ' | ' | ' | ' | -65,628 | ' | -85,848 | -85,833 | ||
Interest expense | -13,147 | ' | ' | ' | ' | ' | ' | ' | ' | -50,660 | ' | -54,394 | -54,746 | ||
Depreciation and amortization expense | -27,376 | ' | ' | ' | ' | ' | ' | ' | ' | -38,963 | ' | -42,661 | -35,481 | ||
Equity in net income of non-controlled entities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,875 | ' | 14,348 | 3,893 | ||
Segment assets | 2,218,143 | 2,218,143 | ' | ' | ' | 964,160 | ' | ' | ' | 1,023,333 | 2,218,143 | 964,160 | 916,617 | ||
Investment in non-controlled entities | ' | ' | ' | ' | ' | 76,879 | ' | ' | ' | 88,304 | ' | 76,879 | 72,626 | ||
Expenditures for segment assets | 56,434 | ' | ' | ' | ' | ' | ' | ' | ' | 55,820 | ' | 87,659 | 60,582 | ||
Real Estate [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 20,134 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | 56 | ' | 74 | 73 | |
Real Estate [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 118,698 | ' | ' | ' | ' | ' | ' | ' | ' | 187,340 | ' | 241,366 | 247,264 | ||
Segment profit (loss) | 26,532 | ' | ' | ' | ' | ' | ' | ' | ' | 46,964 | ' | 72,811 | 75,097 | ||
Observatory [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 23,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
All operating expenses, excluding noncash items | -25,743 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest expense | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Depreciation and amortization expense | -4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment assets | 249,084 | 249,084 | ' | ' | ' | ' | ' | ' | ' | ' | 249,084 | ' | ' | ||
Expenditures for segment assets | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Observatory [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Observatory [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 23,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment profit (loss) | -2,012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 5,264 | ' | ' | ' | ' | ' | ' | ' | ' | 18,636 | ' | 18,902 | 47,560 | ||
All operating expenses, excluding noncash items | -6,792 | ' | ' | ' | ' | ' | ' | ' | ' | -25,824 | ' | -24,734 | -52,122 | ||
Interest expense | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | 0 | ||
Depreciation and amortization expense | -5 | ' | ' | ' | ' | ' | ' | ' | ' | -19 | ' | -29 | -32 | ||
Equity in net income of non-controlled entities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | 0 | ||
Segment assets | 8,834 | 8,834 | ' | ' | ' | 11,514 | ' | ' | ' | 10,585 | 8,834 | 11,514 | 15,728 | ||
Investment in non-controlled entities | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | 0 | 0 | ||
Expenditures for segment assets | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 130 | ' | 0 | 0 | ||
Other [Member] | Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 1,537 | ' | ' | ' | ' | ' | ' | ' | ' | 6,837 | ' | 5,714 | 6,476 | ||
Other [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total revenues | 6,801 | ' | ' | ' | ' | ' | ' | ' | ' | 25,473 | ' | 24,616 | 54,036 | ||
Segment profit (loss) | $4 | ' | ' | ' | ' | ' | ' | ' | ' | ($370) | ' | ($147) | $1,882 | ||
[1] | The results of operations of our predecessor for October 1, 2013 through October 6, 2013 and the results of operations of our company for October 7, 2013 through December 31, 2013 have been combined. | ||||||||||||||
[2] | The observatory pays a market-based rent payment comprised of fixed and percentage rent to the Empire State Building. |
Segment_Reporting_Segment_Reve
Segment Reporting Segment Revenue and Profit or Loss Reconciliation (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Oct. 06, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Oct. 06, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Oct. 06, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Segment Reconciling Items [Member] | Segment Reconciling Items [Member] | Segment Reconciling Items [Member] | Segment Reconciling Items [Member] | Formation transaction expenses [Member] | Formation transaction expenses [Member] | Formation transaction expenses [Member] | Formation transaction expenses [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Intersegment Eliminations [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | Segment Reconciling Items, Unallocated [Member] | ||||||||||||||
Investment Income [Member] | Investment Income [Member] | Investment Income [Member] | Investment Income [Member] | Settlement Expenses [Member] | Settlement Expenses [Member] | Settlement Expenses [Member] | Settlement Expenses [Member] | Aircraft Expenses [Member] | Aircraft Expenses [Member] | Aircraft Expenses [Member] | Aircraft Expenses [Member] | Acquisition Expenses [Member] | Acquisition Expenses [Member] | Acquisition Expenses [Member] | Acquisition Expenses [Member] | Gain on Consolidation of Non-controlling Entities [Member] | Gain on Consolidation of Non-controlling Entities [Member] | Gain on Consolidation of Non-controlling Entities [Member] | Gain on Consolidation of Non-controlling Entities [Member] | ||||||||||||||||||||||||||||||
Reconciliation of Revenue and Profit or Loss from Segments to Consolidated [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total revenues | $127,583 | $149,388 | [1] | $62,278 | $59,569 | $62,420 | $83,633 | $59,415 | $57,404 | $59,842 | $206,072 | $260,294 | $294,788 | $149,234 | $212,813 | $265,982 | $301,300 | $20 | $152 | $100 | $37 | ' | ' | ' | ' | ($21,671) | ($6,893) | ($5,788) | ($6,549) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Profit or loss | 193,431 | 148,917 | [1] | 2,281 | 3,071 | 1,930 | 22,043 | 9,015 | 6,774 | 10,811 | -37,232 | 48,643 | 57,397 | 24,524 | 46,594 | 72,664 | 76,979 | -15,329 | -23,600 | -20,963 | -15,541 | 0 | -4,507 | -2,247 | -2,845 | -207 | -871 | -911 | -959 | 20 | 152 | 100 | 37 | 0 | -55,000 | 0 | 0 | 0 | 0 | 0 | -274 | -138,140 | 0 | 0 | 0 | 322,563 | 0 | 0 | 0 |
Net income attributable to non-controlling interests | -118,186 | -118,186 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Empire State Realty Trust, Inc. | $75,245 | $30,731 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | The results of operations of our predecessor for October 1, 2013 through October 6, 2013 and the results of operations of our company for October 7, 2013 through December 31, 2013 have been combined. |
Summary_of_Quarterly_Financial2
Summary of Quarterly Financial Information (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | $127,583 | $149,388 | [1] | $62,278 | $59,569 | $62,420 | $83,633 | $59,415 | $57,404 | $59,842 | $206,072 | $260,294 | $294,788 |
Net income | 193,431 | 148,917 | [1] | 2,281 | 3,071 | 1,930 | 22,043 | 9,015 | 6,774 | 10,811 | -37,232 | 48,643 | 57,397 |
Net income attributable to non-controlling interests | -118,186 | -118,186 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Empire State Realty Trust, Inc. | $75,245 | $30,731 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic and diluted net income per share attributable to Empire State Realty Trust, Inc. | ' | $790 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | The results of operations of our predecessor for October 1, 2013 through October 6, 2013 and the results of operations of our company for October 7, 2013 through December 31, 2013 have been combined. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 0 Months Ended |
Dec. 31, 2013 | Feb. 21, 2014 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ' | ' |
Dividend declared | $0.09 | $0.09 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Balance At Beginning of Year | $923 | $1,652 | $1,493 |
Additions Charged Against Operations | -448 | 498 | 1,226 |
Uncollectible Accounts Written-Off | 240 | -1,227 | -1,067 |
Balance at End of Year | $715 | $923 | $1,652 |
Schedule_III_Real_Estate_and_A1
Schedule III - Real Estate and Accumulated Depreciation Schedule of Real Estate and Accumulated Depreciation (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | $1,208,112 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 185,657 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 577,219 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 886,547 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 187,566 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 1,461,857 | ' | ' | ' |
Gross Amount, Total | 1,649,423 | 939,330 | 856,151 | 796,008 |
Gross Amount, Accumulated Depreciation | -295,351 | -257,091 | -224,019 | -205,542 |
1333 Broadway, New York, NY [Member] | Office/Retail [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 78,121 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 91,435 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 120,190 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 81 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 91,435 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 120,271 | ' | ' | ' |
Gross Amount, Total | 211,706 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -927 | ' | ' | ' |
1350 Broadway, New York, NY [Member] | Office/Retail [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 56,848 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 0 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 102,518 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 1,345 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 0 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 103,863 | ' | ' | ' |
Gross Amount, Total | 103,863 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -925 | ' | ' | ' |
250 West 57th Street, New York, NY [Member] | Office/Retail [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 57,873 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 2,117 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 5,041 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 67,432 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 2,117 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 72,473 | ' | ' | ' |
Gross Amount, Total | 74,590 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -19,775 | ' | ' | ' |
501 Seventh Avenue, New York, NY [Member] | Office/Retail [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 45,925 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 1,100 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 2,600 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 75,390 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 1,100 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 77,990 | ' | ' | ' |
Gross Amount, Total | 79,090 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -27,227 | ' | ' | ' |
1359 Broadway, New York, NY [Member] | Office/Retail [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 45,023 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 1,233 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 1,809 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 43,532 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 1,233 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 45,341 | ' | ' | ' |
Gross Amount, Total | 46,574 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -15,523 | ' | ' | ' |
350 Fifth Avenue (Empire State Building), New York, NY [Member] | Office/Retail [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 325,000 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 21,551 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 38,934 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 471,196 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 21,551 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 510,130 | ' | ' | ' |
Gross Amount, Total | 531,681 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -35,264 | ' | ' | ' |
One Grand Central Place, New York, NY [Member] | Office/Retail [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 92,989 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 7,240 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 17,490 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 137,599 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 7,240 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 155,089 | ' | ' | ' |
Gross Amount, Total | 162,329 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -57,124 | ' | ' | ' |
First Stamford Place, Stamford, CT [Member] | Office Building [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 245,629 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 22,952 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 122,739 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 36,964 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 24,861 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 157,794 | ' | ' | ' |
Gross Amount, Total | 182,655 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -52,803 | ' | ' | ' |
One Station Place, Stamford, CT (Metro Center) [Member] | Office Building [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 96,158 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 5,313 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 28,602 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 9,860 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 5,313 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 38,462 | ' | ' | ' |
Gross Amount, Total | 43,775 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -23,660 | ' | ' | ' |
383 Main Avenue, Norwalk, CT [Member] | Office Building [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 30,403 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 2,262 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 12,820 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 9,320 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 2,262 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 22,140 | ' | ' | ' |
Gross Amount, Total | 24,402 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -8,573 | ' | ' | ' |
500 Mamaroneck Avenue, Harrison, NY [Member] | Office Building [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 32,620 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 4,571 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 25,915 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 15,385 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 4,571 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 41,300 | ' | ' | ' |
Gross Amount, Total | 45,871 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -15,344 | ' | ' | ' |
10 Bank Street, White Plains, NY [Member] | Office Building [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 33,444 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 5,612 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 31,803 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 8,681 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 5,612 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 40,484 | ' | ' | ' |
Gross Amount, Total | 46,096 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -14,448 | ' | ' | ' |
10 Union Square, New York, NY [Member] | Retail Site [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 20,972 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 5,003 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 12,866 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 1,548 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 5,003 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 14,414 | ' | ' | ' |
Gross Amount, Total | 19,417 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -5,798 | ' | ' | ' |
1542 Third Avenue, New York, NY [Member] | Retail Site [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 19,011 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 2,239 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 15,266 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 102 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 2,239 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 15,368 | ' | ' | ' |
Gross Amount, Total | 17,607 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -5,641 | ' | ' | ' |
1010 Third Avenue, New York, NY and 77 West 55th Street, New York, NY [Member] | Retail Site [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 28,096 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 4,462 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 15,817 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 778 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 4,462 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 16,595 | ' | ' | ' |
Gross Amount, Total | 21,057 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -6,453 | ' | ' | ' |
69-97 Main Street, Westport, CT [Member] | Retail Site [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 0 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 2,782 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 15,766 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 918 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 2,782 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 16,684 | ' | ' | ' |
Gross Amount, Total | 19,466 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -4,543 | ' | ' | ' |
103-107 Main Street, Westport, CT [Member] | Retail Site [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 0 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 1,243 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 7,043 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | -41 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 1,243 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 7,002 | ' | ' | ' |
Gross Amount, Total | 8,245 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | -1,323 | ' | ' | ' |
Property for development at the Transportation Hub, Stamford, CT [Member] | Land [Member] | ' | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Encumbrances | 0 | ' | ' | ' |
Initial Cost to the Company | ' | ' | ' | ' |
Initial Cost to the Company, Land | 4,542 | ' | ' | ' |
Initial Cost to the Company, Building & Leasehold | 0 | ' | ' | ' |
Cost Capitalized Subsequent to Acquisition | ' | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition, Improvements | 6,457 | ' | ' | ' |
Gross Amount at which Carried | ' | ' | ' | ' |
Gross Amount, Land | 4,542 | ' | ' | ' |
Gross Amount, Buildings & Improvements | 6,457 | ' | ' | ' |
Gross Amount, Total | 10,999 | ' | ' | ' |
Gross Amount, Accumulated Depreciation | $0 | ' | ' | ' |
Schedule_III_Real_Estate_and_A2
Schedule III - Real Estate and Accumulated Depreciation Reconciliation of Investment Properties (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | ' | ' | ' |
Balance, beginning of year | $939,330 | $856,151 | $796,008 |
Acquisition of new properties | 607,779 | 0 | 0 |
Improvements | 130,346 | 85,409 | 70,821 |
Distribution of real property to owners prior to the formation transactions | -16,345 | 0 | 0 |
Disposals | -11,687 | -2,230 | -10,678 |
Balance, end of year | 1,649,423 | 939,330 | 856,151 |
Aggregate cost of investment properties for federal income tax purpose | $1,212,869 | ' | ' |
Schedule_III_Real_Estate_and_A3
Schedule III - Real Estate and Accumulated Depreciation Reconciliation of Accumulated Depreciation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | ' | ' | ' |
Balance, beginning of year | $257,091 | $224,019 | $205,542 |
Depreciation expense | 49,947 | 35,302 | 29,155 |
Disposals | -11,687 | -2,230 | -10,678 |
Balance, end of year | $295,351 | $257,091 | $224,019 |
Schedule_III_Real_Estate_and_A4
Schedule III - Real Estate and Accumulated Depreciation Schedule of Estimated Useful Lives of Investment Properties (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Building [Member] | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' |
Life Used for Depreciation | '39 years |
Building Improvements [Member] | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ' |
Life Used for Depreciation | '39 years |